We expect Miniso to report C4Q22 top line, non-GAAP operating profit and GAAP net income 1.7%, (1.5%) and in-line vs. consensus. Our C1Q23 top line is 3.7% vs. the consensus; We view MNSO’s sustained growth driver to be bringing Made-In-China merchandises to the mall economies around the world; We re-evaluate the stock and maintain the Buy rating, with TP at US$22. The downward revisions of EPADS in 2023-25E are mainly attributable to 1) slower offline resumption pace from Covid impact in 2022, 2) rescheduled oversea expansion paces, compared to our previous update on Nov. 23rd, 2021.

Even though we are long-term optimistic on the rise of Chinese consumer brands, we believe short-term optimism is misplaced. Chinese underconsumption is only half true. It only occurs in categories associated with development stages; We suggest investors to focus on two themes: (1) structural changes led by China’s transition to an older and more affluent society, (2) substitution and globalization that can break the ceiling for valuation;Our TOP PICKS are Li Auto, Atour, Luckin, FUTU, BEKE and Miniso.

Surgical robot today is a precursor product of the eventual AI-enabled, decision capable one of the future. Current surgical robot’s medical benefit is confined to a narrow set of procedures and a narrow set of matrices; Domestic surgical robots have no competitive advantage against global products except price and implicit government support. To fight for install base ahead of state procurement, we believe a price war will erupt soon; We initiate with SELL with TP of HK$18.3. We prefer to come in after the price war.

We initiate Atour with a BUY because we believe it has stricken a best-in-class balance among  (1) price-benefit for travellers, (2) investment-return for franchisees and (3) input-advancement for employees; We expect Atour to embark on a single-brand network expansion to >2,500 hotels while maintaining its service and brand premiums. It will have to pursue a multi-brand strategy afterwards but choices are aplenty; 

We trimmed our C1Q23/FY23 GMV forecasts from 8%/14% to 6%/12% and cut JD’s FY23 revenue YoY growth forecast from 13% to 11%. Our top and bottom line estimates for FY23 are (3%) and (5%) below cons. Downgrade to SELL with TP of US$48. Our TP implies 17X P/2023E.

Innovent’s single product is facing declining sales and increase competition. Its next product, a PCSK9 Inhibitor, works in a niche market, in our view; Yet Innovent’s R&D and sales seem to be benchmarking against BeiGene. Innovent might suffer from low profit margin in the long run; We initiate Innovent with a SELL rating and TP of HK$17.