Macro Economic Overview - China's credit situation continues to be driven by government financing, while private sector credit demand remains weak. The growth rate of social financing in May has rebounded due to accelerated issuance of government bonds. However, tariff impacts are dragging down household purchasing, consumption, and corporate capital expenditure, leading to a continuous decline in new RMB loans year-on-year. More policy support is needed to revive private economic recovery momentum [2] - It is expected that the LPR will be further lowered by 10 basis points in the second half of 2025, and the broad fiscal deficit may moderately increase. The central bank is likely to maintain ample liquidity to support credit growth and stabilize the real estate sector, countering the impacts of tariff shocks. If a trade agreement can be reached between China and the US, China may focus on economic rebalancing, increasing fiscal expansion and consumption stimulation, and advancing manufacturing capacity reduction [2][4] Company Analysis Mindray Medical (300760 CH) - Mindray Medical recently held an investor day, focusing on the digital transformation of its equipment business and the expansion strategy of its flow-type business, aiming to build an overall solution covering all departments with "equipment + IT + AI" and "equipment + consumables." Key highlights include the establishment of a digital medical ecosystem based on IT + AI technology across three major production lines [5] - The company’s AI medical layout mainly focuses on emergency, surgery, and critical care, with the launch of a major model for critical care expected in December 2024, aiming to complete installations in over 30 hospitals this year. By the end of 2025, the company plans to release a major model for anesthesia, with specialized models for emergency, cardiovascular, ultrasound, and laboratory expected to be released in the next 1-2 years [5][6] - The automated assembly line is a key breakthrough for the IVD business, with over 200 new installations expected globally in 2024 and around 300 installations anticipated in 2025. The comprehensive IVD layout supports the company’s multi-disciplinary assembly line production, providing cost and iteration efficiency advantages [6][7] Baker Microelectronics (2149 HK) - Baker Microelectronics remains a core recommendation in the semiconductor sector, with a focus on demand prospects, geopolitical uncertainties, and upstream manufacturing resource investment plans. The company has a clear and sustainable growth strategy [8] Adobe (ADBE US) - Adobe reported a 11% year-on-year revenue growth to $5.87 billion for Q2 FY25, with non-GAAP net profit increasing by 7% to $2.17 billion, both in line with consensus expectations. The company raised its FY25 total revenue guidance to $23.5-23.6 billion, primarily driven by strong performance in its digital media business and increased penetration of AI products [8] Focus Stocks - Geely Automobile (175 HK): Buy rating, target price of 24.00 HKD, potential upside of 47% [9] - Xpeng Motors (XPEV US): Buy rating, target price of 28.00 USD, potential upside of 54% [9] - Luckin Coffee (LKNCY US): Buy rating, target price of 40.61 USD, potential upside of 15% [9] - Tencent (700 HK): Buy rating, target price of 660.00 HKD, potential upside of 29% [9] - Alibaba (BABA US): Buy rating, target price of 155.50 USD, potential upside of 38% [9]

Investment Rating - The investment rating for BaTeLab is reiterated as "Buy" with a target price maintained at HK$69.5, indicating a potential upside of 37.1% from the current price of HK$50.70 [2][4]. Core Insights - BaTeLab successfully raised HK$120 million through a private placement, which will be used to enhance upstream manufacturing capabilities and for general operational funding. This is crucial for the company's future expansion in the industrial-grade analog IC market [1][2]. - The company is expected to experience robust revenue growth, with projected growth rates of 27%-33% from 2025 to 2027, alongside high profitability with expected gross margins of 53%-54% during the same period [1][2]. Financial Summary - Revenue is projected to grow from RMB 464 million in FY23A to RMB 770 million in FY25E, reflecting a year-on-year growth of 33% [3][11]. - Net profit is expected to increase from RMB 109.2 million in FY23A to RMB 216.7 million in FY25E, representing a year-on-year growth of 30.1% [3][11]. - The company's P/E ratio is currently at 12.9x for FY25E, which is significantly lower than the average of 38x for domestic peers, indicating an attractive valuation [2][10]. Shareholder Structure - The major shareholders include Li Zhen with 53.5% and Zhang Guangping with 39.5% of the shares [5]. Market Performance - Over the past month, BaTeLab's stock has shown a slight increase of 0.2%, while over three months, it has risen by 59.4% [6]. Valuation Metrics - The company is trading at a P/B ratio of 0.43, which is appealing compared to the industry average [2]. - The projected EPS for FY25E is RMB 3.61, with a corresponding P/E ratio of 12.9x, indicating strong earnings potential [3][11].