22 January 2026 | 8:51AM HKT Equity Research CHINA HUMANOID ROBOT AI Robotics & Power Field Trip takeaways: Driving multi-fold shipment growth through pragmatic verticalization into 2026-2027E As part of our GS China AI Robotics & Power Trip, we visited 8 private/non-covered AI Robotics related companies and met 6 C-level management in Hangzhou/Shanghai/Shenzhen during Jan 15-20 from Unitree, Mechmind, Fourier, LimX Dynamics, UBTech, EngineAI, Paxini and Orbbec. Goldman Sachs China Humanoid Robot Encouragin ...

Summary of the Conference Call on China's Internet and AI Industry Outlook for 2026 Industry Overview - The focus is on the **China Internet** industry, particularly the **AI sector** and its growth prospects in 2026, influenced by both supply and demand factors [1][2]. Key Insights AI Growth Prospects - **Supply Improvements**: Anticipated import of Nvidia H200 chips for training and expansion of domestic chip production capacity for inferencing are expected to enhance AI capabilities [2][4]. - **Demand Surge**: A breakthrough in agentic capabilities is projected to drive a significant increase in consumer (2C) adoption. Positive signals from the latest China CIO Surveys indicate a first-time uptick in enterprise (2B) spending since the second half of 2021 [2][4]. Overseas Expansion - As the domestic market faces deflationary pressures and rising competition, overseas expansion is becoming crucial. Various segments such as gaming (Tencent, NetEase), cross-border e-commerce (PDD, Alibaba), and cloud services (Alibaba, Tencent) are highlighted as key areas for growth [3][4]. - It is estimated that overseas markets contributed over **10%** of revenue for Chinese internet companies in 2025, with expectations for further growth in the next 2-3 years [3][4]. Risks and Challenges - The macroeconomic climate, competition, regulatory changes, and geopolitical tensions are identified as significant risks. A decline in consumption since Q4 2025 is impacting industry revenue growth across e-commerce, local services, and advertising [4]. - Competition in food delivery and quick commerce remains intense, particularly following the State Council's anti-involution investigation. ByteDance's continued disruption across various sectors is also noted [4]. Investment Recommendations Overweight (OW) Recommendations - **Tencent**: Identified as a top pick due to resilient core businesses and strong 2C AI applications [5]. - **Alibaba (BABA)**: Considered the best AI enabler with cloud services as a key growth catalyst [5]. - **PDD**: Valued for its attractive pricing and potential breakeven of Temu in 2026 [5]. - **TME**: Noted for its resilient business model and potential upside from the proposed Ximalaya acquisition [5]. Underweight (UW) / Equal Weight (EW) Recommendations - **JD (UW)**: Facing operational de-leverage and high investments in new businesses [5]. - **BILI (EW)**: Low visibility in gaming and high valuations are concerns [5]. - **Kuaishou (EW)**: Core business performance is lukewarm, with current valuations reflecting this [5]. - **BIDU (EW)**: While Kunlunxin is a near-term catalyst, core business challenges persist [5]. Additional Insights - The report emphasizes the importance of prudent capital expenditure in AI applications to mitigate bubble risks, suggesting a focus on applications that yield better returns on invested capital (ROIC) [2][4]. - The overall industry view remains attractive, with a strong emphasis on the potential for growth in AI and overseas markets despite existing challenges [7]. This summary encapsulates the key points from the conference call, providing a comprehensive overview of the current state and future outlook of the China Internet and AI industry.

Core Insights - The AIQ ETF outperformed the Nasdaq for most of the year, ending with a 32% increase [2][4] - The ETF is diversified with 86 holdings, reducing the impact of any single stock [4] - A significant portion of the ETF, 72%, is composed of information technology stocks, with major international exposure [5] Performance Analysis - The AIQ ETF managed to outperform the Nasdaq even during market downturns, particularly before the Liberation Day tariffs announcement [4] - Samsung is the largest holding at 5.25% of total assets, while the fund has substantial allocations to top memory chip companies like Samsung, Micron, and SK Hynix [4][6] Future Outlook - AI stocks are expected to remain strong heading into 2026, with the AIQ ETF already up 3% as of January 16 [7] - Many of the ETF's top holdings are trading at reasonable valuations, suggesting potential for continued growth as the AI boom persists [7]

Deutsche Bank upgraded Coupang, Inc. (NYSE:CPNG) from Hold to Buy, signaling growing confidence in the company's future prospects.Coupang's stock experienced a 2.21% increase on the latest trading day, outperforming major indices despite a monthly decline of 8.49%.Analysts predict a short-term earnings pressure with an expected 25% decrease in earnings per share, but project a strong 16.42% revenue growth for the upcoming quarter.Coupang, Inc. (NYSE:CPNG) is a leading e-commerce company in South Korea, ofte ...

