H1 revenue grew 33% YoY to Rmb4.05bn, beating UBS-e/Visible Alpha consensus 7%/6%. GPM fell 7.5ppt YoY to 35.7% in H1. Due to better opex control and higher other income, adjusted EBITA/NP beat consensus 6%/11% (page 2). ab 17 November 2025 Global Research Damai Entertainment Holdings Strong momentum in Alifish; eyes on to-C retail and overseas & content segment expansion H1 solid beat on revenue; GPM was on the weak side Key takeaways from conference call 1) IP merchandising (rev: +ve, margin: -ve): Alifis ...

MINISO Group Holding Limited (NYSE:MNSO) is expected to report strong third-quarter results, driven by overseas expansion and the success of its TOP TOY brand.The company's guidance exceeds analyst expectations, indicating potential outperformance in revenue and profit.Financial health indicators such as a P/E ratio of 18.61, earnings yield of approximately 5.37%, and a current ratio of 1.99 reflect investor confidence and a solid financial position.MINISO Group Holding Limited, listed on the NYSE:MNSO, is ...

Summary of Huaxin Cement Co. 3Q25 Earnings Call Company Overview - **Company**: Huaxin Cement Co - **Industry**: Greater China Cement - **Market Cap**: US$5,440 million - **Ticker**: 600801.SS (A-share), 6655.HK (H-share) Key Financial Highlights - **3Q25 Performance**: - Net profit reached Rmb900 million, representing a **121% YoY** increase and a **3.5% QoQ** increase, exceeding market expectations [2][4] - **9M25 Net Profit**: Grew **76% YoY** to Rmb2 billion [2] - **Revenue Growth**: Driven by increased overseas cement shipment volumes and improved gross profit per ton [2] - **SG&A Expenses**: Controlled with a mild increase of Rmb104 million YoY to approximately Rmb1 billion in 3Q25, resulting in an SG&A ratio of **11.3%**, up **0.6ppt YoY** [3] Strategic Developments - **Acquisition of Lafarge Africa**: - Huaxin acquired an **83.81% stake** in Lafarge Africa for approximately **US$774 million** on August 29, 2025 [4] - The Nigerian business contributed an estimated Rmb100 million to Huaxin's earnings in 3Q25, with full consolidation expected in 4Q25, likely enhancing earnings further [4] Dividend Announcement - **9M Dividend**: First-time announcement of Rmb0.34 per share, implying a **35% payout ratio** of 9M25 earnings, compared to Rmb0.46 per share and **40% payout** for FY24 [5] - **Dividend Yield**: Implies a **1.6% yield** for A-shares and **2.3% yield** for H-shares [5] Analyst Ratings and Price Target - **Rating**: Overweight (OW) on both A and H shares due to high earnings growth visibility from overseas expansion and attractive valuation [5][7] - **Price Target**: Rmb22.90, indicating an **11% upside** from the closing price of Rmb20.66 on October 24, 2025 [7] Risks and Considerations - **Upside Risks**: - Better-than-expected demand in Hubei and Yunnan could mitigate supply/demand impacts [10][12] - Stricter production suspension and environmental regulations may enhance pricing power [10][12] - **Downside Risks**: - Weak fundamentals in Guizhou could negatively affect pricing in southwestern and central China [11][13] - Slower-than-expected growth in overseas markets may hinder overall performance [11][13] Conclusion - Huaxin Cement Co's strong financial performance in 3Q25, driven by overseas expansion and strategic acquisitions, positions the company favorably in the cement industry. The positive market reaction to earnings and the initiation of dividends reflect confidence in future growth prospects. However, potential risks related to market conditions and operational challenges should be monitored closely.

