Group 1: Market Overview - The Hang Seng Index fell by 1%, down 235 points, closing at 23,366 points, while the Hang Seng Tech Index decreased by 1.32% [1] - The early trading volume in the Hong Kong stock market reached HKD 127.7 billion [1] Group 2: Airline Sector - Airline stocks continued their recent upward trend, with April civil aviation demand growth significantly improving compared to Q1, leading to expected profitability improvements in Q2 [1] - China National Airlines (00753) rose by 5.76%, Southern Airlines (01055) increased by 4.36%, and Eastern Airlines (00670) gained 1.85% [1] Group 3: Nuclear Energy Sector - The signing of the nuclear energy "revitalization order" by Trump indicates a clear trend towards nuclear power development, resulting in significant gains for nuclear stocks [1] - China General Nuclear Power (01164) increased by 5.63%, and China General Nuclear Power Electric (01816) rose by 3.92% [1][3] Group 4: Technology and AI Sector - Fubo Group (03738) surged over 6%, with Q1 total revenue growing approximately 23% year-on-year as the company accelerates its AI ecosystem layout [1] - Tencent Music (01698) rose over 4%, with Q1 ARPPU improving beyond expectations and stable growth in online music services [1] - Kangnate Optical (02276) increased by over 5%, with AI glasses expected to see rapid growth as the company advances both domestic and international sales [1] Group 5: Cryptocurrency and Virtual Assets - Zhong An Online (06060) surged over 13% following the Hong Kong legislation allowing stablecoins, as Zhong An Bank deepens its layout in virtual asset business [1][2] Group 6: Other Notable Stocks - Chaoyun Group (06601) rose over 8% due to strong growth in the pet consumption market as the company enters the emerging pet sector [1] - Xianjian Technology (01302) increased by over 5% after receiving formal registration approval from the National Medical Products Administration for its aortic arch stent system [1] - Rongchang Bio (09995) fell over 5% after raising approximately HKD 800 million through a recent placement, which is expected to strengthen its cash position [4]

Core Viewpoint - The company aims to build an AI product matrix while accelerating its globalization strategy, intending to let global consumers experience the value of an intelligent ecosystem [1][5]. Group 1: Product Launch and Global Strategy - On May 20, the company held an online overseas product launch, introducing multiple smart hardware products, including smartphones, AR glasses, and smart wearables [1][3]. - The launch featured five smartphone models from the MEIZU Mblu and MEIZU Note series, priced between $79 and $399, targeting the mid-range to high-end market [3]. - The AR smart glasses StarV View and the upgraded smart ring StarV Ring2 were also showcased, with plans for initial sales in Russia, Spain, Malaysia, and Vietnam, followed by expansion into over 30 countries [4]. Group 2: Business Layout and Market Position - The company highlighted its "smartphone + XR + smart automotive" business layout, emphasizing hardware-software synergy and full-scene connectivity [2][5]. - The company plans to achieve an overseas sales ratio exceeding 20% within three months of launching its globalization strategy in 2024, with a long-term goal of 50% [2][5]. - Currently, the company's products are sold in nearly 30 countries and regions, with a global organizational structure already established [2][5]. Group 3: Collaboration and Future Plans - Since 2025, the company has collaborated with Geely Automotive to host launch events in multiple countries, aiming to build integrated experience stores for smartphones, cars, and glasses overseas [5]. - The company is actively preparing for a potential IPO in Hong Kong, having completed two rounds of financing totaling 2 billion RMB, with a post-investment valuation exceeding 10 billion RMB [8].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [6][8]. Core Views - The company is undergoing a significant transformation driven by "intelligent computing power + data elements," focusing on AI capabilities to enhance its market competitiveness and operational efficiency [3][5][6]. - The financial outlook shows a narrowing of losses, with projected net profits increasing significantly from 2025 to 2027, indicating a potential turning point in profitability [5][6][7]. Summary by Sections 1. AI and Big Data-Driven Core Business Layout - The company is building a high-performance computing service ecosystem, aligning with national strategies and forming joint ventures to enhance its computing power capabilities [13]. - The "HuiKe Cloud" platform is central to the company's data assetization process, integrating extensive offline commercial data to provide intelligent decision-making solutions [14][16]. - A change in actual control is anticipated, with a strategic shift towards integrating 3D printing, AI, and computing power [17][20]. 2. Large Models Driving Industrial Transformation - The emergence of open-source ecosystems is facilitating rapid innovation in vertical applications, with the company leveraging these advancements to enhance its AI capabilities [4][35]. - The introduction of the "Doubao Video World" model represents a breakthrough in visual cognition, enabling new applications in various fields without reliance on textual data [38][42]. 3. Financial Overview: Narrowing Losses and Strengthening Long-Term Value - The company has experienced revenue fluctuations and short-term profitability pressures, primarily due to high R&D expenditures and fixed costs [59]. - The transition to data services has led to a significant improvement in gross margins, indicating the effectiveness of the strategic shift towards becoming a data service provider [61]. 4. Profit Forecast and Investment Recommendations - The company is expected to see substantial growth in net profits from 2025 to 2027, with earnings per share projected to rise significantly [6][7]. - The report emphasizes the potential for the company's AI and data services to drive future growth, supported by favorable market conditions and policy incentives [6][54].

