Investment Rating - The report assigns a "Buy" rating to the company 康方生物 (9926 HK) with a target price of HKD 115.00, indicating a potential upside of 30.1% from the current price of HKD 88.40 [1][7][13]. Core Insights - The success of the second head-to-head Phase III trial for the drug 依沃西 (Ivosidenib) has validated its competitive advantage in the lung cancer treatment market compared to PD-(L)1 monotherapy. The trial achieved significant benefits in progression-free survival (PFS) [7]. - The company has received approval for its first autoimmune product, 依若奇单抗 (Ilumya), which is expected to generate peak sales of approximately RMB 1 billion due to its advantages over competitors in treating moderate to severe plaque psoriasis [7]. - The revenue forecasts for 2025-2027 have been adjusted upwards by 0-6%, with peak sales estimates for 依沃西 in mainland China and overseas raised to RMB 6.1 billion and USD 5.7 billion, respectively [7]. Financial Overview - Revenue projections for 康方生物 are as follows: RMB 4,095 million in 2025, RMB 6,091 million in 2026, and RMB 8,680 million in 2027, reflecting growth rates of 92.8%, 48.8%, and 42.5% respectively [6][15]. - The net profit is expected to recover from a loss of RMB 446 million in 2024 to RMB 629 million in 2025, and further increase to RMB 1,982 million in 2026 and RMB 3,557 million in 2027 [6][15]. - The company’s market capitalization is approximately HKD 79.17 billion, with a year-to-date stock price increase of 45.63% [4][6]. Valuation Metrics - The price-to-earnings (P/E) ratio is projected to be 112.8x in 2025, decreasing to 35.8x in 2026 and further to 19.9x in 2027, indicating improving profitability [6][8]. - The book value per share is expected to rise from RMB 5.58 in 2023 to RMB 14.58 in 2027, with a corresponding decrease in the price-to-book (P/B) ratio from 14.94x to 5.72x [6][8].

Investment Rating - The report maintains an "Outperform" rating for the company, indicating a relative strength compared to market performance [2][6][16]. Core Views - The company is expected to stabilize its main business in 2025 after a period of store closures and efficiency improvements, with a focus on new products and channels [6][7]. - The company reported a revenue of 2.451 billion RMB for 2024, a decrease of 10.7% year-on-year, and a net profit of 98 million RMB, down 15% year-on-year, aligning with market expectations [6][7]. - The company plans to optimize its store count, with a reduction of 20.6% in the number of stores by the end of 2024, which is expected to enhance operational efficiency [6][7]. Financial Data and Profit Forecast - Revenue projections for the company are as follows: - 2023: 2,744 million RMB - 2024: 2,451 million RMB - 2025E: 2,396 million RMB - 2026E: 2,523 million RMB - 2027E: 2,767 million RMB - The expected growth rates for revenue are -11% in 2024, -2% in 2025, 5% in 2026, and 10% in 2027 [5][6]. - Net profit forecasts are: - 2023: 116 million RMB - 2024: 98 million RMB - 2025E: 137 million RMB - 2026E: 163 million RMB - 2027E: 191 million RMB - The projected net profit growth rates are 357% in 2023, -15% in 2024, 40% in 2025, 19% in 2026, and 17% in 2027 [5][6][7]. Market Data - As of April 22, 2025, the closing price of the company's stock is 2.53 HKD, with a market capitalization of 54.64 billion HKD [2][6]. - The stock has experienced a price change of -16% over the past year compared to the HSCEI index, which has increased by 34% [3][6].

