|
 
ZYLOXTB(2190)
Analysis¡G
Despite facing numerous industry challenges, ZYLOX TONBRIDGE Medical Technology (2190) continued to maintain rapid growth, achieving a 31.7% revenue increase in the first half of 2025 to RMB 481 million, primarily driven by its product portfolio and growing recognition from clinicians. The company recorded IFRS net profit of RMB 121 million, a substantial 76% year-on-year surge.
Currently, the group has launched 50 products in the Chinese market, solidifying its leading position in the neurovascular and peripheral vascular interventional medical device sectors. Since the launch of one of its flagship products at the end of 2020, the group has built an extensive distribution network in less than five years, covering over 3,000 hospitals and with more than 1,000,000 medical devices used in clinical practice.
By product segment, 63.3% of interventional product revenue came from the neurovascular interventional business, while 36.7% was from the peripheral vascular interventional business. In the first half of 2025, neurovascular interventional product sales rose 25% year-on-year, driven mainly by strong growth in mature products such as the SilverSnake Intracranial Intermediate Catheter Series, Phoenix Neurovascular Embolization Coil and Neurovascular Guidewire; the nationwide rollout of relatively newer products like the Kylin Flow Diverter following the mass central procurement by hospitals; and ongoing efforts to enhance product penetration across hospitals at all levels.
Peripheral vascular interventional product sales surged 46.2% year-on-year, fueled by continuous efforts to expand market access, improve hospital penetration, and grow the distribution network. This led to rapid sales increases in mature products including the UltraFree Drug Coated PTA Balloon Catheter (UltraFree DCB), Octoplus Vena Cava Filter, Snare Retrieval Kit for IVC Filter and Swan Endovenous Radiofrequency Ablation (RFA) Catheter, as well as the nationwide commercialization of newer product lines such as the Phoenix Peripheral Detachable Fibrous Coil Embolization System and Penguin Peripheral Venous Stent System and Unicorn Suture-mediated Closure System.
Survey data indicates that the global peripheral interventional market is approximately USD 10 billion, with China accounting for 12%¡V15% of the global market. The global neurointerventional market is around USD 7 billion, with China representing 15%¡V20%. This highlights significant international opportunities. Currently, the group sells 22 products across 27 overseas countries/regions and continues to deepen its presence in Europe, further penetrating markets in France, Germany, and Italy, while expanding into emerging markets such as Brazil, India, and South Africa, achieving relatively rapid growth. The group is actively engaging with local partners and has established strategic collaborations with over 60 local partners, with channel coverage spanning 52 countries and regions. The group is fully committed to expanding its overseas markets and accelerating its globalization strategy. (I do not personally hold the above stock)
Strategy¡G
Buy-in Price: $26.50, Target Price: $29.50, Cut Loss Price: $25.00
| 
CATHAY PAC AIR(293)
Analysis¡G
The growth rate of the global aviation market is stabilizing, with capacity and traffic entering a normalized growth range. In the first three quarters of 2025, global revenue passenger kilometers (RPK) increased by 4.8% year-on-year, with international RPK growing by 6.7% and domestic RPK by 1.8%. Industry-wide capacity, measured in available seat kilometers (ASK), rose by 4.7% year-on-year, with international ASK up by 6.4% and domestic ASK by 1.9%. During the first three quarters, overall passenger demand growth slightly outpaced capacity supply, leading to a marginal increase in the overall passenger load factor to 83.5%, up by 0.1 percentage point year-on-year. The current challenges in the aircraft manufacturing chain are unprecedented, and the global trend of aircraft aging is expected to persist over the next 5-10 years, resulting in highly constrained supply. Considering that passenger load factors have already reached historically high levels, the growth rate of passenger traffic has declined to a historical low due to supply constraints. Additionally, with the steady growth trend in inbound and outbound passenger numbers, more capacity will be allocated to international routes. As the industry approaches a turning point, airline profitability is expected to see significant improvement, potentially ushering in a golden era for airlines.
Strategy¡G
Buy-in Price: $12.25, Target Price: $13.47, Cut Loss Price: $11.50
|
|
FLAT GLASS (6865 HK) - FY25Q3 Saw Significant Improve, as the Anti-Excessive Competition Measures Strengthened
Investment SummarySignificant Performance Improvement in Q3 2025
According to the Company's announcement, in the first three quarters of 2025, Flat Glass Group Co., Ltd. recorded revenue of RMB12.464 billion (RMB, the same below), down 14.7% yoy, and net profit attributable to the parent company of RMB638 million, down 50.8% yoy. Specifically, the Company recorded revenue of RMB4.079/3.658/4.727 billion in Q1/Q2/Q3, down 28.8%/26.4%/up 21.0% yoy and flat/-10.3%/up 29.2% qoq; net profit attributable to the parent company amounted to RMB106/155/376 million, down 86.0%/79.0%/up 285.5% yoy and up 136.7%/46.0%/142.9% qoq, respectively. The results showed a trend of improvement quarter by quarter, with particularly notable growth in Q3.
