Aster Capital Management DIFC Ltd lessened its position in shares of Honeywell International Inc. (NASDAQ:HON – Free Report) by 50.0% during the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 5,844 shares of the conglomerate’s stock after selling 5,834 shares during the quarter. Honeywell International comprises approximately 0.6% of Aster Capital Management DIFC Ltd’s portfolio, making the stock its 29th largest position. Aster Capital Management DIFC Ltd’s ...

Group 1 - Morgan Stanley revised its profit forecast for Bank of China (03988) based on the bank's Q3 2025 performance [1] - The net interest margin forecast for 2025 to 2027 was lowered, while the fee income forecast was raised due to Q3 2025 fee income growth exceeding expectations [1] - The net profit forecasts for Bank of China for 2025, 2026, and 2027 were increased by 0.9%, 1.4%, and 1.1% respectively [1] Group 2 - The target price for Bank of China was raised from HKD 5.9 to HKD 6.3 [1] - The rating for Bank of China was upgraded to "Overweight" [1]

Core Viewpoint - The company continues to face pressure in its performance, with a significant decline in revenue and profit in the first half of 2025, leading to a downward adjustment of the target price to 52.02 yuan and a "buy" rating [1][4]. Financial Performance - In the first half of 2025, the company achieved revenue of 3.16 billion yuan, a year-on-year decrease of 16.89%, and a net profit attributable to shareholders of 1.13 billion yuan, down 18.19% year-on-year [2]. - For Q2 2024, revenue was 1.13 billion yuan, a decline of 24.13% year-on-year, with a net profit of 302 million yuan, down 35.20% year-on-year [2]. - The high base from the previous year contributed to the increased revenue decline in Q2 [2]. Product and Regional Performance - In H1 2025, the revenue from mid-to-high-end liquor and ordinary liquor was 2.54 billion yuan and 450 million yuan, respectively, representing declines of 14.0% and 32.5% year-on-year [2]. - In Q2 2025, mid-to-high-end liquor and ordinary liquor revenues were 820 million yuan and 210 million yuan, with year-on-year declines of 23.6% and 32.9% [2]. - Revenue from domestic and foreign markets in H1 2025 was 2.36 billion yuan and 630 million yuan, down 12.0% and 33.0% year-on-year, respectively [2]. Profitability and Cost Structure - The company's gross margin for H1 2025 was 73.6%, a slight increase of 0.2 percentage points year-on-year, while Q2 gross margin was 68.3%, down 2.6 percentage points year-on-year [3]. - Sales and management expense ratios for H1 2025 were 9.7% and 4.0%, respectively, with increases of 1.8 and 1.2 percentage points year-on-year [3]. - The net profit margin for H1 2025 was 35.8%, down 0.6 percentage points year-on-year, while Q2 net profit margin was 27.1%, down 4.6 percentage points year-on-year [3]. Cash Flow and Channel Dynamics - Sales collection for H1 2025 was 3.49 billion yuan, a decrease of 10.4% year-on-year, with a net operating cash flow of 317 million yuan, down 45.7% year-on-year [3]. - As of the end of Q2 2025, the number of domestic and foreign distributors was 761 and 622, respectively, with a net increase of 10 distributors since the end of 2024, indicating a stable distribution system [2]. Investment Outlook - The company has adjusted its earnings forecast based on H1 2025 performance and recent sales trends, projecting revenue growth rates of -16%, 5%, and 6% for 2025-2027, and net profit growth rates of -17%, 8%, and 8% for the same period [4]. - The expected earnings per share (EPS) for 2025, 2026, and 2027 are 2.68 yuan, 2.89 yuan, and 3.12 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 18x, 16x, and 15x [4].

Group 1 - The core viewpoint of the report is that WH Group (万洲国际) has slightly exceeded expectations in its Q2 performance, with operating profit increasing by 3% year-on-year and adjusted operating profit rising by 19% [1] - The interim dividend has doubled to 20 HK cents, and the company maintains a payout ratio of at least 50% [1] - Bank of America has raised its earnings per share estimates for WH Group by 3% for the next two years and increased the target price by 4% to 8.5 HKD, reaffirming a "Buy" rating, citing a positive outlook for the second half of the year and a high single-digit dividend yield [1] Group 2 - WH Group's market capitalization in Hong Kong is 102.513 billion HKD, ranking first in the food processing industry [2] - Key performance indicators for WH Group compared to the industry average include: - ROE: 15.68% vs. -0.2% (ranked 4th) - Revenue: 259.41 billion HKD vs. 72.32 billion HKD (ranked 3rd) - Net profit margin: 7.14% vs. -10.31% (ranked 9th) - Gross profit margin: 20.05% vs. 31.0% (ranked 32nd) - Debt ratio: 42.74% vs. 58.11% (ranked 24th) [2]

Group 1: Stock Performance - Xiaomi Group-W (1810.HK) experienced a significant drop, with the stock price falling over 5% during trading on August 7, reaching a two-month low [1] - The stock closed down 4.35% at HKD 51.65 [1] Group 2: Market Analysis - Daiwa reported a slight downward revision in Xiaomi's smartphone shipment forecast for Q2 2025, primarily due to a 25% year-on-year decline in the Indian market [4] - Canalys data indicated a 1% year-on-year decline in global smartphone shipments for Q2 2025, marking the first drop in six consecutive quarters [4] - Despite a historical high global market share of 15% in Q2 2025, Xiaomi's gross margin decreased [4] Group 3: Financial Projections - Daiwa forecasts Xiaomi's total revenue for Q2 2025 to be RMB 112.6 billion, slightly below market expectations, with adjusted net profit at RMB 10.2 billion, in line with market expectations [4] - Due to the downward revision of smartphone gross margin forecasts, Daiwa lowered Xiaomi's earnings per share estimates for 2025 to 2027 by 2% to 7%, and reduced the target price from HKD 78 to HKD 72 [5] Group 4: Electric Vehicle Business - Xiaomi's electric vehicle deliveries are expected to reach 82,000 units in Q2 2025, with an average selling price of RMB 242,000 and an improved gross margin of 25% [4] - The company’s electric vehicle business is narrowing losses, with the second phase of the factory expected to commence production by the end of September [4][6] - Guosen Securities anticipates Xiaomi's vehicle sales to reach 400,000 to 500,000 units in 2025, and potentially exceed 800,000 units in 2026 [6] Group 5: Analyst Ratings - Nomura raised Xiaomi's target price by 79% to HKD 61 based on SOTP valuation but downgraded the rating from "Buy" to "Neutral" due to limited upside potential [6] - Analysts expect Xiaomi to face challenges in the upcoming quarters, including lower-than-expected smartphone shipments and high market expectations for the electric vehicle business [6]