Core Viewpoint - UBS has lowered the target price for Xiaomi Group-W (01810) to HKD 60 while maintaining a "Neutral" rating, anticipating continued rapid growth in the AIoT business in the upcoming quarter [1] Group 1: AIoT Business Performance - The AIoT sales for the next quarter and the full year are projected to be RMB 36.6 billion and RMB 140.6 billion, respectively, representing year-on-year growth of 37% and 35% [1] Group 2: Smartphone Sales and Market Performance - Xiaomi's smartphone sales for the next quarter are estimated at 41 million units, showing a year-on-year increase of 0.5% and a quarter-on-quarter rise of 1.5% [1] - The Chinese market has seen an 8% year-on-year increase in sales, driven by subsidies and the 618 shopping festival [1] - The total smartphone sales for the year are expected to reach 175 million units, supported by gains in emerging markets and the mid-to-high-end market share in China [1] Group 3: Profitability and Margins - Due to the impact of the 618 promotional activities leading to a decrease in average selling price, along with the expanding contribution from emerging markets offsetting the ongoing high-end strategy, the smartphone gross margin for the second quarter is expected to remain stable at approximately 11.6% quarter-on-quarter [1]

Group 1 - UBS forecasts Xiaomi Group-W (01810) AIoT business to maintain rapid growth in Q2, predicting sales of 36.6 billion and 140.6 billion RMB for Q2 and the full year, representing year-on-year growth of 37% and 35% respectively [1] - The firm has lowered its earnings estimates for the group by 10.4% for Q2 and 5.5% for the full year, with the target price reduced from 62 HKD to 60 HKD, maintaining a "Neutral" rating [1] - Xiaomi's smartphone sales in Q2 reached 41 million units, showing a year-on-year increase of 0.5% and a quarter-on-quarter rise of 1.5%, with sales in the Chinese market boosted by subsidies and the 618 shopping festival, growing by 8% year-on-year [1] Group 2 - The company expects total smartphone sales for the year to reach 175 million units, benefiting from increased market share in emerging markets and the mid-to-high-end market in China [1] - Due to the impact of the 618 promotional activities leading to a decrease in average selling price, along with the expanding contribution from emerging markets offsetting the ongoing high-end strategy, the smartphone gross margin for Q2 is expected to remain stable at approximately 11.6% quarter-on-quarter [1]

Core Viewpoint - UBS reports that Xiaomi's smartphone sales in Q2 reached 41 million units, reflecting a year-on-year increase of 0.5% and a quarter-on-quarter rise of 1.5% [1] Smartphone Sales - In the Chinese market, driven by subsidies and the 618 shopping festival, sales grew by 8% year-on-year [1] - The total expected smartphone sales for Xiaomi in 2023 is projected to reach 175 million units [1] Profit Margins - Due to the impact of the 618 promotional activities leading to a decrease in average selling price, along with the expansion of contributions from emerging markets offsetting the ongoing high-end market contributions, the Q2 smartphone gross margin is expected to remain flat at approximately 11.6% quarter-on-quarter [1] AIoT Business - The AIoT business is anticipated to maintain rapid growth in Q2, with sales forecasted at 36.6 billion yuan and 140.6 billion yuan for Q2 and the full year respectively, representing year-on-year growth of 37% and 35% [1] Earnings Forecast - The group has adjusted its Q2 and full-year earnings estimates downwards by 10.4% and 5.5% respectively [1] - The target price has been revised from 62 HKD to 60 HKD, while maintaining a "Neutral" rating [1]

