Investment Rating - The investment rating for the company is "Buy" [6][10]. Core Insights - Recent significant increases in copper and fiberglass cloth prices have led the company to issue a price increase notice for its copper-clad laminates, with the frequency of price hikes during the peak season exceeding expectations, validating the positive outlook for the copper-clad laminate and electronic cloth industries driven by AI demand [2][10]. - The company is positioned as a rare integrated player in the industry, with a simultaneous push for product upgrades, which is expected to lead to a dual benefit of price increases and enhanced profitability [10]. Financial Summary - Total revenue projections are as follows: - 2024A: 18,541 million HKD - 2025E: 21,784 million HKD (+11%) - 2026E: 25,080 million HKD (+17%) - 2027E: 28,353 million HKD (+15%) [4]. - Net profit forecasts are: - 2024A: 1,326 million HKD - 2025E: 2,349 million HKD (+77%) - 2026E: 3,123 million HKD (+33%) - 2027E: 3,815 million HKD (+22%) [4]. - The company maintains a target price of 20 HKD [10]. Market Data - The current stock price is 13.18 HKD, with a market capitalization of 41,324 million HKD and a total share count of 3,135 million [7]. - The stock has traded within a range of 6.68 to 13.92 HKD over the past 52 weeks [7]. Industry Context - The company is benefiting from a favorable pricing cycle in the copper-clad laminate market, with multiple price increases already implemented in recent months due to rising costs of raw materials [10]. - The strategic focus on high-end product structures is expected to align with the price increase cycle, enhancing profitability as new products are gradually introduced [10].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [5] Core Insights - The company is a leader in the engineering machinery sector, with a diversified business model that includes concrete machinery, lifting machinery, and agricultural machinery, among others. It has established a strong global presence through overseas manufacturing and strategic acquisitions [3][4] - The domestic engineering machinery market is showing signs of recovery, while international markets present significant growth opportunities. The company is well-positioned to benefit from both domestic and international demand [8][9] - The report forecasts revenue growth for the company, projecting revenues of 53.26 billion, 61.67 billion, and 70.77 billion RMB for 2025, 2026, and 2027, respectively, with corresponding net profits of 4.85 billion, 6.30 billion, and 7.84 billion RMB [4][9] Summary by Sections Company Overview - The company has evolved from the Changsha Construction Machinery Research Institute, officially established in 1992, and has become a successful mixed-ownership enterprise. It has a comprehensive product line covering 15 categories and 745 models, with 29 domestic industrial parks and 10 overseas R&D and manufacturing bases [3][18] - The company has successfully integrated various business segments, including engineering machinery, agricultural machinery, and financial services, creating a multi-faceted business ecosystem [3][24] Market Dynamics - The domestic engineering machinery market is recovering, with signs of stabilization in real estate and infrastructure investments. The report notes that new construction areas in real estate have been declining for six years but are nearing a bottom [8][54] - Infrastructure investment has shown consistent growth, with significant government projects underway, which are expected to drive demand for engineering machinery [59][60] Financial Projections - The company is expected to see revenue growth rates of 17.12%, 15.78%, and 14.77% for the years 2025 to 2027, with net profit growth rates of 37.72%, 29.93%, and 24.46% for the same period [4][9] - The report highlights that the company's valuation is significantly undervalued compared to peers, with projected P/E ratios of 12, 9, and 7 for 2025 to 2027, indicating a potential upside of 57% based on a target market capitalization of 921 billion RMB [9] Competitive Landscape - The company is compared with peers such as Sany Heavy Industry, XCMG, and LiuGong, which have higher average P/E ratios, indicating that the company is undervalued in the current market [9] - The report emphasizes the company's strong international presence, with overseas revenue accounting for over 51% of total revenue by 2024, showcasing its successful global expansion strategy [36][70]

Investment Rating - The report initiates coverage with an "Accumulate" rating for the company [4][10]. Core Insights - The company is a leader in thermal management and is accelerating its globalization process, with its robotics business opening new growth ceilings [3][7]. - The company achieved a total revenue of 24.03 billion RMB in Q3 2025, a year-on-year increase of 17%, and a net profit attributable to shareholders of 3.24 billion RMB, with a growth rate exceeding 40% [7][27]. - The report forecasts net profits of 4.253 billion RMB, 4.650 billion RMB, and 5.099 billion RMB for 2025, 2026, and 2027, respectively, with growth rates of 37.2%, 9.4%, and 9.6% [10][11]. Summary by Sections 1. Globalization and Business Expansion - The company has successfully listed in both A and H shares, enhancing its global competitiveness and financing channels [7][42]. - The company has a strong market position in traditional refrigeration components and automotive thermal management, with significant revenue contributions from both sectors [9][28]. 