25 August 2025 | 1:27AM HKT Centre Testing Intl Group (300012.SZ): 2Q25 inline with accelerating M&A and overseas expansion; Maintain Buy n Life science (which includes food and environment sub-segments): Revenue 1H25 +1% yoy/-3% yoy in 2Q25, normalizing from a high 1H24 base driven by the non-recurring 3rd National Soil Census. Soil-census revenue fell sharply in 1H25 (c.Rmb20mn vs Rmb230–250mn in 1H24), but underlying food and environment (excluding soil-census) continued to grow excluding this impact. Wi ...

The more digital our lives become, the more dangerous centralization becomes. ...

Financial Data and Key Metrics Changes - The group's revenue increased by 81.9% year over year to approximately $519 million [43] - Adjusted profit from continuing operations grew significantly to about $178 million [43] - The net loss narrowed to approximately $24.5 million, largely affected by Legend Biotech's performance [43] Business Line Data and Key Metrics Changes - GenScript Life Science Group's revenue grew by 11.3% to about $248 million [45] - ProBio's revenue surged by 511% to around $402 million [43] - Bestzyme's revenue increased by 8.4% to $28.3 million [43] Market Data and Key Metrics Changes - Revenue from industry customers, particularly pharma, increased due to the development of more M&D companies [45] - Revenue from the Americas and European markets grew, thanks to the successful execution of the global market strategy [48] Company Strategy and Development Direction - The company is focused on expanding market penetration for protein, mRNA, and cell and gene engineering [55] - Investments are being made in automation, capacity expansion, and digital transformation to enhance operational efficiency [55] - The company aims to leverage its global footprint to provide speed, reliability, and consistent delivery to customers [78] Management's Comments on Operating Environment and Future Outlook - Management noted that the geopolitical environment remains complex but the company delivered rapid growth [6] - There is confidence in achieving margin improvement through strategic investments and operational efficiencies [94] - The company anticipates a stronger growth trajectory in the second half of the year across all segments [45] Other Important Information - The company achieved significant ESG milestones, including an upgrade to AA in MSCI ESG ratings and inclusion in the FTSE4Good index [10] - The cash position stood at $970 million, supporting global expansion and R&D efforts [9] Q&A Session Summary Question: ProBio's fee for service and COGS trends - Management clarified that excluding the Lenovo collaboration impact, fee for service business achieved double-digit growth [62] Question: Bestzyme's product breakdown and growth expectations - Management indicated that new product launches and expanded sales personnel in key markets are expected to drive growth in the second half [65] Question: Future milestone payments from Lenovo collaboration - Management expects to recognize a milestone payment of $300 million in the second half, with further payments dependent on clinical trial progress [76] Question: Global expansion and long-term revenue contribution - Management emphasized the importance of a robust global footprint for flexibility and resilience, aiming for sustainable growth [78] Question: Tariff impact on profits - Management reported that tariffs had a low impact on profits, under $4 million, due to the nature of the business [85] Question: ProBio's order trends and backlog - Management noted steady growth in orders and a clear recovery in antibody and protein R&D, with a focus on active backlog management [88]

Core Viewpoint - Brookfield Infrastructure Partners is viewed as a promising investment opportunity despite its recent stock performance, primarily due to its reliable distributions, diversified business model, and solid growth prospects. Group 1: Reliable and Growing Distributions - Brookfield Infrastructure offers a forward distribution yield of 5.67% and has a 16-year history of increasing distributions, with a compound annual growth rate (CAGR) of 9% [2] - The company targets an annual distribution growth rate between 5% and 9%, with a payout ratio comfortably set between 60% and 70% [3] Group 2: Diversified and Stable Underlying Business - Approximately 41% of Brookfield Infrastructure's funds from operations (FFO) are derived from its transportation businesses, which include 36,300 kilometers of rail operations and 3,300 kilometers of toll roads [6][8] - The utility operations contribute 25% of FFO, encompassing 3,500 kilometers of gas pipelines and 3,140 kilometers of electricity transmission lines [8] - The company also invests in technology and telecommunications, with assets including 28,000 kilometers of fiber optic cable, 306,000 telecom towers, over 140 data centers, and two semiconductor manufacturing foundries [9] Group 3: Solid Growth Opportunities - Since 2009, Brookfield Infrastructure has achieved a CAGR of 14% in FFO per unit and anticipates continued double-digit growth in the future [10] - Key growth drivers identified by management include digitalization, decarbonization, and deglobalization, which are expected to enhance demand for data infrastructure and cleaner energy solutions [11] - The company has a capital backlog exceeding $7.9 billion, with a significant portion allocated to data infrastructure assets, reflecting the rising demand for artificial intelligence [12] - Brookfield Infrastructure also employs a strategy of selling mature assets for attractive returns, having generated approximately $2.4 billion from asset sales in the first seven months of 2025 [13]

