reports
- Pelham Smithers
PSA Media & Entertainment: Are We at Peak Japan Soft Power? Considerin...
Switch 2, Hello Kitty and Demon Slayer have underlined the success of Japan’s global pop culture influence. In this review, Pelham Smithers discusses whether 2025 will be the peak, or if there more to come. In light of the capital limitations faced by Japanese game developers evident at TGS2025, Pelham thinks further consolidation is likely and suggests three likely scenarios.
NEH NETEASE INC. SPONSORED ADR
NFLX NETFLIX INC.
9697 CAPCOM CO. LTD.
9684 SQUARE ENIX HOLDINGS CO. LTD.
9468 KADOKAWA CORPORATION
9766 KONAMI HOLDINGS CORP
7974 NINTENDO CO. LTD.
8136 SANRIO COMPANY LTD.
6758 SONY CORPORATION
9602 TOHO CO. LTD.
3765 GUNGHO ONLINE ENTERTAINMENT INC.
EA ELECTRONIC ARTS INC.
MSFT MICROSOFT CORPORATION
6460 JP SEGA SAMMY
GRVY GRAVITY CO. LTD. ADS
78320 BANDAI NAMCO
36350 KOEI TECMO
- Julia Pan Mengyao
- Ming San Soong
China Internet: Re-valuation On Shifting Dynamics Of AI Infrastructure...
Following the release of 2Q25 results, the market has started to re-value AI-related and ad-tech upgrade themes. Garnering the most interest was the AI theme driven by: a) re-accelerated cloud revenue growth, b) the emergence of AI agents, c) broader AI application, and d) self-sufficiency in chip development. Potential beneficiaries of the AI theme poised for continuous re-rating include Alibaba, Tencent and Baidu. Tongcheng could see robust travel demand during Golden Week. Maintain OVERWEIGHT...
JD JD.COM INC. SPONSORED ADR CLASS A
K3SD BAIDU INC SPONSORED ADR CLASS A
A117ME ALIBABA GROUP HOLDING LTD. SPONSORED ADR
3K1 KINGSOFT CORP. LTD.
00700 TENCENT HOLDINGS LTD.
PDD PINDUODUO INC. SPONSORED ADR CLASS A
03690 MEITUAN CLASS B
00780 TONGCHENG-ELONG HOLDINGS LIMITED
TCOM TRIP.COM GROUP LTD. SPONSORED ADR
BEKE KE HOLDINGS INC. SPONSORED ADR CLASS A
09988 ALIBABA GROUP HOLDING LTD.
09999 NETEASE INC
09618 JD.COM INC. CLASS A
01024 KUAISHOU TECHNOLOGY CLASS B
09888 BAIDU INC
02423 KE HOLDINGS INC.
09961 CTRIP.COM INTERNATIONAL
- Julia Pan Mengyao
- Ming San Soong
China Internet: Key Takeaways From Marketing Trip
Key investor focus areas discussed during the marketing trip include: a) key drivers for AI cloud and applications outperformance, b) sustainability of monetisation of AI applications, c) ROI of accelerating capex, d) self-sufficiency in chips development, and e) where the competition in food delivery and quick commerce is ultimately headed. We foresee that AI/AI Cloud, online gaming and OTAs are poised to benefit from further re-rating, supported by their outperformance in growth. Maintain OVER...
JD JD.COM INC. SPONSORED ADR CLASS A
K3SD BAIDU INC SPONSORED ADR CLASS A
A117ME ALIBABA GROUP HOLDING LTD. SPONSORED ADR
3K1 KINGSOFT CORP. LTD.
00700 TENCENT HOLDINGS LTD.
PDD PINDUODUO INC. SPONSORED ADR CLASS A
03690 MEITUAN CLASS B
00780 TONGCHENG-ELONG HOLDINGS LIMITED
TCOM TRIP.COM GROUP LTD. SPONSORED ADR
BEKE KE HOLDINGS INC. SPONSORED ADR CLASS A
09988 ALIBABA GROUP HOLDING LTD.
09999 NETEASE INC
09618 JD.COM INC. CLASS A
01024 KUAISHOU TECHNOLOGY CLASS B
09888 BAIDU INC
02423 KE HOLDINGS INC.
09961 CTRIP.COM INTERNATIONAL
- Julia Pan Mengyao
- Ming San Soong
China Internet: Strong top-line growth and margins further hurt in 2H2...
China’s internet companies reported intact 2Q25 top-line with mixed earnings results. The key focuses are on the latest quick commerce war and AI cloud and agent development. In 2Q25, we saw meaningful AI monetisation visibility contributing to incremental top-line growth, and expect this momentum to continue into 2H25. On the profitability front, margins will remain under pressure from heightened investments to fend off the intensifying competition in on-demand delivery. Maintain MARKET WEIGHT.
