Summary of Key Points from the Conference Call Industry Overview - The financial industry in Hong Kong is experiencing significant growth, being the largest economic sector in the region. This growth is expected to be supported by lower interest rates and a weaker dollar, potentially leading to a new reflationary cycle [5][2][3]. Market Outlook - The year-end target for MSCI HK (US$) for 2026 is set at 12,300, based on a forward P/E of 15.0x and an estimated EPS growth of 9% per annum for 2026 and 2027 [5][4]. - The upside scenario projects an index level of 13,700, while the downside scenario estimates a level of 9,800 [4]. Preferred Stocks - **Most Preferred Stocks**: - AIA Group: Market Cap of US$111 billion, current price of 82.1, target price of 88.0, rated as Buy with a potential upside of 7% [6]. - Futu: Market Cap of US$24 billion, current price of 169.6, target price of 231.0, rated as Buy with a potential upside of 36% [6]. - Galaxy Entertainment: Market Cap of US$22 billion, current price of 39.7, target price of 46.9, rated as Buy with a potential upside of 18% [6]. - **Least Preferred Stocks**: - MTRCL: Market Cap of US$25 billion, current price of 31.3, target price of 24.0, rated as Sell with a potential downside of 23% [6]. Performance Metrics - The MSCI HK index has shown a year-to-date return of 79%, with significant contributions from major players like HKEX and AIA [9][14]. - The performance of various sectors indicates that diversified financials, insurance, and banks are expected to benefit from increased exchange turnover and growing demands in asset and wealth management products [5][12]. Investment Trends - There is a notable trend of increased southbound flows into Hong Kong equities, indicating a growing interest from international investors [24][25]. - The financial sector's performance is expected to improve leasing demand for office spaces, benefiting landlords [5]. Valuation Insights - The current valuation multiples suggest a forward P/E of 15.0x for the MSCI HK, with an earnings yield of 6.7% and an assumed equity risk premium (ERP) of 2.7% [4][5]. - The analysis indicates that the financial sector is trading at a premium compared to other sectors, reflecting investor confidence in its growth potential [43][44]. Conclusion - The outlook for Hong Kong's financial sector remains positive, driven by macroeconomic factors and strong performance from key companies. Investors are encouraged to consider the preferred stocks listed, as they are positioned to capitalize on the anticipated growth in the industry [5][6][12].

Summary of Conference Call on Asia Emerging Robotics and Hesai Company and Industry Overview - **Company**: Hesai, a global leader in LiDAR technology, particularly known for its "laser eyes" applications in robotics and automotive sectors [1] - **Industry**: Robotics and Advanced Driver Assistance Systems (ADAS), focusing on the integration of LiDAR technology for enhanced safety and performance [1][4] Core Insights and Arguments 1. **Necessity of LiDAR**: - LiDAR has proven superior in handling safety-critical scenarios compared to camera-only ADAS solutions, which have not reduced severe injury rates in vehicles [2][7] - The injury rates in vehicles equipped with camera-only systems remain significantly higher than those with LiDAR [2][7] 2. **Market Adoption**: - More automotive OEMs are adopting LiDAR for higher levels of autonomous driving, indicating a shift in industry standards [2][18] - The performance of LiDAR-enabled ADAS solutions is improving rapidly, showcasing the technology's potential [2][20] 3. **Affordability and Mass Adoption**: - The cost of long-range ADAS LiDAR has decreased to around USD 200, making it more accessible than many passive safety systems [3][26] - Current penetration of long-range ADAS LiDAR in China is about 10%, with expectations for significant growth due to attractive pricing [3][31] - Over 70% of passenger vehicles sold in China are priced below USD 28,000, indicating a large market for affordable LiDAR solutions [3][35] 4. **Evolution of Robotics**: - Robotics typically relies on various perception technologies, but LiDAR's time-of-flight principle offers advantages in detection range and low-light performance [4][46] - New products integrating LiDAR and camera functions are emerging, such as RoboSense's AC2 and Huawei's Limera, which represent a new generation of "laser eyes" for robotics [4][55][57] 5. **Investment Outlook for Hesai**: - Hesai's stock has de-rated since mid-September and is currently trading at approximately 25x forward P/E, presenting attractive entry points for investors [4][60] - The company is rated as "Outperform" with price targets set at USD 33.00 for HSAI.US and HKD 253.00 for 2525.HK [64] Additional Important Points - The report emphasizes the ongoing debate regarding the necessity of LiDAR in robotics, given the lower safety risks compared to automotive applications [4] - The integration of LiDAR technology is expected to become a standard in both automotive and robotics sectors, shifting the choice from passive cameras to active "laser eyes" [4] - The report highlights the potential for Hesai amid the growth in intelligent vehicles and emerging robotics, reinforcing the company's strategic position in the market [4]