Market Volatility & Investment Strategy - Market volatility is expected to return, potentially leading to an asset price explosion in the second half of the year, advising strategic positioning [2][4][6] - Historically, volatility was seen negatively, but now it's part of digitalization and financialization trends [3] - The VIX (Volatility Index) is at its lowest point in 2025, suggesting an imminent increase in market volatility [5] Tariff Revenue & US Investment - Tariff income is projected to exceed 1% of GDP, surpassing the initial estimate of $300 billion [7][8] - Private industry is committing over $10 trillion in investments into the United States [8][9] - The US is gaining advantage in the geopolitical trade realm, potentially disadvantaging those betting against it [10] Geopolitics & Trade Negotiations - The US employs a multi-lever, non-linear strategy in trade negotiations, leveraging military operations, diplomacy, economic sanctions, and oil markets [22][23][28] - Disbanding of the Klepto Task Force and discussions on Arctic routes were potential incentives offered to Russia during negotiations [30][31][32] - Arctic shipping routes are emerging as a significant geopolitical factor, influencing trade and logistics [34][35] Cryptocurrency & Digital Assets - The US government and the Chinese government are among the largest holders of Bitcoin, holding the 3rd and 4th position respectively [40] - China is seriously considering launching a yuan-backed stablecoin, potentially from Hong Kong [42] - Governments recognize the growing demand for digital assets, leading to a complex dynamic between supporting these assets and safeguarding legacy systems [44][45]

Industry Overview - The Zacks Retail – Restaurants industry is facing a challenging macroeconomic environment characterized by high costs and declining traffic, but is experiencing sales growth due to menu price hikes and average check growth [1][3] - Industry participants are leveraging partnerships with delivery channels and digital platforms to enhance sales [1] Sales Performance - Restaurant sales showed strong momentum, with U.S. Census Bureau data indicating $98.7 billion in seasonally adjusted sales in June, a 0.6% increase from May's revised total of $98.2 billion [4] Digital Innovation - The focus on digital innovation and partnerships with delivery services like DoorDash and Grubhub is driving incremental sales for restaurant operators [5] Off-Premise Sales - The increase in off-premise sales, including delivery and takeout, is acting as a key catalyst for growth, with many operators testing ghost kitchens and connected curbside services [6] Industry Ranking - The Zacks Restaurant industry holds a Zacks Industry Rank of 188, placing it in the bottom 23% of over 244 Zacks industries, indicating dull near-term prospects [7][8] Stock Performance - Over the past year, the industry has underperformed the Zacks S&P 500 Composite, growing only 5.7% compared to the S&P 500's 20.3% and the sector's 25.7% [9] Valuation Metrics - The industry is currently trading at a forward 12-month P/E of 24.69X, higher than the S&P 500's 22.69X but below the sector's 25.05X [12] Company Highlights - **BJ's Restaurants**: Achieved 2.9% year-over-year comparable sales growth in Q2 2025, driven by a 3.3% increase in traffic, with anticipated sales and earnings growth of 3.2% and 38.8% respectively for 2025 [14][15] - **The Cheesecake Factory**: Benefiting from higher consumer demand and operational efficiency, with expected sales and earnings growth of 5.1% and 9.3% respectively for 2025 [18][19] - **Cracker Barrel**: Focused on menu innovation and digital initiatives, with anticipated sales growth of 0.1% but a decline in earnings of 9.1% for 2025 [22][23]

Core Viewpoint - The Zacks Multiline Insurance industry is experiencing growth driven by product diversification, digitalization, and increased demand for embedded insurance, with projected global premiums from embedded insurance expected to exceed $722 billion by 2030 [1]. Industry Overview - The Zacks Multiline Insurance industry includes companies that provide bundled insurance coverage for various needs, improving customer retention and offering lower premium payments compared to individual policies [3]. - The industry is characterized by diversified product and service portfolios, which help lower concentration risk and enhance sales and premiums, particularly in life insurance [4]. Trends Shaping the Industry - The transition to green energy and related insurance products, along with the rise of cyber insurance due to increased AI adoption, presents growth opportunities [4]. - The industry is expected to see continued consolidation as companies seek to diversify operations and gain market share, with a rise in technology-driven deals anticipated by 2025 [5]. - Digitalization is significantly impacting the industry, with the adoption of technologies like AI and blockchain to enhance operations and reduce costs [6]. Financial Performance - The Multiline Insurance industry has underperformed compared to the Finance sector and the S&P 500 year to date, with a collective gain of 1.7% against the sector's 8.4% and the S&P 500's 6.9% [9]. - The industry is currently trading at a price-to-book (P/B) ratio of 2.37X, significantly lower than the S&P 500's 7.37X and the sector's 4.23X [12]. Company Highlights - **American International Group (AIG)**: Expected earnings growth of 24.2% and 25.9% for 2025 and 2026, respectively, with a long-term growth rate of 14.8% [19]. - **Prudential Financial (PRU)**: Anticipates 5% to 8% core adjusted operating EPS growth through 2027, with earnings growth estimates of 8% and 8.5% for 2025 and 2026 [23]. - **Principal Financial Group (PFG)**: Projected earnings growth of 17.6% and 11.5% for 2025 and 2026, respectively, with a long-term growth rate of 12.7% [27]. - **Everest Group (EG)**: Expected to see earnings growth of 52% and 35.7% for 2025 and 2026, with a long-term growth rate of 29.7% [31]. - **Assurant (AIZ)**: Forecasted earnings decrease of 17.6% for 2025, but growth in connected living and global automotive sectors is expected to support overall performance [35].