Group 1 - The 21st Shanghai International Automobile Industry Exhibition commenced on April 23, 2025, showcasing GAC Group's brands such as Haobo, Trumpchi, and Aion, emphasizing advancements in intelligent safety and AI ecosystems [1] - Four new vehicles made their global debut at the exhibition, highlighting a significant innovation in user travel experiences through comprehensive AI technology integration [1] Group 2 - The collaboration between GAC Haobo GT and CARLAS x TPU Rainbow Tiffany color-changing film became a focal point of the exhibition, attracting considerable attention due to its elegant design and vibrant colors [4] - The CARLAS x TPU Rainbow Tiffany color-changing film is known for its true lacquer texture and high color saturation, enhancing the aesthetic appeal of the GAC Haobo GT with a romantic and elegant "outerwear" [8] - This partnership represents a perfect fusion of color and vehicle design, showcasing a deep dialogue between automotive aesthetics and high-end color-changing film technology, appealing to the growing demand for personalized expression in electric vehicles [11]

Core Viewpoint - Honor has launched a new smartphone series, the Power series, aimed at the mid-to-low-end market, reflecting a strategic shift under new management after a period of stagnation in the competitive smartphone market [2][3][4] Group 1: Product Launch and Features - The Power series smartphone features an 8000mAh battery, promoting long battery life with a certified 16.6 hours of continuous screen usage [3] - The device's thickness is controlled at 7.98mm, which is competitive compared to the iPhone 16 Pro at 8.25mm [3] - The starting price of the Power series is set at 1699.15 yuan after government subsidies, targeting the growing demand in the sub-2000 yuan market [2][5] Group 2: Market Strategy and Positioning - The launch of the Power series is strategically timed for April, coinciding with the spring travel peak, allowing Honor to reach target users effectively while avoiding direct competition with flagship models [4] - The mid-to-low-end smartphone segment is significant, with the 1000-2000 yuan price range accounting for 31% of the Chinese smartphone market in 2024, maintaining a stable share over the past five years [5][6] - Honor's previous focus on high-end products is shifting, as the new management aims to address the competitive landscape in the mid-to-low-end market [3][4] Group 3: Competitive Landscape and Challenges - Honor's market share in China has declined to 14.7% in 2024, down 0.8 percentage points year-on-year, ranking fifth among smartphone manufacturers [7] - The competitive environment is intense, with major players like Xiaomi and Huawei showing significant growth, while Honor's sales have been impacted by the return of Huawei and a lack of compelling new products [7] - Analysts suggest that the introduction of the Power series may be a strategy to utilize existing inventory rather than a complete strategic overhaul, indicating that Honor's new management is still in the process of restructuring [7]

Investment Rating - The report maintains a "Strong Buy" rating for Geely Automobile (00175.HK) with a target price range of HKD 23.86 to HKD 28.63, indicating a potential upside of 43% to 71% from the current price of HKD 16.70 [1][8]. Core Insights - Geely's electric transformation is progressing rapidly, with a comprehensive layout in AI ecosystems. The company reported a sales volume of 2.18 million vehicles in 2024, a year-on-year increase of 29%. Revenue reached CNY 240.2 billion, up 34% year-on-year, and net profit attributable to shareholders was CNY 16.6 billion, reflecting a significant increase of CNY 11.3 billion [1][4]. Sales and Profitability - In Q4 2024, Geely's sales reached 690,000 vehicles, marking a 29% increase year-on-year and quarter-on-quarter. The gross margin was 17.3%, up 1.0 percentage points year-on-year and 1.8 percentage points quarter-on-quarter. The net profit for the quarter was CNY 3.6 billion, an increase of CNY 1.12 billion year-on-year [2][3]. Brand Performance - The main brand, Geely, saw a sales increase of 2.3% year-on-year in Q4, while the new energy brand Galaxy experienced a remarkable growth of 110% year-on-year. The net profit from the main brand was CNY 3.4 billion, up CNY 1.3 billion year-on-year [2][3]. Future Projections - The report forecasts Geely's sales to reach 2.74 million vehicles in 2025, with expected growth rates of 26%, 18%, and 16% for the following years [4][9]. The company plans to launch several new models across its brands, including five new energy vehicles under the Galaxy brand and five new models under Zeekr and Lynk & Co [8][9]. Financial Outlook - The report adjusts the net profit forecasts for 2025-2026 from CNY 13.6 billion and CNY 17.1 billion to CNY 14.8 billion and CNY 20.8 billion, respectively. The projected net profit for 2027 is CNY 25.7 billion, with corresponding price-to-earnings ratios of 10.5x, 7.5x, and 6.0x for the respective years [8][9].