Summary of Horizon Robotics Conference Call Company Overview - **Company**: Horizon Robotics (9660.HK) - **Industry**: Smart Driving Technology Key Points Industry Trends - The smart driving trend in China is on the rise, transitioning from Advanced Driver Assistance Systems (ADAS) to highway Navigation on Autopilot (NOA) and city NOA, which is driving product mix upgrades for Horizon Robotics [2][3] Revenue Growth Projections - Horizon Robotics targets mid double-digit revenue growth over the next three years, driven by the smart driving trend, product mix upgrades, and customer penetration [2][3] - The average selling price (ASP) of chipsets is projected to increase from approximately US$30 in ADAS to US$100 in highway NOA, and potentially up to US$500 in city NOA, or US$700 when embedded with software [2] Customer Expansion Strategy - The company is focusing on local car OEMs such as BYD, Geely, Chery, and Changan, which are gaining market share in China [2] - Horizon Robotics plans to expand into joint venture (JV) car OEMs, which are primarily still in the ADAS phase, to leverage opportunities in smart driving and access global-tier car OEMs [2] Product Development and Outlook - For 2026, the company anticipates that product mix upgrades and customer expansion will be key drivers of growth [3] - The ADAS chipset revenue is expected to remain stable, while the J6M chipset for highway NOA and J6P for city NOA are projected to expand their customer base [3] - Horizon Robotics aims to have its solutions utilized in over 1,000 Robotaxis by 2026, collaborating with leading internet companies in China [3] Competitive Advantages - The company emphasizes its full-stack capability, particularly in software and AI, which is critical for maintaining a leading market position in the smart driving sector [8] - Horizon Robotics has a strong R&D team, with software engineers outnumbering hardware engineers by 3-4 times, enhancing its ability to design effective chipsets [8] Financial Projections - The 12-month target price for Horizon Robotics is set at HK$15.30, representing a potential upside of 102.9% from the current price of HK$7.54 [11] - Revenue projections for the upcoming years are as follows: - 2024: Rmb 2,383.6 million - 2025: Rmb 3,605.4 million - 2026: Rmb 7,166.2 million - 2027: Rmb 12,264.4 million [11] Risks - Key downside risks include: 1. Increased competition or pricing pressure in the auto supply chain amid slow demand [10] 2. Slower-than-expected product mix upgrades towards AD [10] 3. Delays in customer base expansion [10] 4. Supply chain risks due to geopolitical tensions [10] Conclusion Horizon Robotics is well-positioned to capitalize on the growing smart driving trend in China, with a strong focus on product development and customer expansion. However, the company faces several risks that could impact its growth trajectory.

Summary of Key Points from the Conference Call on China Autos & Shared Mobility Industry Overview - The China auto industry is currently facing low conviction levels among investors, with many lacking exposure or selling into any price increases due to ongoing competition and subsidy cuts expected to impact sentiment into 2026 [2][10][12]. Core Companies Discussed - **BYD**: Received the most meeting requests, with discussions focused on volume outlook and global ambitions. Concerns about market share losses in China persist, although advocates for the company are becoming less vocal [3]. - **Geely**: Remains a consensus buy but is experiencing a decline amid sector sell-offs, with attention on the Zeekr privatization [3]. - **EV Startups**: Companies like XPeng, Li Auto, and NIO are preferred among EV players due to their rapid model iteration, AI initiatives, and growing overseas sales [5]. - **Suppliers**: Hesai and Minth are favored suppliers, although there are concerns about pricing and margin pressures into 2026 [4]. Market Sentiment and Trends - There is a general pessimism in the sector, but this could lead to significant positive catalysts if there are marginal sales improvements or policy renewals [2]. - Investors expect continued nationwide and local subsidies to mitigate the impact of a 5% purchase tax hike, although local stimulus amounts are anticipated to decline by 30-50% year-over-year [10]. - Traditional OEMs are slightly preferred over EV makers due to low expectations and restructuring potential, particularly with endorsements from Huawei [11]. Autonomous Driving and Innovation - The market is increasingly focused on autonomous driving and robotaxi developments, with expectations for regulations on Level 3 (L3) autonomous driving to be announced in the first half of 2026 [14][15]. - Huawei's influence is growing, with many carmakers adopting its smart cockpit and autonomous driving technologies [17][18]. Investment Recommendations - Preferred stocks include: - **EV Trio**: XPeng, Li Auto, NIO for their innovation and overseas sales potential [5]. - **SAIC**: Among state-owned enterprises (SOEs), favored for recovering local brand sales [12]. - **Hesai**: Preferred among parts suppliers due to its positioning in autonomous driving [5]. Conclusion - The China auto sector is at a crossroads, with potential for recovery if investor sentiment shifts positively. The focus on innovation, particularly in autonomous driving and the influence of major tech players like Huawei, could provide significant growth opportunities in the coming years [2][14][18].