Financial Data and Key Metrics Changes - Distributable earnings before realizations increased 13% year over year to $1,300,000,000, equating to $0.80 per share for the quarter and $5,300,000,000 or $3.36 per share for the last twelve months [5][15] - Total distributable earnings including realizations were $1,400,000,000 or $0.88 per share for the quarter and $5,900,000,000 or $3.71 per share over the last twelve months, with total net income of $2,900,000,000 [15] Business Line Data and Key Metrics Changes - The asset management business generated distributable earnings of $650,000,000 or $0.41 per share in the quarter, and $2,700,000,000 or $1.72 per share over the last twelve months, with inflows during the quarter of $22,000,000,000 [16] - The Wealth Solutions business reported distributable operating earnings of $391,000,000 or $0.25 per share in the quarter and $1,600,000,000 or $1.02 per share over the last twelve months [17] - The operating businesses generated distributable earnings of $350,000,000 or $0.22 per share in the quarter and $1,700,000,000 or $1.07 per share over the last twelve months [18] Market Data and Key Metrics Changes - Global equities hit all-time highs, credit spreads tightened dramatically, and interest rates remained largely unchanged, with expectations of potential cuts on the short end of the curve [6][7] - The company completed GBP55 billion of asset sales this year, including GBP35 billion in the quarter, generating excellent returns [8][21] Company Strategy and Development Direction - The company is focusing on digitalization, deglobalization, and decarbonization as key themes for capital deployment, with a record $177,000,000,000 of deployable capital [8][10] - The launch of an AI infrastructure strategy is underway, aimed at developing AI factories to meet the growing demand for compute capacity [9][10] - The company plans to enhance the efficiency of its capital structure while maintaining a focus on low-risk, long-duration insurance [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment is becoming increasingly constructive, supporting increased monetizations and cash flow growth [6][8] - The company anticipates continued growth in results over the remainder of the year, with strong underlying fundamentals driving performance [25] Other Important Information - The Board of Directors declared a quarterly dividend of $0.09 per share and approved a three-for-two stock split of the outstanding Class A limited voting shares [25] - The company announced an agreement to acquire Just Group for $3,200,000,000, expected to significantly accelerate growth in insurance assets [18] Q&A Session Summary Question: Growth in P&C business and scaling plans - Management indicated that the focus is on low-risk liabilities, particularly in the annuity business, with potential for organic growth in P&C if competitive advantages are identified [27][28] Question: Market conditions and carried interest timing - Management stated that while market conditions are improving, the expected timing for carried interest remains broadly in line with previous plans, with significant contributions expected next year [34][36] Question: Just Group acquisition financing details - Management noted that the acquisition is subject to strict UK takeover rules, limiting the details that can be shared at this stage [40] Question: Evolution of corporate structure with insurance operations - Management emphasized that the insurance business will remain integrated into Brookfield, enhancing returns on capital and providing growth opportunities [44][46] Question: AI infrastructure strategy and investor support - Management confirmed engagement with large clients for potential cornerstone investments in the AI infrastructure strategy, aiming to mitigate technological obsolescence risk through structured investments [49][50]

