Key Takeaways Roblox DAUs rose 41% y/y to 111.8M, with APAC users surging 76% in Q2 2025.Bookings in APAC climbed 75%, with Indonesia up 150%, Korea up 120% and India up 90%.Investments in servers and translation tools boosted user experience and fueled regional momentum.Roblox Corporation (RBLX) is leaning heavily on international expansion as a growth engine, with Asia-Pacific (APAC) standing out as the fastest-growing region in the second quarter of 2025.The platform’s global daily active users (DAUs) in ...

Core Thesis - Trip.com Group Limited (TCOM) presents a compelling investment case despite a modest 20x PE valuation and 5% free cash flow yield, indicating a mature and fundamentally sound business rather than a "hidden gem" [2] - The stock has underperformed this year, down 8% YTD, compared to peers like Tencent, which is up 24%, primarily due to investor concerns over margin pressure from ongoing investments in Asia and Europe [2] Growth Potential - TCOM is a dominant brand in China, well-positioned in an oversupplied hotel market, with high-quality products and services, and resilient post-COVID fundamentals [2] - The underpenetrated travel market in China, where hundreds of millions have yet to fly, offers significant long-term growth upside [2] International Expansion - TCOM's international expansion leverages proprietary Chinese app and algorithm technology, mobilizing 700 million Chinese MAUs to attract partnerships from hotels and transport providers abroad, providing a competitive edge over peers like Meituan [3] - Key catalysts expected in the second half of 2025 include better-than-anticipated margin performance, increased capital returns following the MMYT stake sale, dividends, and potential buybacks [3] Financial Metrics - Revenue growth and margin expansion since 2019 are comparable to Booking, with TCOM trading at 20x PE versus Booking at 30x PE [4] - Upside scenarios include 15% top-line growth, margin expansion to 35%, and multiple expansion, potentially tripling returns over five years [4] - Base-case projections maintain margins and multiples, offering 2x returns, while downside risks include competitive pressures and missed catalysts causing a 25% decline [4] Recent Performance - The stock price has appreciated approximately 27% since previous coverage, reflecting the successful execution of the bullish thesis [6] - The current perspective emphasizes margin resilience, capital returns, and growth in Chinese outbound travel as key catalysts for future performance [6]

Core Thesis - Hims & Hers Health, Inc. is experiencing a significant stock decline, with a 30% drop following Q2 2025 earnings, raising concerns about its growth trajectory [2] - The company is transitioning from one-off sexual health prescriptions to premium daily-use subscriptions, which is expected to temporarily impact growth but enhance customer retention and lifetime value by 2026 [2][3] Financial Performance - Revenue decreased sequentially for the first time, from $586 million in Q1 to $545 million in Q2, primarily due to weakness in weight loss and a strategic shift in sexual health [2] - Core revenue remained flat at $355 million, while weight loss revenue fell from $230 million to $190 million, attributed to availability challenges with compounded GLP-1s [2] Future Guidance - Guidance for 2025 is projected at $2.3 billion to $2.4 billion, with approximately 15% of revenue exposed to GLP-1 regulation risk [3] - Even in a downside scenario where GLP-1 compounds are eliminated, the base business could still grow at 20% annually, potentially reaching $5 billion by 2030 [3] Revenue Expansion Potential - Hims is diversifying into new categories such as menopause, TRT, lab testing, and AI-enabled care, with potential revenue contributions estimated between $650 million and $1.6 billion by 2030 [3] - This diversification could elevate total revenue to between $5.6 billion and $6.6 billion, supporting management's target of $6.5 billion [3] Valuation Insights - Valuation scenarios indicate potential net income of $600 million to $780 million by 2030, translating to a market cap of $15 billion to $19.5 billion, representing a 1.5x to 2x upside from current levels [4] - Short-term volatility is expected due to GLP-1 and sexual health transitions, but long-term growth relies on successful execution in new verticals and international expansion opportunities [4] Hedge Fund Interest - Hims & Hers Health, Inc. is not among the 30 most popular stocks among hedge funds, with 41 hedge fund portfolios holding HIMS at the end of Q1, up from 38 in the previous quarter [6]

