Investment Rating - The report maintains a "Buy" rating for 康方生物 (9926 HK) with a target price of HKD 115, indicating a potential upside of 16.3% from the current price of HKD 98.90 [7]. Core Insights - 康方生物's application for the PD-L1 positive NSCLC indication for its drug 依沃西 has been approved in mainland China earlier than expected, just 9 months after submission [1]. - The initial overall survival (OS) interim analysis from the HARMONi-2 study shows a hazard ratio (HR) of 0.777, indicating a 22.3% reduction in the risk of death, although it has not yet reached statistical significance [1]. - The report expresses optimism regarding the overseas development of 依沃西, particularly the ongoing HARMONi-7 study, which is expected to have a higher probability of achieving significant results due to a larger sample size and a focus on patients with higher PD-L1 expression [1]. Summary by Sections Approval and Clinical Data - The approval of 依沃西 for PD-L1 positive NSCLC in mainland China reflects regulatory confidence in the clinical benefits observed [1]. - The interim analysis of the HARMONi-2 study is based on a sample size of 398, with a low alpha allocation value of 0.0001, suggesting that the results may improve as more data matures [1][2]. Market Potential - The report forecasts peak sales of 61 billion RMB in mainland China and 5.7 billion USD overseas for 依沃西, highlighting its significant commercial potential [1]. - The upcoming data readout from the global Phase III HARMONi study for 2L EGFR+ NSCLC is anticipated to be a key event for investors [1]. Pipeline Developments - The report notes that the first clinical-stage antibody-drug conjugate (ADC) targeting HER3 has commenced enrollment in Australia, and a second ADC targeting TROP-2/Nectin-4 has received FDA clinical approval [1].

Investment Rating - The report assigns a "Buy" rating for China Ping An Insurance (2318 HK) with a target price of HKD 60.00, indicating a potential upside of 30.6% from the current price of HKD 45.95 [1][10]. Core Insights - The report highlights stable growth in operating profit attributable to the parent company, with new business value growth exceeding expectations. The operating profit after tax (OPAT) for Q1 2025 increased by 2.4% year-on-year, primarily driven by the life and health insurance segments [5]. - The new business value for Q1 2025 surged by 34.9% year-on-year, with significant contributions from various channels, particularly the bancassurance and community finance channels, which grew by 170.8% and 171.3% respectively [5]. - The comprehensive cost ratio for the property and casualty insurance segment improved significantly, with a year-on-year reduction of 3 percentage points to 96.6% [5]. - Investment income remained stable, with a year-to-date growth of 3.3% in investment assets and an annualized comprehensive investment return of 1.3% [5]. - The solvency ratio for the life insurance segment was robust at 163.7%, reflecting a 47.3 percentage point increase from the end of 2024 [5]. Financial Overview - Revenue projections for China Ping An Insurance show a steady increase from RMB 913,789 million in 2023 to RMB 1,153,545 million by 2027, with a compound annual growth rate (CAGR) of approximately 4.4% [4][11]. - Net profit is expected to fluctuate, with a forecast of RMB 120,657 million for 2025, down from RMB 126,607 million in 2024, but projected to rise to RMB 130,993 million by 2027 [4][11]. - The earnings per share (EPS) is projected to be RMB 6.63 in 2025, with a gradual increase to RMB 7.19 by 2027 [4][11]. - The price-to-earnings (P/E) ratio is forecasted to decrease from 9.2 in 2023 to 6.0 by 2027, indicating an attractive valuation [4][11]. Business Segment Performance - The life and health insurance segment is expected to see a slight recovery in premium income growth, with a forecasted increase of 1.0% in 2025 [6]. - The property and casualty insurance segment is projected to maintain a growth rate of 6.5% in premium income for 2025 [6]. - The new business value rate is anticipated to stabilize around 25.6% for 2025, reflecting a slight decrease from previous estimates [7]. Conclusion - The report maintains a positive outlook on China Ping An Insurance, emphasizing its strong market position, diversified business model, and potential for growth in new business value, supported by a solid financial foundation and attractive valuation metrics [5][11].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [4]. Core Insights - The company is expected to experience significant revenue growth driven by its AI Agent initiatives, with projected revenues of 2.335 billion, 2.962 billion, and 3.684 billion CNY for 2025, 2026, and 2027 respectively [4]. - The company is positioned as a leading player in the marketing and sales SaaS sector, with a strong growth trajectory and a competitive edge in the market [5][6]. Summary by Sections 1. Company Overview - The company, established in 2009, is a global leader in marketing and sales SaaS platforms, having launched key products like T Cloud and Zhenke, serving over 200,000 enterprises across various industries [5][17]. 2. Market Potential - The marketing and sales SaaS market in China is projected to grow from 206 billion CNY in 2022 to 745 billion CNY by 2027, with a compound annual growth rate (CAGR) of 29.3% [6][50]. - The company holds a market share of 2.6% in the marketing and sales SaaS sector, making it the largest provider in this space [55][56]. 3. AI Integration - The company is embracing AI Agent technology, which is expected to revolutionize the SaaS industry by shifting value assessment from software usage to business outcomes [7][70]. - AI Agent is anticipated to enhance the company's service offerings, with the market for AI Agents projected to reach 3.3 trillion CNY by 2028 [77][82]. 4. Financial Projections - Revenue is expected to grow significantly, with a forecasted increase from 1.232 billion CNY in 2023 to 2.334 billion CNY in 2025, reflecting a year-over-year growth of 49.8% [9]. - The company is projected to achieve profitability by 2026, with net profits expected to reach 147.9 million CNY [9]. 5. Competitive Advantages - The company benefits from a stable ownership structure and an experienced management team, which is crucial for navigating the competitive landscape [41][45]. - The T Cloud and Zhenke products are designed to enhance marketing efficiency and sales process management, respectively, catering to both SMB and KA markets [58][62].

