Core Viewpoint - CGS International maintains a "Hold" rating on UOB but lowers the target price from SGD 38.30 to SGD 36.50 due to concerns over the bank's earnings recovery following a significant one-time provision in Q3 2025 to address risks in the US and Greater China commercial real estate sectors [1][2]. Group 1: Financial Performance - UOB recorded a special provision of SGD 479 million in Q3 2025, with credit costs reaching 55 basis points, significantly higher than the bank's previous guidance of 25-30 basis points for the fiscal year [1]. - The increase in provisions is attributed to declining transaction valuations in the US and Greater China commercial real estate markets, necessitating write-downs on loan book asset values [1]. - UOB decided to recognize an additional general provision of SGD 615 million, bringing the total general provision for Q3 to SGD 687 million [1]. Group 2: Earnings Forecast - CGS International has significantly reduced UOB's earnings per share (EPS) forecasts, cutting the 2025 fiscal year EPS estimate by 18.8%, and lowering the 2026 and 2027 fiscal year EPS estimates by 13.1% and 10.4%, respectively [2]. - Despite UOB management's positive signals regarding credit costs normalizing in Q4 and FY 2026, market concerns about high credit costs are expected to persist in the short term [2].

Report Summary 1. Report Industry Investment Rating - No information provided 2. Core View of the Report - The external environment remains complex. The US tariff pressure on China persists, and the "rush to export" trend is unsustainable. However, the weakening of the US dollar's credit foundation eases the passive depreciation pressure on the RMB. In China, the conversion of expectations into reality is evident, but the continuous effect of the "anti - involution" policy on deflation improvement still depends on demand - side cooperation. Corporate profit repair is not yet stable, and the transmission of policies and monetary effects requires time. The current valuation repair process is ahead of the profit recovery slope, and the profit recovery situation is the key to whether the overall market center can rise. Attention should be paid to the recovery of the overall market profitability [5] 3. Summary by Relevant Catalogs 3.1 Market Performance - In September, the domestic A - share market indices continued to rise, with multiple indices hitting new highs this year. Small - cap growth stocks outperformed, followed by large - cap growth stocks, while large - cap value stocks had continuous corrections. The performance of various industries was significantly differentiated, with non - ferrous metals related to precious metals leading the gains, and coal, food and beverage, and oil and petrochemicals leading the losses. In terms of valuation, there was obvious internal differentiation among stock indices [3] - The basis of the four major stock index futures main contracts mostly remained in a discount state. The trading of the four major stock index futures was highly active, with a convergence at the end of the quarter. IM was the most active, followed by IF and IC with similar activity levels. The overall positions of the four major stock index futures varieties increased, with IM having the largest position scale, followed by IF [3] 3.2 Macroeconomic Situation - Domestically, in the first half of 2025, the GDP actually grew by 5.3%. The economic growth rate slowed down slightly in the second quarter, with a single - quarter growth of 5.2%. In 2024, the cumulative year - on - year growth rates of fixed - asset investment and real estate development investment were 3.2% and - 10.6% respectively. In the fourth quarter of 2024, the contributions of consumption, investment, and net exports to GDP all increased. After negotiations, the tariff rate was stable at 15%, and external demand maintained resilience [4] - Overseas, at the end of September, the Federal Reserve cut interest rates by 25bp as expected, and the dot - plot showed a total reduction of about 75bp this year. Due to the large - scale US fiscal deficit caused by the "Big and Beautiful" Act, the US Treasury yield remained high, and the US dollar index fluctuated around the key level of 97. The Fed Chairman paid more attention to the cooling of the US labor market, and the unemployment rate rose in the third quarter. The Fed's strict attitude towards inflation may ease [4]

Core Viewpoint - China Resources Land (01109) reported a 6.9% year-on-year decline in core profit for the first half of the year, primarily due to a reduction in one-time gains, but maintained stable interim dividends, indicating robust shareholder returns [1] Financial Performance - The profit margin for development properties improved for the first time in years despite the overall profit decline [1] - The contribution from recurring business increased to 60% in the first half of 2025 [1] Future Outlook - The company is expected to achieve a profit recovery in 2026, driven by the increased contribution from recurring business and improved profit margins from development properties [1] - The valuation benchmark has been shifted to the 2026 forecasted earnings per share, with the target price raised from HKD 32.2 to HKD 35.4, implying a 2026 price-to-earnings ratio of 8.5 times [1] Investment Recommendation - China Resources Land remains the preferred stock for the firm, with an outperform rating [1]

Core Viewpoint - China Resources Land (01109) reported a 6.9% year-on-year decline in core profit for the first half of the year, primarily due to a reduction in one-off gains, but maintained stable interim dividends, indicating robust shareholder returns [1] Financial Performance - The profit margin for development properties improved for the first time in years despite the overall profit decline [1] - The contribution from recurring business increased to 60% in the first half of 2025 [1] Future Outlook - The company is expected to achieve a profit recovery in 2026, driven by the increased contribution from recurring business and improved profit margins from development properties [1] - The valuation benchmark has been shifted to the 2026 forecast earnings per share, with the target price raised from HKD 32.2 to HKD 35.4, implying a 2026 price-to-earnings ratio of 8.5 times [1] Investment Recommendation - China Resources Land remains the preferred stock for the firm, with a rating of outperform [1]

