Investment Rating - The report maintains a BUY rating for the company with a target price of USD 159.87 per ADS, indicating a potential upside of 48% from the closing price of USD 107.71 as of May 28, 2025 [1][8]. Core Insights - The company's 1Q25 revenue reached HKD 4.7 billion, representing an 81% year-over-year increase, while attributable net profit was HKD 2.1 billion, up 107% year-over-year. This growth is attributed to accelerated overseas customer acquisition and increased stock trading turnover in Hong Kong and the US [1]. - The company acquired 260,000 new registered users in 1Q25, achieving one-third of its 2025 target of 800,000. The primary source of new clients was Hong Kong, driven by H-share rebounds and an IPO boom [2]. - The turnover rate for client assets reached a new high of 16.4x, with total client assets amounting to HKD 829.8 billion, reflecting a 60% year-over-year increase [3]. - The company has launched several innovative services, including an AI-driven investment assistant and fractional share trading, enhancing its product competitiveness and supporting overseas customer acquisition [4]. - Earnings forecasts have been revised upwards, projecting attributable net profits of HKD 7.5 billion for 2025, with an EPS of HKD 6.52, reflecting a significant increase from previous estimates [5]. Financial Summary - The company is expected to generate revenues of HKD 18.024 billion in 2025, with a net profit attributable of HKD 7.453 billion, marking a 36.92% increase compared to 2024 [12][17]. - The projected PE ratio for 2025 is 16.17, which is in line with the average of its peers [12][17]. - The company’s market capitalization is approximately USD 14.996 billion, with an average daily trading volume of USD 262.95 million over the past six months [8].

Investment Rating - The report assigns a "Buy" rating for BYD Co. with a 12-month price target of Rmb424 for A shares and HK$416 for H shares, indicating an upside potential of 11.3% for A shares and a downside of 2.2% for H shares [11][12]. Core Insights - The impact of BYD's "618" promotions on its sales may be less severe than initially feared, as the price reductions include existing government and OEM trade-in subsidies [2][3]. - The promotion affects 12 models with an average price reduction of Rmb10k, translating to a 9% discount, which could lead to an estimated Rmb2.6 billion impact on BYD's top line, equating to 5% of the projected net profit for 2025 [3][4]. - If competitors follow suit with similar pricing strategies, the potential impact on BYD could escalate to Rmb12.4 billion [4]. Summary by Sections Promotion Impact - BYD's "618" promotions involve discounts on 22 models, primarily priced below Rmb200k, with limited-time pricing until the end of June [1]. - The average blended ASP of the 12 models affected is Rmb114k, and these models accounted for significant portions of BYD's volume, revenue, and gross profit in Q1 2025 [3]. Financial Estimates - Following the promotion announcement, net profit estimates for 2025E-2027E have been reduced by 3%-5%, and target prices have been adjusted downwards by 3% [6]. - The report provides updated revenue forecasts, projecting Rmb777.1 billion for 2025, with a gradual increase to Rmb1.18 trillion by 2027 [11]. Competitive Landscape - The report highlights that traditional OEMs dominate the NEV sales volume mix in the below Rmb200k segment, indicating a competitive pricing environment [5][10]. - BYD's market position is reinforced by its strong competitive moat due to its vertical integration business model, positioning it as a leading global auto OEM [8].