Investment Rating - The report maintains a "Buy" rating for China Pacific Insurance (2601 HK) with a target price of HKD 32.00, indicating a potential upside of 48.5% from the current price of HKD 21.55 [6][10][11]. Core Insights - The report highlights a decline in net profit for Q1 2025, down 18.1% year-on-year, primarily due to a 15% decrease in investment income. However, new business value has shown strong growth, increasing by 11.3% year-on-year [6][12]. - The life insurance premium growth is driven mainly by the bancassurance channel, with a significant increase in participating insurance's share of new business premiums [6][12]. - The report notes improvements in the comprehensive cost ratio for property and casualty insurance, with a slight decrease of 0.6 percentage points year-on-year [6][12]. Financial Overview - Revenue projections for China Pacific Insurance are as follows: - 2023: RMB 323,945 million - 2024: RMB 404,089 million - 2025E: RMB 421,651 million - 2026E: RMB 444,268 million - 2027E: RMB 465,683 million - The year-on-year growth rates are projected at -2.5% for 2023, 24.7% for 2024, and 4.3% for 2025E [5][12][13]. - Net profit estimates are: - 2023: RMB 27,257 million - 2024: RMB 44,960 million - 2025E: RMB 41,651 million - 2026E: RMB 44,083 million - 2027E: RMB 46,176 million - The year-on-year growth rates show a decline of 27.1% in 2023, followed by a recovery of 64.9% in 2024, and a projected decrease of 7.4% in 2025E [5][12][13]. Business Performance - The new business value for 2025E is projected at RMB 14,572 million, with a year-on-year growth rate of 9.9% [7][8][12]. - The report indicates that the number of agents has increased to 188,000, reflecting a 1.1% year-on-year growth, and the retention rate for new agents has improved by 4.8 percentage points [6][12]. - The investment assets are expected to grow by 13.3% in 2025E, reaching RMB 3,097,498 million [13].

Investment Rating - The report does not explicitly state an investment rating for XPeng [1]. Core Views - XPeng has launched the "Intelligent Driving Insurance" priced at RMB 239 per year, offering a maximum coverage of RMB 1 million, which covers incidents occurring within five seconds after exiting smart driving mode [10][11]. - This insurance is a supplementary protection for intelligent driving features, not a replacement for mandatory or commercial auto insurance, and it reflects XPeng's confidence in its technology and commitment to user safety [12][13]. - The introduction of this insurance product is seen as a significant enhancement to current L2+ products, aimed at boosting consumer confidence and supporting sales conversion amid growing market demand for advanced assisted driving technologies [13]. Summary by Sections Event - On April 28, 2025, XPeng officially launched the "Intelligent Driving Insurance," which is available for all XPeng vehicle owners and covers both new and existing customers [10]. Commentary - The insurance service is jointly offered with five insurers, including PICC, and is available exclusively through XPeng's official partner channels [11]. - The coverage period for driving functions extends from activation until five seconds after deactivation, while for parking functions, it ends immediately upon deactivation [11]. Positioning - The insurance is positioned as a supplement to traditional auto insurance, specifically designed to cover scenarios that occur within five seconds after the system exits, marking an industry innovation [12]. - This initiative is expected to create a competitive advantage for XPeng in the intelligent driving market, similar to extended warranties for battery packs [13].

