February 20, 2025 04:20 PM GMT NetEase, Inc | Asia Pacific Overseas expansion and overall recovery on track We think Netease's overseas expansion and overall growth recovery are well on track. The market seems to have overreacted to the top-line miss despite the healthy game grossing and profit beat. We stay OW and highlight the FragPunk release on March 6 as the next catalyst. Overseas expansion in focus: Management spoke highly of Marvel Rivals' performance and targets to run this game as a 10-year evergr ...

Summary of FOMC Minutes - January Meeting Industry Overview - The document pertains to the Federal Open Market Committee (FOMC) and its monetary policy discussions, reflecting the economic outlook and potential adjustments to monetary policy in the United States. Core Points and Arguments 1. **Monetary Policy Approach**: The majority of FOMC participants favored a careful approach to additional adjustments in monetary policy due to elevated uncertainty regarding the economic outlook, neutral interest rates, and potential government policy changes [2][1] 2. **Fed Funds Rate**: The vast majority of participants judged that the fed funds rate remains in restrictive territory, with a desire to see further progress on inflation before making adjustments [2][1] 3. **Inflation Risks**: Almost all participants assessed that risks to achieving the FOMC's dual-mandate goals were roughly balanced, with inflation risks skewed to the upside due to potential changes in tariff and immigration policy [3][1] 4. **Inflation Expectations**: Some participants noted recent increases in inflation expectations, while many emphasized that long-term expectations remain well-anchored [3][1] 5. **Economic Activity Risks**: Potential downside risks were identified, including a weaker labor market and tighter financial conditions, alongside upside risks from a favorable regulatory environment and strong consumer spending [6][1] 6. **Economic Forecast**: The Fed staff's economic forecast remained similar to the previous meeting, with inflation in 2025 projected to be similar to 2024's rate, influenced by trade policy assumptions [6][1] 7. **Monetary Policy Framework Review**: The FOMC began a review of its 2025 monetary policy framework, focusing on longer-run goals and communication practices, emphasizing the need to reconsider elements from the previous review [7][1] 8. **Balance Sheet Runoff**: Many participants suggested structuring purchases to align the maturity composition of the portfolio with Treasury debt, and some indicated a potential pause or slowdown in balance sheet runoff until the debt ceiling is lifted [7][1][6] 9. **Runoff Expectations**: The expectation is for the Committee to slow the pace of balance sheet runoff, with discussions anticipated in March and a decision likely in May, with runoff expected to end by the end of Q3 [7][1] Additional Important Content - The document includes contact information for Goldman Sachs analysts involved in the report, emphasizing the importance of considering this report as one factor in investment decisions [4][5] - Regulatory disclosures and compliance information are provided, indicating the firm's policies regarding analyst independence and conflicts of interest [10][11][20]

Summary of EHang Holdings Conference Call Company Overview - **Company**: EHang Holdings (Nasdaq: EH) - **Industry**: Urban Air Mobility (UAM) technology platform - **Market Cap**: US$1.67 billion as of February 19, 2025 [6] Key Takeaways from Management Call 1. **Government Support**: EHang anticipates continued government backing, including project funds for the low-altitude economy and infrastructure development [2] 2. **Operating Certificate**: The company expects the first operating certificate to be released soon [2] 3. **Product Launches**: EHang plans to launch updated versions of its eVTOL aircraft, specifically the EH216 and VT-35, in the upcoming months [2] 4. **Cash Turnover**: EHang's cash turnover is efficient, with buyers required to pay 30% upfront and 60-70% before final delivery [2] Financial Projections 1. **ASP Stability**: EHang estimates that the average selling price (ASP) of the EH216 will remain stable due to mild competition [3] 2. **Cost Management**: The cost structure is expected to stabilize due to economies of scale and new battery and motor technologies [3] 3. **Profit Margins**: EHang anticipates adjusted net margins (before stock-based incentives) to reach 15-20% in 2025, with long-term net profit margins under US GAAP projected at 15-20% [3] 4. **Stock-Based Incentives**: The annual stock-based incentive is expected to remain around Rmb250-300 million for the next few years [3] Revenue and Earnings Forecast - **Revenue Growth**: Projected revenues are expected to grow from Rmb117 million in 2023 to Rmb1.136 billion in 2025, reaching Rmb3.494 billion by 2028 [9] - **Earnings Projections**: Net earnings are forecasted to turn positive in 2025 with an EPS of Rmb0.20, increasing to Rmb3.37 by 2026 [7][9] Valuation and Investment Outlook 1. **Price Target**: The price target is set at US$31, based on a 15x price-to-sales ratio for 2025, implying a 65x PE for 2026 and 29x for 2027 [5] 2. **Investment Rating**: The stock is rated as a "Buy" [6] 3. **Forecast Returns**: Expected stock return is 17.2%, with no forecasted dividend yield [10] Market Sentiment and Risks 1. **Investor Interest**: There is increasing interest from investors regarding EHang, with many recognizing the growth potential of eVTOLs supported by government initiatives [4] 2. **Total Addressable Market (TAM)**: Questions remain about the overall TAM for eVTOLs in China, particularly regarding their viability as a mass transport mode in urban areas [4] 3. **Risks**: Potential risks include operational delays, battery technology stagnation, and slower-than-expected product development [12][13] Conclusion EHang Holdings is positioned for growth within the urban air mobility sector, bolstered by government support and innovative product launches. Financial projections indicate a positive trajectory, with increasing revenues and profitability expected in the coming years. However, investor sentiment is tempered by uncertainties regarding market adoption and technological advancements.

