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PICO FAR EAST(752)
Analysis¡G
Pico Far East is primarily engaged in exhibition planning, promotional project design, and video content production. Its business units are spread across 37 cities in 23 countries worldwide. As a comprehensive brand activation enterprise, the Group leverages content, social media, creativity, technology, and data strategies to deliver integrated brand experience solutions for global clients. The Group continues to advance its existing strategies to build a resilient and sustainable growth business. The latest announced annual results for the year ended October 31, 2025, confirm the effectiveness of its operational strategies and approaches. During the review fiscal year, the Group recorded total revenue of HK$7.208 billion, an increase of 13.9% compared to the same period in 2024. Profit attributable to shareholders was HK$436 million, up 21.9%. The Board recommends a final dividend of 9 HK cents per ordinary share (2024: final dividend of 7.5 HK cents) and a special dividend of 4.5 HK cents per ordinary share (2024: special dividend of 3.5 HK cents). Together with the interim dividend of 5.5 HK cents per ordinary share, the total dividend for the year ended October 31, 2025, amounts to 19 HK cents per ordinary share (2024: 16.5 HK cents), with a current dividend yield of approximately 6.8%.
With the contraction in U.S.-China trade, the Middle East region, along with Asia-Pacific countries such as Singapore, Malaysia, South Korea, Thailand, and Vietnam, have become the main beneficiaries. As a result, the Group¡¦s business volume and new clients in its offices across these regions have increased, particularly in Southeast Asia and the Middle East. In the United States, the Group continues to focus on delivering integrated brand experiences, which not only helps strengthen partnerships with existing clients but also enables its U.S. business to transition from customized experiential marketing to creating industry-disrupting brand events. The Group excels at crafting brand events that resonate across diverse audiences and geographies, thereby forging deep and stable long-term partnerships with clients.
To address market changes, the Group has optimized its business segments:A. Brand Experience Activation ¡X Focused on all brand activation projects, including exhibitions, brand events, brand marketing initiatives, brand visual activation, and integrated brand experience activation.B. Meeting Architecture Activation ¡X Focused on event management and the development of intellectual property conferences, events, exhibitions, and festivals.
C. Museum and Themed Entertainment ¡X Focused on brand activation in the cultural, educational, and entertainment markets.
The Group continues to emphasize the use of data tools and the AI-supported Pico PowerOne system to drive digital transformation. By aggregating and analyzing data from a large number of projects, the Group converts data into assets and value, identifying high-quality clients and cross-selling opportunities. This helps improve sales conversion rates and enables tailored assessments and solutions for various business units and projects, further controlling costs and enhancing gross margins.(I do not hold the above stock.)
Strategy¡G
Buy-in Price: $2.80, Target Price: $3.20, Cut Loss Price: $2.65
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DRINDA(2865)
Analysis¡G
The company possesses leading technological prowess and market competitiveness in the field of high-efficiency photovoltaic cells, making it one of the world's major suppliers of PV cells. Currently, the company has an N-type high-efficiency cell production capacity exceeding 40 GW, with two major N-type cell manufacturing bases in Huaian, Jiangsu and Chuzhou, Anhui. Its N-type PV cell shipments ranked first among specialized cell manufacturers in both 2023 and 2024. The company¡¦s products are widely exported to countries and regions across Asia, Europe, South America, and beyond, leading globally in cell export volume and being highly favored by crystalline silicon module manufacturers worldwide. On the news front, a new document from the U.S. Federal Communications Commission (FCC) reveals that SpaceX is applying to launch and operate a constellation of up to 1 million satellites equipped with unprecedented computing capabilities (orbital data centers) to support advanced artificial intelligence. This will significantly boost the demand for space-based photovoltaic energy. With its forward-looking layout in perovskite technology and the space PV sector, the company is poised to become a long-term potential beneficiary.