Group 1: Collagen Industry Insights - Collagen is a vital component in the human body, providing strength, flexibility, and structural support to various tissues, with low immunogenicity and good biocompatibility [6][7] - The domestic recombinant collagen market is expected to grow significantly, with a projected CAGR of 41.4% from 2023 to 2027, surpassing the growth of animal-derived collagen at 27.7% [7][8] - The application of recombinant collagen spans various sectors, including medical aesthetics, skincare, intimate health, and hair health, with substantial market growth anticipated in these areas [8][9] Group 2: Chang'an Automobile Overview - Chang'an Automobile reported a wholesale sales volume of 210,600 vehicles in July 2025, reflecting a year-on-year increase of 23.43% [12][13] - The establishment of the China Chang'an Automobile Group aims to enhance the integration of the industry chain and promote the development of over 50 global new energy products in the next five years [14][15] - The company is expected to see a significant increase in net profit from 8.448 billion yuan in 2025 to 13.531 billion yuan by 2027, indicating a strong growth trajectory [15] Group 3: Yingzi Network Performance - Yingzi Network achieved a revenue of 2.827 billion yuan in the first half of 2025, marking a year-on-year increase of 9.45%, with a net profit of 302 million yuan [16][17] - The company maintains a leading position in the smart home camera market, with a revenue of 1.548 billion yuan from this segment in the first half of 2025 [16][17] - The overseas revenue accounted for 37.64% of total revenue, reflecting a year-on-year growth of 25.42%, indicating successful international expansion [18] Group 4: Chemical Industry Trends - The Chinese government is focusing on reducing "involution" in market competition, which may lead to structural optimization in the chemical supply side [21][25] - The semiconductor and robotics sectors are experiencing strong demand, with significant growth expected in the AI and new materials fields [22][30] - The chemical industry is anticipated to benefit from domestic production capabilities, with a focus on high-end materials and technology-driven growth [25][26]

Core Viewpoint - The company, Teslin Smart Technology Co., Ltd., is attempting to go public in Hong Kong to address its ongoing financial losses, which have exceeded 5 billion RMB over the past three years, amidst various legal disputes and increasing customer concentration concerns [1][3]. Financial Performance - In 2022 and 2023, the company's revenues were 738 million RMB and 1.006 billion RMB, respectively, with a projected increase to 1.843 billion RMB in 2024, representing an 83.2% year-on-year growth [3]. - Despite revenue growth, the company reported net losses of 2.387 billion RMB in 2022, 803 million RMB in 2023, and a projected 2.1 billion RMB in 2024, totaling over 5 billion RMB in cumulative losses [3][4]. - The gross profit margins for 2022, 2023, and 2024 were 10.1%, 31%, and 15.3%, respectively, indicating significant volatility, particularly a sharp decline in 2024 due to strategic shifts [8][9]. Research and Development - The company has heavily invested in R&D, with expenditures rising from 329 million RMB in 2022 to 377 million RMB in 2024, although the proportion of R&D spending relative to total revenue decreased from 44.6% to 20.4% [9]. - Non-cash expenses, including stock compensation and fair value fluctuations of preferred shares, have complicated the financial situation, contributing to the overall losses [9]. Legal and Compliance Issues - The company has faced multiple legal challenges, including a significant administrative penalty of 10.8134 million RMB for illegal foreign exchange transactions, which has negatively impacted its reputation [11]. - Since 2024, the company has been involved in 19 lawsuits, highlighting potential governance and shareholder relationship issues [11][12]. Customer Concentration - The company relies heavily on a small number of clients, with its top five customers contributing 70.6% of total revenue in 2024, and the largest customer accounting for 29.7% [15]. - This high customer concentration poses risks related to revenue volatility and operational stability if relationships with these key clients deteriorate [15]. Financing and Market Position - The company has completed multiple financing rounds, raising 650 million RMB, but continues to face significant financing pressures as losses accumulate [16]. - The upcoming IPO in Hong Kong presents both opportunities for exposure and funding, as well as challenges related to public scrutiny and market competition [16].

