Asia Pacific Equity Research 22 August 2025 Laopu Gold - H Overseas potential; strong new consumer contribution; upcoming product launches; reiterate OW After Laopu's briefing (see our first take), we reaffirm our constructive view on the company (see Deciphering Laopu's growth visibility). What we liked most from the briefing: 1) overseas expansion plan, with new store pipelines in HK, Macau, Singapore, and Japan, and preliminary preparation for the US, Canada and Australia. This might drive upside to our ...

Summary of NIO (NIO.N) Conference Call Company Overview - **Company**: NIO Inc. - **Industry**: Electric Vehicles (EV) Key Points and Arguments 1. New Product Launch and Sales Expectations - NIO has initiated pre-sales for its new ES8 model, with pricing starting from Rmb416.8k or Rmb308.8k under the Battery as a Service (BaaS) model. If the final price is between Rmb285k and Rmb300k, expected monthly sales are projected at 5,000 units. If priced below Rmb285k, monthly sales could reach 7,000 to 8,000 units [1][2] 2. Production and Delivery Projections - The production volume for the L90 model is expected to exceed 10,000 units in September 2025, with a backlog supporting deliveries until early November 2025. Monthly deliveries of L90 are anticipated to surpass 10,000 units in Q4 2025, exceeding investor expectations [2] 3. Financial Performance Expectations - NIO is expected to achieve net profit breakeven in Q4 2025, with December 2025 deliveries projected at 50,000 units. The gross profit margin (GPM) for Q4 is estimated to be between 16% and 17%. Non-GAAP R&D expenses are projected at Rmb2 billion, with non-GAAP SG&A as a percentage of revenue at 10% [4] 4. Future Sales and Tax Benefits - A decline in sales is anticipated in Q1 2026 due to the low season for car sales, followed by a recovery in Q2 2026. The halved purchase tax exemption in 2026 is expected to benefit NIO, particularly as battery expenses under the BaaS model are exempt from this tax [5] 5. Upcoming Model Pipeline - NIO plans to launch the ES9 and L80 models in the first half of 2026, with the ES9 priced around Rmb500k, positioning it as a flagship SUV [5] Valuation and Market Outlook - The target price for NIO's shares is set at US$8.10, based on a 1.1x 2025E price-to-sales ratio, reflecting expectations of intensive new model launches and effective cost control [6][8] Risks - Key risks that could hinder reaching the target price include: - Failure to design and manufacture high-quality vehicles on schedule and at scale - Increased competition - Lower-than-expected demand - Inability to provide profitable customer service - Challenges in accessing affordable funding - Product quality issues [9] Market Metrics - Current share price (as of August 21, 2025): US$5.54 - Expected share price return: 46.2% - Market capitalization: US$11.563 billion [6] This summary encapsulates the essential insights from the conference call regarding NIO's product launches, sales expectations, financial projections, and associated risks, providing a comprehensive overview for potential investors.

V i e w p o i n t | 22 Aug 2025 05:48:16 ET │ 14 pages Jiangsu Hengrui Pharmaceuticals Share Buy-back for ESOP Set Confident Tone; Recurring BD Revenue Backed by Robust Innovative Pipeline CITI'S TAKE The Rmb15.3/19.2/24.0bn innovative drug sales requirement for 2025- 2027 set the floor for minimum growth – we think it demonstrated confidence, fueled by Hengrui's potential 47 new products/indications approvals in 2025-2027. Hengrui has reached three BD collaborations and booked Rmb2.0bn BD revenue in 1H25, ...

Asia Pacific Equity Research 22 August 2025 Miniso - H / ADR 2Q SSSG and margin improving QoQ; fundamental turnround to continue in 2H25 and 2026, driving valuation re-rating Miniso's 2Q25 sales/adjusted OP were up 23%/8.5% yoy (vs 19%/-5% in 1Q25), ahead of guidance and consensus estimates. The better-than-expected 2Q turnaround came from: 1) China SSSG turned positive and the overseas SSSG decline narrowed; 2) China net openings turned positive; and 3) the group OP margin contraction narrowed on overseas ...

