Investment Rating - The report assigns a "Buy" rating to Marvell Technology (MRVL US) with a target price of $110.42, representing a potential upside of 77% from the current price of $62.36 [1]. Core Insights - The report highlights that the demand for Application Specific Integrated Circuits (ASICs) is expected to grow faster than that for Graphics Processing Units (GPUs), driven by the increasing adoption of CoWoS packaging technology [6][10]. - Marvell is anticipated to maintain a strong order flow for ASICs, particularly from major clients like AWS and Intel, with the potential for a third significant client to join [7][12]. - Financial forecasts indicate a compound annual growth rate (CAGR) of 43% for net profit from 2025 to 2028, surpassing the market consensus of 41% [8][44]. Summary by Sections Investment Rating - The report provides a "Buy" rating for Marvell Technology with a target price of $110.42, based on an average P/E of 27.0 times for the fiscal years 2027-28 [1][10]. Financial Projections - Revenue estimates for 2026 are projected at $8,219 million, with EPS expected to be $2.61 [9]. - The net profit CAGR for Marvell from 2025 to 2028 is forecasted at 43%, driven by increased contributions from high-margin data center revenues [8][44]. Market Demand Analysis - The report indicates that the demand for ASICs is expected to grow at a CAGR of 65% from 2025 to 2027, compared to a 21% CAGR for GPUs [6][17]. - The share of CoWoS capacity allocated to ASICs and other products is projected to increase from 31% in 2025 to 46% in 2027 [6][17]. Client Relationships and Order Flow - Marvell has secured long-term agreements with AWS for ASIC development, which is expected to significantly contribute to revenue growth [30][31]. - The potential addition of a third major client is anticipated to further enhance Marvell's ASIC revenue potential [30][12]. Competitive Positioning - Marvell's technological advantages and established client relationships position it favorably in the ASIC market, allowing it to capture more orders compared to competitors [12][56]. - The report emphasizes that Marvell's valuation has room for improvement, given its expected net profit growth trajectory compared to peers [55][56].

Investment Rating - The report maintains a "Hold" rating for NIO Inc. with a target price of US$4.00, reflecting a potential upside of 7% from the current price of US$3.75 [1][15]. Core Insights - The target price has been revised down from US$4.90 to US$4.00, indicating an 18% decrease [2][15]. - The company is expected to face challenges in achieving profitability by the fourth quarter of 2025, with significant losses reported in the first quarter of 2025 [6][7][11]. - Revenue projections for 2025 have been adjusted to RMB 75.454 billion, while 2026 and 2027 projections have been slightly reduced to RMB 90.670 billion and RMB 117.416 billion, respectively [10][13][15]. Financial Performance - NIO reported a non-GAAP loss of RMB 62.8 billion in Q1 2025, a 28.2% year-over-year increase, primarily due to a 29.4% rise in operating expenses [6][11]. - The company's cash reserves decreased significantly from RMB 41.9 billion at the end of 2024 to RMB 26 billion by the end of Q1 2025, raising liquidity concerns [6][11]. - The projected earnings per share (EPS) for 2025 is expected to be RMB -9.82, improving to RMB -9.33 in 2026 and RMB -8.25 in 2027 [2][10][14]. Sales and Production Forecast - NIO's management has guided for Q2 2025 sales between 72,000 and 75,000 vehicles, representing a year-over-year growth of 25.5% to 30.7% [8][11]. - The total vehicle sales forecast for 2025 has been slightly increased to 286,000 units, with 2026 sales projected at 417,000 units [8][13]. Valuation - The valuation method used is the Price-to-Sales (P/S) ratio, which has been adjusted to 0.8x for 2025, down from 1.0x, reflecting the deteriorating financial condition of the company [15][21]. - The current market capitalization of NIO is approximately US$7.852 billion [1]. Market Comparison - NIO's P/S ratio of 0.8 is significantly lower than its competitors, such as Xpeng Motors at 1.7 and Li Auto at 1.3, indicating a potential undervaluation relative to peers [21].