Investment Rating - The report assigns a "Buy" rating to the company, New Energy (2688 HK), with a target price of HKD 74.60, indicating a potential upside of 21.4% from the current price of HKD 61.45 [4][9]. Core Insights - The first quarter of 2025 saw gas sales remain stable, influenced by a warm winter, with retail gas volume showing a year-on-year increase of 0.3%, outperforming the mainland's natural gas apparent consumption decline of 2.2% [2][7]. - The management indicated that the warm winter impacted gas sales by approximately 2-3 percentage points, with residential gas sales increasing by 1.1% year-on-year [2][7]. - The privatization plan is progressing steadily, with expectations to seek shareholder approval in the fourth quarter of this year [7][8]. Financial Overview - Revenue projections for the company are as follows: - 2023: RMB 113,858 million - 2024: RMB 109,853 million - 2025E: RMB 116,552 million (6.1% YoY growth) - 2026E: RMB 122,701 million - 2027E: RMB 129,239 million [3][11]. - Net profit estimates are: - 2023: RMB 6,816 million - 2024: RMB 5,987 million - 2025E: RMB 7,174 million (3.2% YoY growth) - 2026E: RMB 7,782 million - 2027E: RMB 8,098 million [3][11]. - The company is expected to maintain moderate profit growth over the next three years, with a compound annual growth rate of approximately 5% from 2024 to 2027 [7][8]. Operational Performance - The company’s retail gas sales volume is projected to grow as follows: - 2023: 25,145 million cubic meters - 2024: 26,200 million cubic meters - 2025E: 26,782 million cubic meters (2.2% growth) - 2026E: 27,588 million cubic meters - 2027E: 28,421 million cubic meters [8]. - The company has also seen a 9.9% year-on-year increase in its diversified energy sales volume, reaching 100 billion kWh in the first quarter [7][8]. Market Position - The company’s market capitalization is approximately HKD 68,286.31 million, with a 52-week high of HKD 79.30 and a low of HKD 45.25 [6][9]. - The stock has shown a year-to-date change of 10.03% [6].

Investment Rating - The investment rating for the company is Neutral with a target price of RMB 43.30, indicating a potential upside of 5.5% from the current price of RMB 41.05 [1][4][11]. Core Insights - The company's performance has been below expectations, with a significant increase in contract liabilities suggesting a potential recovery in future performance. The European market's slow recovery has impacted the company's results, but strong competitiveness in products remains evident [2][7]. - The revenue for 2024 is projected to be RMB 6.738 billion, a decrease of 8% year-on-year, with a net loss expected at RMB 62 million, which aligns with preliminary earnings reports but is below prior expectations [3][7]. - The company has adjusted its earnings forecasts for 2025 and 2026 downwards by 72% and 42% respectively, reflecting the challenges faced in the current market environment [7]. Financial Overview - Revenue projections for the company are as follows: RMB 7.353 billion in 2023, RMB 6.738 billion in 2024, RMB 8.022 billion in 2025, RMB 8.945 billion in 2026, and RMB 10.508 billion in 2027, with a notable growth rate of 56.1% in 2023 followed by a decline in 2024 [3][13]. - The net profit is expected to recover from a loss of RMB 62 million in 2024 to RMB 170 million in 2025, with a projected increase to RMB 457 million in 2026 and RMB 787 million in 2027 [3][13]. - The company’s earnings per share (EPS) are forecasted to be RMB 3.52 in 2023, a loss of RMB 0.25 in 2024, and then recovering to RMB 0.70 in 2025, RMB 1.88 in 2026, and RMB 3.25 in 2027 [3][15]. Market Performance - The company’s stock has a 52-week high of RMB 77.39 and a low of RMB 37.56, with a current market capitalization of approximately RMB 6.52 billion [6][11]. - The average daily trading volume is reported at 5.51 million shares, indicating a relatively active trading environment [6].