2. Mature Business: Strong Position in Refrigeration and Automotive Components - The traditional refrigeration business remains robust, contributing 64% of total revenue in H1 2025, while the automotive components business has rapidly increased its share to 36% [28][34]. - The company has maintained a leading market share in key refrigeration components, with electronic expansion valves and microchannel heat exchangers showing significant growth [50][58]. 3. Emerging Business: Energy Storage and Robotics - The energy storage and robotics sectors are expected to drive future growth, with the company leveraging its existing technology to enter these markets [9][12]. - The robotics division has been established to focus on high-value electromechanical actuators, with plans for mass production in collaboration with global clients [9][12]. 4. Financial Forecast and Valuation - The company is projected to achieve revenues of 24.56 billion RMB, 27.95 billion RMB, and 31.91 billion RMB from 2023 to 2025, with corresponding growth rates of 15.0%, 13.8%, and 14.2% [8][10]. - The report estimates a reasonable market capitalization of 1,433 billion RMB, indicating a potential upside of 12.3% from the current H-share market value [10][11].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][7] Core Insights - The company is positioned for high-quality growth driven by its "Land-Sea-Air Interconnection" strategy, with a focus on power, energy storage, and aviation battery sectors. It has achieved significant milestones, including the certification and mass production of aviation-grade power batteries [6][15] - The demand for power and energy storage batteries is expected to rise significantly, supported by the increasing penetration of electric vehicles and the global energy storage market. The company is anticipated to benefit from this demand surge [6][44] - The company has demonstrated strong financial performance, with a revenue of 3.17 billion yuan in the first half of 2025, reflecting a year-on-year growth of 71.9%, and a net profit of 220 million yuan, marking a successful turnaround [6][30] Financial Data and Profit Forecast - Revenue projections for the company are as follows: - 2023: 4.16 billion yuan - 2024: 5.13 billion yuan - 2025E: 7.94 billion yuan - 2026E: 12.98 billion yuan - 2027E: 18.04 billion yuan - The expected growth rates are 26.48% for 2023, 23.28% for 2024, and 54.78% for 2025 [5] - The net profit attributable to ordinary shareholders is projected to be: - 2023: -590 million yuan - 2024: 91 million yuan - 2025: 537 million yuan - 2026: 1.21 billion yuan - 2027: 1.84 billion yuan [5] Market Dynamics - The global demand for energy storage batteries is expected to grow from 530 GWh in 2025 to 1,343 GWh by 2028, becoming a new engine for lithium battery demand [6][49] - The company is expected to increase its market share and benefit from the recovery of the industry and its technological advantages, leading to improved profitability [6][44] Strategic Focus - The company has established a robust governance structure and a stable ownership model, which supports its long-term development. The management team has extensive industry experience and international management capabilities [6][24][28] - The company has a clear product strategy, focusing on high energy density and safety in its battery offerings, which positions it well in the competitive landscape [6][18][21]

Investment Rating - The report initiates coverage with a "Buy" rating for the company, targeting a market value of 48.7 billion RMB [6][5]. Core Insights - The company is positioned as a leader in AI4S (Artificial Intelligence for Science), with significant growth potential in drug discovery and new materials [5][51]. - Revenue is expected to grow substantially, with projections of 795 million RMB in 2025, representing a year-on-year increase of 198% [6][5]. - The company has established a strong partnership with DoveTree, securing a strategic collaboration worth 5.99 billion USD, which includes an upfront payment of 51 million USD [7][5]. Financial Data and Profit Forecast - Revenue for the years 2023 to 2025 is projected to be 174 million RMB, 266 million RMB, and 795 million RMB, with corresponding growth rates of 30.8%, 52.75%, and 198.39% [4][6]. - The adjusted net profit is forecasted to transition from a loss of 522 million RMB in 2023 to a profit of 309 million RMB by 2027, indicating a significant turnaround [4][6]. - The company’s price-to-sales (PS) ratios for 2025 to 2027 are estimated at 47x, 38x, and 26x, respectively, with a target PS of 49x for 2026 [6][5]. Business Model and Technological Edge - The company utilizes a comprehensive approach combining quantum physics, AI, and robotics to enhance drug discovery processes, covering the entire lifecycle from drug design to clinical trials [23][5]. - The core technology includes high-precision virtual data generation through quantum physics, which addresses data scarcity in AI drug research [23][5]. - The company has a unique capability to integrate both dry and wet lab experiments, enhancing research efficiency and data accumulation for model optimization [5][51]. Market Position and Competitive Advantage - The company is recognized for its strong technical capabilities and has a competitive edge in the AI pharmaceutical sector, with a focus on both drug discovery and new materials [5][51]. - The market for AI4S is projected to reach nearly 50 billion USD, highlighting the expansive potential for the company's technology in both pharmaceutical and materials research [5][51]. - The report emphasizes the strong migration potential of the underlying technology from drug discovery to new materials, leveraging similar physical principles [51][5].

