Investment Rating - The report maintains a "Buy" rating for Kingsoft Corporation (03888.HK) [1] Core Views - The report highlights the importance of the upcoming launch of the game "Limitless Machine" and the company's focus on AI, collaboration, and internationalization in its office software segment [1][8] - Kingsoft's revenue for Q1 2025 was 2.338 billion yuan, showing a year-on-year increase of 9.41% but a quarter-on-quarter decrease of 16.28% [8] - The gaming segment's revenue was 1.037 billion yuan, contributing 44.33% to total revenue, with expectations for continued performance from existing titles and the upcoming launch of "Limitless Machine" [8] - The office software segment generated 1.301 billion yuan, accounting for 55.67% of total revenue, driven by growth in WPS personal and WPS 365 services [8] Financial Projections - Total revenue projections for Kingsoft are as follows: 10.318 billion yuan in 2024, 11.669 billion yuan in 2025, 13.149 billion yuan in 2026, and 14.721 billion yuan in 2027, with year-on-year growth rates of 20.91%, 13.09%, 12.68%, and 11.96% respectively [1] - Net profit projections are 1.552 billion yuan in 2024, 1.867 billion yuan in 2025, 2.304 billion yuan in 2026, and 2.735 billion yuan in 2027, with year-on-year growth rates of 220.94%, 20.32%, 23.41%, and 18.70% respectively [1] - The report forecasts EPS of 1.33 yuan for 2025, 1.65 yuan for 2026, and 1.95 yuan for 2027, corresponding to P/E ratios of 24, 20, and 17 times respectively [1][8]

Investment Rating - The investment rating for Baidu Group is "Buy" (maintained) [1] Core Views - The report highlights that the short-term impact of AI transformation on the ecosystem significantly affects advertising revenue, while the cloud business shows positive trends [1] - The company's core revenue for Q1 2025 reached RMB 25.5 billion, a year-on-year increase of 7%, exceeding Bloomberg consensus expectations [8] - Non-GAAP net profit for Q1 2025 was RMB 6.469 billion, also better than market expectations [8] - The report emphasizes the potential of AI tools to enhance advertising efficiency and the ongoing transformation of Baidu's application ecosystem [8] Summary by Sections Financial Performance - Total revenue for 2023 was RMB 134.598 billion, with a year-on-year growth of 8.83% [1] - The forecast for 2025 estimates total revenue at RMB 134.638 billion, reflecting a slight increase of 1.14% [1] - Non-GAAP net profit for 2023 was RMB 28.747 billion, with a year-on-year growth of 39.01% [1] - The forecast for 2025 estimates Non-GAAP net profit at RMB 23.046 billion, a decrease of 14.65% [1] Business Segments - Advertising business: Online marketing revenue for Q1 2025 was RMB 16 billion, a year-on-year decrease of 6% [8] - Cloud business: Revenue grew by 42% year-on-year in Q1 2025, driven by increased demand for AI cloud services [8] - Autonomous driving business: The number of orders for the "萝卜快跑" service exceeded 1.4 million, a year-on-year increase of 75% [8] Market Position and Strategy - The report notes that Baidu has repurchased shares worth over USD 4.45 billion since Q1 2025, reflecting a commitment to shareholder returns [8] - The company is focusing on enhancing operational efficiency and user experience in its autonomous driving segment to reduce losses [8] - The report adjusts the Non-GAAP net profit forecast for 2025-2027 downwards due to uncertainties in the search business competition [8]

Core Insights - Epam reported revenue of $1.3 billion for the quarter ended March 2025, reflecting an 11.7% increase year-over-year [1] - The company's EPS was $2.41, slightly down from $2.46 in the same quarter last year [1] - Revenue exceeded the Zacks Consensus Estimate of $1.28 billion, resulting in a surprise of +1.37% [1] - The EPS also surpassed expectations with a surprise of +6.17%, compared to the consensus estimate of $2.27 [1] Revenue Breakdown - Revenue from the Americas was $780.29 million, above the average estimate of $770.59 million [4] - Revenue from APAC was $24.29 million, below the average estimate of $26.43 million [4] - Revenue from EMEA reached $497.12 million, exceeding the estimated $481.40 million [4] - Financial Services generated $313.97 million, significantly above the average estimate of $277.80 million [4] - Software & Hi-Tech revenues were $190.07 million, slightly above the estimate of $189.54 million [4] - Life Sciences & Healthcare revenues were $154.95 million, in line with the estimate of $154.86 million [4] - Emerging Verticals generated $220.64 million, surpassing the estimate of $216.61 million [4] - Consumer Goods, Retail & Travel revenues were $255.51 million, below the estimate of $270.07 million [4] Contract Type Performance - Time-and-material revenues were $1.04 billion, slightly below the average estimate of $1.08 billion, with a year-over-year change of +6.1% [4] - Fixed-price revenues were $252.16 million, significantly above the estimate of $191.62 million, representing a +43% change year-over-year [4] - Licensing and other revenues were $7.82 million, below the estimate of $10.48 million, with a +2.7% change year-over-year [4] Stock Performance - Epam's shares returned +22.8% over the past month, outperforming the Zacks S&P 500 composite's +13.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

Market Performance - A-shares showed strong performance with major indices rising, particularly in the TMT sector, where over 4,400 stocks increased in value [1][4] - The Hang Seng Index also performed well, with an intraday increase of over 2%, reaching a nearly three-year high, while the Hang Seng Tech Index rose over 4% [2][10] Sector Analysis - The TMT sector led the gains, with software services, internet, and IT equipment sectors showing the highest increases. Other sectors like diversified finance, advertising packaging, and media entertainment also performed well, while transportation infrastructure, engineering machinery, and steel sectors lagged [5] Brokerage Performance - The brokerage sector experienced a strong rally, with notable stocks such as First Capital Securities hitting the daily limit, and others like Xinda Securities and Dongfang Caifu also seeing significant gains [6] Concept Stocks - The DeepSeek concept stocks saw a notable rise, with the index increasing over 4% and several related stocks hitting the daily limit or rising more than 10% [7] Individual Stock Highlights - *ST Jiyuan experienced a significant drop of over 19% after announcing the termination of its pre-restructuring and restructuring matters, raising concerns about its potential delisting due to negative net asset projections for 2024 [8] - In the Hong Kong market, Kuaishou-W led the gains with an intraday increase of over 13%, while CK Hutchison saw a rise of over 10% following a previous surge of over 20% [11][12] Company Announcements - Jitu Express announced plans to handle 246.5 billion packages in 2024, a 31% increase from 2023, and highlighted its leading market position in Southeast Asia with a market share of 28.6%, up from 25.4% [14][15]