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$41.10, representing a potential upside of 27% from the current price of HK$32.25 [1][7][13]. Core Insights - The company is experiencing a shift in product structure that is enhancing its gross margin, with a notable increase in demand for non-automotive applications, particularly in the robotics sector [5][6][11]. - The first quarter of 2025 saw a gross margin improvement to 25.5%, driven by a higher proportion of high-margin products in sales and cost reductions through self-developed technology [5][11]. - The company has established partnerships with over 90% of key global players in the Robotaxi and Robotruck sectors, indicating strong growth potential in these areas [6][11]. Summary by Sections Investment Rating - The target price is adjusted to HK$41.10 from HK$45.00, reflecting a 9% decrease, while the "Buy" rating remains unchanged [2][7]. Financial Performance - For 2025, the estimated EPS is revised to RMB (0.23), down 18% from the previous estimate, while the 2026 EPS is slightly increased to RMB 0.21 [2][12]. - Revenue projections for 2025 are set at RMB 2,211 million, a decrease of 2.7% from prior estimates, while 2026 revenue is expected to reach RMB 2,785 million [12][20]. Product and Market Analysis - The company sold 108,600 laser radars in Q1 2025, a 9.8% year-over-year decline, with a significant drop in ADAS radar sales due to reduced orders from a major automotive client [5][11]. - The demand for laser radars in non-automotive sectors, particularly robotics, is expected to be a key growth driver, with exclusive partnerships already established with leading companies in this field [6][11]. Valuation - The valuation methodology has shifted from a 2025 to a 2026 basis, applying a P/S multiple of 6x for 2026, which reflects the anticipated growth in the non-automotive laser radar market [13][18].

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group with a target price of HK$70.00, indicating a potential upside of 36% from the current price of HK$51.55 [3][12][18]. Core Insights - Xiaomi's 1Q25 performance exceeded expectations, with revenue and adjusted net profit reaching RMB 111.2 billion and RMB 10.6 billion, respectively, surpassing forecasts by 3% and 5% [10]. - The smartphone segment showed a 3% year-on-year sales growth, with high-end models accounting for 25% of shipments in China [10]. - The IoT segment experienced a significant revenue increase of 59% year-on-year, driven by a doubling of revenue from IoT home appliances and a 65% increase in sales volume [10]. - The electric vehicle (EV) and AI business generated RMB 18.6 billion in revenue, with a gross margin of 23.2%, higher than the forecasted 20.8% [10]. - Overall gross margin reached 22.8%, the highest since 2017, attributed to improved operational efficiency and increased investment income [10]. Financial Projections - Revenue for 2025 is projected at RMB 481.3 billion, reflecting a 32% year-on-year growth, with adjusted net profit expected to reach RMB 41.9 billion, an 82% increase [16][20]. - The report anticipates a cautious outlook for smartphone shipment growth, projecting a 3% increase in 2025, with price increases being a key growth driver [11]. - Adjusted EPS for 2025 is forecasted to be RMB 1.64, up from RMB 1.57, representing a 5% increase [4][16]. Valuation - The target P/E ratio for 2026 has been adjusted down to 28.5 times adjusted net profit, reflecting ongoing macroeconomic uncertainties [17]. - The valuation remains at an 8% premium compared to Apple's current P/E ratio, based on stronger growth prospects for Xiaomi [17][18].