Investment Rating - The report assigns a "Buy" rating for JD Industrial (07618) as a first-time coverage [1]. Core Insights - JD Industrial is a leading provider of industrial supply chain technology and services in China, having established a comprehensive digital infrastructure for end-to-end supply chain solutions. By 2024, it is projected to become the largest player in the MRO procurement market in China, serving over 11,100 key enterprise clients and offering approximately 81.1 million SKUs from around 158,000 suppliers [5][18]. - The company is expected to achieve a revenue of CNY 20.4 billion in 2024, with a compound annual growth rate (CAGR) of 25.4% from 2021 to 2024. The adjusted net profit is forecasted to reach CNY 909 million, with a CAGR of 21.9% during the same period [4][25]. - The Chinese industrial supply chain market is the largest globally, with a market size of CNY 11.4 trillion in 2024, but the digital penetration is only 6.2%, significantly lower than the 15% in the U.S. [5][50]. - JD Industrial's market share in the domestic industrial supply chain technology and services market is 4.1%, while its share in the MRO procurement market is only 0.8%, indicating substantial growth potential [5][59]. Financial Data and Profit Forecast - Revenue and profit forecasts for JD Industrial from 2023 to 2027 are as follows: - Revenue: CNY 17.34 billion (2023), CNY 20.40 billion (2024), CNY 24.49 billion (2025E), CNY 29.91 billion (2026E), CNY 35.96 billion (2027E) [4]. - Adjusted net profit: CNY 818 million (2023), CNY 909 million (2024), CNY 1.10 billion (2025E), CNY 1.74 billion (2026E), CNY 2.30 billion (2027E) [4]. - The expected price-to-earnings (PE) ratios are 41 (2023), 36 (2024), 30 (2025E), 19 (2026E), and 14 (2027E) [4]. Industry Overview - The industrial supply chain market in China is characterized by its vast size and the early stage of digital transformation. The MRO procurement market is projected to reach CNY 3.7 trillion in 2024, with a CAGR of 6.1% from 2019 to 2024 [5][55]. - The market is highly fragmented, with JD Industrial being a key player. The company is positioned to benefit from the ongoing digitalization trends, which are expected to accelerate market consolidation [5][58]. - The report highlights that the U.S. leading MRO companies have consistently outperformed the growth of the manufacturing value added, indicating a potential for similar trends in China as the market matures [5][8].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][7]. Core Insights - The company is positioned as a leader in AI for drug discovery and has significant growth potential, with a projected market value of 487 billion RMB [6][7]. - Revenue is expected to grow substantially, with estimates of 795 million RMB, 985 million RMB, and 1.421 billion RMB for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 198%, 24%, and 44% [6][7]. - The company has established a comprehensive technology platform that integrates physical computing, AI, and automation in drug research and development [6][27]. Financial Data and Profit Forecast - Revenue projections for 2023 to 2027 are as follows: 174 million RMB, 266 million RMB, 795 million RMB, 985 million RMB, and 1.421 billion RMB, with corresponding growth rates of 30.80%, 52.75%, 198.39%, 23.92%, and 44.21% [5][6]. - The adjusted net profit is forecasted to be -522 million RMB, -457 million RMB, -23 million RMB, 75 million RMB, and 309 million RMB for the years 2023 to 2027, indicating a significant turnaround by 2025 [5][6]. - The company’s price-to-sales ratio (PS) is projected to be 47x, 38x, and 26x for 2025, 2026, and 2027 respectively, with a target PS of 49x for 2026 based on comparable companies [6][7]. Business Model and Market Position - The company focuses on drug discovery solutions as its core business, with significant revenue contributions from both drug discovery and automation solutions [6][31]. - The company has secured a major partnership with DoveTree, valued at 59.9 billion USD, which includes an upfront payment of 51 million USD [6][8]. - The technology is highly transferable, with applications extending beyond pharmaceuticals to new materials, indicating a potential market space of nearly 50 billion USD in the long term [9][58]. Technological Advancements - The company utilizes a combination of quantum physics, AI, and automation to enhance drug discovery processes, significantly reducing the time and cost associated with traditional methods [6][55]. - The integration of AI in drug development has been shown to cut research timelines by nearly half, as evidenced by various case studies [44][45]. - The company’s capabilities in both dry and wet lab environments provide a competitive edge in the AI-driven drug discovery landscape [6][27].

