Group 1 - The analyst has been involved in fundamental analysis of publicly listed companies since 2020, including Covestro, Signify, Alibaba, Verizon, and China Mobile [1] - The analyst's background as an accountant at a Big-4 accounting firm provides expertise in analyzing annual reports and financial information [1] - The ability to assess whether a stock is undervalued or overvalued is crucial for making informed long-term investment decisions [1] Group 2 - The analyst is open to suggestions for interesting companies to analyze, indicating a flexible approach to investment research [1]

Mergers and Acquisitions - Hong Kong watchdog accepts China Mobile's commitments for planned acquisition of HKBN [1] - The acceptance clears the way for the deal to go ahead [1]

Investment Rating - The industry investment rating is "In-Line" [6] Core Insights - The humanoid robot market is experiencing strong demand, with companies like UBTECH, Agibot, and Unitree announcing significant orders and contracts [2][3][8] - There is an expectation for more adoption announcements in the second half of 2025, driven by advancements in technology and a push from both companies and government for humanoid adoption [8] Summary by Relevant Sections - **UBTECH's Tiangong Walker**: Received orders for approximately 100 units and expects to deliver over 300 units in 2025, with over 60% of orders for premium versions [2] - **Agibot and Unitree Contract**: Awarded a Rmb124 million humanoid robot contract from China Mobile, with Agibot receiving Rmb78 million for full-size robots and Unitree Rmb46 million for smaller robots and accessories [3] - **Market Trends**: The focus is shifting from new model announcements to tracking adoption progress, indicating a maturation of the market and a potential for a virtuous cycle in humanoid technology [8]

Company Overview - Nextracker (NASDAQ: NXT) is a significant player in the utility-scale solar sector, which is crucial for the clean energy transition [1] - The company specializes in solar tracking systems and energy optimization software, positioning itself strategically in the market [1] Industry Relevance - The utility-scale solar business is gaining importance as the world shifts towards clean energy solutions [1] - Nextracker's technology plays a vital role in enhancing the efficiency and effectiveness of solar energy production [1]

Group 1 - Visteon Corporation (NASDAQ: VC) is a significant player in the automotive technology sector, focusing on digital cockpit solutions and vehicle electronics [1] - The company is capitalizing on trends in the automotive industry, particularly in the areas of vehicle connectivity and advanced electronics [1] Group 2 - The analysis highlights the importance of fundamental analysis in evaluating publicly listed companies, emphasizing the need to assess whether a stock is undervalued or overvalued for informed long-term investment decisions [1]

Group 1 - Conagra Brands operates in the grocery retail and foodservice sectors, selling products under various brand names available in supermarkets, restaurants, and food service establishments [1] - The company has been navigating challenges such as inflationary pressures, supply chain disruptions, and shifting consumer behavior since 2020 [1] Group 2 - The analysis of Conagra Brands is part of a broader fundamental analysis of publicly listed companies, which includes firms like Covestro, Signify, Alibaba, Verizon, and China Mobile [1] - The expertise in accounting allows for thorough analysis of annual reports and financial information, which is crucial for assessing stock valuation [1]

ab 9 May 2025 Global Research China Equity Strategy 1Q25 investor positioning update - investors turned less underweight overall Divergent views among Asia/Global/EM mandated funds International investors have reduced their China underweight position from -1.9% to - 1.5% in 1Q25 likely cheered by the DeepSeek launch. Interestingly, Asia-mandated funds turned overweight (from underweight previously) and global funds reduced their underweight position, while EM funds have maintained their underweight position ...