Core Insights - China's economy is experiencing a prolonged slump characterized by a property crisis, weak consumer demand, and deflation, yet its major companies are generating significant profits abroad [1][6][7] - Chinese firms are shifting their focus from low-cost manufacturing to exporting services, technology, intellectual property, and cultural products, marking a departure from the traditional "Made in China" model [4][7] Overseas Investment Strategy - Chinese companies have strategically increased their overseas direct investment, particularly in emerging markets and Belt and Road Initiative countries, to diversify supply chains and enhance business resilience [2] - This strategy allows firms to build production capacity closer to end markets, which is crucial for adapting to global market demands [2] Revenue Generation - Chinese listed companies now derive approximately 16% of their total revenue from overseas markets, an increase from 14% in 2018, with expectations for this share to rise by about 0.6 percentage points annually [3] - Although this figure is still below the 50% average for developed-market firms, the growth rate indicates a significant shift in revenue sources [3] Value Chain Shift - The transition from low-cost goods to higher-value exports includes a diverse range of products such as electric vehicles, lithium-ion batteries, and solar panels, reflecting an upward movement in the value chain [4] - Chinese products remain competitively priced, with discounts ranging from 15% to 60% compared to global competitors, enhancing their attractiveness in international markets [4] Market Adaptation - Chinese companies are increasingly recognized in the US market, with brands like Pop Mart, Luckin Coffee, and Temu gaining traction by exporting not only products but also digital business models [5] - The impact of tariffs on corporate earnings is mitigated by diversified supply chains, with estimates suggesting that a 100% tariff would only reduce earnings by about 10% in the short term [5]

Core Insights - Goldman Sachs recommends investors focus on Chinese companies expanding internationally, driven by a weaker yuan, cost advantages, and China's robust global supply chains as growth catalysts [1] Group 1: Investment Opportunities - Goldman Sachs identified 25 top picks, including Alibaba Group Holding Ltd, Contemporary Amperex Technology Co Ltd, and BYD Co Ltd, as key beneficiaries of the "going global" trend [1] - These companies, spanning e-commerce, capital goods, and healthcare, have gained nearly 40% year-to-date, outperforming the Hang Seng Index's 29% and the CSI 300 Index's 16% rise [2] Group 2: Earnings Growth Projections - The bank expects overseas expansion to accelerate earnings growth by about 1.5% annually through 2028 as firms diversify beyond China's saturated domestic market [3] - Alibaba's overseas revenue doubled to 13% in 2023 from 7% in 2021, while CATL's increased to 30% from 21%, indicating rising global competitiveness [3] Group 3: Market Dynamics and Risks - Goldman acknowledged that potential 100% U.S. tariffs under Trump's trade agenda could reduce short-term profits by around 10%, but international diversification should mitigate this impact over time [4] Group 4: Alibaba's Performance and Projections - Alibaba's stock gained 97% year-to-date, significantly outperforming the NYSE Composite index's over 12% returns, driven by its cloud unit and AI model integration [5] - Goldman Sachs raised its cloud revenue growth forecasts to 31–38% through fiscal 2028, citing advancements in multimodal AI models and a diversified chip supply [6] - Daiwa Securities projected Alibaba Cloud revenue to climb 30% year-over-year in the second quarter of fiscal 2026, with operating losses expected to peak soon [7]