Core Viewpoint - RLX Technology (雾芯科技) reported strong financial performance for Q2 2025, with significant year-over-year growth in revenue and profits, driven by international expansion and effective strategic execution [1][2] Financial Performance - Q2 net revenue reached 880 million RMB (approximately 122.8 million USD), a 40.3% increase from 627.2 million RMB in the same period last year, exceeding market expectations [1] - Q2 gross margin improved to 27.5%, up from 25.2% in Q2 2024 [1] - Non-GAAP operating profit was 116.2 million RMB (approximately 16.2 million USD), a substantial increase of 147.6% compared to 46.9 million RMB in Q2 2024 [2] - Non-GAAP net profit for Q2 was 291.2 million RMB (approximately 40.6 million USD), compared to 214.8 million RMB in the same quarter last year [1] - Diluted earnings per share were 0.023 USD, slightly exceeding market expectations [1] Strategic Insights - The company emphasized its commitment to global compliance and localized strategies to strengthen its international distribution network [2] - The CEO highlighted the ongoing transformation in the global industry, which presents new opportunities for growth and innovation [1][2] - The CFO noted that strict cost control and an optimized product mix contributed to the significant increase in operating profit [2]

Core Insights - The acquisition of Alani Nu has significantly contributed to Celsius's recent financial performance, leading to a strong turnaround in the company's fortunes [2][3][9] Financial Performance - Celsius reported a remarkable 84% increase in overall sales, reaching $739.3 million, surpassing analyst expectations of $655.7 million [5] - North American sales surged by 87% to $714.5 million, primarily driven by the addition of Alani Nu [6] - The Celsius brand also saw a 9% revenue growth to $438.1 million, with unit sales increasing by 6% [4] - Adjusted earnings per share (EPS) rose by 68% to $0.47, exceeding the analyst consensus of $0.21 [7] Market Trends - Alani Nu's retail sales skyrocketed by 129%, with its market share nearly doubling to 6.3% [3] - Celsius's retail sales increased by 29%, with a sequential growth of 17.6% [5] - The company is witnessing a growing trend of female consumers in the energy drink market, similar to trends observed in North America [6] Future Outlook - The company anticipates some margin pressure in the latter half of 2025 due to rising input costs, particularly from aluminum tariffs [8] - Increased marketing efforts, including a national TV commercial during NFL games, are planned to enhance brand awareness [8] - The integration of Alani Nu into PepsiCo's distribution network is expected to expand its retail presence [9] Valuation Considerations - The stock currently trades at a forward price-to-earnings ratio of approximately 42.5 times 2026 analyst estimates, indicating a less attractive valuation compared to earlier in the year [11] - While there are positive growth opportunities with Alani Nu, the current valuation may be considered ahead of itself [12]

Core Viewpoint - The UK beauty market is undergoing significant changes, highlighted by Ulta Beauty's acquisition of Space NK, indicating a strategic move to strengthen its presence in the UK market amidst increasing competition from international and local beauty brands [1][10]. Group 1: Acquisition Details - Ulta Beauty announced the acquisition of Space NK from Manzanita Capital for an estimated amount exceeding £300 million (approximately ¥2.904 billion) [1]. - Space NK will operate as an independent subsidiary under Ulta Beauty, retaining its current management team and existing stores as a foothold for market expansion in the UK [3][5]. - The acquisition aligns with Ulta Beauty's international expansion strategy, leveraging Space NK's established brand and market presence [3][10]. Group 2: Market Context - The UK beauty market has seen a resurgence, with major players like Sephora re-entering the market and expanding their store presence [11]. - Walgreens Boots Alliance's decision to privatize and invest in its Boots brand reflects the competitive landscape and the shift towards digital integration in retail [13]. - The UK beauty sector is becoming increasingly attractive for international brands, as evidenced by Unilever's recent investment in a fragrance research facility in the UK [14]. Group 3: Financial Performance - Ulta Beauty reported a net sales figure of $11.296 billion (approximately ¥81.759 billion) for the fiscal year 2024, marking a year-on-year growth of 0.8% [6]. - The company experienced a strong start to 2025, with first-quarter net sales reaching $2.848 billion (approximately ¥20.5 billion), a 4.5% increase year-on-year [8][9]. - The company's strategic focus on enhancing store operations and expanding its global footprint is expected to bolster its market position [9].