Financial Data and Key Metrics Changes - Distributable earnings before realizations increased 13% year over year to $1,300,000,000, equating to $0.80 per share for the quarter and $5,300,000,000 or $3.36 per share for the last twelve months [5][15] - Total distributable earnings including realizations were $1,400,000,000 or $0.88 per share for the quarter and $5,900,000,000 or $3.71 per share over the last twelve months, with total net income of $2,900,000,000 [15] Business Line Data and Key Metrics Changes - The asset management business generated distributable earnings of $650,000,000 or $0.41 per share in the quarter, and $2,700,000,000 or $1.72 per share over the last twelve months [16] - Wealth Solutions business delivered distributable operating earnings of $391,000,000 or $0.25 per share in the quarter and $1,600,000,000 or $1.02 per share over the last twelve months [18] - Strong fundraising across flagship funds led to inflows of $22,000,000,000 during the quarter, including over $5,000,000,000 from retail and wealth solutions clients [17] Market Data and Key Metrics Changes - Global equities hit all-time highs, credit spreads tightened dramatically, and interest rates remained largely unchanged, with expectations of potential cuts in the near future [6] - The company completed GBP55 billion of asset sales this year, including GBP35 billion in the quarter, generating excellent returns [7][22] Company Strategy and Development Direction - The company is focusing on digitalization, deglobalization, and decarbonization as key themes for capital deployment [7] - A new AI infrastructure strategy is being launched, focusing on developing AI factories to meet the growing demand for compute capacity [9] - The company plans to enhance its capital structure to support low-risk, long-duration insurance operations, indicating a shift towards integrating insurance with investment strategies [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment is becoming increasingly constructive, supporting increased monetizations and strong demand for high-quality assets [6][7] - The company anticipates continued growth in financial results over the remainder of the year, supported by strong underlying fundamentals [27] Other Important Information - The company announced an agreement to acquire Just Group for $3,200,000,000, which is expected to significantly accelerate growth in the insurance business [19] - A quarterly dividend of $0.09 per share was declared, and a three-for-two stock split of Class A limited voting shares was approved [27] Q&A Session Summary Question: Growth in P&C business and scaling plans - Management indicated that the focus is on low-risk liabilities, particularly in the annuity business, with potential for organic growth in P&C if competitive advantages are identified [29][30] Question: Market conditions and carried interest - Management noted that while market conditions are improving, the timing of carried interest realization remains broadly in line with previous expectations, with significant contributions expected next year [35][36] Question: Just Group acquisition financing - Management stated that details on the financing facility for the Just Group acquisition are limited due to UK takeover rules, but it is a public to private transaction [40] Question: AI infrastructure strategy and investor support - Management confirmed that they are engaging with large shareholders for potential cornerstone investments in the new AI infrastructure strategy [48] Question: Wealth Solutions business spread and cash distributions - Management clarified that the spread remains consistent with previous quarters, and the reduction in cash distributions is primarily due to one-time income from the residential land and housing business last year [56][57]

Financial Data and Key Metrics Changes - Fee related earnings increased by 16% to $676 million, while distributable earnings rose by 12% to $613 million [8][34] - Fee bearing capital reached $563 billion, marking a 10% year-over-year increase [8][34] - The company raised $22 billion in capital during the quarter and $97 billion over the past twelve months [8][34] Business Line Data and Key Metrics Changes - In renewable power and transition, $1.5 billion was raised, contributing to a total of over $15 billion for the world's largest energy transition strategy [37] - Infrastructure fundraising totaled $1.7 billion, with significant contributions from the Super Core infrastructure strategy [37] - Real estate strategies raised $1.8 billion, including $500 million for the fifth vintage of the flagship real estate strategy [38] Market Data and Key Metrics Changes - The company noted a robust recovery in the real estate market, with deployment in real estate up 2x and monetization activity up 4x compared to the previous year [72] - The demand for high-quality assets and businesses has significantly increased, evidenced by over $55 billion in announced asset sales generating $33 billion in equity proceeds [21][20] Company Strategy and Development Direction - The company is focused on long-term mission-critical investments in infrastructure, renewable power, and essential services, driven by themes of digitalization, decarbonization, and deglobalization [9][10] - The company is developing next-generation AI infrastructure globally, positioning itself as a partner of choice for large hyperscalers and governments [12][13] - The strategy includes expanding into the individual investor market, with a focus on private wealth and retirement channels [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current market environment, highlighting significant liquidity and a constructive backdrop for M&A activity [8][9] - The company anticipates continued strong fundraising and investment activity, with a robust pipeline of opportunities [32][34] - Management emphasized the importance of product quality and durability in capturing the growing individual investor market [52][69] Other Important Information - The company declared a quarterly dividend of 43.75 cents per share, payable to shareholders of record as of August 29 [43] - The company is prioritizing its inclusion in U.S. equity indices, having been added to the Russell 1000 Index [42] Q&A Session Summary Question: Fundraising environment and outlook - Management characterized the fundraising environment as incredibly robust, expecting this year to surpass last year's capital raised [46][48] Question: Access to the broader retirement market - Management highlighted the importance of product offerings and brand strength in capturing growth in the retirement market [51][53] Question: Insurance growth area and Just acquisition - The Just Group acquisition is expected to enhance the company's footprint in the UK retirement market, adding stable fee-bearing capital [56][57] Question: Real estate market outlook - Management noted a robust recovery in the real estate sector, with significant deployment and monetization activity [72][74] Question: Expense outlook and margin expansion - Management indicated that expense growth is expected to stabilize around 10%, with potential for FRE margin expansion in the future [78][80]