China Materials Flash | 19 Feb 2025 22:39:53 ET │ 9 pages 2025 On-ground Demand Monitor Series #19– Funding Availability Rate Data Tracker CITI'S TAKE In this series of notes, we aim to track and analyze high-frequency, on- ground demand trends in China – market expectation on a demand recovery has been mostly cautious. Our revised near-term sector pecking order is: Steel, Cement, Coal, Gold, Copper, Aluminum, and Lithium stocks (see our notes: China Steel – Shifting Our Near-term Sector Pecking Order and C ...

Summary of Bilibili Inc 4Q24 Earnings Call Company Overview - **Company**: Bilibili Inc (BILI.O, BILI US) - **Industry**: China Internet and Other Services - **Market Cap**: US$9,359 million - **Stock Rating**: Equal-weight - **Price Target**: US$18.00, representing an 11% downside from the current price of US$20.33 as of February 19, 2025 Financial Performance - **Total Revenue**: Rmb7.6 billion, a 22% year-over-year increase and 1% above Morgan Stanley estimates [1][2] - **Non-GAAP Operating Profit**: Rmb481 million, 19% above Morgan Stanley estimates and 21% above consensus [2] - **Non-GAAP Net Income**: Rmb453 million, in line with Morgan Stanley estimates and 20% above consensus [2] Revenue Breakdown - **Mobile Games**: Rmb1.8 billion, down 1% quarter-over-quarter but up 79% year-over-year, driven by the contribution from the game "San Mou" [6] - **Live Broadcasting and VAS**: Rmb3.1 billion, up 8% year-over-year, showing resilience [6] - **Advertising**: Rmb2.4 billion, up 24% year-over-year, maintaining industry-leading growth [6] - **E-commerce and Others**: Rmb465 million, down 16% year-over-year [6] Cost and Profitability Metrics - **Gross Profit**: Rmb2.788 billion, with a gross margin of 36.1%, up 9.9 percentage points year-over-year [2] - **Operating Profit**: Rmb126 million, a significant improvement from previous quarters [2] - **Net Income**: Rmb90 million, a notable recovery from losses in prior quarters [2] Key Insights - **Operational Efficiency**: Improved management of operating expenses, particularly in general and administrative costs, contributed to better profitability [2] - **Market Position**: Bilibili continues to show strong growth in advertising revenue, indicating a robust market position despite challenges in other segments [6] - **Future Guidance**: The company is expected to continue its growth trajectory, with revenue projections for the next fiscal years showing an upward trend [3] Risks and Considerations - **Upside Risks**: Stronger-than-expected advertising revenue growth and better user retention for mobile games could enhance performance [9] - **Downside Risks**: Potential competition leading to lower monthly active user growth and higher costs in sales and marketing could impact margins [9] Conclusion Bilibili Inc's 4Q24 results reflect a strong recovery in revenue and profitability, driven by effective cost management and growth in key segments like advertising and live broadcasting. However, the company faces challenges from competition and market dynamics that could affect future performance.

19 February 2025 | 2:46PM EST Apple Inc. (AAPL): iPhone 16e announcement, largely as expected Apple introduced the new iPhone 16e on February 19, 2025, the fourth generation of its lower-priced iPhone SE product line. The refreshed iPhone 16e represents the first upgrade for the entry-level iPhone since March 2022 when Apple released the iPhone SE 3. The iPhone 16e is the first smartphone to include the Apple designed cellular modem C1, which was largely expected but is notable as it marks a shift away from ...

ab 20 February 2025 Global Research Figure 1: OEM comps table Stock implications China Auto Sector Thinking long - five debates on long-term outlook We are more optimistic than consensus on Chinese carmakers' ability to innovate and we even see their product competitiveness surpassing western leader Tesla. Fierce market competition, a robust industry ecosystem, and fast response to technology trends, have pushed Chinese carmakers to the frontier of global innovation, in addition to their absolute cost advan ...

Asia Pacific Equity Research 20 February 2025 Correction (See disclosures for details) BYD- H&A Lift PTs to HK$600/Rmb560 on expectations that BYD will become the 'Toyota' of the global EV marketplace Share price strength set to continue: We have spoken to nearly 200 investors over the past one week on calls and in meetings following placing BYD on Positive Catalyst Watch on 7 Feb (here) and the company's reverse roadshow where we had the chance to test drive BYD's latest models (here). All in all, we belie ...