Summary of Black Sesame Management Meeting Company and Industry - **Company**: Black Sesame (2533.HK) - **Industry**: Semiconductor and Smart Driving Technology Key Points Smart Driving Growth - Management is optimistic about the smart driving trend in China, particularly for 2026, driven by the adoption of highway NOA (Navigation on Autopilot) and city NOA, which will enhance product mix and average selling price (ASP) [1][2][3] Chipset Development - The latest chipset, A2000, is set for mass production by the end of 2026, featuring 567 TOPS computing power, which is competitive against NVIDIA's Thor U at 700 TOPS and Horizon Robotics' G6P at 560 TOPS [2] - A2000 utilizes ASIC architecture for better computing power utilization compared to GPGPU, providing flexibility for car OEMs to develop their own algorithms or use third-party software [2] Revenue Outlook for 2026 - Management anticipates revenue growth in 2026 despite competitive market conditions, supported by: - An increase in highway NOA penetration from 15-20% in 2024 to 35% by the end of 2025, with further growth expected in 2026 - City NOA penetration expected to rise from 5% in 2024 to 15% currently, with additional upside in 2026 - Supportive government policies encouraging the adoption of local chipsets by car OEMs [3] Robotics as a Long-Term Growth Driver - Black Sesame is expanding into robotics, targeting various market segments: - Below 50 TOPS for mobility in robots - 50-100 TOPS for precision control in industrial robots - Up to 500 TOPS for humanoid robots' central computing [4][7] - The company has received orders for industrial robots, indicating strong demand in this sector [7] Competitive Positioning - The in-house NPU IP and toolchain are highlighted as key factors securing Black Sesame's market position in smart driving technology [2] Government Support - The management emphasizes the role of government policies in fostering the growth of local chipset adoption among car OEMs, which is expected to further drive demand for Black Sesame's products [3] Additional Insights - The management's positive outlook aligns with broader trends in the smart driving and robotics sectors, suggesting potential investment opportunities in these areas [1][3][4]

Summary of Key Points from the Conference Call Industry Overview - The focus for 2026 in Asian markets will shift from AI-driven stocks to growth opportunities beyond AI, dividends, and previously overlooked stories in Asia [2][12][14] - Key themes include structural stories in energy self-sufficiency, new technology, financial deepening, and the growth of formal retail in ASEAN [12][14] Company-Specific Insights 1. Harbin Electric (1133 HK) - **Sector**: Electrical Equipment - **Market Cap**: USD 3.648 billion - **Current Price**: HKD 15.53; **Target Price**: HKD 22.00 - **PE Ratio**: 10.7; **PB Ratio**: 1.6; **ROE**: 16.2% - **Key Points**: - Benefiting from China's push for energy self-sufficiency, particularly in coal and nuclear power [16][18] - Expected earnings CAGR of 34% from 2024-2027 [19] - Potential inclusion in Stock Connect in 2026 [19] 2. Horizon Robotics (9660 HK) - **Sector**: Auto Components - **Market Cap**: USD 14.901 billion - **Current Price**: CNY 8.44; **Target Price**: CNY 11.00 - **Key Points**: - Positioned to benefit from the growth of autonomous driving technology [23][25] - Expected revenue CAGR of 64% from 2025-2027 [27] 3. Goldwind Science & Tech (002202 CH) - **Sector**: Electric Utilities - **Market Cap**: USD 8.753 billion - **Current Price**: CNY 15.35; **Target Price**: CNY 20.40 - **Key Points**: - Leading manufacturer of wind turbines with strong demand in emerging markets [30][32] - Expected net profit growth of 58% in 2025 [32] 4. Trip.com Group (TCOM US) - **Sector**: Internet Software & Services - **Market Cap**: USD 48.707 billion - **Current Price**: USD 74.52; **Target Price**: USD 90.00 - **Key Points**: - Dominates China's online travel market with over 50% GTV [39] - Expected revenue growth of 15% CAGR from 2025-2027 [39] 5. BOCHK Holdings (2388 HK) - **Sector**: Commercial Banks - **Market Cap**: USD 54.013 billion - **Current Price**: HKD 39.70; **Target Price**: HKD 45.20 - **Key Points**: - Benefits from increased cross-border opportunities and offers a 5.5% dividend yield [44][46] 6. PB Fintech (POLICYBZ IN) - **Sector**: Internet Software & Services - **Market Cap**: USD 8.999 billion - **Current Price**: INR 1,734.70; **Target Price**: INR 2,250.00 - **Key Points**: - Operates India's largest online insurance marketplace [49] - Expected revenue CAGR of 30% from 2025-2028 [51] 7. Phoenix Mills (PHNX IN) - **Sector**: Real Estate Management & Development - **Market Cap**: USD 6.904 billion - **Current Price**: INR 1,714.80; **Target Price**: INR 2,110.00 - **Key Points**: - Largest mall operator in India, evolving into a mixed-use developer [54][56] 8. E-Mart (139480 KS) - **Sector**: Multiline Retail - **Market Cap**: USD 1.482 billion - **Current Price**: KRW 79,000.00; **Target Price**: KRW 120,000.00 - **Key Points**: - Trading at 0.2x PB, highlighting deep value [59] - Transformation into a multiline retailer with various catalysts for growth [60] 9. E Ink Holdings (8069 TT) - **Sector**: Technology - **Market Cap**: Not specified - **Current Price**: TWD 169.00; **Target Price**: TWD 305.00 - **Key Points**: - Holds over 90% of the global e-paper market and expanding capacity [62] 10. ICTSI (ICT PM) - **Sector**: Transport & Logistics - **Market Cap**: Not specified - **Current Price**: PHP 558.50; **Target Price**: PHP 630.00 - **Key Points**: - Offers growth and yield at attractive valuations [62] 11. City Developments (CIT SP) - **Sector**: Real Estate Management & Development - **Market Cap**: Not specified - **Current Price**: SGD 7.43; **Target Price**: SGD 11.00 - **Key Points**: - Positioned to benefit from a turnaround in Singapore's property sector [62] 12. Sumber Alfaria Trijaya (AMRT IJ) - **Sector**: Retail - **Market Cap**: Not specified - **Current Price**: IDR 1,895.00; **Target Price**: IDR 2,900.00 - **Key Points**: - Expected to benefit from policies boosting consumption in Indonesia [62] Additional Insights - Asian dividends have doubled over the last 20 years, indicating potential for further increases in payout ratios [12] - The report emphasizes the importance of EPS growth for continued market gains, particularly in China [12][14]

Investment Rating - The investment rating for Horizon Robotics is "Buy" with a high risk designation [7]. Core Insights - Horizon Robotics expects significant growth in shipments for 2026, projecting high-end shipments between 300,000 to 500,000 units, mid-end shipments around 3 million units, and low-end shipments approximately 2 million units. Key contributors to high-end shipments are anticipated to be Chery and Chang'an, accounting for 50% of the total [1][2]. - The company maintains its guidance to ship 4 million units of automotive-grade processing hardware in 2025, with mid-to-high end products making up 50% of this total [2]. - Horizon Robotics has secured design wins for its high-end ADAS solution from Chery and Chang'an, with mass production of the first models expected in the second half of 2025 [3]. - The average selling price (ASP) for various products is detailed as follows: HSD (J6P) at US$700, HSD (dual J6M) at US$400, mid-end ADAS at US$90-100, and low-end ADAS at US$20-30 [4]. - The gross margin for the J6P chip is around 50%, while the software component has a gross margin close to 100% [5]. - Horizon Robotics has established collaborations with overseas tier-1 suppliers such as Bosch, Continental, and Denso to enhance its competitiveness in international markets [5]. - The company aims to increase its market share with BYD's God's Eye C solution in 2026 and plans to explore additional solutions [9]. - Horizon Robotics believes its HSD offers a competitive edge over Huawei's ADAS solution due to its high value for money, making it suitable for mass-market models [10]. - The deployment of HSD is expected to facilitate the development of Robotaxi systems, with a partnership announced with Hello Inc. in September 2025 [11]. - The valuation of Horizon Robotics is based on projected strong growth in the ADAS market from 2025 to 2030, with a target price set at HK$12.30, reflecting a potential return of 49.1% [12].