Group 1: Fluorochemical Industry - The fluorochemical industry is expected to maintain a high level of prosperity, with companies like Juhua Co. and Yonghe Co. forecasting significant profit increases for the first half of 2025, with Juhua's net profit expected to rise by 136% to 155% year-on-year [8][9] - The prices of third-generation refrigerants have increased, with R32, R125, and R134a priced at 52,500 CNY/ton, 45,500 CNY/ton, and 49,000 CNY/ton respectively, reflecting increases of 2.94%, 0%, and 1.03% since April [7] - The report suggests focusing on leading companies in the refrigerant industry and those with a complete industrial chain, such as Juhua Co. and Sanmei Co. [9] Group 2: Renminbi Exchange Rate - The Renminbi exchange rate has undergone significant changes, transitioning from a surplus-driven "surplus settlement" to a "interest rate holding" model due to the inversion of interest rates between China and the US [12] - The current account surplus reached a historical high of 165.6 billion USD in Q1 2025, with a strong trade surplus of 237.6 billion USD, indicating robust support for the Renminbi [12][13] - The willingness of foreign trade enterprises to settle in Renminbi has increased, with net settlement rates rising to 41% in April 2025, reflecting a recovery in the foreign exchange market [14] Group 3: Lexin Technology (688018) - Lexin Technology is projected to achieve a revenue of 1.22 to 1.25 billion CNY for the first half of 2025, representing a year-on-year increase of 33% to 36% [17] - The company's net profit is expected to rise by 65% to 78%, driven by the adoption of its wireless SoC solutions across various digital scenarios [18] - Lexin's first Wi-Fi 6E wireless communication chip has completed engineering sample testing and is set for mass production in the second half of 2025, enhancing its competitive edge in high-speed wireless communication [19] Group 4: Renewable Energy and Power Equipment - The global wind power industry is expected to continue its growth, with an estimated 117 GW of new wind power capacity to be added in 2024 and a compound annual growth rate of 8.8% from 2025 to 2030 [25] - The report highlights the increasing demand for energy storage systems driven by the need for reliable power supply amid extreme weather and geopolitical events [24] - Companies with leading market shares and advanced technology in energy storage, such as CATL and EVE Energy, are recommended for investment [25]

Company Overview - Founded in 2015, the company focuses on AIoT technology, targeting five core scenarios: buildings, communities, parks, cities, and dual carbon [1] - Main products include AI CITY, TacOS platform, AIoT platform, and smart terminals, applied in various sectors such as smart commerce, hospitals, campuses, and buildings [1] - The company serves over 800 clients across more than 160 cities globally, aiming to enhance urban management and promote industrial ecosystem prosperity [1] Financial Performance - Revenue has shown consistent growth over three years, reaching RMB 7.38 billion in 2022, RMB 10.06 billion in 2023, and projected RMB 18.43 billion in 2024, with a growth rate of 83.2% for 2024 [2][3] - The highest revenue segment is the AI industry digitalization business, contributing RMB 4.72 billion in 2022, RMB 6.24 billion in 2023, and expected to reach RMB 16.41 billion in 2024, accounting for 89% of total revenue [3][4] - The company reported net losses of RMB 23.87 billion in 2022, RMB 8.03 billion in 2023, and projected RMB 20.99 billion in 2024, with gross margins of 10.1%, 31.0%, and 15.3% respectively [5][6] Revenue Growth Drivers - The improvement in 2023 revenue is attributed to a rise in gross margin to 31.0%, driven by an increase in high-margin software and services [6] - Cost optimization efforts led to a reduction in sales expenses from 25% to 13% and R&D expenses from 44.6% to 32% [6] - The company signed 194 new clients in 2023, a 10.9% increase from 175 in 2022, indicating a recovery in government and enterprise orders [3][6] Cash Flow and Financial Stability - Cash reserves decreased by 14.1% to RMB 1.58 billion in 2024, which is insufficient to cover losses without additional financing [8] - The company has experienced negative operating cash flow for three consecutive years, with inventory increasing by 55% to RMB 9.79 billion in 2024 [8] - The current ratio for 2024 is only 0.67, indicating significant short-term debt repayment pressure compared to peers [8] Competitive Advantages - The company possesses a full-stack AIoT technology capability, integrating models, systems, and hardware, which is rare in the industry [9] - It supports domestic chips, reducing reliance on foreign components, thus enhancing security [10] - The company has established a strong international presence, with projects in over 160 cities, including landmark projects like the Dubai Expo [10][15] Market Outlook - The AIoT market in China is expected to grow rapidly, reaching RMB 1.2 trillion by 2025, driven by policy support and digital transformation needs [19][20] - The public domain AIoT sector, which includes smart cities and industrial digitalization, is projected to grow at a CAGR of 12.8% [19][20] Risks - The company has a high customer concentration, with the top five clients contributing 70.6% of revenue, indicating potential instability [17] - Financial instability is evident with significant ongoing losses, a declining gross margin, and high liquidity risk [18]