Investment Rating - The report maintains a "BUY" rating for Trip.com Group (TCOM), with a target price of US$70.00, indicating a potential upside of 10.4% from the current price of US$63.38 [2][16]. Core Insights - Trip.com Group reported a total revenue of RMB13.9 billion for 1Q25, reflecting a 16% year-over-year growth, which aligns with forecasts and consensus estimates. The non-GAAP operating income was RMB4.0 billion, exceeding expectations by 7% due to optimized sales and marketing expenditures [1]. - The company is on track with its overseas expansion strategy, which is expected to enhance long-term value despite potential short-term earnings pressure from increased investments [1]. - The report anticipates resilient revenue growth in 2Q25, projecting a total revenue of RMB14.6 billion, representing a 15% year-over-year increase [7]. Financial Performance - For FY25E, total revenue is projected at RMB61.5 billion, with a year-over-year growth of 15.2%. The adjusted net profit is expected to be RMB17.8 billion, reflecting a slight decline of 1.3% compared to FY24A [8][10]. - The non-GAAP operating profit margin for 1Q25 was reported at 29.2%, which is 1.7 percentage points better than consensus estimates, driven by effective cost management [7][9]. - The company’s gross profit margin for 1Q25 was 80.3%, slightly below consensus expectations, indicating a need for continued focus on cost efficiency as revenue contributions from Trip.com increase [7][9]. Market Position and Growth - Trip.com’s domestic business showed strong booking volume growth, with hotel bookings increasing by approximately 10-15% year-over-year in 2Q25, while outbound bookings surpassed 120% of 2019 levels in 1Q25 [7]. - The international segment accounted for 13% of total revenue in 1Q25, with over 50% year-over-year growth, suggesting a robust recovery and expansion in overseas markets [7]. - The company is expected to maintain its investment strategy to support international growth, particularly in emerging markets like Japan, Malaysia, and Thailand, while also investing in new markets such as the Middle East and Europe [7].

Financial Data and Key Metrics Changes - For Q4 2024, total group revenue was RMB2.64 billion, down 12% year-over-year. Adjusted operating income was RMB280 million, with a margin of 10.6% [9][51]. - For fiscal 2024, total group revenue was RMB10.6 billion, compared to RMB12 billion in the previous year. Adjusted operating income was RMB1.173 billion with a margin of 16.3% [12][13]. Business Line Data and Key Metrics Changes - Revenue from the Momo app and standalone new apps totaled RMB2.42 billion, down 11% year-over-year, with Momo app revenue decreasing by 18% [10][13]. - Tantan's Q4 revenue totaled RMB213 million, down 22% year-over-year due to a decrease in paying users [12][34]. - Revenue from value-added services (VAS), excluding Tantan, totaled RMB1.2 billion in Q4, down 5% year-over-year [26][55]. Market Data and Key Metrics Changes - The overseas business maintained robust growth, contributing significantly to the group's financial standing [8]. - The Momo app had 5.7 million paying users, a sequential decrease of 1.2 million due to cost reduction strategies [22]. Company Strategy and Development Direction - The company aims to maintain the productivity of the Momo app while focusing on improving user experience and optimizing operational efficiency [15][48]. - For Tantan, the strategic goal is to reduce costs and improve efficiency while exploring dating experiences suitable for agents [48][110]. - The company plans to increase investments in overseas markets, particularly in the MENA region, to drive growth and innovation [41][104]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the macroeconomic environment and regulatory changes but expressed confidence in the resilience of the Momo platform [80][83]. - The company expects a revenue decline in Q1 2025 but anticipates a slight rebound in Q2, depending on macroeconomic conditions [68][86]. Other Important Information - The Board approved a special cash dividend of $0.30 per ADS, totaling approximately $50 million, marking the seventh consecutive year of cash dividends [49]. - The company is focusing on optimizing headcount and improving marketing efficiency to absorb top-line pressure while reallocating resources to overseas business [88]. Q&A Session All Questions and Answers Question: What caused the significant drop in paying users for the Momo app? - Management indicated that the drop was due to a strategic shift away from acquiring low-return paying users, which has historically pressured profitability [74][76]. Question: What adjustments have been made to live streaming and VAS products? - Management stated that after improving Momo's content, no further changes to reduce earnings are planned, focusing instead on adding engaging features [77]. Question: What is the outlook for Tantan's revenue and profit in 2025? - Management expects a revenue decline of 20% to 30% year-over-year for Tantan in 2025, but profitability is anticipated to improve due to better ROI from reduced marketing spend [120].