In this articleGOOGGOOGLNVDABABA9988-HKwatch nowChina's artificial intelligence models may be just "a matter of months" behind U.S. and Western capabilities, Demis Hassabis, the CEO of Google DeepMind told CNBC.The assessment from the head of one of the world's leading AI labs and a key driver behind Google's Gemini assistant, runs counter to views that have suggested China remains far behind. Speaking on CNBC's new podcast, The Tech Download, which launched on Friday, Hassabis said Chinese AI models are cl ...

JB Global Capital, an investment firm, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. During Q4 2025, JB Global Capital reported an 8.9% decline, largely driven by a sharp drop in Alibaba, its largest holding, while global markets posted modest gains. Despite the quarter’s setback, the fund delivered a strong full-year return of 67.5% and stands at 108.9% since inception, outperforming major benchmarks. The letter explains that 2025 market gains were heavily ...

JB Global Capital, an investment firm, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. During Q4 2025, JB Global Capital reported an 8.9% decline, largely driven by a sharp drop in Alibaba, its largest holding, while global markets posted modest gains. Despite the quarter’s setback, the fund delivered a strong full-year return of 67.5% and stands at 108.9% since inception, outperforming major benchmarks. The letter explains that 2025 market gains were heavily ...

J P M O R G A N Asia Pacific Equity Research 11 January 2026 China Bubble & Brew What's happening? Our views, and takeaways from the expert call What happened? Our take: back to organic We believe the investment thesis for the China FMD sector is now leaning more towards the organic fundamentals, and away from the external swing factors. With incrementally more evidence and new growth drivers in sight, we expect to see more market discussions on the basics instead of the on-and-off of delivery subsidies. Co ...

Core Insights - Alibaba has launched significant upgrades to its Qwen AI app, enabling users to order food and book travel within the app, marking a strategic shift towards consumer-facing AI [1][2] Group 1: Upgrade Features - The new features allow users to complete tasks entirely within the AI chat interface, eliminating the need to switch between applications [1] - The upgrade integrates core Alibaba services such as Taobao, Alipay, Fliggy, and Amap into a unified AI interface, facilitating seamless transactions [4] - A new "Task Assistant" feature in beta can make real phone calls, process up to 100 documents simultaneously, and plan multi-stop travel itineraries [5] Group 2: Market Position and Strategy - This upgrade follows a previous major enhancement to the Qwen app, indicating Alibaba's strategic pivot into consumer-facing AI, an area where it has previously lagged behind competitors like ByteDance and Tencent [2] - The Qwen app has surpassed 100 million monthly active users within two months of its public beta launch, reflecting strong consumer interest [5] - The expansion of the Qwen app is part of a broader competition in China's AI sector, where companies are striving to translate advanced language models into practical applications [6]

Financial Data and Key Metrics Changes - The company has achieved a 60% gross margin, indicating a strong profitability potential moving forward [4] - Cost savings of approximately $135 million have been realized since the new CEO's appointment, with further opportunities for strategic long-term savings identified [7][11] - The adjusted EBITDA margin is projected to be around 8% for 2025, with expectations to exceed previous low double-digit margins in the future [43][44] Business Line Data and Key Metrics Changes - The company has introduced a new entry-level bed priced at $1,599, which offers features comparable to higher-end models, aiming to attract a broader customer base [18][19] - The focus on comfort, value, and durability has been emphasized in product development, responding to customer feedback [15][16] Market Data and Key Metrics Changes - The company is observing a shift in consumer behavior towards seeking value in products, with an emphasis on quality and longevity rather than just low prices [57] - The millennial generation is increasingly prioritizing sleep and wellness, presenting a significant market opportunity for the company [58] Company Strategy and Development Direction - The company is undergoing a transformation with a focus on cost efficiency, product innovation, and modernizing marketing strategies to enhance customer engagement [6][27] - There is a strategic shift towards optimizing the store footprint, with potential slight reductions in store numbers while enhancing the customer experience [45][46] - The company is exploring alternative distribution channels beyond direct-to-consumer, including potential wholesale opportunities [49] Management's Comments on Operating Environment and Future Outlook - The management acknowledges the volatility in the mattress industry but sees "green shoots" of opportunity, indicating cautious optimism for recovery [56] - The company aims to develop a business model that can thrive independently of macroeconomic conditions, focusing on delivering value to customers [56] Other Important Information - Significant changes have been made to the management team, including new appointments in marketing and finance, to drive the turnaround strategy [38][39] - The company has amended and extended its debt covenants to provide flexibility for executing its turnaround plan [33][34] Q&A Session Summary Question: What are the key changes in the management team? - The company has made significant changes, including appointing a new CMO and CFO, while also reallocating existing personnel to leverage their expertise in new roles [38][39] Question: How does the company plan to address its debt situation? - The company amended and extended its debt to align covenants with its operational plans, allowing for necessary changes and improvements [33][34] Question: What is the outlook for the mattress industry? - The management sees potential for growth despite current volatility, with a focus on delivering value and quality to meet evolving consumer demands [56][57]