A c t i o n | 20 Feb 2025 16:33:13 ET │ 22 pages Alibaba Group Holding Stepped-up Capex Spend to Capture AI & Cloud Inflection Growth CITI'S TAKE FY3Q25 result marks a pivotal change of sentiment with CMR reaccelerated to +9% yoy and TTG EBITA returned to positive 2% yoy growth, AIDC targets to turn quarterly profitable in FY2026 and stepped-up capex investment to capture the inflection point of AI transformation era. Being the Asia No. 1 and world No. 4 cloud service provider and having developed the propr ...

February 20, 2025 01:13 AM GMT China Express | Asia Pacific Market Analysis for January 2025 Key Takeaways Volume – All players achieved YoY growth despite an earlier CNY; STO replaced Yunda to be industry No.3: SF outperformed with 16% YoY volume growth thanks to more stable service during CNY, in our view. STO outperformed Tongda peers with 12% YoY volume growth, replacing Yunda to be the third-largest player in China express industry. Yunda underperformed with 3% YoY volume growth. YTO's volume grew 6% Y ...

Equity Research China Technology 20 February 2025 China Technology CBO - China Brief Overnight - 2/20/2025 DeepSeek denies speculation that it is considering outside funding; Five ministries issue three-year plan to promote consumption of automobiles, electronic products and home appliances; BYD was the best-selling EV brand in major Latin American markets in 2024 Our daily product rounds up key stories from the Chinese language media overnight, focusing on developments in the technology space. See our late ...

Flash | 20 Feb 2025 10:55:55 ET │ 11 pages China Battery Materials Lithium into 3rd week of Feb – Looming pressure on ASP amid rising inventory CITI'S TAKE Lithium prices surprisingly remained largely flattish WoW last week, hovering at ~Rmb76k/t for battery-grade, even as we saw the supply was scheduled to come back online as expected (+17% WoW). We believe the transactions in the spot market should be limited, and downstream players are holding a wait-and-see attitude, evidenced by (1) downstream inventor ...

Summary of Key Points from the Conference Call Industry Overview - The focus is on the small-cap perspective in tech-related subindustries, particularly semiconductor-related companies [3][4] - The overall industry view is categorized as "In-Line" by Morgan Stanley MUFG Securities [1] Semiconductor Industry Insights - There is no change in earnings growth trends at semiconductor testing and cutting-edge package companies [5] - Orders for electrical power equipment have been increasing due to production capacity constraints and future delivery projects, with demand driven by the replacement of aging equipment, renewable energy, data centers, and power grid battery systems [7] - The market for front-end semiconductor processing equipment (SPE) is dull in 2025, with risks including a slowdown in China and ongoing adjustments in SPE for power chips [8] - Strong demand for high-bandwidth memory (HBM) in DRAM SPE is noted, but a cautious outlook is maintained for commodity DRAM [8] - A recovery in NAND is observed after a prolonged downturn, with advancements in cryogenic etching and hybrid bonding technologies [8] - Demand for photoresist-related materials remains strong, particularly for EUV applications [8] - The timing of recovery in automotive and industrial equipment demand has been delayed, with strong demand noted only for testing-related components [9] Market Forecasts - Forecasts for various end markets indicate fluctuations in unit sales, with notable projections for servers, PCs, smartphones, and light vehicles [10] - For example, smartphone sales are projected to decline from 1,206 million units in 2023 to 1,164 million in 2024, before recovering to 1,283 million by 2026 [10] - The forecast for electric vehicles (BEV) shows significant growth, with projections increasing from 8 million units in 2024 to 14 million by 2026 [10] Stock Price Trends - Stock price trends for semiconductor equipment-related companies are tracked, with various companies showing different performance metrics [12][15][21] - The Nikkei average serves as a benchmark for comparison, with specific companies like Tokyo Electron and ASML highlighted for their stock performance [13][14] Company-Specific Performance - Detailed sales performance data for specific companies in the semiconductor supply chain is provided, showing year-over-year changes in sales [27][28] - For instance, Shinko Electric Industries reported a significant decline in plastic packaging sales, dropping by 40% in one quarter [28] - Other companies like AJINOMOTO and Taiyo Holdings also show varying performance metrics, indicating a mixed outlook across the sector [28] Conclusion - The semiconductor industry is experiencing a complex landscape with both challenges and opportunities, particularly in the context of evolving technologies and market demands [8][9] - Continuous monitoring of demand trends, stock performance, and company-specific earnings will be crucial for investors looking to navigate this sector effectively [8][27]