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ASYMCHEM(6821)
Analysis¡G
Asymchem is a leading technology-driven CDMO company that provides integrated solutions and services throughout the drug development and manufacturing process. The Group is aligned with CDMO industry development trends and continues to increase investment in technology R&D, capability building, and capacity expansion for peptides, oligonucleotides, ADCs, and other drugs. In the first quarter of 2026, the Group achieved operating revenue of RMB 1.802 billion, representing a year-on-year increase of 16.91% (or 19.54% at constant exchange rates). Of this, small-molecule CDMO business revenue was RMB 1.2 billion, up 0.43% year-on-year (or 3.26% at constant exchange rates). Emerging business revenue reached RMB 598 million, up 74.07% year-on-year, driven mainly by strong growth in the chemical macromolecule and biomacromolecule segments. By customer location, revenue from U.S. and European clients was RMB 1.25 billion, up 8.99% year-on-year (or 12.4% at constant exchange rates). Revenue from Asia-Pacific clients was RMB 552 million, up 39.97% year-on-year.
The Group focuses on improving operational efficiency, shifting from cost reduction and efficiency gains to cost control and efficiency enhancement, thereby effectively boosting business profitability and competitiveness. In Q1 2026, the overall gross margin was 43.02% (44.27% at constant exchange rates). The small-molecule business gross margin was 46.81%, up 1.64 percentage points year-on-year (48.26% at constant exchange rates, up 3.09 percentage points). The emerging business gross margin was 35.08%, up 2.03 percentage points year-on-year (35.8% at constant exchange rates, up 2.75 percentage points), primarily due to continued improvements in delivery scale and capacity utilization for emerging businesses. In Q1 2026, net profit attributable to shareholders of the listed company was RMB 304 million, down 6.82% year-on-year, mainly due to higher foreign exchange losses from RMB appreciation (compared to foreign exchange gains in the same period last year). Adjusted net profit attributable to shareholders was RMB 423 million, up 27.91% year-on-year.
Looking ahead, benefiting from increased R&D investment by pharmaceutical companies and the continued rise in outsourcing penetration, the global CDMO industry is in a sustained growth phase. According to a Frost & Sullivan report, the global CDMO market size is expected to reach USD 124.3 billion in 2025 and USD 231 billion by 2030, with a compound annual growth rate of 13.2%. The Group will vigorously promote the development of emerging businesses such as chemical macromolecules and biomacromolecules, while accelerating overseas capacity construction and deepening cooperation with overseas clients, particularly multinational pharmaceutical companies.(I do not hold the above stock.)
Strategy¡G
Buy-in Price: $105.00, Target Price: $116.00, Cut Loss Price: $99.00
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GREE ELEC(000651.SZ)
Analysis¡G
In 2025, the company achieved revenue of RMB 170.448 billion, down 9.89% year-on-year (YoY); net profit attributable to shareholders reached RMB 29.003 billion, also down 9.89% YoY. Net cash flow from operating activities stood at RMB 46.383 billion, up 57.93% YoY, reflecting strong cash generation capability. The company distributed three dividends throughout the year, totaling RMB 22.341 billion, accounting for 100% of total profit distribution, indicating a strong commitment to shareholder returns. In Q1 2026, revenue was RMB 42.966 billion, up 3.52% YoY; net profit attributable to shareholders was RMB 6.082 billion, up 3.01% YoY. However, recurring net profit saw a slight decline of 0.27% YoY, while operating cash flow decreased 29.11% YoY.DoNews, April 29 ¡X Zhu Lei, CMO of Gree Electric, recently stated publicly that the company has achieved full in-house R&D and manufacturing capabilities for humanoid robots, with all core components produced independently and no reliance on external supply chains. Zhu noted that this capability builds on Gree's more than a decade of accumulated expertise in industrial robotics. Currently, over 2,000 of Gree¡¦s self-developed industrial robots have been deployed across its facilities, driving an 80% improvement in production efficiency. Its Jinwan Smart Factory has reached an equipment self-sufficiency rate of 80%, with one air conditioner rolling off the production line every 15 seconds. Chairperson Dong Mingzhu has repeatedly emphasized that the company's entry into high-end equipment in 2013 was aimed at breaking free from reliance on foreign core technologies. This official announcement positions Gree as one of the few domestic companies in China to master full-industry-chain technologies for humanoid robots, potentially breaking overseas technological monopolies and accelerating its transformation from a home appliance giant into a high-end smart manufacturing group.