Summary of the Conference Call Transcript Industry Overview - The focus is on the **Chinese exports** industry and its evolution since joining the WTO in 2001, highlighting a shift from low-cost manufacturing to high-value-added products and services [1][7][8]. Key Points and Arguments Evolution of Chinese Exports - The narrative of China as merely a low-cost manufacturer is outdated; it is now gaining market share in high-end manufacturing and exporting services, intellectual property, and culture [1][2][7]. - China's share in global manufacturing value-added has increased from **11% in 2001 to 33% in 2024**, contributing to an **11% CAGR in GDP** during the same period [7]. Going Global Strategy - Chinese exporters are diversifying their markets, with exports to non-US countries growing at an estimated **7.5% CAGR since 2018**, while exports to the US have declined by **0.6% annually** [8]. - The competitive Renminbi (CNY) is expected to support exporters, as it remains undervalued, providing a competitive edge [2][23]. - Chinese companies dominate global supply chains, particularly in critical materials and advanced manufacturing, with cost advantages allowing them to offer products at **15% to 60% discounts** compared to global competitors [2][23]. Financial Performance and Risks - Overseas revenue for Chinese listed companies has increased from **14% in 2018 to 16% currently**, with sectors like Auto, Retailing, and Capital Goods leading this growth [3][38]. - Tariff risks from trading partners could impact overseas margins but are unlikely to derail the global expansion trajectory, as evidenced during the US-China trade war [3][40]. - The average gross margin for Chinese exporters in overseas markets is approximately **20% higher** than in domestic markets [39]. Implications of Going Global - The gap between GDP and GNP may widen as more profits are derived from overseas markets [63]. - There is a rising need for financing overseas investments, with increased issuance of Dim Sum bonds and capital raised through Hong Kong IPOs [71]. - A portfolio of **25 GS-Buy-rated companies** has been identified as well-positioned to capitalize on global opportunities, generating an average of **34% of their revenues overseas** [4][76]. Market Dynamics - The **Belt and Road Initiative** has significantly influenced China's trade patterns, with trade with Belt and Road countries now accounting for **47% of total trades**, up from **32% in 2005** [8]. - Chinese companies are increasingly exporting services, with a notable shift from traditional goods exports to services and overseas direct investment (ODI) [8][13]. Future Projections - It is projected that overseas revenue for Chinese companies could reach **19.2% by 2028**, still below the **53%** and **48%** averages for developed and emerging markets, respectively [42][50]. - The global expansion is expected to boost earnings growth by approximately **1.5% annually** over the next three years, despite potential tariff impacts [60]. Additional Important Insights - Cultural proximity, with over **50 million ethnic Chinese** residing outside the mainland, could facilitate global expansion by providing local knowledge and insights [2][30]. - The competitive landscape is shifting, with Chinese products becoming more technologically complex and quality-competitive, leading to a rapid global adoption of Chinese brands [23][35]. This summary encapsulates the key insights from the conference call, focusing on the evolution of the Chinese exports industry, the strategic implications of going global, and the financial performance of Chinese companies in international markets.

Summary of China Auto/EV/Batteries Global Markets Research Industry Overview - The report focuses on the **China auto market**, particularly the **electric vehicle (EV)** segment and **batteries** industry - The data reflects trends and performance metrics for the **automotive sector** in China, including sales figures and market dynamics Key Points Market Performance - In September 2025, the China auto market recorded: - **Wholesale unit shipments**: 2.9 million (+13.2% year-on-year, +12.5% month-on-month) [1] - **Retail unit shipments**: 2.2 million (+6.4% year-on-year, +11.0% month-on-month) [1] - **EV retail sales**: 1.3 million units (+15.5% year-on-year, +16.1% month-on-month) [1] - **EV penetration** reached a record high of **57.1%** [1][7] Future Expectations - Anticipation of **rush orders and deliveries** in the fourth quarter of 2025 due to the impending **50% cut in EV purchase tax exemption** starting in 2026 [3][7] - Expected **muted demand** in the first quarter of 2026 as the market adjusts post-subsidy [3] Competitive Landscape - Increased competition is expected as traditional **internal combustion engine (ICE)** players maintain significant market share [2] - Notable EV players gaining market share include **Geely** and **Leapmotor** in the mass market, while **NIO**, **Li Auto**, and **Xiaomi** are emerging in the premium segment [2][17][18][22] Battery Market Insights - **EV battery installation** grew by **15% quarter-on-quarter** to **76 GWh** in September 2025, with a total of **194 GWh** installed in Q3 2025 (+36% year-on-year) [5][39] - Lithium carbonate prices decreased from **CNY 80,000/tonne** to **CNY 73,000/tonne** due to increased production and inventory levels [5][48] - Anticipated **high-single-digit percentage growth** in battery production for October 2025, which may support lithium prices in the near term [5][48] Company-Specific Performance - **BYD**: - Retail sales of **347,400 units** in September 2025 (-10.2% year-on-year) with a market share of **26.8%** [16] - Inventory ratio at **1.49**, indicating efforts to clear stock ahead of a strategic shift in 2026 [16] - **Geely**: - Retail sales of **151,000 units** (+68.3% year-on-year) with a market share of **11.6%** [17] - **NIO**: - Retail sales of **34,600 units** (+63.2% year-on-year) with new model launches contributing to improved competitiveness [22] - **Xiaomi**: - Retail sales surged to **36,600 units** (+209% year-on-year) [18] Export and Global Expansion - The China auto industry exported **560,000 units** of passenger vehicles (+22.5% year-on-year) [34] - Companies are expected to focus on **global expansion** to mitigate challenges in the domestic market [4][34] Inventory and Market Dynamics - The **Inventory Alert Index** slightly declined to **54.5%**, indicating a healthy inventory level as the peak season approaches [30] - Stricter standards for NEVs eligible for tax exemptions may necessitate inventory clearance for certain models [9] Conclusion - The China auto market, particularly the EV segment, is experiencing robust growth, driven by increasing penetration and competitive dynamics. However, challenges such as upcoming tax changes and intensified competition necessitate strategic adjustments by market players. The battery market shows promising growth, with expectations of continued demand and price stabilization in the near term.