Core Viewpoint - The company, Teslian, is advancing its IPO process in the AIoT sector, showcasing strong revenue growth and a solid market position, while the Hong Kong stock market remains attractive for investments due to its relatively low valuations and increasing foreign interest [1][2]. Revenue Growth and Financial Performance - Teslian's revenue for 2024 is projected to reach 1.843 billion yuan, representing an 83.2% increase compared to 2023, with a compound annual growth rate of 58.0% from 2022 to 2024, leading the AIoT industry [2]. - The company's sales expenses as a percentage of revenue decreased from 13.2% in 2023 to 8.5% in 2024, indicating improved cost efficiency [2]. - Total expenses related to sales, management, and finance dropped from 76.9% to 45.0%, outperforming the industry average [2]. Order Growth and Client Structure - Teslian's order backlog reached 2.3 billion yuan by the end of 2024, with a total client base increasing to 342, up from 330 in 2023 and 224 in 2022 [3]. - The company is expanding its international strategy, having established partnerships for AIoT solutions in major projects, including collaborations in the UAE [3]. Technological Innovation and Core Business Segments - The company is focusing on three core segments: AIoT models, AIoT infrastructure, and AIoT intelligent agents, which are foundational to its strategic development in the space intelligence sector [4]. - The launch of the DeepSeek-R1 model is expected to revolutionize the AI landscape with low training costs and advanced reasoning capabilities [4]. Ongoing Developments and Research - Teslian's AIoT infrastructure products have been optimized for compatibility with various advanced models, and the company has completed regional AI computing centers in multiple locations [5]. - The company maintains a strong research foundation, with 46.9% of its workforce dedicated to R&D, and has made significant advancements in secure communication technologies [6]. IPO Financing and Future Plans - The IPO proceeds will primarily enhance R&D capabilities, particularly in TacOS and green computing, and support market expansion efforts, including new application development and increased sales force [6].