Investment Rating - The report assigns a "Buy" rating to the company, New Energy (2688 HK), with a target price of HKD 74.60, indicating a potential upside of 21.4% from the current closing price of HKD 61.45 [4][9]. Core Insights - The first quarter of 2025 saw gas sales remain stable, influenced by a warm winter, with retail gas volume growing by 0.3% year-on-year, outperforming the mainland's natural gas apparent consumption decline of 2.2% [2][7]. - The management indicated that the warm winter impacted gas sales by approximately 2-3 percentage points, with residential gas sales increasing by 1.1% year-on-year [2][7]. - The privatization plan is progressing steadily, with expectations for shareholder approval in the fourth quarter of this year [7][8]. Financial Overview - Revenue projections for the company are as follows: - 2023: RMB 113,858 million - 2024: RMB 109,853 million - 2025E: RMB 116,552 million (6.1% growth) - 2026E: RMB 122,701 million (5.3% growth) - 2027E: RMB 129,239 million (5.3% growth) [3][11]. - Net profit estimates are: - 2023: RMB 6,816 million - 2024: RMB 5,987 million - 2025E: RMB 7,174 million (3.2% growth) - 2026E: RMB 7,782 million (8.5% growth) - 2027E: RMB 8,098 million (4.1% growth) [3][11]. - The company maintains a dividend yield of 4.6% in 2023, projected to increase to 7.0% by 2027 [3][11]. Operational Performance - The company expects retail gas volume and energy sales to grow by 2.2% and 12% respectively in 2025, despite the warm winter's impact [7][8]. - The number of new residential connections decreased by 16% year-on-year to 287,000, with a ratio of new to old homes at 3:1 [7][8]. - The energy business saw a sales volume increase of 9.9% year-on-year to 10 billion kWh, with 14 new projects becoming operational [7][8]. Market Position - The company's market capitalization stands at approximately HKD 68,286.31 million, with a 52-week high of HKD 79.30 and a low of HKD 45.25 [6][9]. - The stock has shown a year-to-date change of 10.03% [6].

Group 1: 康方生物 (Kangfang Biologics) - The approval for the listing application of Ivosidenib for 1L PD-L1 positive NSCLC in mainland China was granted earlier than expected, with the first interim overall survival (OS) data showing a hazard ratio (HR) of 0.777, indicating a 22.3% reduction in the risk of death [1][2] - The market should focus on the subsequent and final OS analysis results, as the current interim analysis has a low alpha value and a small sample size [1] - The successful approval reflects the regulatory body's recognition of the trend in OS benefits, suggesting limited impact on the clinical and commercial value of Ivosidenib in the mainland market from future OS HR results [1] Group 2: 卓胜微 (Zhuosheng Micro) - In Q1 2025, the revenue decreased by 36.5% year-on-year to 756 million RMB, primarily due to weaker seasonal changes in 2024 [3] - The company reported a net loss of 47 million RMB, transitioning from profit to loss, with a non-recurring net profit loss of 54 million RMB and a gross margin of 31.0%, down 540 basis points quarter-on-quarter [3] - Management anticipates a significant revenue increase in the second half of 2025, driven by seasonal demand for RF products and the launch of new products like PAMiD [3][4] Group 3: 中国太保 (China Pacific Insurance) - In Q1, the net profit attributable to shareholders decreased by 18.1% year-on-year, mainly due to a 15% decline in investment income [8] - The new business value grew by 11.3% year-on-year, with a comparable growth of 39.0%, indicating strong performance in the insurance sector [8] - The comprehensive cost ratio for property and casualty insurance improved, with a combined ratio of 97.4%, down 0.6 percentage points year-on-year [8] Group 4: 中国平安保险 (Ping An Insurance) - The operating profit attributable to shareholders grew by 2.4% year-on-year, primarily driven by the life and health insurance sectors [9] - The net profit attributable to shareholders decreased by 26.4% year-on-year, significantly lower than the operating profit growth [9] - The new business value growth exceeded expectations, with a significant improvement in the value rate, and the comprehensive cost ratio for property and casualty insurance showed notable improvement [9] Group 5: 新奧能源 (Xinao Energy) - In Q1, the retail gas volume increased by 0.3% year-on-year, outperforming the 2.2% decline in apparent natural gas consumption in mainland China [10] - The company experienced a 16% year-on-year decrease in new residential connections, which was within expectations [10] - The privatization plan is progressing steadily, with expectations for shareholder approval in Q4 of this year [10]

