Core Viewpoint - The Hong Kong stock market is currently in a period of intensive mid-term earnings disclosures, leading to significant stock price fluctuations for several listed companies [1]. Group 1: Tencent Music - Tencent Music's stock surged after its mid-term earnings report, reaching a peak of 104 HKD, marking a maximum increase of over 17% [3]. - For Q2 2025, Tencent Music reported total revenue of 8.44 billion HKD, a year-on-year increase of 17.9%, and an adjusted net profit of 2.64 billion HKD, up 33.0% year-on-year [5]. - The online music service revenue grew by 26.4% to 6.85 billion HKD, driven by deepened collaborations with global record companies and innovative content creation [5]. Group 2: Reading Group - After its earnings announcement, Reading Group's stock rose significantly, with an intraday peak increase of over 19% [6]. - The company reported a revenue of 3.19 billion HKD and a net profit attributable to shareholders of 850 million HKD for the first half of 2025, reflecting a year-on-year growth of 68.5% [8]. - The growth was attributed to the resilience of its IP ecosystem, with several successful adaptations of its IP into films and series, and a notable increase in revenue from short dramas and IP derivatives [8]. Group 3: Minmetals Resources - Minmetals Resources' stock also saw a rise, with an intraday increase of nearly 14%, reaching a maximum price of 4.8 HKD [8]. - The company reported a net profit of 566 million USD for the first half of 2025, a more than 600% increase compared to 79.5 million USD in the same period of 2024 [10]. - This strong profit growth was primarily due to increased copper production from three mines and rising market prices for copper, gold, silver, and zinc [11]. Group 4: 361 Degrees - In contrast, 361 Degrees experienced a decline in stock price after its earnings report, with a drop of 9.29% [12]. - The company reported a revenue of 5.705 billion HKD for the first half of 2025, a year-on-year increase of 11%, and a profit attributable to shareholders of 858 million HKD, up 8.6% [14]. - The growth was driven by strong demand for its products across adult and children's categories, with the children's segment contributing approximately 1.261 billion HKD, representing 22.1% of total revenue [14].

Core Viewpoint - The report from CICC maintains the Non-IFRS net profit forecast for the company for 2025 and 2026, with a target price of HKD 43.5, indicating a potential upside of 39.4% from the current price [1] Group 1: Financial Performance - The company reported a revenue of CNY 3.191 billion for 1H25, with a Non-IFRS net profit of CNY 508 million, aligning closely with CICC's expectations [1] - Excluding the impact of New Classics Media, the Non-IFRS net profit from other businesses grew by 35.7% year-on-year in 1H25 [1] - The gross margin for 1H25 was 50.5%, reflecting a slight increase of 0.5 percentage points year-on-year [3] Group 2: Online Business and IP Operations - Online business revenue for 1H25 was CNY 1.985 billion, showing a modest year-on-year growth of 2.3%, with proprietary platform product revenue increasing by 3.1% [2] - The IP operations and other revenue for 1H25 amounted to CNY 1.205 billion, with the GMV for IP derivative products reaching CNY 480 million, nearing last year's total of CNY 500 million [2] Group 3: Cost Management and One-time Gains - The company experienced a decrease in sales expenses due to fewer film and television projects in 1H25, leading to reduced promotional and advertising costs [3] - A net gain of CNY 580 million from the deemed disposal of an invested company was recorded, which is considered a one-time item with minimal impact on Non-IFRS net profit [3] Group 4: Content and IP Development - New Classics Media has a rich lineup of series for 2025, including titles like "The Drug Storm" and "The Silent Woman," with a focus on the release schedule [4] - The company upgraded its short drama business in 2025, planning to produce over 2,000 web novel IPs, with a single short drama project generating over CNY 80 million in revenue in 1H25 [4] - The company is expanding its IP derivative product offerings, with plans to launch related merchandise for popular IPs like "Full-Time Master" in the second half of 2025 [4]