Group 1 - The Hong Kong capital market is experiencing a new wave of technology company IPOs, with AIoT company Teslin becoming a focal point in this trend [1][3] - From January to April 2025, 19 companies successfully listed on the Hong Kong stock market, raising a total of HKD 21.3 billion, nearly three times the amount raised in the same period last year [1] - As of May 20, 2025, 24 companies have listed on the main board of Hong Kong, with total funds raised exceeding HKD 60 billion, and around 150 companies are currently waiting to go public [1][3] Group 2 - The continuous optimization of the policy environment in Hong Kong has opened doors for technology companies, with the introduction of new listing rules that facilitate the process for unprofitable innovative enterprises [3] - The "Special Line for Science and Technology Enterprises" policy launched by the Hong Kong Stock Exchange in May 2025 allows specialized technology and biotech companies to submit applications confidentially, significantly enhancing the certainty of the listing process [3] - For technology companies in explosive growth sectors like AI, 5G, and smart vehicles, listing in Hong Kong provides strategic value by connecting them to a broad international capital pool and enhancing their global brand influence [3] Group 3 - Teslin's revenue for 2024 is projected to reach CNY 1.843 billion, representing a substantial growth of 83.2% compared to 2023, with a compound annual growth rate of 58.0% from 2022 to 2024 [3][4] - The company's total expenses for sales, management, and R&D as a percentage of revenue decreased significantly from 76.9% in 2023 to 45.0% in 2024, indicating improved operational efficiency [4] - Teslin's accounts receivable turnover days have improved from 238 days in 2022 and 180 days in 2023 to 104 days in 2024, reflecting enhanced capital turnover efficiency [4] Group 4 - In early 2025, Teslin successfully completed a D++ round of financing, attracting investments from state-owned capital and industry funds, which solidified its financial foundation for the IPO journey [4] - The company has established three strategic directions in the AIoT field: AIoT models, AIoT infrastructure, and AIoT intelligent agents, with its technology system validated in practical projects [4] - By the end of 2024, Teslin's order backlog reached CNY 2.3 billion, with revenue from its AI industrial digitalization business soaring by 162.9% to CNY 1.64 billion, accounting for 89% of total revenue [4]

Group 1 - The core viewpoint of the article is that Goldman Sachs identifies a group of ten prominent Chinese private enterprises, termed "Prominent 10," which are emerging as core assets in the Chinese stock market, comparable to the US "Mag 7" in terms of market position and competitiveness [1][4][12] - The Prominent 10 includes major companies across technology, consumer, and manufacturing sectors, collectively valued at $1.6 trillion, representing 42% of the MSCI China Index, with an average daily trading volume of $11 billion [1][4] - The expected compound annual growth rate (CAGR) for the earnings of the Prominent 10 from 2025 to 2027 is projected to be 13%, with a current price-to-earnings (P/E) ratio of 16 times, indicating both growth and valuation advantages [1][4] Group 2 - In comparison to the US Mag 7, the Prominent 10 has a total market capitalization of $1.6 trillion, which is only 8.3% of the Mag 7's $19.2 trillion, yet the Prominent 10 has shown an average return on equity of 17% over the past five years, close to the Mag 7's 39% [4][6] - The Prominent 10's P/E ratio stands at 16 times, significantly lower than the Mag 7's 28.5 times, suggesting a valuation advantage, while their research and capital expenditure as a percentage of revenue is 15%, indicating potential for technological investment [4][6] Group 3 - The Prominent 10 has demonstrated growth in key areas such as new energy (BYD), AIoT (Xiaomi), and local services (Meituan), aligning with China's themes of "self-control" and "consumption upgrade," while the Mag 7 relies more on technological monopolies [6][12] - The Prominent 10's stock prices have increased by 54% since the end of 2022, outperforming the MSCI China Index by 8 percentage points in the current year [12] Group 4 - Goldman Sachs employs a three-tiered screening framework to identify the Prominent 10, focusing on industry concentration, company competitiveness, and institutional ratings, ensuring that only companies with significant market share and high R&D/capital expenditure intensity are included [9][12] - For instance, Tencent holds a 79% profit share in the interactive media sector, while Meituan captures 80% of the local service revenue [9][12] Group 5 - The Prominent 10's market dominance is evidenced by significant metrics: Tencent has over 1.2 billion monthly active users in social networking, a 65% market share in gaming, and a 89% penetration rate in digital payments [12][13] - R&D investment for the Prominent 10 averages 9% over the past five years, with specific companies like Hengrui Medicine at 29% and BYD at 13% for capital expenditure, indicating strong commitment to innovation and capacity expansion [13] Group 6 - The article concludes that the Prominent 10 represents three major investment themes in China's economic transformation: technological breakthroughs (BYD in new energy, Xiaomi in AIoT), consumption upgrades (Anta in high-end sports, Meituan in service consumption), and globalization benefits (Tencent in gaming, Alibaba in Southeast Asian e-commerce) [14]