Investment Rating - The report maintains a "Buy" rating for 康方生物 (9926 HK) with a target price of HKD 115, indicating a potential upside of 16.3% from the current price of HKD 98.90 [7]. Core Insights - 康方生物's application for the PD-L1 positive NSCLC indication for its drug 依沃西 has been approved in mainland China earlier than expected, just 9 months after submission [1]. - The initial overall survival (OS) interim analysis from the HARMONi-2 study shows a hazard ratio (HR) of 0.777, indicating a 22.3% reduction in the risk of death, although it has not yet reached statistical significance [1]. - The report expresses optimism regarding the overseas development of 依沃西, particularly the ongoing HARMONi-7 study, which is expected to have a higher probability of achieving significant results due to a larger sample size and a focus on patients with higher PD-L1 expression [1]. Summary by Sections Approval and Clinical Data - The approval of 依沃西 for PD-L1 positive NSCLC in mainland China reflects regulatory confidence in the clinical benefits observed [1]. - The interim analysis of the HARMONi-2 study is based on a sample size of 398, with a low alpha allocation value of 0.0001, suggesting that the results may improve as more data matures [1][2]. Market Potential - The report forecasts peak sales of 61 billion RMB in mainland China and 5.7 billion USD overseas for 依沃西, highlighting its significant commercial potential [1]. - The upcoming data readout from the global Phase III HARMONi study for 2L EGFR+ NSCLC is anticipated to be a key event for investors [1]. Pipeline Developments - The report notes that the first clinical-stage antibody-drug conjugate (ADC) targeting HER3 has commenced enrollment in Australia, and a second ADC targeting TROP-2/Nectin-4 has received FDA clinical approval [1].

Investment Rating - The report assigns a "Buy" rating for China Ping An Insurance (2318 HK) with a target price of HKD 60.00, indicating a potential upside of 30.6% from the current price of HKD 45.95 [1][10]. Core Insights - The report highlights stable growth in operating profit attributable to the parent company, with new business value growth exceeding expectations. The operating profit after tax (OPAT) for Q1 2025 increased by 2.4% year-on-year, primarily driven by the life and health insurance segments [5]. - The new business value for Q1 2025 surged by 34.9% year-on-year, with significant contributions from various channels, particularly the bancassurance and community finance channels, which grew by 170.8% and 171.3% respectively [5]. - The comprehensive cost ratio for the property and casualty insurance segment improved significantly, with a year-on-year reduction of 3 percentage points to 96.6% [5]. - Investment income remained stable, with a year-to-date growth of 3.3% in investment assets and an annualized comprehensive investment return of 1.3% [5]. - The solvency ratio for the life insurance segment was robust at 163.7%, reflecting a 47.3 percentage point increase from the end of 2024 [5]. Financial Overview - Revenue projections for China Ping An Insurance show a steady increase from RMB 913,789 million in 2023 to RMB 1,153,545 million by 2027, with a compound annual growth rate (CAGR) of approximately 4.4% [4][11]. - Net profit is expected to fluctuate, with a forecast of RMB 120,657 million for 2025, down from RMB 126,607 million in 2024, but projected to rise to RMB 130,993 million by 2027 [4][11]. - The earnings per share (EPS) is projected to be RMB 6.63 in 2025, with a gradual increase to RMB 7.19 by 2027 [4][11]. - The price-to-earnings (P/E) ratio is forecasted to decrease from 9.2 in 2023 to 6.0 by 2027, indicating an attractive valuation [4][11]. Business Segment Performance - The life and health insurance segment is expected to see a slight recovery in premium income growth, with a forecasted increase of 1.0% in 2025 [6]. - The property and casualty insurance segment is projected to maintain a growth rate of 6.5% in premium income for 2025 [6]. - The new business value rate is anticipated to stabilize around 25.6% for 2025, reflecting a slight decrease from previous estimates [7]. Conclusion - The report maintains a positive outlook on China Ping An Insurance, emphasizing its strong market position, diversified business model, and potential for growth in new business value, supported by a solid financial foundation and attractive valuation metrics [5][11].