MeiraGTx Holdings (MGTX) Update / Briefing February 21, 2025 08:00 AM ET Speaker0 Good morning, and welcome to the GTX Investor Event. At this time, all attendees are in a listen only mode. A question and answer session will follow the presentations. As a reminder, this call is being recorded and a replay will be made available on the Mirror GTX website following the conclusion of the event. I'd now like to turn the call over to Doctor. Sandy Forbes, President and Chief Executive Officer of Miura GTX. Pleas ...

Summary of Luxshare Precision Industry Conference Call Company Overview - **Company**: Luxshare Precision Industry - **Industry**: Electric Components & Equipment - **Market Cap**: Rmb315 billion (approximately US$43.3 billion) [6] - **12-month Rating**: Buy - **12-month Price Target**: Rmb58.00 (previously Rmb37.00) [6] Key Points Diversification and Growth Strategy - Luxshare's growth has been closely tied to Apple, with 75% of its revenue in 2023 coming from Apple-related products. The company aims to reduce this dependency to 49% by 2027 through diversification into sectors like edge AI, electric vehicles (EV), and high-performance computing [1][10][19]. - The company expects to double its earnings by 2027, driven by new verticals and key customer breakthroughs in consumer electronics, automotive, computing, and communication sectors [1]. Revenue Projections - **Communication Sector**: Projected to grow at a 43% CAGR from 2025 to 2027, driven by securing tier-1 international clients [2]. - **Automotive Sector**: Expected to see a CAGR of 40-50% over the same period, aided by synergies from the Leoni acquisition [2]. - **Non-Consumer Business Contribution**: Anticipated to rise from 12% of revenue in 2023 to 49% by 2030, significantly reducing reliance on Apple [2]. Consumer Electronics and AI - Luxshare has experienced substantial growth since its listing in 2010, with revenue and earnings increasing 229x and 95x, respectively. The company forecasts a 10% long-term revenue CAGR for its consumer electronics segment, driven by edge AI and the acquisition of Wingtech's ODM business [3][30]. - The edge computing market is projected to grow from US$131 billion in 2023 to US$511 billion by 2033, with a CAGR of 15%, indicating strong demand for AI-enabled devices [17][29]. Valuation Insights - Current valuation is seen as attractive, trading at 18x NTM consensus PE, which is below its five-year average of 23x. The market has not fully priced in the potential growth from non-Apple segments [4][12]. - The target valuation is derived from a 25x 2025E PE, implying a PEG of 1.0x, assuming a 25% EPS CAGR from 2026 to 2030 [4]. Recent Developments - Luxshare has expanded its partnerships with major global clients, including NVIDIA, Google, and Cisco, following the resolution of a complaint that previously hindered its growth [11]. - The acquisition of Wingtech's ODM business is expected to enhance Luxshare's offerings in non-Apple consumer electronics, which previously generated Rmb23.7 billion in sales over three years [30][31]. Market Dynamics - The company faces challenges from US tariffs and stagnant smartphone shipment growth, but it is positioned to benefit from emerging markets and technological advancements [4][10]. - The shift in focus from Apple to non-Apple customers is expected to drive long-term growth, with a forecasted 4% sales CAGR for the consumer electronics business from 2025 to 2027 [8][16]. Conclusion Luxshare Precision Industry is strategically diversifying its revenue streams away from Apple, targeting high-growth sectors such as automotive and communication. The company is well-positioned to capitalize on emerging technologies like edge AI, with significant growth expected in the coming years. The current valuation presents an attractive investment opportunity as the market begins to recognize the potential of Luxshare's non-Apple growth.

更多资料加入知识星球：水木调研纪要 关注公众号：水木纪要 17 February 2025 | 4:16AM GMT Multi-Industry Heatmap: 4Q24 so far Our Heatmap tracks sequential earnings acceleration/deceleration across various end markets. We are entering the final stage of 4Q24 season, with c.60% of our coverage and c.30% of our globally tracked companies now having reported. It is so far a strong season for our coverage and this week we continued to see solid beats on orders and sales. While most companies are beating on adj EBITA, margins are in line with ...