Core Viewpoint - The cosmetics industry is experiencing a surge in acquisition activity, with Ulta Beauty planning to acquire Space NK to expand into the UK market amidst performance challenges and significant shareholder actions [1][3][21]. Group 1: Acquisition Details - Ulta Beauty is set to acquire Space NK for over £300 million (approximately ¥2.915 billion), marking a strategic move to enter the growing UK market [1][3]. - The acquisition will be funded through Ulta Beauty's cash reserves and existing credit lines, with a reported cash and cash equivalents total of $454.6 million (approximately ¥3.259 billion) as of the end of Q1 2025 [4][21]. - Space NK will continue to operate independently under its current leadership post-acquisition, maintaining its brand identity within the Ulta Beauty portfolio [6][14]. Group 2: Market Context - The UK beauty market is projected to contribute £30.4 billion (approximately ¥2949.47 billion) to the GDP in 2024, growing at a rate four times faster than the overall economy [12]. - Ulta Beauty's international expansion is part of its "Ulta Beauty Unleashed" plan, which aims to drive core business growth and explore new value-added ventures [19][20]. Group 3: Company Performance - Ulta Beauty has faced declining growth, transitioning from double-digit growth to single-digit increases, with a reported net profit decline of 6.96% in Q1 2025 [22][26]. - The company's stock has experienced volatility, highlighted by Warren Buffett's significant reduction of his holdings in Ulta Beauty by 96.49% shortly after a brief investment [25][26]. - The acquisition of Space NK is seen as a strategic move to counteract performance pressures and enhance long-term profitability through international market presence [21][26].

Core Insights - The report by AlixPartners predicts that by 2030, only 15 out of 129 current electric vehicle brands in China will remain financially viable, representing 11.6% of the brands but accounting for approximately 75% of the market share [1][3] - The Chinese electric vehicle market is expected to undergo significant consolidation, with only the most competitive brands likely to succeed in the coming years [1][3] - The average annual sales per brand are projected to be 1.02 million units [1] Industry Dynamics - The Chinese electric vehicle market is characterized by intense competition, price wars, rapid innovation, and evolving industry standards, which have led to significant technological and cost efficiencies but have made sustainable profitability challenging for many companies [3][5] - As of last year, only BYD, Li Auto, and Seres among listed Chinese EV companies achieved full-year profitability [3] - Regulatory bodies in China have begun urging manufacturers to cease price wars, although price competition may continue through non-price incentives such as cost advantages and subsidies [3][5] Market Expansion - By 2030, Chinese automakers are expected to double their market share in Europe to 10%, with an annual production increase of 800,000 units, while European manufacturers may close the equivalent of 1.5 factories (approximately 400,000 units) [4] - European suppliers are planning to dispose of over $18 billion (approximately 129 billion RMB) in assets due to these market shifts [4] Cost and Supply Chain Considerations - A new round of U.S. tariffs is projected to result in costs of around $30 billion (approximately 215 billion RMB) by 2026, prompting many U.S. companies to consider relocating their supply chains out of China [5] - Chinese electric vehicle companies are advised to focus on building strong brands, investing in advanced technologies like autonomous driving, and localizing operations in key international markets to navigate domestic and global challenges [5] Technological Advancements - The report emphasizes the importance of understanding opportunities from mobility upgrades, particularly in advanced driver-assistance systems (ADAS), where China currently leads in both cost and innovation [6] - The global ADAS market is expected to reach $50 billion by 2030, with China's market share projected to increase to 45% [6] - Utilizing AI-driven solutions can enhance operational efficiency for manufacturers and suppliers, potentially reducing traditional R&D cycles and validation costs by 20% [6] Export Trends - The export of Chinese manufacturers has slowed due to tariffs and geopolitical uncertainties, but the new operational model driven by partnerships and joint ventures is gaining attention [7] - This model allows manufacturers to double the speed of vehicle launches, reduce investments by 40-50%, and lower costs by 30% [7]

