Horizon is a leading provider of ADAS and AD solutions for passenger vehicles in China, empowered by its proprietary software and hardware technologies. In view of accelerating adoption of L2+ ADAS solutions, Horizon is launching J6P (its latest processing hardware with 560 TOPS) and cockpit-AD integrated chips in 2H25. It targets a 50% revenue growth in 2025 and breakeven in 2027-28 on the back of a 50%+ revenue CAGR in 2024-28 and over 60% gross margin in the long term.
FII’s 2024 and 1Q25 headline numbers are in line with preliminary results. Top-line growth was behind our and consensus forecasts due to delays in GB200 production ramp-up, but margins ended up better than expected on a more favourable product mix. Overall, we trim our AI server sales assumptions for 2025-26 and factor in higher operating expenses. As a result, our net profit assumptions are cut by 15.8%/12.3% in 2025-26 respectively. Maintain BUY. Lower target price to Rmb25.30.
1Q25 earnings were a beat to our and consensus estimates, thanks to better-thanexpected gross margin. The growth during the quarter was primarily driven by the EV gear and smart actuator businesses, which is expected to remain the theme for the coming periods. Shuanghuan’s Hungary factory is undertaking trials and is expected to begin generating revenue from 2H25. Maintain BUY and keep target price at Rmb41.90.
Beating market estimates, WuXi AppTec’s total revenue and adjusted earnings expanded by 21.0% yoy and 40.0% yoy respectively in 1Q25. Amid significant external uncertainties, WuXi AppTec is maintaining its revenue growth target of 10-15% yoy for continuing operations and strives to achieve highly efficient production and operations in 2025. Maintain HOLD, with a higher target price of HK$70.00 to reflect the improving net margins.
Amid a tough domestic business environment, Mindray’s 2024 results fell short of market expectations. However, 1Q25 revenue showed signs of recovery, increasing 13.8% qoq. Mindray anticipates a rebound in its domestic business by 3Q25 as hospitals resume their procurement activity. Overseas revenue is expected to grow rapidly at 15% yoy, driven by expansion in emerging markets and accelerated overseas localisation efforts. Maintain BUY with a lower target price of Rmb260.00.
As we continue to expect market volatility, we maintain exposure to names that have resilient earnings or are expected to enjoy an earnings growth recovery, such as Ausnutria Dairy (1717 HK), CSPC (1093 HK) and Dongfeng Motor (489 HK), and add PICC P&C (2328 HK) to our BUY list.
The stronger-than-expected 1Q19 economic data and central bank backstop have fuelled optimism that cycles are a thing of the past. With animal spirits rekindled, our more cautious view since end-February has not played out well. Although we have not seen an improvement in risk-reward so far and further meaningful monetary easing will be needed to see a sustainable recovery, we are adjusting our strategy to include laggards and policy-supported sectors in our BUY list.
The stronger-than-expected 1Q19 economic data and central bank backstop has fuelled optimism that cycles are a thing of the past. With animal spirits rekindled, our more cautious view since end-February has not played out well. Although we have not seen an improvement in risk-reward so far and further meaningful monetary easing will be needed to see a sustainable recovery, we are adjusting our strategy to include laggards and policy-supported sectors into our BUY list.
KEY HIGHLIGHTS Economics Money Supply February's M1 growth slowed to 0.1% yoy (-0.3ppt), missing consensus’ 1.0%, due to the Chinese New Year effect. M2 remained steady at 7.0% yoy, but new bank loans fell to Rmb1.01t compared with Jan 25’s Rmb5.13t, while new TSF fell to Rmb2.23t, both below forecasts. Thus, outstanding bank loans growth edged lower to 7.3% yoy. Nevertheless, outstanding TSF growth rose to 8.2% yoy due to increased government bond issuance. Weak domestic demand remains a key ...
KEY HIGHLIGHTS Economics Hong Kong Budget 2025-26 The 2025-26 Budget balances fiscal discipline with strategic growth initiatives in AI and NM development, funded by prudent bond issuance. Hong Kong positions itself for future growth amid technological transformation, with a planned deficit of 2.0% of GDP and fiscal reserves falling to eight months of expenditure. The budget speech is overall positive on the Hong Kong property sector, with the reduction in stamp duty being a highlight. Result...
KEY HIGHLIGHTS Strategy China And Hong Kong Property Property sales in both mainland China and Hong Kong recovered wow in the third week of Feb 25. With a continued decline in transition volume and improvement of sentiment in a few cities, we expect the land market to continue its structural divergence in 2025. In Hong Kong, the CCL index remained stable, but we expect high inventory to continue weighing on property prices. We stay cautious on NWD with a HOLD rating despite the recent sentimen...
KEY HIGHLIGHTS Economics PMI January's manufacturing PMI slipped into the contractionary zone at 49.1 (-1.0pt mom) and the non-manufacturing PMI decreased to 50.2 (-2.0pt mom). Construction (-3.9pt mom) saw a sharper decline than services (-1.7pt mom), while smaller firms struggled due to subdued external demand. Given the weaker data, investors will be looking out for new supportive measures in the run-up to the Two Sessions. TRADERS’ CORNER Galaxy Entertainment (27 HK): Trading buy range: ...
KEY HIGHLIGHTS Update Anta Sports (2020 HK/BUY/HK$75.25/Target: HK$120.60) Sales momentum of the Anta brand and Fila both improved in 4Q24 compared to 3Q24, in terms of yoy growth, especially for Fila, although both brands fell short of the full-year sales targets. By channel, the performance of the offline channel has normalised. For 2025, management maintains the company’s mid- to long-term sales targets. In addition, the company plans to prioritise Super Anta as the key focus of store innov...
KEY HIGHLIGHTS Economics Money Supply A little less to cheer. Strategy Small-Mid Cap Biweekly Riding on the wave of AI PC; Thunder Software Technology is a beneficiary. Sector Internet 3Q23 results preview: Solid e-commerce ad growth to drive sector growth; potential positive surprise from online game grossing. Internet Muted growth acceleration from 11.11 campaign. Update Xtep International Holdings (1368 HK/BUY/HK$6.43/Target: HK$9.50) Revenue guidance revised down yet sales target mainta...