Investment Rating - The report maintains a cautious view on the technology sector, particularly on software and IT services, while highlighting structural growth opportunities in AI and semiconductors [26][31][44]. Core Insights - CIOs' IT budget growth expectations for 2025 have decreased to 5.8%, down 140 basis points from 2H24, with significant downward revisions anticipated in software and hardware spending [8][44]. - AI/ML/PA remains the top priority for CIOs, with 71% expecting AI/LLM projects to enhance IT investments in 2025, reflecting a 19 percentage point increase from 2H24 [53][70]. - The share of AI/LLM in total IT spending is projected to rise to 11.2% in 2025, up from 10% in 2H24, indicating a growing focus on AI-related investments [65][70]. Summary by Sections IT Budget Expectations - CIOs' average IT budget growth expectations fell to 5.8% for 2025, with a notable decline post-US tariff announcements, where expectations dropped from 6% to 2% [8][11][44]. - The survey indicates that 43% of CIOs foresee further downward revisions to their budgets following the tariffs, compared to 31% prior to the announcement [15][44]. AI and Technology Trends - AI/ML/PA has overtaken digital transformation as the most defensive area of IT spending, with significant increases in spending expectations [64][69]. - The report highlights that 34% of companies have initiated AI/LLM projects, with 39% expecting to have projects in production by 2025 [54][61]. Sector-Specific Insights - Software and IT services are expected to see the largest budget cuts, while semiconductors are anticipated to experience structural growth driven by AI, despite a delayed cyclical recovery [26][31][44]. - The hardware sector is expected to face reduced spending, particularly in PCs, while AI server hardware is projected to benefit from increased demand [33][37][70]. Preferred Companies - The report identifies several preferred companies within the AI and semiconductor sectors, including TSMC, MediaTek, and Beisen, which are expected to benefit from the ongoing AI trend [31][70][72]. - Caution is advised for companies with significant exposure to traditional tech and enterprise software, as macroeconomic uncertainties may hinder recovery [26][31][44].

Investment Rating - The report raises the 2025 Southbound flow forecast from US$75 billion to US$110 billion, indicating a positive investment outlook for Southbound flows [4][39][41]. Core Insights - Southbound investors have shown strong net buying activity, with US$78 billion in net purchases year-to-date, representing 75% of the expected full-year inflows for 2024 [1][9]. - The performance of the Hong Kong market is increasingly correlated with Southbound flows, suggesting that these investors are gaining pricing power [2][11]. - The report identifies key drivers for Southbound inflows, including attractive H-share profiles, increased domestic institutional investment, and hedging demand against potential RMB depreciation [10][41]. Summary by Sections Southbound Flows and Market Impact - Southbound investors currently hold US$577 billion of HK-listed stocks, accounting for 13% of the market cap of eligible stocks, up from 10% a year ago [2][11]. - The turnover contribution from Southbound investors has increased from 17% in 2024 to 21% year-to-date [2][11]. - The report notes that the Southbound flows have become a significant influence on the Hong Kong market, with a notable increase in ownership and turnover [11][12]. Investor Composition - Both onshore retail and institutional investors are participating in Southbound trading, with institutional investors estimated to account for at least half of the Southbound ownership [3][25]. - Domestic mutual funds have raised their equity allocation to historical highs, contributing to the Southbound inflows [28][39]. Forecast and Drivers - The report forecasts that Southbound flows could reach US$110 billion in 2025, driven by factors such as the attractiveness of H-shares, increased dual-primary listings, and potential dividend tax exemptions for Southbound investors [4][39][43]. - The report highlights that the home-coming of US-listed Chinese companies could further boost Southbound buying, with Alibaba's dual-primary listing serving as a precedent [41][50]. Investment Opportunities - A refreshed Southbound Favorite Portfolio includes 50 companies identified for their scarcity value, valuation discounts, and high sensitivity to Southbound flows, expected to outperform if inflows remain strong [5][49]. - The report also screens for 33 ADRs eligible for HK dual-primary listing, which may benefit from Southbound buying post-inclusion [5][50].

Group 1 - The 6G Technology and Industry Innovation Forum was held during the Zhongguancun Forum, focusing on "Exploring Technological Trends and Leading Industrial Innovation" [1] - Beijing has made significant advancements in the 6G field, including being the first to issue a provincial-level 6G plan and establishing the world's first communication and intelligence integrated 6G experimental network [3] - The "Beijing 6G Innovation Development White Paper (2025)" outlines the city's strategic goals and resources for 6G technology and industry development [4] Group 2 - The white paper highlights Beijing's role as a core hub for national strategic technology, with over 200 top scholars and 14,000 researchers in the communication field [3] - Beijing has developed a complete industrial chain for 6G, covering network operation, equipment manufacturing, terminal research and development, chip design, and testing instruments [3] - The city has launched the "Beijing 6G Science and Technology Innovation and Industry Cultivation Action Plan (2024-2030)" to support breakthroughs in key technologies and establish a testing and innovation system [4] Group 3 - The forum was co-hosted by various organizations, including the Beijing Municipal Science and Technology Commission and China Mobile Research Institute, aiming to create an influential international platform for 6G technology and industry cooperation [5] - Collaborative efforts include signing a strategic cooperation agreement with China Mobile to establish an innovative research institution and support the construction of key laboratories in the 6G field [4] - The establishment of an end-to-end open testing platform for 6G is intended to facilitate cutting-edge and foundational research, as well as the incubation of original technologies [4]