Summary of the Conference Call on Greater China Cement Industry Industry Overview - The Chinese cement industry is experiencing a slowdown in domestic demand, prompting companies to seek growth through overseas expansion, particularly in developing markets in Southeast Asia, Central Asia, and Africa [2][31] - Cement prices in China are significantly lower than in these target markets, with prices in China being less than US$50 per ton [2][31] Key Insights on Overseas Expansion - **Focus on Africa**: Africa has become a primary target for Chinese cement producers due to its low per-capita cement consumption, strong growth potential, and high profitability. Urbanization and population growth are expected to drive demand [3][66] - **Southeast Asia**: Initially the first region for expansion (2015-2020), demand growth has slowed, and competition has intensified [3] - **Central Asia**: Countries like Uzbekistan have seen profitability decline due to overcapacity, while Tajikistan and Kyrgyzstan maintain high cement prices due to limited new capacity [3] Infrastructure Projects Driving Demand - Major infrastructure projects, such as the China-Laos railway and the upcoming China-Kyrgyzstan-Uzbekistan railway, are expected to create incremental demand for cement [4][62] - The China-Kyrgyzstan-Uzbekistan railway is projected to generate 5.2 million tons of incremental demand over six years [62] Company-Specific Insights - **Huaxin Cement**: - Recognized as a leader in overseas expansion with a strong focus on Africa and Central Asia [5][66] - Expected overseas cement shipment volume to grow from 16.2 million tons in 2024 to 25.8 million tons in 2027, with gross profit contribution from overseas rising from 32% to 49% [15] - Initiated coverage with a price target of HK$21.8, rated as Overweight due to attractive valuation and high profitability [7][19] - **Anhui Conch**: Focused on Southeast and Central Asia, with a growing overseas gross profit contribution [5][15] - **West China Cement (WCC)**: Also expanding in Central Asia and Africa, with significant growth in overseas shipment volume expected [5][15] Market Dynamics and Risks - The domestic cement market in China is projected to remain in surplus despite capacity reductions, with a 20% capacity exit expected during 2025-2026 [14][22] - Risks associated with overseas expansion include political stability, foreign exchange stability, and competition, which vary by country [20] Conclusion - The Chinese cement industry is shifting its focus from domestic markets to international opportunities, particularly in regions with higher profitability and growth potential. Companies like Huaxin are well-positioned to capitalize on these trends, supported by strategic acquisitions and infrastructure projects that will drive demand in target markets [6][66]