August 25, 2025 10:35 AM GMT NIO Inc. | Asia Pacific 90%+ stock rally in 60 days – too much, too soon? Our key thoughts Key Takeaways 1. Robust ES8 pre-orders: Our checks suggest ES8 pre-orders (with Rmb5k refundable deposit) may have surpassed 30k at the weekend and kept rising. While real demand still hinges on order conversion, constructive feedback underpin the market's belief that ES8 could go viral as L90 did last month, underpinning a monthly run rate of 40-50k units for NIO Group from Oct. 2. Benign ...

Summary of Haidilao International Holding Ltd 1H25 Results Conference Call Company Overview - **Company**: Haidilao International Holding Ltd - **Industry**: Consumer (Restaurant Sector) - **Region**: Asia Pacific, primarily China Key Financial Results - **Revenue**: - 1H24: Rmb21,491 million - 2H24: Rmb21,264 million - 1H25: Rmb20,703 million - Year-over-Year (YoY) decline: 4% [2] - **Operating Profit**: - 1H25: Rmb2,203 million - YoY decline: 18% [2] - **Net Profit**: - 1H25: Rmb1,759 million - YoY decline: 14% [2] - **Gross Profit Margin (GPM)**: - 1H25: 60.2%, down from 63.2% in 1H24 [2] - **Operating Profit Margin (OPM)**: - 1H25: 10.6%, down from 14.9% in 1H24 [2] - **Net Profit Margin (NPM)**: - 1H25: 8.5%, down from 12.6% in 1H24 [2] Cost Analysis - **Cost of Sales**: - Increased to Rmb8,243 million in 1H25, a 2% decrease YoY [2] - **Staff Costs**: - Rmb6,988 million in 1H25, a 2% decrease YoY [2] - **Other Expenses**: - Increased by 23% YoY, attributed to high business development and delivery platform fees [7] Operational Metrics - **Number of Restaurants**: - Mainland China: 1,299 (down from 1,320 in 2H24) [2] - **Table Turn**: - Mainland China: 3.8 times, down 9% YoY [2] - **Average Spending Per Guest**: - Mainland China: Rmb96, unchanged YoY [2] Market Position and Valuation - **Stock Rating**: Overweight [4] - **Price Target**: HK$17.50, representing an 18% upside from the current price of HK$14.88 [4] - **Market Capitalization**: Rmb73,885 million [4] - **Expected EPS Growth**: Projected 19% CAGR from 2025 to 2027 [8] Risks and Opportunities - **Upside Risks**: - Faster macroeconomic recovery - Better-than-expected demand recovery - Accelerated new store openings [9] - **Downside Risks**: - Slower recovery in table turn - Raw material cost inflation - Delays in new store openings [9] Dividend Information - **Interim Dividend**: HK$0.338, a 14% decrease YoY, with a payout ratio of 95% [7] Conclusion Haidilao International Holding Ltd reported a challenging first half of 2025 with declines in revenue, operating profit, and net profit. The company faces a tough operating environment but maintains a positive long-term outlook with potential for recovery and growth in the coming years.