Investment Rating - The report maintains a "Buy" rating for the company [2][6]. Core Insights - The approval of the CSF-1R inhibitor, Pimitinib, by the Chinese regulatory authority marks the beginning of a new commercialization journey for the company. This drug is the first self-developed new drug and will be commercialized by Merck [6]. - Pimitinib has shown best-in-class overall response rates (ORR) in clinical trials, with a significant increase from 54% to 76.2% in ORR during a median follow-up of 14.3 months [6]. - The company has multiple ongoing pipeline projects, including the approval of IND for the oral KRAS G12D inhibitor and the completion of the first patient dosing in a clinical trial for the FGFR2/3 inhibitor [6]. Financial Data and Profit Forecast - Revenue projections for the company are as follows: - 2023: 19 million - 2024: 504 million - 2025E: 612 million - 2026E: 756 million - 2027E: 627 million - The net profit attributable to ordinary shareholders is expected to be: - 2023: -432 million - 2024: 28 million - 2025E: 63 million - 2026E: 151 million - 2027E: 133 million - The projected earnings per share (EPS) are: - 2023: -0.67 - 2024: 0.04 - 2025E: 0.09 - 2026E: 0.22 - 2027E: 0.20 [3][7].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside in the stock price [5][6]. Core Insights - The completion of the Zeekr privatization is expected to enhance operational efficiency, with anticipated reductions in R&D and BOM costs, and improvements in capacity utilization [6][8]. - The company is accelerating its electrification strategy, with a significant increase in sales of new energy vehicles, which accounted for 55% of total sales in 2025 [8]. - The company plans to launch multiple new models in 2026, targeting various price segments, which is expected to drive sales growth [6][7]. Financial Summary - The company forecasts net profits of RMB 170.6 billion, RMB 218.5 billion, and RMB 281.8 billion for the years 2025, 2026, and 2027, respectively, with year-over-year growth rates of +80%, +28%, and +29% [6][10]. - Earnings per share (EPS) are projected to be RMB 1.59, RMB 2.04, and RMB 2.62 for the same years, with corresponding price-to-earnings (P/E) ratios of 9.6, 7.5, and 5.8 [6][10]. - The company plans to repurchase shares worth up to HKD 2.3 billion, which is expected to support the stock price [6][8].

Investment Rating - The report upgrades the investment rating of Baidu Group to "Buy" with a target price of HKD 172.54 per share, indicating an upside potential of 44% [6][2]. Core Insights - Baidu is positioned to benefit from the accelerating demand for AI cloud services, with significant growth in its intelligent cloud business and advancements in its Kunlun chip technology [5][8]. - The company has achieved a market-leading position in AI large model solutions, capturing a 16.6% market share in the first half of 2025 [8][38]. - The report anticipates Baidu's overall revenue for 2025-2027 to be RMB 1285 billion, RMB 1331 billion, and RMB 1410 billion, respectively, with corresponding growth rates of -3%, 4%, and 6% [7][6]. Financial Data and Profit Forecast - Revenue projections for Baidu Group are as follows: - 2023: RMB 1346 billion - 2024: RMB 1331 billion - 2025E: RMB 1285 billion - 2026E: RMB 1331 billion - 2027E: RMB 1410 billion - Non-GAAP net profit estimates are: - 2023: RMB 287 billion - 2024: RMB 270 billion - 2025E: RMB 176 billion - 2026E: RMB 203 billion - 2027E: RMB 220 billion - Adjusted earnings per share are projected to be: - 2023: RMB 10.28 - 2024: RMB 9.65 - 2025E: RMB 6.31 - 2026E: RMB 7.27 - 2027E: RMB 7.87 [4][7]. Industry Overview - The AI cloud market is experiencing rapid growth, with major players like Alibaba and Tencent increasing their capital expenditures significantly since Q3 2024, indicating a competitive landscape [5][14]. - Baidu's intelligent cloud revenue reached RMB 62 billion in Q3 2025, with a year-on-year growth of 31%, contributing to 37% of Baidu's core revenue [28][32]. - The report highlights that Baidu's full-stack AI capabilities, including its self-developed Kunlun chips and comprehensive AI solutions, provide a competitive edge in the market [8][46]. Product Development and Market Position - Baidu's Kunlun chip series is set to expand with the launch of M100 and M300 chips, aimed at enhancing performance for large-scale AI model training and inference [49][50]. - The company has established a strong presence in various sectors, including internet, finance, and energy, with significant deployments of its AI solutions [54][55]. - Baidu's AI applications, such as its intelligent agents and cloud services, are gaining traction, with a total monthly active users (MAU) of nearly 300 million for its core applications [38][8].