JD JD.COM INC. SPONSORED ADR CLASS A
K3SD BAIDU INC SPONSORED ADR CLASS A
A117ME ALIBABA GROUP HOLDING LTD. SPONSORED ADR
3K1 KINGSOFT CORP. LTD.
00700 TENCENT HOLDINGS LTD.
PDD PINDUODUO INC. SPONSORED ADR CLASS A
03690 MEITUAN CLASS B
00780 TONGCHENG-ELONG HOLDINGS LIMITED
TCOM TRIP.COM GROUP LTD. SPONSORED ADR
BEKE KE HOLDINGS INC. SPONSORED ADR CLASS A
09988 ALIBABA GROUP HOLDING LTD.
09999 NETEASE INC
09618 JD.COM INC. CLASS A
01024 KUAISHOU TECHNOLOGY CLASS B
09888 BAIDU INC
02423 KE HOLDINGS INC.
09961 CTRIP.COM INTERNATIONAL
- Jin Yoon
TCOM 2Q25 Results: Travel Demand Remains Resilient
What’s new: Trip.com’s reported 2Q25 revs that were largely in-line with consensus and our expectations. Travel demand remains resilient across segments as TCOM continues to gain market share in both domestic and international markets. We maintain our PT at USD75. Analysts: Jin Yoon
Tal Education Group: 1 director
A director at Tal Education Group sold 53,655 shares at 10.870USD and the significance rating of the trade was 88/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years cle...
- Jin Yoon
NTES 2Q25 Results: Resilient Online Gaming Segment
What’s new: NetEase’s reported 2Q25 revs that were below consensus estimates and our expectations. Gaming rev growth momentum could continue in 3Q as NTES could be more aggressive in the summer months. We up our PT from US$140 to US$150 on resiliency of the gaming segment. Our updated PT of US$150 implies 15.8x FY26E P/E. We maintain our BUY rating. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
NetEase (9999 HK): 2Q25: Results in line; solid game pipeline fuelling...
NetEase’s 2Q25 results were largely within expectations. Revenue grew 9.4% yoy to Rmb27.9b, in line with consensus forecast. Gross profit grew 12.5% yoy to Rmb18.1b, with gross margin rising 2ppt yoy to 64.7%. Non-GAAP operating profit grew 24% yoy to Rmb10b. Non-GAAP net profit rose 22% yoy to Rmb9.5b, in line with consensus estimate. Net margin expanded 4ppt yoy to 34% in 2Q25. Maintain BUY with a higher target price of HK$244.00 (US$151.00).
- Bella Lu Yifei
- Colin Lee
- Damon Shen
- Ejann Hiew
- Greater China Research Team
- Jieqi Liu
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Ken Lee
- Ming San Soong
- Roy Chen Chengzhi
Greater China Daily: Friday, August 15, 2025
KEY HIGHLIGHTS Sector Automobile China’s PEV yoy sales growth turned negative (at -0.5%) during the week. BYD and Li Auto posted a yoy sales decline. We expect EV sales to recover from September with the launch of new models and interest subsidies for auto loans. Lithium carbonate prices rebounded to >Rmb80,000/tonne due to better supply discipline. We upgrade Ganfeng Lithium from HOLD to BUY thanks to lithium price recovery. Maintain MARKET WEIGHT. Top BUYs: CATL, Geely and Tuopu. Results ...
- Julia Pan Mengyao
- Ming San Soong
TAL Educational Group (TAL US): 1QFY26: Strong earnings beat; resilien...
TAL reported a solid earnings beat for 1QFY26. Revenue grew 39% yoy to US$575m for 1QFY26, in line with our and consensus estimates. Gross profit rose 47% yoy to US$315m, with gross margin expanding 3ppt yoy to 55%. Non-GAAP net profit beat expectations and came in at US$42m vs the street’s estimate of US$31m. Non-GAAP net margin remained flattish yoy at 7% despite stepped-up marketing efforts for AI learning devices. Maintain BUY with an unchanged target price of US$14.00.
- Bella Lu Yifei
- Claire Wang Kelai
- Ejann Hiew
- Gigi Cheuk
- Greater China Research Team
- Julia Pan Mengyao
- Kate Luang
- Ken Lee
- Ming San Soong
- Shirley Wang Xueyi
- Stella Guo Yuting
- Tham Mun Hon
Greater China Daily: Friday, August 1, 2025
KEY HIGHLIGHTS Economics PMI July's manufacturing PMI slipped to 49.3 (-0.4pt mom), while non-manufacturing PMI dropped to 50.1 (-0.4pt mom), as construction activity eased to 50.6 (-2.2pt mom). Slowing demand and rising input costs are slowing the recovery and affecting both large (-0.9pt mom) and small enterprises (-0.9pt mom). Nevertheless, business expectations have improved and should see a further lift from targeted anti-involution measures. Sector Automobile China’s PV insurance regis...