Summary of Greentown Service (2869.HK) Conference Call Company Overview - **Company**: Greentown Service (GTS) - **Ticker**: 2869.HK - **Industry**: Property Management Services (PMS) Key Financial Highlights - **1H25 Core Operating Profit**: Increased by 25% year-on-year (yoy), exceeding management's guidance of 15% yoy and Goldman Sachs' estimate of 17% yoy [1][3] - **Gross Profit Margin (GPM)**: Improved by 0.5 percentage points (pp) yoy, with all sub-segments showing yoy GPM increases [1] - **PMS Revenue**: Grew by 10% yoy, contributing 71% to total revenue, marking a return to record levels since 2016 [1][3] - **Accounts Receivable (AR)**: Expanded by 14% yoy, with management optimizing AR structure to maintain a healthy balance [1][9] - **Cash Reserves**: Increased by 26% yoy, totaling over Rmb1.1 billion net addition [1][8] Management Guidance and Future Outlook - **FY25 Guidance**: Maintained core operating profit growth target of 15% yoy, supported by double-digit PMS revenue growth and further margin improvements [3][4] - **Long-term Margin Outlook**: Management aims for continued GPM improvement and SG&A ratio optimization through 2026-2027 [3][4] - **Project Engagement**: Focused on high-profitability projects in core cities, with a target of Rmb4 billion in new contracts for FY25 [4] Operational Insights - **Project Sourcing**: 95% of new projects located in core cities, with significant contributions from large state-owned enterprises (SOEs) [4][7] - **Community Living Services**: Efforts to enhance revenue generation through community services, early childhood education, and elderly care [4] - **Organizational Streamlining**: Continued efforts to reduce SG&A expenses, which decreased to 7.9% of total revenue [1][7] Risks and Challenges - **Community VAS Revenue**: Experienced a decline of 6% yoy, primarily due to a significant drop in home living services [9] - **AR Impairment Loss**: Increased by 34% yoy, indicating potential collection challenges [9] - **Market Competition**: Facing intensified competition in the property management sector, which may impact margins [4][15] Investment Thesis - **Rating**: Buy - **12-Month Target Price**: Revised to HK$6.3 from HK$5.0, based on a 12X 2027E free cash flow valuation [6][15] - **Valuation Comparison**: GTS trades at a lower P/E ratio compared to peers, with a projected 25% EPS CAGR and a 6% yield [6] Conclusion - Greentown Service is positioned for continued growth and profitability, supported by strong project engagement and effective cost management strategies. However, potential risks related to revenue declines in certain segments and market competition should be monitored closely.

25 August 2025 | 11:01AM HKT Hua Hong (1347.HK): Capacity expansion and ASP recovery on strong UT rates; 28nm as potential next driver; Neutral We are positive on Hua Hong's long-term potential, driven by the increasing local-for-local demand in China, the strong UT rate along with growing capacities, and its planned future migration from 40nm to 28nm. We expect the near-term drivers, including its continuous capacity expansion plans and ASP recovery supported by strong UT rates, to support the company's sh ...

Summary of Haidilao International Holding (6862.HK) Earnings Call Company Overview - **Company**: Haidilao International Holding - **Ticker**: 6862.HK - **Market Cap**: HK$82.9 billion / $10.6 billion - **Industry**: Restaurant and Food Service Key Financial Metrics - **1H25 Sales**: RMB 20.7 billion, a decline of 3.7% year-over-year (yoy) [1][4] - **Net Profit**: RMB 1.76 billion, a decline of 14% yoy, missing expectations by 8% [1][13] - **Recurring Net Income**: RMB 1.55 billion, a decline of 27% yoy [1][13] - **Interim Dividend**: HK$0.338 per share, with a payout ratio of 95% [1][14] - **Operating Income**: RMB 2.2 billion, with an operating profit margin (OPM) of 10.6%, missing expectations of 11.8% [11][16] Sales and Revenue Insights - **System Sales**: Declined by 6.5% yoy in 1H25 [3] - **Revenue from Haidilao Restaurants**: Below expectations due to a reduction in store count and lower per store sales [4] - **Delivery Revenue**: Increased due to the rapid growth of single-serving fast food business [4] - **Same-Store Sales Growth (SSSG)**: Overall group SSSG was -10% yoy, with variations across tiers [5] Operational Metrics - **Average Table Turn**: 3.8x in 1H25, down 10% from 4.2x in 1H24 [10] - **Store Count**: 1,322 stores, with 33 net closures in 1H25 [9] - **Average Selling Price (ASP)**: RMB 97.9 in 1H25, slightly up from previous periods [10] Cost and Margin Analysis - **Gross Profit Margin (GPM)**: Lower-than-expected due to increased labor and operational costs [1][11] - **Effective Tax Rate**: 33.2%, above expectations of 29% [13] - **Operating Expenses**: Increased in various categories, notably other expenses which rose by 23.4% yoy [16] Future Outlook and Strategic Focus - **Key Focus Areas for 2H25**: 1. Table turn trends and outlook 2. Pricing strategy and promotion trends 3. Margin outlook and potential for improvement 4. Store expansion plans, particularly for the Haidilao brand and new brands like Yanqing [2] 5. Progress on new brands and shareholder return plans [2] Investment Rating and Price Target - **Current Rating**: Neutral - **12-Month Price Target**: HK$15.30, with an upside of 2.8% from the current price of HK$14.88 [18][19] - **Key Risks**: Variability in table turn recovery, expansion speed, cost inflation, and food safety issues [18] Conclusion Haidilao International Holding has faced challenges in the first half of 2025, with declines in sales and net profit attributed to operational inefficiencies and increased costs. The company is focusing on strategic areas for improvement and expansion, while maintaining a stable dividend payout. The outlook remains cautious, with a neutral rating from analysts.