Investment Rating - The report initiates coverage on Viva Biotech (1873.HK) with a "Buy" rating and a target price of HKD 3.5, indicating a potential upside of 133% from the current price of HKD 1.5 [1]. Core Insights - Viva Biotech is positioned as a leader in the structure-based drug discovery (SBDD) market and is expanding into the Contract Development and Manufacturing Organization (CDMO) sector, creating a comprehensive R&D and production platform [8][9]. - The company has integrated AI technology into its operations, enhancing its drug discovery capabilities and creating new market opportunities [12][59]. - The introduction of strategic investors has significantly improved the company's valuation, with a notable focus on its low valuation compared to historical levels [17][18]. Summary by Sections Company Overview - Viva Biotech, founded in 2008 and listed in 2019, specializes in SBDD and offers a range of advanced technologies for drug discovery [8]. - The company has established a strong position in the CRO market, serving over 1,568 clients, including major pharmaceutical companies [28]. Business Strategy - The acquisition of Langhua Pharmaceutical in 2020 marked Viva's entry into the CDMO sector, allowing it to provide end-to-end services from drug development to commercialization [9][59]. - The company plans to expand its production capacity by 400 cubic meters between 2024 and 2025 to support new drug commercialization [9]. Financial Projections - Revenue is projected to grow from RMB 1,987 million in 2024 to RMB 3,355 million by 2028, with a compound annual growth rate (CAGR) of approximately 14% [2]. - Net profit is expected to increase significantly, from a loss of RMB 100 million in 2023 to RMB 471 million by 2028, reflecting a strong recovery trajectory [2]. Market Position - The global CRO market is anticipated to reach USD 147.7 billion by 2030, with a CAGR of 8.7%, while the CDMO market is projected to grow to USD 231 billion, highlighting significant growth opportunities for Viva Biotech [22][59]. - The report emphasizes the company's unique "service + investment" model, which combines immediate cash flow from CRO services with long-term gains from investments in biotech startups [9]. Competitive Landscape - Viva Biotech's valuation metrics, such as a 24 PE ratio for its CRO business, indicate a favorable investment opportunity compared to peers [3]. - The company has a competitive edge through its advanced technology platforms and a strong focus on AI-driven drug discovery, setting it apart from competitors in the industry [12][59].

Investment Rating - The investment rating for Xiaomi Group is "Buy" [1] Core Views - The report anticipates that Xiaomi's automotive deliveries will exceed market expectations, predicting 848,000 units by 2026, with the YU7 model contributing 360,000 units [1] - The adjusted net profit forecasts for 2025 and 2026 are 356.6 billion CNY and 469.5 billion CNY, respectively, which are 16% and 31% higher than Bloomberg consensus [1] - The automotive business is expected to enhance Xiaomi's profit margins and expand its ecosystem barriers, driving a surge in dealer store openings [1][6] Summary by Sections Automotive Business Impact - Xiaomi's automotive business is projected to achieve profitability in 2025, with adjusted profits exceeding 10 billion CNY in 2026, driven by the success of the SU7 and YU7 models [6][13] - The SU7 model is expected to maintain a steady monthly sales volume of around 25,000 units in 2025, capturing approximately 23.13% of the 200,000-300,000 CNY price segment [28] - The YU7 is anticipated to capture a 16.2% market share in the 200,000-250,000 CNY SUV segment, with projected annual sales of 360,000 units [28] Ecosystem Expansion - Xiaomi's automotive sales are expected to create a "flywheel effect," enhancing the profitability of Xiaomi's retail stores and driving a surge in new store openings [29][36] - The integration of the Xiaomi HyperOS across over 200 product categories is set to facilitate data interconnectivity and enhance user experience across the "people, car, home" ecosystem [32][34] Financial Forecasts and Valuation - Revenue forecasts for 2025-2027 are 481.84 billion CNY, 636.48 billion CNY, and 716.47 billion CNY, with year-on-year growth rates of 31.7%, 32.1%, and 12.6% respectively [7][39] - Adjusted net profit forecasts for the same period are 416.42 billion CNY, 613.35 billion CNY, and 655.96 billion CNY, with growth rates of 52.9%, 47.3%, and 6.9% [7][39] - The report employs a sum-of-the-parts valuation method, estimating a target price of 56.12 HKD per share based on a 20x PE for core business and a 3x PS for the automotive segment [42][43]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The retail performance of the main brand remains stable, with a year-on-year revenue growth in the mid-single digits for Q1 2025, primarily driven by footwear sales. The discount rate is between 70-75%, and the inventory turnover ratio is approximately 4 months. The subsidiary brand, Saucony, has shown a robust revenue growth of over 40% year-on-year [6][8]. - Continuous product launches and optimization of the product matrix are evident, with the introduction of the 360X 2.0 carbon plate running shoes and the flagship cushioning running shoes, enhancing the running shoe lineup [8]. - Looking ahead, the company is gradually implementing a Direct-to-Consumer (DTC) channel strategy, which is expected to drive revenue and profit growth. The projected net profits for 2025-2027 are estimated at 1.41 billion, 1.60 billion, and 1.82 billion respectively, with corresponding price-to-earnings ratios of 9, 8, and 7 times [8][10]. Summary by Sections Retail Performance - The main brand's Q1 revenue growth is in the mid-single digits year-on-year, with a discount range of 70-75% and an inventory turnover of about 4 months. Saucony's revenue growth exceeds 40% year-on-year [2][6][8]. Product Development - New products are being launched, including the 360X 2.0 carbon plate running shoes and the flagship cushioning running shoes, which enhance the overall product matrix [8]. Future Outlook - The company is focusing on DTC strategies, with expectations for revenue and profit growth. The projected net profits for 2025-2027 are 1.41 billion, 1.60 billion, and 1.82 billion, with P/E ratios of 9, 8, and 7 respectively [8][10].