Investment Rating - The report maintains a "Buy" rating for China Pacific Insurance (2601 HK) with a target price of HKD 32.00, indicating a potential upside of 48.5% from the current price of HKD 21.55 [6][10][11]. Core Insights - The report highlights a decline in net profit for Q1 2025, down 18.1% year-on-year, primarily due to a 15% decrease in investment income. However, new business value has shown strong growth, increasing by 11.3% year-on-year [6][12]. - The life insurance premium growth is driven mainly by the bancassurance channel, with a significant increase in participating insurance's share of new business premiums [6][12]. - The report notes improvements in the comprehensive cost ratio for property and casualty insurance, with a slight decrease of 0.6 percentage points year-on-year [6][12]. Financial Overview - Revenue projections for China Pacific Insurance are as follows: - 2023: RMB 323,945 million - 2024: RMB 404,089 million - 2025E: RMB 421,651 million - 2026E: RMB 444,268 million - 2027E: RMB 465,683 million - The year-on-year growth rates are projected at -2.5% for 2023, 24.7% for 2024, and 4.3% for 2025E [5][12][13]. - Net profit estimates are: - 2023: RMB 27,257 million - 2024: RMB 44,960 million - 2025E: RMB 41,651 million - 2026E: RMB 44,083 million - 2027E: RMB 46,176 million - The year-on-year growth rates show a decline of 27.1% in 2023, followed by a recovery of 64.9% in 2024, and a projected decrease of 7.4% in 2025E [5][12][13]. Business Performance - The new business value for 2025E is projected at RMB 14,572 million, with a year-on-year growth rate of 9.9% [7][8][12]. - The report indicates that the number of agents has increased to 188,000, reflecting a 1.1% year-on-year growth, and the retention rate for new agents has improved by 4.8 percentage points [6][12]. - The investment assets are expected to grow by 13.3% in 2025E, reaching RMB 3,097,498 million [13].

Investment Rating - The report assigns a "Buy" rating to the company, indicating an expectation of total returns exceeding the relevant industry over the next 12 months [4][15]. Core Insights - The company's Q1 performance significantly exceeded expectations, with revenue and net profit for 2024 projected at RMB 77.857 billion and RMB 11.036 billion, respectively, reflecting year-on-year growth of 8% and 17% [7][12]. - The report highlights a substantial increase in operating cash flow, which reached RMB 12.068 billion, a 73% year-on-year increase [7]. - Despite a recent stock price decline, the report suggests that this has adequately reflected current uncertainties related to tariffs and competition [7][8]. Financial Overview - Revenue projections for the company are as follows: RMB 72.251 billion in 2023, RMB 77.857 billion in 2024, and RMB 93.943 billion in 2025, with respective year-on-year growth rates of 79.5%, 7.8%, and 20.7% [3][12]. - Net profit is expected to grow from RMB 9.440 billion in 2023 to RMB 11.036 billion in 2024, and further to RMB 12.534 billion in 2025, indicating a year-on-year growth of 162.7%, 16.9%, and 13.6% respectively [3][12]. - The report notes a significant increase in gross margin, which reached 29.9% in Q1 2024, up 2.8 percentage points year-on-year [7]. Market Position and Competitive Landscape - The company has seen a notable increase in its market share in the energy storage sector, with revenue from storage systems expected to grow by 40% in 2024 [7]. - The report mentions that the company's U.S. business accounts for 10-20% of its revenue, with current operations being affected by tariffs and competition from other manufacturers [7][8]. - The report anticipates that the company's overseas production capacity for energy storage systems will come online by the end of the year, which should help mitigate some of the competitive pressures [7].