Summary of Bilibili Inc. (BILI) Conference Call Company Overview - **Company**: Bilibili Inc. (BILI) - **Market Cap**: $10.0 billion - **Enterprise Value**: $7.3 billion - **Industry**: Games, Entertainment & Healthcare Tech Key Points Advertising Outlook - Bilibili's advertising growth is expected to be robust, with a projected **20% year-over-year growth** for 2H25, driven by: - Increased ad inventory and higher ad load due to growing user traffic [2][25] - An upward trajectory in effective cost per mille (eCPM) supported by improved algorithms and a broader client base [2][25] - The company is refining its ad infrastructure, indicating ample room for improvement in monetization [2] Game Pipeline and Approvals - The near-term game outlook is cautious, with guidance for 2H25 indicating a potential **15% to high-teens percent decline** in game revenue year-over-year due to a tough comparison base from the previous year [3][22] - Bilibili received approvals for two games, **Trickcal RE:VIVE** and **Escape from Duckov**, which are expected to enhance visibility for its game pipeline [3][24] - The casual game **Sanguo: Ncard** is anticipated to launch by the end of 2025 or early 2026, contributing to future growth [3][27] Financial Estimates and Adjustments - Revenue estimates for 2025-2027 have been fine-tuned downwards by **-2% to -1%** due to a lighter game pipeline, although advertising performance is stronger than expected [4][18] - The revised revenue estimates are as follows: - **2025E**: Rmb 29,959.9 million (down from Rmb 30,376.6 million) - **2026E**: Rmb 32,992.4 million (down from Rmb 33,460.3 million) - **2027E**: Rmb 35,790.2 million (down from Rmb 36,608.4 million) [5][19] Margins and Profitability - The company aims to achieve a **10% adjusted operating profit margin** by the end of 2025, benefiting from operating leverage [26] - Gross profit margin is expected to improve sequentially, reaching approximately **37%** in Q4 [26] User Engagement and Growth Metrics - Monthly Active Users (MAU) are projected to grow from **341 million in 2024** to **373 million by 2027**, indicating a steady increase in user engagement [28] - Daily Active Users (DAU) are expected to rise from **104 million in 2024** to **120 million by 2027** [28] Competitive Landscape - Bilibili's advertising revenue is projected to grow significantly, with a focus on young users, which may help brands gain exposure beyond traditional circles [2] - The top verticals contributing to advertising growth include games, 3C digital products, e-commerce, internet services (including AI), and automotive sectors [27] Conclusion - Bilibili Inc. maintains a **Buy rating** with a 12-month price target of **$26.30**, reflecting a **9.7% upside** from the current price of **$23.98** [1] - The company is positioned to leverage its advertising growth while navigating challenges in the gaming segment, with a focus on improving margins and user engagement metrics [1][3][25]