Summary of the Asia Pacific Summit 2025 Conference Call Industry and Company Focus - **Industry**: Global Economics and Investment Strategies - **Company**: Morgan Stanley Key Points and Arguments Economic Outlook - Morgan Stanley's 2026 outlook anticipates moderate global growth and continued disinflation as the base case, with the US being a critical swing factor due to resilient consumption and AI-driven productivity [1][8] - Asia's real GDP growth is projected to accelerate from 4.3% in Q4 2025 to 4.7% in Q4 2026, driven by non-tech exports, improved capital expenditure, labor market conditions, and consumption [1][8] China’s Economic Policy - China's reflation is expected to be gradual, with modestly expansionary and supply-centric policies, including anticipated rate and RRR cuts [1][8] - Spending will focus on tech localization and infrastructure, with slow progress on rebalancing and social welfare support [1][8] Investment Recommendations - Strong performance is expected in risk assets, particularly US and Japanese equities, due to favorable policy and AI-driven fundamentals [1][8] - In Asia, a preference for Japan over emerging markets is recommended for 2026, with Chinese equities likely stabilizing after strong returns in 2025 [1][8] Corporate Themes and Trends - The conference will address four major global themes: Tech Diffusion, Multipolar World, Future of Energy, and Longevity [2] - Ongoing trends in Asia include China's Emerging Frontier, The New India, Singapore at 60, and Korea Renaissance [2] Keynote Speakers - Notable speakers include Chee Hong Tat (Minister for National Development, Singapore), Teo Chee Hean (Chairman, Temasek Holdings), and Sebastian Thrun (Founder of Google X and Waymo) [3] Market Positioning - Morgan Stanley recommends tight market-risk positions versus benchmarks, indicating a cautious approach to market volatility [1][8] - The firm highlights a preference for Japan within its coverage universe, suggesting a strategic focus on Japanese equities [1][12] Earnings Forecasts - The forecast for TOPIX EPS for fiscal years 2025, 2026, and 2027 is ¥185 (+9%), ¥198 (+7%), and ¥225 (+14%) respectively, indicating a positive outlook for Japanese equities [13] Asset Allocation - Morgan Stanley's asset allocation recommendations include a focus on equities, particularly in the US, Europe, Japan, and emerging markets, while maintaining a cautious stance on government bonds and credit [9] Other Important Content - The conference will feature various panel discussions and presentations from Morgan Stanley analysts across different regions, providing insights into global economic trends and investment strategies [3][14][15] - The agenda includes discussions on navigating post-tariff growth divergence, the role of AI in various sectors, and the implications of geopolitical dynamics on investment strategies [14][15][17][18]

Summary of Horizon Robotics Conference Call Company Overview - **Company**: Horizon Robotics - **Ticker**: 9660.HK - **Rating**: Outperform - **Price Target**: HKD 15.00 - **Current Price**: HKD 8.44 - **Market Cap**: HKD 123.662 billion Key Industry Insights - **Industry**: Automotive and Smart Driving Technology - **Product Launches**: - Chery Exeed ET5, equipped with Horizon's Urban NOA solution, opened for pre-orders on November 13, 2025, marking a significant milestone for Horizon's high-end smart driving solutions [1][10] - Deepal L06 model, also featuring the Urban NOA solution, is set to launch next week [3][11] Sales Performance and Projections - **Chery Exeed Sales**: - The brand has 9 models with an average monthly sales volume of 5.3k units year-to-date (YTD) [2] - The Exeed ET5 is expected to be a strong performer, with a price range of RMB 160k–175k, and is positioned competitively against similar models [10][13] - **Deepal Sales**: - The Deepal brand has 6 models with a combined average monthly sales volume of 18.4k units YTD, with the two sedan models averaging 2k units monthly [3] - The Deepal L06 will be priced between RMB 140k–162k, enhancing the competitive landscape for Horizon's offerings [3][22] Competitive Landscape - **Market Positioning**: - Horizon's HSD solution is viewed as competitive against