Summary of Conference Call Notes Industry Overview - **Industry**: Greater China Semiconductors, specifically focusing on the MCU (Microcontroller Unit) market - **Market Performance**: The China MCU market experienced a revenue decline of 14% in 2024, which is less severe compared to the global MCU market's 19% decline. This is attributed to an earlier correction in the Chinese market starting mid-2022, while the global peak occurred in March 2023 [4][5] Key Insights - **Market Dynamics**: - Local players in the China MCU market are expected to continue gaining market share in 2025, despite foreign companies implementing "China for China" strategies [5] - Pricing pressure remains significant for foreign MCU players, with STMicroelectronics' 32-bit MCU pricing dropping by 3% to Rmb8.15, while Gigadevice's pricing remained stable at Rmb6.1, narrowing the premium from 61% in October 2024 to 34% [3][5] - Demand for home appliances has decreased compared to Q4 2024, while consumer electronics demand was strong prior to the Chinese New Year due to government subsidies [3] - **Future Expectations**: - The expectation is that local MCU companies will maintain their competitive edge as foreign partnerships take time to ramp up and cost advantages may not be realized until early 2026 [5] - Analysts have turned positive on the China MCU market since November 2024, indicating a potential recovery [4] Company-Specific Insights - **Preferred Stocks**: - Espressif (688018.SS) is highlighted as a preferred investment due to its edge AI opportunities and competitive RISC-V MCU offerings [5] - Nuvoton (4919.TW) is also favored due to its new BMC progress and overall MCU market bottoming [5] - Sino Wealth (300327.SZ) is rated Equal-weight amid intense competition in AMOLED driver ICs, but with improving demand for MCU and BMIC [5] - GigaDevice (603986.SS) is rated Equal-weight based on fair valuation [5] Additional Considerations - **Consumer Confidence**: Consumer confidence in China's economy showed signs of recovery in December 2024, which may influence future spending in the semiconductor sector [14] - **Capex Trends**: Leading MCU companies are expected to lower their capital expenditures in 2025 compared to 2024, indicating a cautious approach to investment amid market uncertainties [18] Risks and Opportunities - **Upside Risks**: - Sustained MCU upcycle and faster localization in China could lead to significant market gains [33][41] - Increased traction in automotive and BMC business could enhance margins [42] - **Downside Risks**: - A potential early end to the MCU upcycle with severe pricing erosion could negatively impact market dynamics [33][41] - Slower-than-expected localization and intensified competition may lead to margin contractions [41][42] This summary encapsulates the key points from the conference call, focusing on the MCU market dynamics, company-specific insights, and potential risks and opportunities within the Greater China semiconductor industry.

更多资料加入知识星球：水木调研纪要 关注公众号：水木纪要 February 17, 2025 10:13 PM GMT Global Economic Thematic M Global Foundation Multipolar World: Trade Almanac As geopolitics sharpen the focus on supply chains, we introduce a trade database that maps supply chains across sectors, products, and geographies. Using our interactive models, users can pull extensive trade data to track flows over time. Alongside the publication of Multipolar World: Supply Chain Strain, we introduce the Trade Almanac – an interactive trade database that ...

Summary of Japan Equity Strategy & Thematic Research Industry and Company Focus - **Industry**: Japanese Stock Market - **Company**: UBS Securities Japan Co., Ltd. Key Points and Arguments 1. **Impact of US Tariff Policy**: - US President Trump signed executive orders for increased tariffs on imports from Mexico, Canada, and China, with additional tariffs on steel and aluminum products. Japan's steel and aluminum exports to the US are only 0.05% of GDP, indicating minimal impact from these tariffs [1][9][10]. - Japan's average tariff rate is 3.7%, comparable to the US's 3.3%, suggesting that Japan may not be significantly affected by the tariff policies [10]. 2. **Japanese Stock Performance**: - The TOPIX index has been flat year-to-date, underperforming major European, US, and Asian stock indices. This underperformance may reflect excessive pessimism regarding the impact of US tariffs [3][17][18]. - Corporate earnings are on track, and the negative assessments regarding US tariffs may be overly pessimistic [3][17]. 3. **Sector-Specific Concerns**: - Export sectors, particularly autos and machinery, are likely to be affected by global economic impacts of tariffs and non-tariff barriers [4][24]. - Trading houses, wholesalers, and automobiles have shown noticeable underperformance, indicating reliance on overseas demand [17]. 4. **Domestic Demand Drivers**: - An inflationary shift due to Japan-specific wage increases and corporate reforms may drive Japanese stocks. The results of the Shunto (spring wage negotiations) in March and corporate reform trends ahead of full-year earnings results in May are expected to act as catalysts [24][25]. 5. **Market Sentiment and Expectations**: - The analysis indicates that the impact of US tariff policy is not directly reflected in the market, while inflation expectations have peaked, and interest rate drivers have increased [25]. - There is potential for sector rotation from overseas demand-related sectors to domestic demand-driven sectors, suggesting a shift in investment focus [30]. Other Important Insights - **Global Context**: For European and Chinese stocks, factors such as a potential ceasefire in Ukraine and AI-related expectations are currently more influential than tariff concerns [24]. - **Crowding Scores**: UBS crowding scores for Japanese stocks have shown slight recovery after a decline, indicating potential shifts in investor sentiment [29]. This comprehensive analysis highlights the resilience of the Japanese stock market amidst global tariff challenges, emphasizing the importance of domestic demand and corporate reforms as key drivers for future performance.

This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan. Jiangsu Hengli Hydraulic - A Capitalizing on new opportunities amid core business turnaround: raise PT with humanoid bot breakthrough Hengli's stock surged by the daily limit of 10% today, while the CSI300 rema ...