Investment Rating - The report assigns a "Buy" rating to BYD Company Limited (1211 HK) with a target price of HKD 503.25, indicating a potential upside of 26.8% from the current closing price of HKD 397.00 [1][10]. Core Insights - BYD's Q1 2025 performance was significantly boosted by strong export growth, with revenue reaching RMB 70.4 billion, a year-on-year increase of 36% [2]. - The company's net profit for Q1 2025 doubled year-on-year to RMB 9.2 billion, with a notable increase in vehicle sales, achieving 1 million units sold, a 60% increase year-on-year [2][7]. - The report highlights BYD's competitive advantage through vertical integration in its supply chain, which has helped maintain a gross margin of 24% despite being in a traditionally weaker sales season [2][7]. Financial Overview - Revenue projections for BYD are as follows: RMB 602.3 billion in 2023, RMB 777.1 billion in 2024, and RMB 977.2 billion in 2025, reflecting a year-on-year growth rate of 42.0%, 29.0%, and 25.8% respectively [6]. - Net profit is expected to grow from RMB 30.0 billion in 2023 to RMB 52.5 billion in 2025, with earnings per share projected to increase from RMB 13.33 to RMB 23.28 over the same period [6]. - The report anticipates that BYD's vehicle sales will reach 5.23 million units in 2025, representing a 23% year-on-year increase, driven by strong export performance and advancements in intelligent driving technology [7]. Market Position and Strategy - BYD is actively expanding its overseas presence, with plans to achieve 800,000 units in overseas sales by 2025, effectively doubling its export volume [7]. - The company is focusing on making advanced driving technology more accessible across its vehicle range, aiming for over 60% of its models to feature high-level autonomous driving systems by 2025 [7]. - The report emphasizes that BYD's strong export growth is expected to enhance its average selling price and gross margin, while its efforts in intelligent driving will solidify its market position in China [7].

Investment Rating - The investment rating for the company is "Buy" [4][10]. Core Views - The company's Q1 performance significantly exceeded expectations, with revenue and net profit for 2024 projected at RMB 77.857 billion and RMB 11.036 billion, respectively, representing year-on-year growth of 8% and 17% [7]. - The stock price has undergone a substantial correction, which is believed to have adequately reflected current uncertainties, including tariff impacts and competitive pressures [7]. - The target price has been adjusted down to RMB 72.50 from RMB 104.80, reflecting a revised valuation based on a 12x P/E ratio for 2025 earnings [7]. Financial Overview - Revenue projections for the company are as follows: RMB 72,251 million in 2023, RMB 77,857 million in 2024, RMB 93,943 million in 2025E, RMB 101,774 million in 2026E, and RMB 110,947 million in 2027E, with a year-on-year growth rate of 79.5% in 2023 and 7.8% in 2024 [3][12]. - Net profit is expected to grow from RMB 9,440 million in 2023 to RMB 12,534 million in 2025E, with a significant year-on-year increase of 162.7% in 2023 [3][12]. - The company has maintained a strong gross margin, with a projected gross margin of 29.9% in 2024, up 2.8 percentage points year-on-year [7]. Performance Metrics - The company reported a significant increase in operating cash flow, reaching RMB 121 billion in Q1, a 73% year-on-year increase [7]. - The earnings per share (EPS) are projected to rise from RMB 4.55 in 2023 to RMB 6.05 in 2025E, reflecting a growth rate of 13.6% [3][12]. - The company’s market capitalization is approximately RMB 92,958.54 million, with a 52-week high of RMB 119.19 and a low of RMB 55.70 [6].