Core Viewpoint - Cat's Eye Entertainment reported a mixed performance in its interim results, with revenue growth but a significant decline in profit, indicating challenges in the current market environment [1] Financial Performance - Revenue for the period reached approximately 2.472 billion yuan, representing a year-on-year increase of 13.9% [1] - Net profit for the period was 178.5 million yuan, a decrease of 37.3% year-on-year [1] - Adjusted net profit was approximately 235 million yuan, down 33.2% year-on-year [1] Revenue Drivers - The increase in revenue was primarily driven by a rise in entertainment content service income, attributed to a record number of films controlled and distributed by the company in the first half of 2025, along with strong box office performance of certain films [1] Market Analysis - Bank of America Securities noted that Cat's Eye Entertainment's performance met expectations, with robust revenue growth driven by strong box office increases [1] - However, the decline in profit was mainly due to poor box office performance of some films in the second quarter and increased investments in live performances and IP businesses [1] Future Outlook - The firm is optimistic about a recovery in profitability for the second half of the year, citing ongoing market recovery and a rich pipeline of films set to be released [1] - The target price for Cat's Eye Entertainment was raised from 9.3 HKD to 9.7 HKD, reflecting confidence in the growth of the entertainment content service business for the remainder of the year and into next year [1]

Core Viewpoint - Morgan Stanley's report indicates that Greentown China (03900) is adopting a more balanced approach to reduce its land reserve risks, which may slow down its real estate sales growth next year and negatively impact profit recovery due to lower-than-expected gross margin performance [1] Group 1: Company Performance - The company's valuation is considered too expensive, leading to a downgrade from "Overweight" to "Underweight" with a target price reduction from HKD 11.62 to HKD 8.55 [1] - Greentown China is expected to take longer than anticipated to restore profits to levels seen before the decline in 2022 [1] Group 2: Earnings Forecast - Earnings estimates for the group from 2025 to 2027 have been reduced by 15%, 35%, and 22% respectively, reflecting weak real estate sales and a slowdown in profit margin recovery [1]

Group 1 - The core viewpoint of the report is that Bank of America Securities is optimistic about the profit recovery trend of Maoyan Entertainment (01896) in the second half of the year, supported by a recovering market and a rich pipeline of upcoming films [1] - The company’s performance in the first half of the year met expectations, with revenue showing robust growth, driven by a strong 14% year-on-year increase in box office revenue [1] - Despite the revenue growth, the company's profit fell by 37% year-on-year, primarily due to poor box office performance of certain films in the second quarter and increased investments in live performances and IP businesses [1] Group 2 - Bank of America Securities has raised its target price for Maoyan Entertainment from HKD 9.3 to HKD 9.7 and reiterated a "Buy" rating [1] - The full-year profit forecast for Maoyan Entertainment has been revised down from RMB 627 million to RMB 422 million due to adjustments in box office predictions and increased investments in content production and new businesses [1] - Profit forecasts for 2026 and 2027 have been reduced by 6% to 11% [1]

Core Viewpoint - Bank of America Securities is optimistic about the profit recovery trend of Maoyan Entertainment (01896) in the second half of the year, citing a continuous market recovery and a rich pipeline of upcoming films that will support growth in the entertainment content service business for the remainder of this year and next year [1] Group 1: Financial Performance - Maoyan Entertainment's performance in the first half of the year met expectations, with revenue showing robust growth driven by a strong increase in box office, resulting in a year-on-year revenue increase of 14% [1] - However, the company's profit decreased by 37% year-on-year during the same period, primarily due to poor box office performance of certain films in the second quarter and increased investments in live performances and IP businesses [1] Group 2: Forecast Adjustments - In response to a downward revision of the annual box office forecast and increased investments in content production and new businesses, Bank of America Securities has lowered its full-year profit forecast for Maoyan Entertainment from 627 million RMB to 422 million RMB [1] - Profit forecasts for 2026 to 2027 have also been reduced by 6% to 11% [1] Group 3: Rating and Target Price - Bank of America Securities maintains a "Buy" rating on Maoyan Entertainment, raising the target price from 9.3 HKD to 9.7 HKD [1]

Core Viewpoint - Morgan Stanley's research report indicates that Greentown China is adopting a more balanced approach to reduce its land reserve risks, which may slow down its real estate sales growth next year and negatively impact profit recovery due to lower-than-expected gross margin performance [1] Group 1: Company Valuation and Ratings - Morgan Stanley believes that Greentown China's valuation is too high, downgrading its rating from "Overweight" to "Underweight" [1] - The target price for Greentown China has been reduced from HKD 11.62 to HKD 8.55 [1] Group 2: Earnings Forecast Adjustments - The company is expected to take longer than anticipated to restore profits to levels seen before the decline in 2022 [1] - Earnings estimates for the group from 2025 to 2027 have been cut by 15%, 35%, and 22% respectively, reflecting weak real estate sales and a slowdown in profit margin recovery [1]

Core Viewpoint - DBS has upgraded its target price for Li Ning (02331) from HKD 17.4 to HKD 19.5, reflecting a recovery in growth despite intense market competition, with a projected price-to-earnings ratio of 16 times for the next 12 months [1] Company Summary - Li Ning is recognized as a leading domestic sportswear brand in China, holding a market share of 10.3% as of 2024 [1] - The company has developed the Li Ning YOUNG and Li Ning China brands to align with youth culture trends [1] - DBS expects Li Ning's sales to grow modestly by 1% in fiscal year 2025 and by 6% in fiscal year 2026, driven by stable growth in running and outdoor apparel categories [1] Industry Summary - The sports lifestyle segment is experiencing stable growth, contributing positively to Li Ning's overall performance [1] - The upcoming 2026 Winter Olympics in Milan is anticipated to further boost investment and sales in the sportswear sector [1] - Improvements in retail discount rates for both offline and e-commerce channels have been noted, indicating better pricing strategies [1]