Investment Rating - The report maintains a "Buy" rating for Baidu Group-SW (9888.HK) with a target price of 128.7 HKD, compared to the current price of 87.60 HKD [4]. Core Insights - Baidu Group's total revenue for Q1 2025 is expected to decline by 1.5% year-on-year to 31.04 billion RMB, while core revenue is projected to grow by 1.4% to 24.14 billion RMB. The core non-GAAP operating profit is anticipated to be 4.6 billion RMB, a decrease of 17.6% year-on-year, with an operating margin of 19.1% [1][2]. - The online marketing business is expected to face continued pressure, with a projected 6.0% decline in online marketing services revenue to 15.98 billion RMB in Q1 2025. However, improvements are anticipated in the first half of 2025 as macroeconomic conditions recover [1][2]. - Non-online marketing revenue is expected to grow significantly, driven by AI and cloud services, with a projected 20.1% year-on-year increase to 8.16 billion RMB in Q1 2025 [1][2]. Summary by Sections Online Marketing Business - The online marketing services revenue is projected to decline by 6.0% to 15.98 billion RMB in Q1 2025, primarily due to insufficient recovery in macroeconomic conditions and weak demand from advertisers [1]. - Baidu is focusing on enhancing AI content quality in search, which is expected to improve user experience and drive commercial growth in the medium term [1]. Non-Online Marketing Business - The non-online marketing business is expected to see a robust growth of 20.1% year-on-year, reaching 8.16 billion RMB in Q1 2025, driven by strong demand for AI-related cloud services [1][2]. - Baidu's cloud business is anticipated to maintain rapid growth, with significant bidding activity in the AI market, positioning it as a leader among domestic large model vendors [1][2]. Financial Forecasts - The report forecasts a decline in non-GAAP net profit for 2025 to 25.1 billion RMB, reflecting a decrease of 7.05% year-on-year. The target price remains at 128.7 HKD, with a valuation multiple of 10.0x PE for advertising and cloud services [2][3][4].

Investment Rating - The report assigns an IPO specific rating of 4.8 to the company, based on various criteria [5][7]. Core Insights - The company, Boleton, is a leading provider of electric engineering machinery in China, with significant revenue growth projected but still operating at a loss [1][3]. - The electric wide-body dump trucks and electric loaders are the primary revenue sources, with expected revenues of 3.7 billion and 2.2 billion RMB respectively in 2024 [1]. - The engineering machinery industry is experiencing rapid growth, with the market size for electric engineering machinery expected to increase significantly from 235 billion RMB in 2020 to 540 billion RMB in 2024, reflecting a compound annual growth rate (CAGR) of 23.2% [2]. Company Overview - Boleton's revenue is projected to grow from 360 million RMB in 2022 to 640 million RMB in 2024, while net losses are expected to increase from 180 million RMB to 270 million RMB during the same period [1]. - The company ranks third and seventh in the market share for electric wide-body dump trucks and electric loaders, respectively, with market shares of 18.3% and 3.8% [1]. - Boleton has achieved a compound annual growth rate of 128.1% in electric wide-body dump truck shipments and 17.5% in electric loader shipments from 2022 to 2024 [1]. Industry Status and Outlook - The engineering machinery industry in China is projected to grow from 182.7 billion RMB in 2024 to 336.0 billion RMB by 2029, with a CAGR of 13.0% [2]. - The electric engineering machinery sector is becoming mainstream, with technology development reaching maturity [2]. Advantages and Opportunities - Boleton is recognized as a pioneer in the Chinese electric engineering machinery industry, being the first to receive national certification for its electric loaders [3]. - The company has developed proprietary technologies through advanced engineering methods, holding 131 authorized patents and 82 pending patent applications as of the end of 2024 [3].