Group 1 - Investment Rating: Buy with a target price of HK$70.00 [2][3][23] - Core Viewpoint: The company expects advertising revenue to recover to double-digit growth in the second half of 2025, driven mainly by external advertising [2][8][9] - Revenue and Profit Summary: In Q1 2025, revenue grew by 11% year-on-year to RMB 32.6 billion, and adjusted net profit was RMB 4.6 billion, both in line with expectations [2][3][20] Group 2 - Financial Forecasts: Revenue and adjusted net profit forecasts for 2025-2027 remain largely unchanged [21][23] - Shareholder Returns: The company announced a share buyback plan of HK$16 billion over the next 36 months, with a total of 29.2 million shares repurchased so far this year [3][21] - Key Financial Metrics: The projected revenue for 2025 is RMB 141.9 billion, with an adjusted net profit of RMB 20.4 billion, reflecting a year-on-year growth of 12% [5][21][27]

Investment Rating - The report maintains a "Hold" rating for the company with a target price slightly adjusted to RMB 90.00 from RMB 95.00 [3][15][8] Core Views - The company's revenue for 1Q25 was below expectations, but new orders signed in 2024 are expected to contribute to revenue in 2025 [2][8] - The decline in net profit growth compared to revenue growth is attributed to ongoing investments in new product research and development [1][9] - The acquisition of shares by Northern Huachuang is anticipated to positively impact the company's financial performance in the medium to long term [2][15] Summary by Sections Financial Performance - In 2024, the company reported revenue of RMB 1.75 billion, a year-on-year increase of 2.13%, with a net profit of RMB 203 million, down 19.08% year-on-year [1][10] - For 1Q25, revenue was RMB 275 million, a 12.74% increase year-on-year, but net profit fell to RMB 5 million, a 70.89% decrease year-on-year [1][10] Order and Product Development - The company signed new orders worth RMB 2.4 billion in 2024, a 10% increase year-on-year, with strong performance in various product lines including photoresist coating and developing machines [2][8] - New products such as the front-end chemical cleaning machine and physical cleaning machine have received significant orders from major domestic clients [2][8] Earnings Forecast Adjustments - The earnings per share (EPS) forecast for 2025 has been reduced by 32% to RMB 1.29 due to lower-than-expected net profit in 1Q25 and increased R&D expenses [3][11] - Revenue projections for 2025, 2026, and 2027 are expected to grow by 29%, 30%, and 24% respectively, with net profit margins improving over the years [9][11] Valuation - The current valuation is set at 69 times the 2025 P/E ratio, reflecting market expectations regarding the acquisition by Northern Huachuang and its potential benefits for revenue and profit growth [3][15] - The company is projected to achieve a net profit growth rate of 46% from 2024 to 2027, which is higher than the industry average of 37% [15][16]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group with a target price of HK$70.00, indicating a potential upside of approximately 40% from the current price of HK$50.10 [2][7][12]. Core Insights - The report highlights that operational leverage will be a key highlight for Xiaomi in the upcoming quarters, particularly driven by strong growth in the IoT segment and strategic adjustments in the smartphone market [3][4]. - The anticipated strong performance in Q1 2025 is attributed to national subsidies supporting large appliances and consumer electronics, with IoT revenue expected to grow by 51% year-on-year to RMB 30.7 billion [3]. - The report notes a significant decline in smartphone shipments in the Indian market, down 38% year-on-year, reflecting Xiaomi's strategic withdrawal from this market due to slowing structural growth [3][4]. Summary by Sections Financial Performance - For Q1 2025, Xiaomi's IoT business is projected to generate RMB 30.7 billion, while smartphone revenue is expected to reach RMB 50.2 billion, reflecting an 8% year-on-year increase [3][13]. - The report forecasts adjusted net profit for Q1 2025 to be around RMB 10.2 billion, with a gross margin of 20.8% for the electric vehicle segment [3][4]. Future Outlook - The report anticipates that the investor day in June and the launch of the YU7 electric vehicle in July will serve as important catalysts for Xiaomi's stock performance [4]. - It is expected that Xiaomi will continue to focus on increasing smartphone prices to navigate potential downturns in global markets, particularly in India and Latin America [4][15]. Earnings Forecast Adjustments - Revenue forecasts for 2025-2027 have been increased by 1%-3% due to rising electric vehicle shipments, with adjusted net profit for 2025 now estimated at RMB 40.1 billion, up from a previous estimate of RMB 34.9 billion [5][14]. - The report also revises the earnings per share (EPS) estimates for 2025 to RMB 1.57, reflecting a 15% increase from earlier projections [8][14]. Valuation - The target valuation multiple has been adjusted from 35.0x to 32.0x based on the 2026 adjusted net profit, reflecting the macroeconomic uncertainties impacting global trade [15][16]. - The report emphasizes that Xiaomi's high-end strategy and the growth of its electric vehicle business are expected to drive future profitability [15][16].