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                                                                                ZTE’s 3Q25 results are significantly below expectations, with revenue declining 24.9% qoq to Rmb30b, which is well below our/market estimates of Rmb33b-34b. We believe the significant 14.5ppt yoy and 5.0ppt qoq decline in gross margin was due to a weaker-than-expected carrier network business which has much higher margins (>50%) than its other businesses. Due to the decline in gross margins, reported net profit plunged 87.8% yoy and 89.8% qoq to Rmb264m, a significant miss vs consensus estimates...
 
                                                                                Ping An reported a strong set of 3Q25 results with OPAT and net profit growing 15%/45% yoy respectively, attributed to narrowing losses in the asset management segment and strong equity investment gains amid the stock market rally. NBV also surged 58% yoy due to FYP growth recovery before the pricing interest rate cut in late-Aug 25. Looking ahead, management is confident about sustaining NBV and OPAT growth momentum in 2026. Maintain BUY with a higher target price of HK$75.00.
 
                                                                                EDU’s 1QFY26 results beat expectations. Revenue grew 6% yoy to US$1,523m, in line with our and consensus estimates. Non-GAAP net profit came in at US$241m, slightly lower than our and consensus estimates, while net margin shrank 1ppt yoy to 17% for 1QFY26. EDU expects 2QFY26 revenue to increase by a solid 9-12% yoy to US$1,132.1m-1,163.3m, in line with expectations. Downgrade to HOLD with a target price of US$58.00 (HK$45.00).
 
                                                                                Midea’s 3Q25 revenue was Rmb112,385m (+10% yoy, -9% qoq), and net profit was Rmb11,870m (+9% yoy, -13% qoq). In 3Q25, ToC revenue grew by 10%, of which domestic sales increased by mid-single-digit, and overseas sales grew by nearly 15%, with orders recovering rapidly in 3Q25. Management sees higher visibility for overseas markets for 2026, driven by the OBM business. ToB revenue increased by over 15%. The company expects ToB’s revenue growth to surpass that of the ToC segment in 2026.
 
                                                                                Kweichow Moutai reported 9M25 revenue of Rmb130,904m (+6% yoy), tracking below its full-year revenue growth target of 9%. In 3Q25, revenue was Rmb39,810m (+0.3% yoy). Net profit was Rmb19,224m (+0.5% yoy), with net margin of 48.3% (+0.1ppt yoy). By end-3Q25, contract liabilities were Rmb7,749m, down 22% yoy but up 41% qoq. Notes receivable was Rmb5,210m, up 353% yoy and 85% qoq. This surge was likely due to relaxation of distributor policies. Maintain BUY; cut target price by 8% to Rmb1,576.00.
 
                                                                                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.
 
                                                                                Top Stories Sector Update | Internet The growing robotaxi ecosystem is drawing an increasing number of new entrants, including autonomous service providers and ride-hailing platforms. We expect technological maturity, policy support and better fleet economics to drive a major expansion wave for the robotaxi industry into 2H25/2026, with China’s robotaxi fleet size expected to grow ten-fold during this period. We see material development and monetisation progress of Robotaxi, sparking renewed in...
 
                                                                                Top Stories Strategy | China’s 15th Five-Year Plan: Unlocking Domestic Consumption The 15th Five-Year Plan (2026-30) targets a 4.5-5.0% yoy GDP growth toward 2035 modernisation. Priorities include boosting services-led consumption via subsidies, tax reforms and consumer credit; advancing innovation in semiconductors, EVs, robotics and biotech; and extending anti-involution reforms to consolidate sectors with excess capacity. Green transition shifts focus on grid efficiency, storage and nuclear....
 
                                                                                Top Stories Company Update | Miniso (MNSO US/BUY/US$23.53/Target: US$26.80) Miniso’s qtd business performance was in line with management’s expectations. Domestically, it has 12 Miniso Land stores, with the estimated payback period for the Guangzhou Beijing Road store at 3-4 months. Overseas, adjustments were implemented in the US market following the appointment of the new CEO, who has over 15 years of experience in local retailing. On proprietary IP strategy, Yoyo’s sales are expected to exce...
 
                                                                                KEY HIGHLIGHTS Results China Resources Beer (291 HK/BUY/HK$28.28/Target: HK$33.80) 1H25 results beat expectations. Sales volume of sub-premium beer and above saw mid-to-high single-digit growth. In the 15th Five-Year Plan, CR Beer will remain focused on Heineken as its core, while strengthening the sub-premium segment as another growth driver. The baijiu business is not expected to deteriorate further amid the adjustment phase in 2H25, but any potential impairment will still depend on business...
 
                                                                                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 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...