Core Viewpoint - Prosus, the major shareholder of Tencent, is considering reducing or completely selling its stake in Meituan to invest in other businesses that better align with its ecosystem strategy [2][3][13]. Group 1: Reasons for Reducing Stake in Meituan - Prosus CEO Fabricio Bloisi expressed disappointment in Meituan's international expansion efforts, believing the company faces significant competition and risks [3][9]. - The decision to divest is driven by the need to invest in areas that can strengthen Prosus's ecosystem, particularly in Latin America, where opportunities may be more promising than Meituan's current trajectory [3][12][13]. - Meituan's international expansion strategy has raised concerns, especially with its attempts to enter markets like Brazil, where it competes directly with Prosus's iFood [3][13]. Group 2: Performance Comparison between iFood and Meituan - iFood, a key investment for Prosus, has shown strong performance with a 29% increase in order volume and a 30% increase in revenue, alongside a significant rise in adjusted EBITDA [7][8]. - In contrast, Meituan reported a 20.41% revenue growth, but its profitability metrics, while improving, do not match the high margins seen in iFood [8][9]. - Prosus's overall food delivery segment has a higher adjusted EBITDA margin of 18.59%, compared to Meituan's 15.21%, indicating stronger profitability in Prosus's investments [8][9]. Group 3: Financial Implications of the Stake Reduction - Prosus holds approximately 257.5 million shares of Meituan, valued at around $4.3 billion, making it the second-largest listed holding after Tencent [10][12]. - The value of Prosus's stake in its unlisted food delivery business, primarily iFood, is estimated at $6.4 billion, suggesting a strategic shift towards more profitable ventures [12][13]. - The potential divestment from Meituan could provide capital to support expansion in more lucrative markets, aligning with Prosus's long-term strategic goals [12][13].

Financial Data and Key Metrics Changes - In Q1 2025, operating revenue exceeded RMB 280 million, with gross written premiums (GWP) and first-year premiums increasing 3831% sequentially, reaching RMB 1.4 billion and RMB 730 million respectively [4][15] - Total operating revenue remained at RMB 284 million, with a robust cash liquidity balance of approximately RMB 202 million as of the end of March [16][17] - Total operating expenses fell by 29% sequentially, reflecting effective cost control measures [9][18] Business Line Data and Key Metrics Changes - The average ticket size for long-term insurance products rose 58% to over RMB 5,400, indicating effective customer strategy [5] - The repeat purchase ratio for long-term insurance products stood at 38%, demonstrating strong customer retention [17] - The company added approximately 390,000 new customers during Q1 2025, bringing the total customer base to 11 million [5][17] Market Data and Key Metrics Changes - The Vietnamese operation, Global Care, grew total policy count by 29% year-over-year, with GWP and revenue increasing by 3534% [11] - The company is on track to achieve 3% of total revenue contribution from international markets by 2026, with strong growth momentum in Southeast Asia [12] Company Strategy and Development Direction - The company is committed to providing full life cycle insurance solutions and is expanding its product offerings in response to market demand [4][6] - The integration of AI across operations is a key focus, driving productivity improvements and optimizing cost structures [4][8] - The company aims to solidify its leadership in China's participating insurance segment through customized product offerings [7] Management's Comments on Operating Environment and Future Outlook - Management noted that Q1 2025 is likely the lowest point for the year, with expectations of improved sales momentum in Q2 [26] - The company anticipates a strong Q3, particularly in August, due to expected pricing rate cuts [27] - The overall insurance demand in China and Southeast Asia remains resilient, supported by digital adoption and AI-driven product innovation [12][20] Other Important Information - The company has strong partnerships with 43 insurance companies and continues to develop customized products [6] - The deployment of AI agents is transforming workflows, enhancing user experience, and improving operational efficiency [9][10] Q&A Session Summary Question: Selling expenses and sales momentum outlook - The decline in first-year premiums was attributed to a high base effect from Q1 2024, while selling expenses increased due to the lower gross margins from international business [23][25] - Management expects Q2 to show decent momentum, with a revival of growth in the domestic market [26][27] Question: Impact of regulatory changes on business - Regulatory changes are expected to level the playing field among distribution channels, potentially increasing the influx of productive agents to the company [31][32] - The company is on track for expansion into Singapore, with operational status expected by Q3 2025, while progress in the Philippines is ongoing [35][36]