- Adrian Loh Tzum Yung
- Bella Lu Yifei
- Benjaphol Suthwanish
- Benyamin Mikael
- Claire Wang Kelai
- Desmond Chong Chee Wai
- Ejann Hiew
- Gigi Cheuk
- Heidi Mo Jinghui
- John Cheong Ming Chern
- Jonathan Koh
- Julia Pan Mengyao
- Kasemsun Koonnara
- Kate Luang
- Keith Wee Teck Keong
- Ken Lee
- Malaysia Research Team
- Ming San Soong
- Paula Ruth
- Shirley Wang Xueyi
- Stella Guo Yuting
- Tham Mun Hon
- Thanawat Thangchadakorn
- Vincent Khoo Boo Aik
Regional Morning Meeting Notes: Friday, August 01, 2025
GREATER CHINA Economics PMI Rebound falters, weighed down by weaker construction and input cost pressures. Sector Automobile Weekly: PV sales pressured by anti-involution initiatives. Maintain MARKET WEIGHT on the sector. Top BUYs: CATL, Geely and Tuopu. Results Budweiser APAC (1876 HK/BUY/HK$8.26/Target: HK$12.00) ...
IZZ TAL EDUCATION GROUP SPONSORED ADR CLASS A
GRU GEELY AUTOMOBILE HOLDINGS LIMITED
FCT FRASERS CENTREPOINT TRUST
1023 CIMB GROUP HOLDINGS BHD
2488 ALLIANCE BANK MALAYSIA BHD.
ISAT INDOSAT
1295 PUBLIC BANK BHD
ERW ERAWAN GROUP
N2IU MAPLETREE COMMERCIAL TRUST
AJBU KEPPEL DC REIT
BUOU FRASERS LOGISTICS & COMMERCIAL TRUST
1155 MALAYAN BANKING BHD.
5347 TENAGA NASIONAL BHD
EGH EUREKA GROUP HOLDINGS
M3I MINTH GROUP LIMITED
BN4 KEPPEL CORPORATION LIMITED
002340 GEM CO. LTD. CLASS A
5Z0 ZHONGSHENG GROUP HOLDINGS LTD.
Q5T FAR EAST HOSPITALITY TRUST
01316 NEXTEER AUTOMOTIVE GROUP LIMITED
002709 GUANGZHOU TINCI MATERIALS TECHNOLOGY CO LTD CLASS A
601689 NINGBO TUOPU GROUP CO. LTD. CLASS A
01585 YADEA GROUP HOLDINGS LTD.
2333 GREAT WALL MOTOR CO. LTD. CLASS H
1211 BYD COMPANY LIMITED CLASS H
PBBANK PUBLIC BANK BERHAD
2338 WEICHAI POWER CO. LTD. CLASS H
02238 GUANGZHOU AUTOMOBILE GROUP CO. LTD. CLASS H
CDREIT CDL HOSPITALITY TRUSTS
RHBBANK RHB BANK BHD
SUN SUNTECH SA
KREIT KEPPEL REIT
MLT MAPLETREE LOGISTICS TRUST
GAM GAMUDA BHD
HLFG HONG LEONG FINANCIAL GROUP
PREIT PARKWAYLIFE REAL ESTATE
KPJ KPJ HEALTHCARE BERHAD
MINT MAPLETREE INDUSTRIAL TRUST
FHT FRASERS HOSPITALITY TRUST
SSG SHENG SIONG GROUP LTD
AMM AMMB HOLDINGS BHD
HLBK HONG LEONG BANK BERHAD
SWB SUNWAY BHD
DBB DUOPHARMA BIOTECH BHD
ABANK AFFIN BANK BHD
1772 GANFENG LITHIUM CO. LTD. CLASS H
UHU UNITED HAMPSHIRE US REIT
01876 BUDWEISER BREWING CO. APAC LTD.
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
603305 NINGBO XUSHENG AUTO TECHNOLOGY (A)
CRPU SASSEUR REIT (S CHIP)
CICT CAPITALAND INTEGRATED COMMERCIAL TRUST
LREIT SP LENDLEASE GLOBAL COMMERCIAL REIT
OXMU PRIME US REIT
HMN ASCOTT RESIDENCE TRUST
CLCT CAPITALAND CHINA TRUST
KORE KEPPEL PACIFIC OAK US REIT
002920 HUIZHOU DESAY SV AUTOMOTIVE CO LTD
MXNU ELITE COMMERCIAL REIT MGNT PTE LTD
CLAR CAPITALAND ASCENDAS REIT
BIMB BANK ISLAM MALAYSIA BHD
DCRU DIGITAL CORE REIT MANAGEMENT PTE. LTD.