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of RMB 146.00, indicating a potential upside of 19% from the current price of RMB 122.75 [1][4][7]. Core Insights - The company reported a revenue growth of 22.4% year-on-year for 2024, reaching RMB 256.7 billion, with Q4 2024 revenue at RMB 68.2 billion, a 13% increase year-on-year [3]. - The CMOS image sensor (CIS) solutions business generated RMB 191.9 billion in revenue for 2024, marking a 23.5% year-on-year growth, driven by high-end smartphone product introductions and automotive CIS business expansion [3][4]. - The smartphone-related CIS revenue reached RMB 98.0 billion in 2024, reflecting a 26.0% year-on-year increase, with plans for new sensor solutions that support high pixel counts and advanced features [3][4]. - The automotive CIS revenue was RMB 59.1 billion in 2024, up 29.9% year-on-year, with expectations for continued growth in 2025-26 due to increased orders from key clients like BYD [4][7]. Financial Summary - The company’s projected financials show a revenue increase from RMB 26.8 billion in 2024 to RMB 32.0 billion in 2025, and further to RMB 37.5 billion in 2026 [6]. - Earnings per share (EPS) are expected to rise from RMB 2.94 in 2024 to RMB 3.84 in 2025, and RMB 4.81 in 2026 [6]. - The price-to-earnings (P/E) ratio is projected to decrease from 33.4 in 2024 to 32.0 in 2025, and further to 25.5 in 2026, indicating improving valuation metrics [6].

Investment Rating - The report maintains a "Buy" rating for JD Logistics with a target price of HK$23.28, indicating a potential upside of 100% from the current price of HK$11.62 [1][2][7]. Core Insights - JD Logistics is expected to benefit from the resilience of the Chinese economy, with a projected revenue growth of 10% year-on-year for Q1 2025, driven by government subsidies for electronic products and home appliances [6][8]. - The company is focusing on automation, self-operated fleet construction, and cost-reduction measures, which are expected to stabilize its net profit margin [6][8]. - Despite the potential negative impact of the US-China trade tensions, JD Logistics has limited direct exposure to international trade, which mitigates the risks associated with tariff increases [6][7]. Financial Summary - Revenue projections for JD Logistics are as follows: RMB 199,540 million for 2025E (+3% from previous estimates) and RMB 216,070 million for 2026E (+4%) [5]. - The expected earnings per share (EPS) for 2025E is RMB 1.18, with a gradual increase to RMB 1.56 by 2027E [2][8]. - The company's financial performance shows a significant increase in net profit from RMB 1,985 million in 2023A to RMB 7,353 million in 2025E [8]. Valuation - The current valuation of JD Logistics is attractive, with a price-to-earnings (P/E) ratio of 9.2x for 2025E, which may decrease further if the acquisition of the remaining 36% stake in Cross-border Express is completed successfully [7][8]. - The report emphasizes that the valuation attractiveness can offset potential negative impacts from external tariff environments [7].

Investment Rating - The report maintains a "Buy" rating for SK Hynix with a target price of KRW 252,569, indicating a potential upside of 39% from the current price of KRW 182,200 [1][6]. Core Insights - In Q1 2025, SK Hynix's DRAM revenue is expected to exceed market expectations with a low single-digit percentage increase quarter-over-quarter, while NAND revenue is anticipated to fall short of expectations with a 20% quarter-over-quarter decline [3][4]. - The report highlights that the demand from Chinese companies for server storage chips is increasing, which may positively impact SK Hynix's DRAM revenue in Q2 2025 [3]. - The NAND business is expected to see a price increase in Q2 2025 due to industry-wide price hikes starting April 1, 2025, despite a projected 20% decline in Q1 2025 revenue [4][6]. Financial Summary - For the fiscal year ending December, the projected financials for SK Hynix are as follows: - Revenue is expected to grow from KRW 32,766 billion in 2023 to KRW 82,685 billion in 2025, and further to KRW 108,000 billion by 2027 [5]. - Earnings per share (EPS) are projected to improve from a loss of KRW 13,281 in 2023 to a profit of KRW 37,696 in 2025 [5]. - The price-to-earnings (P/E) ratio is expected to decrease from 6.3 in 2024 to 4.7 in 2026, indicating a potentially undervalued stock [5].