Nvidia's chips and other third-party algorithms, with potential for new OEM design wins in 2026 [4] - The pricing strategy of Horizon's L2++ solutions is highlighted as more cost-effective compared to competitors like Huawei, which charges a higher premium for similar features [10][12] Financial Metrics - **Earnings Projections**: - Reported EPS for F24A is RMB 0.51, with projections of (0.53) for F25E and (0.22) for F26E [8] - EV/Sales ratio is projected to decrease from 40.9x in F24A to 15.4x in F26E, indicating improving valuation metrics [8] Investment Implications - **Recommendation**: Horizon Robotics is rated as Outperform, with a price target of HKD 15, suggesting a potential upside of 78% from the current price [5][28] - **Catalysts to Watch**: - Sales performance of the Chery Exeed ET5 and Deepal L06 will be critical indicators for Horizon's market traction and future design wins [11][12] Risks - **Downside Risks**: - Slower-than-expected smart driving penetration and increased in-house development by OEMs could impact revenue growth [36] Conclusion - Horizon Robotics is positioned to capitalize on the growing demand for smart driving solutions, with competitive pricing and strong product launches expected to drive sales and market share in the coming years. The company's strategic partnerships and product offerings are critical to its growth trajectory and investment appeal.

Summary of Semiconductor Industry Conference Call Industry Overview - The conference call focused on the semiconductor industry in Greater China, highlighting the trends in integrated circuit (IC) production, imports, and exports during September and October 2025 [1][2][4]. Key Points IC Production and Import Trends - IC production in China showed a positive year-over-year (YoY) growth of **5.9%** in September 2025, compared to **3.2%** in August 2025, with a total production volume of **44 billion units** [4][13][20]. - The import value of ICs increased by **10.2%** YoY in October 2025, down from **14.1%** in September 2025, indicating a slight slowdown in growth [1][15]. - The import volume of ICs rose by **4.9%** YoY in October 2025, compared to **11.7%** in September 2025, suggesting a decrease in the growth rate of imports [1][18]. Export Performance - IC export value reached **US$16.7 billion** in October 2025, reflecting a **26.9%** YoY increase but a **12.3%** month-over-month (MoM) decline [10][28]. - Year-to-date (YTD) export value for 2025 reached **US$161.9 billion**, representing a **23.2%** YoY increase [10]. Semiconductor Revenue - Total semiconductor revenues in China were reported at **US$18.7 billion** in September 2025, marking a **16.5%** YoY increase and a **6.0%** MoM increase [5][22]. - Taiwan's semiconductor revenue growth was **12.5%** YoY in October 2025, with a **6.4%** MoM increase [5][31]. Inventory and Market Dynamics - The days of inventory (DOI) in China's electronics sector stood at **49 days** in September 2025, above the average levels of previous years [1][18]. - The ongoing demand for semiconductors is supported by advancements in generative AI and automotive technologies such as Advanced Driver Assistance Systems (ADAS) [2][4]. Investment Recommendations - Analysts recommended a "Buy" rating for several companies, including Kematek, SMIC, Hua Hong, and others, based on strong company-specific drivers and market trends [3][50]. Equipment Imports - The import value of semiconductor test equipment surged by **31.9%** YoY to **US$56.7 million** in September 2025, indicating robust demand for testing capabilities [9][36]. - The import value of semiconductor production equipment (SPE) increased by **35.3%** YoY to **US$5.8 billion** in September 2025 [9][26]. Bidding Activity - Continuous bidding activity from Chinese semiconductor manufacturers was noted, indicating a positive outlook for capital expenditures (capex) in the coming years [11][42]. Conclusion - The semiconductor industry in Greater China is experiencing solid growth, driven by technological advancements and increasing demand. The trends in production, imports, and exports reflect a dynamic market environment, with significant investment opportunities identified in key companies within the sector.