Strategy¡G
Buy-in Price: RMB40.47, Target Price: RMB45.00, Cut Loss Price: RMB38.22
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CFMOTO POWER (603129 CH) - Domestic Leader Accelerating Global Expansion
Company profileCFMOTO POWER was established in 1989, starting with the R&D of core components, and entered complete vehicle manufacturing in 1998. Its current core business focuses on the R&D, production, and sales of ATVs, fuel motorcycles, and electric two-wheelers, with products precisely covering diverse scenarios such as sports and leisure, outdoor operations, and public service transportation. The Company is a domestic leader in ATVs and mid-to-large displacement motorcycles. Among them, ATVs are mainly for export sales, with displacements ranging from 400cc to 1,000cc, covering ATV (All-Terrain Vehicle), UTV (Utility Vehicle), and SSV (Side by Side Vehicle) models. The Company has ranked first in market share of ATVs in major European markets for more than ten consecutive years. Fuel motorcycles mainly focus on mid-to-large displacement high-end models, with displacements primarily ranging from 125cc to 1,250cc. In the domestic market for straddle motorcycles and scooters above 200cc, the Company ranks first. Electric two-wheelers represent a newly established business segment, mainly targeting the high-end market to build new growth drivers for results. Investment SummaryRevenue Maintains Strong Growth Momentum, While Tariffs Weigh on Profit Growth
CFMOTO POWER released its 2025 Annual Report and 2026 Q1 results: In 2025, the Company recorded revenue/net profit attributable to the parent company/net profit attributable to the parent company excluding non-recurring items of RMB19,746 million/RMB1,675 million/RMB1,581 million (RMB, the same below), up 31.3%/13.83%/9.70% yoy, respectively. Among these, overseas revenue reached RMB13.79 billion, accounting for 69.84%. Gross margin was 26.94%, down 3.12 ppts yoy, mainly due to increased tariffs. Net cash flow from operating activities amounted to RMB3,966 million, up 33.4% yoy. The significantly lower growth rate of net profit compared with revenue in 2025 was mainly due to: 1) Increased tariffs on exports to the U.S. in 2025, resulting in additional retrospective tax payments of RMB978 million (vs. only RMB228 million in 2024); 2) Exchange losses caused by RMB appreciation. In 2026 Q1, the Company recorded revenue/net profit attributable to the parent company/net profit attributable to the parent company excluding non-recurring items of RMB5,359 million/RMB423 million/RMB417 million, up 26.07%/1.81%/1.55% yoy, respectively. Despite continued exchange rate fluctuations and the impact of U.S. tariffs, the Company's results remained relatively resilient in the first quarter. ATV Business: Premiumisation Drives Core GrowthThe global sales volume of ATVs has generally stabilised, while the product mix continues to upgrade towards UTV and SSV. Leveraging its globalised operating system and continuous technological innovation, the Company has steadily advanced its product portfolio towards high-performance and high-value segments. Its core model, U10PRO, has delivered outstanding performance in the global market, effectively driving brand premiumisation and increasing ASP. From a regional perspective, the North American market has achieved structural breakthroughs driven by high-end models, with strong growth momentum. The European market has further consolidated its leading position in market share through the coordinated development of the "CFMOTO + GOES" dual-brand strategy. Emerging markets such as Asia-Pacific and Latin America have expanded steadily with balanced development, further enhancing the segment's overall risk resilience. In 2025, the Company sold a total of 197 thousand ATVs, up 16.45% yoy, and recorded sales revenue of RMB9,608 million, up 33.26% yoy. Export value accounted for 74.01% of the industry total, continuing to lead the industry export rankings. Motorcycle Business: Domestic Leader Accelerating Global ExpansionIn 2025, the Company achieved fuel motorcycle sales volume of 295.9 thousand units, up 3.27% yoy, and sales revenue of RMB6,471 million, up 7.18% yoy. Among these, overseas sales reached 159.5 thousand units, up 11.3% yoy, with overseas revenue of RMB3,587 million, up 21.88% yoy. The Company's premiumisation strategy has delivered remarkable results: In 2025, motorcycles with displacement above 250cc accounted for 83%, of which models above 500cc accounted for 24%. In the domestic market, the SR series has become a benchmark in the sportbike segment, with a market share of 36.2%, while the Company ranked first in the domestic 200cc+ segment with a market share of 26.2%. In 2024, the Company won three overall championships in the Moto3 250cc category of MotoGP, significantly enhancing its international brand influence. In 2025, the Company completed optimisation of distributor rights across five European countries and accelerated the rollout of the "CFlite" brand in emerging markets such as Latin America and Asia, with steadily increasing regional penetration. Electric Two-Wheeler Business: Brand Momentum Surges, Sales Grow ExponentiallyThe Company's "ZEEHO" brand electric two-wheelers adhere to a high-end positioning of "fuel motorcycle performance + intelligent technology". In 2025, total sales reached 551.2 thousand units, up 420.2% yoy, with sales revenue of RMB1,912 million, up 381.0% yoy. Gross margin increased by 6.75 ppts to -0.03 ppts, approaching break-even. Channel expansion progressed rapidly, with 1,260 new stores added during the year, bringing the total number of stores to over 2,050 and achieving 100% coverage across Tier 1 to Tier 3 cities. Against the backdrop of pressure on electric bicycles following the implementation of the new national standards in 2024, part of the demand has shifted towards electric motorcycles. The Company leverages its expertise in recreational motorcycles to enter the electric motorcycle segment with clear technological advantages and a strong pipeline of new products, positioning it well to capture structural growth opportunities. Investment ThesisLooking ahead, the Company's ATV and motorcycle businesses are expected to continue gaining overseas market share, supported by technological R&D and brand building. We believe the overseas market will remain a key driver of sustained growth in the Company's results. As for valuation, we expected diluted EPS of the Company to RMB 13.84/18.29/23.46 of 2026/2027/2028. And we accordingly gave the target price to RMB 359.3, respectively 26x P/E for 2026. "BUY" rating. (Closing price as at 28 April) Source: Wind, Company, Phillip Securities Hong Kong Research RiskProgress of new production line is below expectations
Macroeconomic downturn affects product demand
Sharply rising raw material prices or sharply falling product prices Financials(Closing price as at 28 April) Download PDF Version
| Recommendation on 30-4-2026 | | Recommendation | BUY (Initiation) | | Price on Recommendation Date | $ 271.310 | | Suggested purchase price | N/A | | Target Price | $ 359.300 |
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