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company demonstrates strong performance growth with improved operational efficiency and increased cash reserves, leading to a higher dividend payout ratio [2][3] - The main business segments, property management and community value-added services, show steady growth, contributing to 86% of total revenue [2] - The company has optimized its managed projects, enhancing operational efficiency and improving gross profit margins [3] - The company is backed by China Overseas Development and China State Construction Group, providing a rich resource for property management projects [4] Summary by Relevant Sections Financial Performance - In 2024, the company is projected to achieve revenue of 14 billion HKD, a year-on-year increase of 7.5%, with a gross profit of 2.33 billion HKD, up 12.4%, and a net profit attributable to shareholders of 1.51 billion HKD, reflecting a 12.5% increase [1] - The company plans to distribute a total dividend of 0.18 HKD per share for the year, a 29% increase compared to the previous year [1] Operational Efficiency - By the end of 2024, the company will manage an area of 430 million square meters, with new contracts signed for 74.1 million square meters, 63.3% of which comes from third parties [3] - The company has exited 44.5 million square meters of loss-making projects, optimizing its business structure and enhancing operational efficiency [3] Cash Flow and Dividends - As of the end of 2024, the company has cash and bank balances of 5.8 billion HKD, an increase of 13.1% from the previous year [3] - The dividend payout ratio for 2024 is set at 36.3%, an increase of 4.5 percentage points year-on-year [3] Profit Forecast and Valuation - The company’s net profit forecasts for 2025 and 2026 have been adjusted to 1.68 billion HKD and 1.87 billion HKD, respectively, with a new forecast for 2027 set at 2.04 billion HKD [4] - The projected price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are 10, 9, and 8 times, respectively, indicating strong valuation attractiveness [4]

Investment Rating - The report assigns a "Buy" rating to BYD Company Limited (1211 HK) with a target price of HKD 503.25, indicating a potential upside of 26.8% from the current closing price of HKD 397.00 [1][10]. Core Insights - BYD's Q1 2025 performance was significantly boosted by strong export growth, with revenue reaching RMB 70.4 billion, a year-on-year increase of 36% [2]. - The company's net profit for Q1 2025 doubled year-on-year to RMB 9.2 billion, with a notable increase in vehicle sales, achieving 1 million units sold, a 60% increase year-on-year [2][7]. - The report highlights BYD's competitive advantage through vertical integration in its supply chain, which has helped maintain a gross margin of 24% despite being in a traditionally weaker sales season [2][7]. Financial Overview - Revenue projections for BYD are as follows: RMB 602.3 billion in 2023, RMB 777.1 billion in 2024, and RMB 977.2 billion in 2025, reflecting a year-on-year growth rate of 42.0%, 29.0%, and 25.8% respectively [6]. - Net profit is expected to grow from RMB 30.0 billion in 2023 to RMB 52.5 billion in 2025, with earnings per share projected to increase from RMB 13.33 to RMB 23.28 over the same period [6]. - The report anticipates that BYD's vehicle sales will reach 5.23 million units in 2025, representing a 23% year-on-year increase, driven by strong export performance and advancements in intelligent driving technology [7]. Market Position and Strategy - BYD is actively expanding its overseas presence, with plans to achieve 800,000 units in overseas sales by 2025, effectively doubling its export volume [7]. - The company is focusing on making advanced driving technology more accessible across its vehicle range, aiming for over 60% of its models to feature high-level autonomous driving systems by 2025 [7]. - The report emphasizes that BYD's strong export growth is expected to enhance its average selling price and gross margin, while its efforts in intelligent driving will solidify its market position in China [7].

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4]. Core Insights - In 2024, the company achieved a revenue of 1.346 billion (up 23.1%) and a net profit of 274 million (up 50.4%), driven by increased demand for orthopedic products and effective cost management [10][4]. - The company is focusing on expanding its overseas market presence and has seen significant growth in its international revenue, which reached 274 million (up 20.8%), accounting for 20.4% of total revenue [15][4]. - The company is leveraging its 3D printing technology and digital orthopedic solutions to create a comprehensive ecosystem, enhancing its competitive edge in the market [24][23]. Revenue and Profitability - The revenue from hip joint implants was 729 million (up 23.5%), and knee joint implants generated 405 million (up 30.1%) in 2024, indicating a strong recovery in surgical volumes [15][2]. - The gross profit margin for 2024 was 60.0%, with a net profit margin of 20.3%, reflecting effective cost control measures [20][3]. - The company has maintained a focus on research and development, with a R&D expense ratio of 10.3%, while also managing other expenses effectively [20][3]. Financial Forecasts - The company has slightly adjusted its profit forecasts for 2025-2026, now expecting net profits of 334 million, 404 million, and 484 million for 2025, 2026, and 2027 respectively, with growth rates of 21.9%, 20.8%, and 20.0% [4][5]. - The current price-to-earnings (PE) ratios are projected to be 19.2, 15.9, and 13.2 for 2025, 2026, and 2027 respectively, indicating a favorable valuation compared to historical performance [4][5]. Market Position and Strategy - The company is recognized as a leader in the orthopedic market, being the first in China to commercialize 3D printing technology for joint implants, which strengthens its market position [24][4]. - The strategic focus on digital orthopedic solutions and international expansion is expected to drive future growth, with the company successfully entering new markets [24][15].