Anti-Excessive Competition Measures Strengthened, Driving Recovery in Profitability
The performance improvement was mainly driven by the accelerated inventory de-stocking that led to a recovery in industry prosperity, easing of cost pressures, and the support from overseas business (accounting for approximately 30%).
In 2025, the photovoltaic (PV) industry intensified its efforts to curb excessive competition. As of July 2025, the cold-repair capacity in the PV glass industry reached 7,750 tonnes/day, reducing the domestic operating capacity to 89 thousand tonnes/day---a decline of approximately 22.4% from the peak of 114.7 thousand tonnes/day in November 2024. This accelerated capacity reduction strengthened supply-side constraints, which supported PV glass price stabilisation. In July, prices bottomed out, followed by a rebound in August. In September, the price of 2.0mm PV glass rose 18% month-on-month to RMB13--13.5/sq.m, recovering approximately 25% from July's RMB10.5/sq.m.
The Company's gross margin for the first three quarters was 15.1%, down 3.9 ppts yoy. In Q3, gross margin reached 16.8%, up 10.8 ppts yoy and 0.1 ppt qoq, benefiting from increased shipments driven by price recovery, a decline in soda ash costs, and support from high-margin overseas business. The Q3 period expense ratio stood at 6.9%, down 3.7 ppts yoy and 0.6 ppt qoq, mainly attributable to scale effects. Additionally, a reversal of asset impairment losses of RMB80 million in Q3 further boosted profit. As a result, the Q3 net profit margin attributable to the parent company rose to 7.96%, up 13.2 ppts yoy and 3.7 ppts qoq.
Industry Expected to Maintain Weak Balance in Q4
As of early November 2025, PV glass prices declined slightly due to weakening demand support, and industry inventories showed an increasing trend. The mainstream transaction price for 2.0mm PV glass was around RMB12.5--13/sq.m. However, considering the onset of the heating season and the resulting increase in natural gas prices, cost support is expected to limit the extent of price fluctuations. Benefiting from its advantages in technology, scale, capital, and clientele, the Company's cost advantages will become more prominent as market prices decline, potentially leading to an expansion in market share. The Company showed a clear downward trend in inventory in Q3. As of the end of Q3 2025, the Company's inventory balance stood at approximately RMB1.207 billion, down RMB751 million qoq, with a possible slight rebound in Q4. As of the end of September 2025, the Company's cumulative operating capacity totalled 16,400 tonnes/day, down 15% from the beginning of the year. The Company's two lines in Anhui (2,400 tonnes/day) and four lines in Nantong (4,800 tonnes/day) will commence operation based on market conditions. The two new production lines in Indonesia (3,200 tonnes/day) are expected to have a long construction period and will not commence production for at least two years. Investment ThesisDespite short-term pressure on industry prices, as a leading PV glass manufacturer, Flat Glass remains an industry leader in both scale and profitability. With continuous expansion of its overseas capacity, its profitability is expected to reach new heights. We expected the company's EPS for 2025/2026/2027 to be 0.41/0.68/0.95 yuan, respectively, and adjust the target price to HK$14.4, corresponding to a valuation ratios of 32.3/19.5/13.8x P/E and 1.4/1.3/1.2x P/B for the respective years, with an downgrade rating to "Accumulate." (Closing price as at 13 November 2025) P/E Band
Source: Wind, Phillip Securities Hong Kong Research Financials
(Closing price as at 13 November 2025) Click here to download PDF version...
| Recommendation on 18-11-2025 | | Recommendation | Accumulate (Downgrade) | | Price on Recommendation Date | $ 12.600 | | Suggested purchase price | N/A | | Target Price | $ 14.400 |
| |
|
|
|
|
| Stock Code |
H share
Price |
A share
Price |
H share
discount |
| | | |
|
Information contained herein is based on sources that Phillip Securities (Hong Kong) Limited and/or its affiliates ( the ¡§Group¡¨) believe to be accurate. The Group does not bear responsibility for any loss occasioned by reliance placed upon the contents hereof. The Group (or its employees) may have interests in relevant investment products. For details of different products¡¦ risks, please view the Risk Disclosures Statement on http://www.phillip.com.hk.
If you DO NOT wish to receive further marketing emails from us, please click HERE to opt-out.
ª©Åv©Ò¦³¡A ½¦L¥²¨s¡C
Copyright(C) 2025 Phillip Securities (HK) Ltd. All Rights Reserved.
|