Strategy¡G
Buy-in Price: $36.90, Target Price: $41.26, Cut Loss Price: $34.70
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Report Review of January. 2026
Sectors: Automobile & Air (Zhang Jing) Utilities, Commodity, Consumer Discretionary (Margaret Li) Automobile & Air (Zhang Jing)This month I released 3 initiation reports of Desay SV (002920.CH), Yinlun (002126.CH), and JNMPT (000700.CH), which got success by their unique Competitive edge. Among them, we recommend FLAT Desay SV and JNMPT first. Looking back at the Chinese automotive market in 2025, the industry maintained high momentum, with both domestic and export sales reaching record highs. Annual auto sales reached 34.4 million units, marking a 9.4% yoy increase. Domestic sales grew by 6.7% yoy to 27.302 million units. Among these, new energy vehicles performed exceptionally well, with sales rising 28.2% to 16.49 million units, and their penetration rate increasing by 7.0 percentage points to 47.9%. The penetration rate of new energy passenger vehicles domestically reached 54.0% (up 8.7 percentage points yoy), while that of commercial vehicles stood at 38.3% (up 10.4 percentage points yoy). On the export front, auto exports totaled 7.098 million units (up 12.1% yoy), surpassing 7 million units for the first time. New energy vehicles accounted for 36.8% of exports (up 14.9 percentage points yoy), becoming the core driver of export growth. On the policy front, the extension of the trade-in policy and the optimization of the tax exemption for new energy vehicles (extended until the end of 2027 with increased caps) effectively stimulated domestic demand. The competitive landscape of the industry accelerated consolidation, with the market share of domestic passenger vehicle brands rising to 69.5%. Leading automakers such as BYD, Geely, and Chery leveraged their technological advantages and global expansion to dominate the market. Looking ahead to 2026, we anticipate the automotive industry will enter a new phase of "stable volume and quality improvement," with annual sales increasing slightly by 1% to 34.75 million units. New energy vehicle sales are expected to reach 19 million units (up 15.2% yoy), further raising the penetration rate to 54.4%. For the automotive parts industry, 2026 is expected to usher in a new phase of "technological deepening + accelerated global expansion." Intelligentization will drive demand for core sectors such as computing power chips, smart chassis, and integrated cockpit/driving systems, while the commercialization of Level 3 autonomous driving will spur a surge in demand for high-computing-domain controllers, LiDAR, and electronic brake systems. Meanwhile, parts manufacturers are accelerating overseas production, forming a coordinated pattern of "vehicle exports + parts first" through CKD/SKD models. Leading domestic automotive electronics company Desay SV (002920.CH) is worth attention. Additionally, the spillover of automotive industry technologies into robotics will also create cross-border investment opportunities, with JNMPT (000700.CH) poised to benefit. Utilities, Commodity, Consumer Discretionary (Margaret Li)This month I released 2 reports of GOLDWIND (2208.HK) & CMOC (3993.HK). As a global leader in wind power, we believe that with the support of relevant policies, wind power demand will grow steadily, overseas orders are expected to increase gradually, and the company's future growth exhibits strong certainty, with robust development prospects.We forecast the company's revenue for 2025-2027 to be RMB 76.34 billion, RMB 92.537 billion, and RMB 106.622 billion, respectively, with EPS of RMB 0.81, RMB 1.09, and RMB 1.32. We employ the Discounted Cash Flow (DCF) method for absolute valuation.Key assumptions in the DCF analysis:WACC: Calculated using the formula WACC = Kd * Wd (1-T) + Ke * (1-Wd), resulting in 10.23%.Discounting Period: From 2025 to 2031.Perpetual Growth Rate: 2%.With a WACC of 10.23% and a perpetual growth rate of 2%, the company's fair value per share is estimated at HKD 19.21. We initiate coverage with a "Buy" rating.Under the scenario where WACC ranges from 9.21% to 11.25% and the perpetual growth rate ranges from 1.8% to 2.2%, the fair value per share falls within the range of HKD 14.72 to HKD 25.28. The company provided production guidance for its major products in 2026, which is as follows: copper metal is projected to be 760,000-820,000 tonnes; cobalt metal 100,000-120,000 tonnes; molybdenum metal 11,500-14,500 tonnes; tungsten metal 6,500-7,500 tonnes; niobium metal 10,000-11,000 tonnes; phosphate fertilizer 1.05-1.25 million tonnes; gold 6-8 tonnes; and physical trading volume 4.0-4.5 million tonnes. We believe the global copper market may remain in a tight supply-demand balance going forward. Supply is prone to disruptions, while demand benefits from increased investments in power grids and AI data centers. In October 2025, the government of the Democratic Republic of Congo (DRC) announced details of cobalt export quotas, ending an export ban that had been in place for eight months since the beginning of the year. The new regulations implement an annual quota management system, with quotas set at 96,600 tonnes per year for both 2026 and 2027. The tight cobalt supply-demand situation is expected to persist, ensuring strong business growth certainty and supporting continued strength in cobalt prices. This year marks the first time the company has provided gold production guidance. We look forward to a significant increase in its future gold output, which should boost operating revenue. We have raised our revenue forecasts for the company, projecting revenues of RMB 224.192 billion, RMB 238.708 billion, and RMB 247.559 billion for 2025, 2026, and 2027, respectively. EPS is forecasted at RMB 0.95, RMB 1.15, and RMB 1.28, with BVPS at RMB 4, RMB 4.8, and RMB 5.6. Applying a 2026 P/B multiple of 5x, we derive a target price of HKD 26.97 and maintain our rating to "Accumulate". 
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