Investment Rating - The report assigns a "Buy" rating for the company [13]. Core Views - The company leverages its "3+3" strategy, balancing external acquisitions and organic growth, to rapidly enter high-growth sectors, potentially establishing three growth engines: high-voltage connectors for electric vehicles, AI optical modules, and acoustic components for consumer electronics [4][11]. - The recovery of core business, combined with the growth in AI, new energy, and consumer electronics, along with a global production layout to reduce costs, is expected to continuously release profit elasticity [4][11]. Summary by Sections Company Overview - The company is a leader in connection solutions, focusing on the "3+3" strategy, which emphasizes three key industries: EVs, 5G AIoT, and audio, while promoting three core technology transformations: copper to optics, wired to wireless, and components to modules [7][21]. Electric Vehicles - The company accelerates its electric vehicle electrification layout through external acquisitions, aiming to establish product lines for high-voltage connectors, battery management systems, and charging stations. The acquisition of the German Prettl SWH Group in 2022 and Auto-Kabel Group in 2024 enhances its capabilities in this sector [8][58]. Consumer Electronics - Backed by the Foxconn Group, the company expands its consumer electronics footprint through both organic growth and acquisitions, including the purchase of Belkin in 2018, which provided global channels and facilitated a transition from OEM to OBM [9][81]. Infrastructure and Networking - The company is advancing its optical module and CPO technology through strategic acquisitions, including a 70% stake in Huayun Optoelectronics for RMB 220 million, with plans to accelerate product development in high-speed optical modules [10][87]. Financial Performance - The company expects revenue growth from 2025 to 2027, with projected revenues of $4.915 billion, $5.454 billion, and $6.097 billion, and net profits of $177 million, $205 million, and $240 million respectively [11]. The revenue for 2024 is anticipated to be $4.451 billion, a 5.8% increase year-on-year, driven by high demand in the electric vehicle and infrastructure sectors [36][45]. Market Position - The global connector market is expanding, with the market size growing from $60.1 billion in 2017 to $84.1 billion in 2022, reflecting a compound annual growth rate of 6.95% [67]. The company benefits from its affiliation with Foxconn, which holds a significant market share in the EMS sector [72]. Future Outlook - The company is well-positioned to capitalize on the AI-driven transformation in consumer electronics, with expectations for increased demand for AI-enabled devices [74]. The anticipated growth in AI smartphones and PCs is expected to drive further demand for connectors [79].

Investment Rating - The report maintains an "Outperform" rating for Pop Mart International [2][12] Core Views - The company's 1Q performance significantly exceeded expectations, with revenue growth of 165%-170% year-on-year, driven by strong domestic and overseas sales [3][12] - The company is focusing on brand enhancement and expanding its product offerings, including a new sub-brand for accessories [4][5] - The organizational structure has been upgraded to improve management efficiency and support global expansion [4][5] Financial Summary - Revenue projections for 2025-2027 are RMB 24.22 billion, RMB 33.53 billion, and RMB 42.35 billion, respectively, with year-on-year growth rates of 86%, 38%, and 26% [5][11] - Adjusted net profit estimates for the same period are RMB 7.01 billion, RMB 9.91 billion, and RMB 12.83 billion, reflecting growth rates of 106%, 41%, and 29% [5][11] - The gross profit margin is expected to improve from 66.8% in 2024 to 70.8% by 2027 [11] Market Performance - The current stock price is HK$175.90, with a target price set at HK$198.10, indicating a potential upside [2][12] - The company has shown strong absolute returns over the past year, with a 480.9% increase [2]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][6]. Core Insights - The company, Blok, has established itself as a leader in the building block toy market, focusing on high-quality and reasonably priced products, and is experiencing rapid growth [1]. - The building block toy market is projected to grow at a CAGR of 15.0% from 2023 to 2028, significantly outpacing non-building block toys, with Blok holding a 30.3% market share in China [1][2]. Summary by Sections Company Overview - Founded in December 2014, Blok initially focused on large particle building toys before shifting to building block toys due to market limitations [11]. - The company has a stable shareholding structure, with the largest shareholder holding 50.9% [16]. Market Growth - The global toy market is expected to grow from 631.2 billion RMB in 2019 to 993.7 billion RMB by 2028, with the building block segment growing rapidly [39][40]. - The building block toy market reached 176.5 billion RMB in 2023, with a projected CAGR of 15.0% from 2023 to 2028 [47]. Competitive Advantage - Blok's competitive edge lies in its ability to offer low-priced, high-quality products with rapid iteration, similar to the successful strategies of other companies in the market [3]. - The company has a rich IP resource, including licenses for popular franchises, which enhances its product offerings and market appeal [3][4]. Financial Projections - Revenue is expected to grow significantly, with forecasts of 4.1 billion RMB in 2025, 5.5 billion RMB in 2026, and 7.4 billion RMB in 2027, reflecting growth rates of 83.5%, 34.7%, and 34.4% respectively [5]. - The net profit is projected to turn positive by 2027, with estimates of 2.1 billion RMB [5]. Investment Recommendation - The report suggests that Blok is in a rapid growth phase with strong channel expansion potential, particularly in school-side stores, and anticipates continued growth driven by expanding female customer segments and overseas market performance [4].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [6][86]. Core Views - The company is a leading resin lens manufacturer with a strong focus on R&D and a robust supply chain, which enhances its competitive edge. The partnership with GoerTek in the XR field is expected to drive growth and open new market opportunities [5][15][75]. Summary by Sections Company Overview - The company specializes in the R&D, production, and sales of resin lenses, with plans to establish overseas production bases starting in 2024. It has a concentrated shareholding structure and announced an equity incentive plan in November 2024, with profit growth targets for 2025-2027 set at no less than 21%/17%/15% [3][20]. Financial Performance - In 2024, the company achieved revenue of 2.061 billion yuan, a year-on-year increase of 17.1%, and a net profit of 428 million yuan, up 31% year-on-year. The revenue growth from 2018 to 2024 has a CAGR of 15.8%, while net profit has a CAGR of 32.7% [3][24][25]. Business Structure and Supply Chain - The company has built a strong supply chain through high R&D investment and stable raw material sourcing, maintaining over 30% procurement from Mitsui Chemicals. The business structure has been optimized, with a growing proportion of customized lenses, which accounted for 19.2% of revenue in 2024, up 2.8 percentage points from 2018 [4][49][63]. XR Business Development - The establishment of an XR R&D center and collaboration with GoerTek are expected to enhance the company's capabilities in the XR market. The company has signed supply framework agreements with multinational consumer electronics firms, indicating a positive outlook for XR product growth [5][75][76]. Earnings Forecast and Investment Advice - The company is projected to achieve revenue growth rates of 15%/14%/12% and net profit growth rates of 23%/19%/15% from 2025 to 2027. The report suggests that the company's strong ODM operations and increasing share of customized and functional lenses will support a rise in profitability [6][78][86].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5]. Core Insights - The company reported a significant revenue growth of approximately 165% to 170% year-on-year for Q1 2025, surpassing expectations, with domestic revenue increasing by 95% to 100% and overseas revenue soaring by 475% to 480% [2][3]. - The company's strategy of "dual improvement in quality and efficiency" is validated by strong domestic performance, driven by innovative IP products and successful collaborations [3]. - The overseas market is experiencing explosive growth, particularly in the Americas and Europe, indicating effective strategic expansion [3][4]. Summary by Sections Performance Review - Q1 2025 revenue growth is reported at 165% to 170% year-on-year, with domestic revenue up by 95% to 100% and overseas revenue up by 475% to 480% [2]. Operational Analysis - Domestic market performance is strong, with offline revenue increasing by 85% to 90% and online revenue by 140% to 145%, driven by innovative marketing strategies [3]. - Overseas revenue growth is highlighted, with Asia-Pacific up by 345% to 350%, the Americas by 895% to 900%, and Europe by 600% to 605%, confirming the effectiveness of the company's strategic focus on these regions [3]. IP Development and Monetization - The company is enhancing its global organizational structure to support regional strategies, which is expected to facilitate mid-term growth [4]. - The establishment of a supply chain in Vietnam is anticipated to mitigate tariff impacts and strengthen the pricing power of IP products [4]. Profit Forecast and Valuation - The adjusted net profit forecasts for 2025, 2026, and 2027 are 6.36 billion, 8.59 billion, and 11.06 billion yuan respectively, with year-on-year growth rates of 86.8%, 35%, and 28.9% [5]. - The current price-to-earnings ratios are projected at 36x, 26x, and 20x for the respective years [5]. Financial Metrics - The company is expected to achieve a revenue of 23.06 billion yuan in 2025, with a growth rate of 76.86% [9]. - The adjusted net profit is projected to grow significantly, with a forecasted increase of 185.85% in 2024 [9].