STM SEATRIUM LTD
Z29 029 GROUP SE
MAYBANK MALAYAN BANKING BHD
02015 LI AUTO INC
600699 JOYSON ELECTRONICS CORP
PEKAT PEKAT GROUP BHD
1523 PLOVER BAY TECHNOLOGIES LTD (1523 HK)
STECON STECON GROUP PUBLIC COMPANY LIMITED
BRMS IJ BUMI RESOURCES MINERALS
ECOSHOP MK ECO-SHOP MARKETING BHD
BAM TB BANGKOK COMMERCIAL ASSET MANAGEMENT
- Julia Pan Mengyao
- Ming San Soong
China Online Games: Upcoming new game releases to capitalise on the su...
We opine that the intact grossing momentum in 2Q25 coupled with the anticipation of high-quality game releases set a compelling prelude to the upcoming summer holiday boom. We like the online game sector as it is a countercyclical play and is less susceptible to the ongoing geopolitical uncertainties. Our preference lies with Tencent, given its strong game grossing growth momentum and its position as a key proxy for AI application beneficiaries. Maintain OVERWEIGHT.
- Julia Pan Mengyao
- Ming San Soong
China Education: Ramping up AI+ initiative; focusing on profitability ...
We have an optimistic outlook on the education sector, propelled by the government’s AI+ initiative, industry consolidation and demand for non-academic segments. The education sector remains as a domestically driven industry but we expect easing policies surrounding visa applications to foster demand for overseas education. Meanwhile, we expect AI-powered educational tools to reshape supply-side dynamics in the industry. Maintain MARKET WEIGHT on the sector.
NetEase Inc: 1 director
A director at NetEase Inc sold 23,425 shares at 23.600USD and the significance rating of the trade was 87/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly sho...
- Jin Yoon
TCOM 1Q25 Results: Travel Demand Remains Resilient
What’s new: Trip.com’s reported 1Q25 revs that were in-line consensus and our expectations. Travel demand remains resilient as TCOM continues to gain market share in both domestic and international segments. We maintain our PT at USD75. Analysts: Jin Yoon
- Jin Yoon
NTES 1Q25 Results: Gaming Rev Growth Momentum to Continue in 2Q
What’s new: NetEase’s reported 1Q25 results that were above consensus estimates and our expectations. Gaming rev growth momentum could continue in 2Q partly driven by key titles such as Marvel Rivals and Where Winds Meet. We up our PT from US$120 to US$140 on improving outlook. Our updated PT of US$140 implies 16.7x FY25E P/E. We maintain our BY rating. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
NetEase (9999 HK): 1Q25: Solid earnings beat fuelled by revitalised on...
NetEase’s 1Q25 earnings exceeded expectations. Revenue grew 7.4% yoy to Rmb28.8b, largely in line with consensus forecast. Gross profit grew 8.6% yoy to Rmb18.5b, with gross margin rising 1ppt yoy to 64%. Non-GAAP operating profit grew 34% yoy to Rmb11.4b, with operating margin at 39.5%. Non-GAAP net profit rose 32% yoy to Rmb11.2b, beating consensus estimate. Net margin expanded 7ppt yoy to 39% in 1Q25. Maintain BUY with a higher target price of HK$210.00 (US$129.00).
- Carol Dou Xiao Qin
- Claire Wang Kelai
- Greater China Research Team
- Julia Pan Mengyao
- Ken Lee
- Ming San Soong
- Sunny Chen
Greater China Daily: Friday, May 16, 2025
KEY HIGHLIGHTS Sector Automobile China’s PV insurance registrations rose 0.5% yoy, 26.5% mom and 5% wow in the 19th week of 2025, with PEV market share increasing to 50.2%. Geely’s Zeekr, Lynk & Co, and Galaxy saw strong sales growth driven by new model launches, aggressive pricing, tech upgrades, and robust export expansion. We lift Geely’s 2025 net profit forecast by 24%, given its upbeat 1Q25 earnings. Maintain BUY and raise target price to HK$31.00 Maintain MARKET WEIGHT. Top BUYs: BYD, Ge...
- Julia Pan Mengyao
- Ming San Soong
China Internet: Expecting ample monetisation potential on promising ga...
We expect to see an encouraging monetisation momentum given the anticipation of high-quality game releases by online game companies in 2025. We like the online game sector as it is a countercyclical play and is less susceptible to the ongoing geopolitical uncertainties. Our preference lies with Tencent, given its strong game grossing growth momentum and its position as a key proxy for AI application beneficiaries. Maintain MARKET WEIGHT.
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