Summary of the Conference Call on Greater China Cement Industry Industry Overview - The Chinese cement industry is experiencing a slowdown in domestic demand, prompting companies to seek growth through overseas expansion, particularly in developing markets in Southeast Asia, Central Asia, and Africa where cement prices are significantly higher than in China (less than US$50/t) [2][30] - The domestic cement production peaked in 2014 and has been declining, with a 10% year-over-year drop to 1.8 billion tons in 2024, primarily due to a downturn in the property sector [12][21] Key Players - **Huaxin Cement**: Initiated with an Overweight (OW) rating, it is well-positioned for overseas expansion due to its significant presence in Africa and strong growth outlook [6][18] - **Anhui Conch**: Focused on Southeast and Central Asia, with a strategy primarily based on new builds [5][16] - **West China Cement (WCC)**: Concentrated on Central Asia and Africa, with a high gross profit margin from overseas operations [5][16] - **China National Building Material (CNBM)**: Engaged in operations in Africa and Asia, with plans for further expansion into the Mediterranean region [5][16] Overseas Expansion Insights - Chinese cement companies are shifting their overseas strategy from new builds to acquisitions to maintain local supply-demand balance [5][16] - Huaxin's overseas cement shipment volume is projected to grow from 16.2 million tons in 2024 to 25.8 million tons in 2027, with gross profit contribution from overseas cement rising from 32% to 49% during the same period [14] - WCC's overseas shipment volume is expected to increase from 3.6 million tons in 2024 to 13.4 million tons in 2027, with gross profit contribution growing from 54% to 67% [14] Infrastructure Projects - Major infrastructure projects, such as the China-Laos railway and the upcoming China-Kyrgyzstan-Uzbekistan railway, are expected to drive incremental demand for cement [4][15][60] - The China-Kyrgyzstan-Uzbekistan railway is projected to generate 5.2 million tons of incremental demand over six years, benefiting companies like Huaxin [60] Market Dynamics - The cement market in Africa is characterized by high prices, often exceeding US$100/t, with some regions reaching US$200-300/t [61] - Central Asia shows low cement consumption per capita and high growth potential, particularly in Uzbekistan, which has seen significant capacity expansion [58] Risks and Challenges - Risks associated with overseas expansion include political stability, foreign exchange stability, competition, and demand growth, which vary by country [19] - The Chinese cement industry is expected to face overcapacity issues even after a projected 20% reduction in capacity due to supply control policies [13] Financial Projections - Huaxin's price target is set at HK$21.8, reflecting its attractive valuation based on high profitability and earnings growth visibility [6][18] - The gross profit margin for domestic operations has declined to 15-25% amid a demand slowdown, while overseas operations maintain a higher margin of approximately 40% [41] Conclusion - The Chinese cement industry is navigating a challenging domestic environment by strategically expanding overseas, particularly in high-growth markets. Companies like Huaxin are positioned to capitalize on this trend, supported by infrastructure projects and favorable market conditions in targeted regions.

Group 1 - Keeta, the international brand of Meituan, has launched its services in Kuwait, marking its third expansion in the Middle East after Saudi Arabia and Qatar [1] - The decision to enter Kuwait is driven by high GDP per capita, significant online food delivery penetration, and consumer demand for quality takeaway services [1] - Keeta aims to broaden its restaurant and supply base, drive product innovation, and provide affordable delivery options in Kuwait [2] Group 2 - Supported by Meituan's global infrastructure, which handles over 150 million orders a day for more than 770 million users, Keeta plans to blend technology with local preferences [3] - The Kuwait platform features a diverse range of restaurants, including local brands and international options [3] - Keeta has seen an increase in its user base and order volume since entering Saudi Arabia and plans to deepen its footprint in the Middle East while exploring additional overseas markets [4]