Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 6.30 [2][4]. Core Views - Despite facing macro challenges, the company has managed to improve profit margins and maintain stable dividends [2]. - The company is expected to continue expanding its market presence, particularly in the overseas markets, while addressing trade challenges through strategic manufacturing locations [2][4]. Financial Overview - For FY2025, the company reported total revenue of HKD 84.7 billion, a decrease of 7.4% year-on-year, with main revenue declining by 7.1% [2]. - The gross profit margin improved to 39.5%, benefiting from a reduction in raw material costs [2]. - The net profit attributable to shareholders was HKD 11.4 billion, with a net profit margin of 51.5% [2]. - The company plans to increase its store count in China by 500-600 stores [2]. Market Performance - The Chinese market saw a decline in revenue by 17.2%, while North American revenue increased by 5.7% [2]. - The company continues to lead in global functional sofa sales, with a significant increase in overseas market revenue [2]. - The average selling price (ASP) in the Chinese market decreased by 10%, impacting overall revenue [2]. Product Performance - Sofa sales in China decreased by 5.8%, while bedding sales grew by 26.6% [2]. - The company is focusing on new product development and enhancing its sales team to drive growth [2]. Future Outlook - The report anticipates that the decline in the Chinese market will narrow in the second half of the fiscal year, supported by government subsidies [2]. - The company is well-positioned to capitalize on long-term growth opportunities in the functional sofa market, which currently has low penetration in China [2].

Investment Rating - The report maintains a "Buy" rating for Atour Hotel (ATAT.US) with a target price of $34.8, representing a potential upside of 37.3% from the current stock price of $25.4 [2][6]. Core Insights - Atour Hotel continues to expand rapidly, focusing on high-end hotel brands, with a total of 1,533 stores as of Q3, including 12 self-operated stores and 1,504 franchise stores [2][6]. - The company reported Q3 revenue of 190 million yuan, a year-on-year decrease of 20.4%, but net profit exceeded Bloomberg consensus expectations, with a GAAP net profit of 38 million yuan, up 45.3% year-on-year [2][6]. - The company has a strong membership growth, with registered members reaching 83 million, a year-on-year increase of 53.7% [2][6]. Financial Overview - For FY24, the company expects revenue growth of 51.9% year-on-year, with projected revenues of 7.09 billion yuan, 8.86 billion yuan in FY25, and 10.57 billion yuan in FY26 [2][6]. - The adjusted net profit is forecasted to be 1.285 billion yuan in FY24, 1.591 billion yuan in FY25, and 1.991 billion yuan in FY26, reflecting significant growth rates [2][6]. - The report highlights a strong retail performance, with GMV reaching 566 million yuan in Q3, a year-on-year increase of 108% [2][6]. Store Expansion and Market Position - The company opened a record number of new stores in Q3, with 140 new openings and a total of 732 stores in the pipeline, indicating a robust expansion strategy [2][6]. - Atour Hotel's RevPAR (Revenue per Available Room) faced pressure due to high base effects from last year's summer travel boom, with a year-on-year decline of 10.5% [2][6]. - The company is enhancing its multi-brand matrix with the introduction of a new high-end service brand, aiming to improve its market share in the mid-range segment [2][6].

Investment Rating - The report maintains a "Buy" rating for Pinduoduo (PDD.US) with a target price of $142.40, representing a potential upside of 37% from the current price of $104.09 [3][5]. Core Insights - The domestic e-commerce sector is focusing on high-quality development, with a 3.2% year-on-year growth in retail sales of consumer goods in the first three quarters of 2024, and a 7.9% increase in online retail sales of physical goods [1]. - Pinduoduo is expected to continue supporting merchants through fee reductions and increased subsidies to maintain price competitiveness, which may impact short-term monetization and profit margins [1]. - The report anticipates that tariffs could negatively affect Temu, with projected global sales of $48 billion in 2024, as external factors may accelerate tariff-related risks [1]. Financial Summary - For Q3, Pinduoduo reported revenues of 99.354 billion RMB, a year-on-year increase of 44%, but below market expectations. Online marketing services revenue was 49.351 billion RMB, up 24% year-on-year, while transaction services revenue reached 50.003 billion RMB, up 72% year-on-year [2]. - Operating profit for the quarter was 29.292 billion RMB, with an operating margin of 24.5%, reflecting a 9 percentage point decline from the previous quarter [2]. - The company’s net profit was 24.981 billion RMB, a 61% increase year-on-year, resulting in a net margin of 25.1% [2]. Revenue and Profit Forecast - The revenue forecast for Pinduoduo has been adjusted to 409.1 billion RMB for 2024, 522.3 billion RMB for 2025, and 627.3 billion RMB for 2026, with corresponding operating profits of 113.3 billion RMB, 134.5 billion RMB, and 168.5 billion RMB respectively [3][4]. - The earnings per ADS are projected to be 83.0 RMB for 2024, 99.8 RMB for 2025, and 124.0 RMB for 2026 [3][4]. Market Position and Competition - The report highlights that the competition among platforms is intensifying, focusing on price competitiveness, user experience, and growth quality [1]. - Pinduoduo is expected to increase its subsidy efforts in Q4 to maintain its competitive edge in pricing [1].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 35.10, indicating a potential upside of 20.6% from the current price of HKD 29.15 [4][5]. Core Insights - The company achieved its first quarterly profit post-pandemic in Q3 2024, with revenue of HKD 264 million, representing a year-on-year increase of 76.1%. For the first three quarters, total revenue reached HKD 567 million, up 222.9% year-on-year, with a 36.9% growth after adjusting for expected returns of COVID-19 vaccines [2]. - The company's cost management has shown significant improvement, with a reduction in management and R&D expenses by 37.6% and 41.0% respectively, leading to a narrowed net loss of HKD 222 million for the first three quarters [2]. - The company's meningococcal vaccine, "曼海欣," has seen impressive growth, with revenue of HKD 516 million in the first three quarters, a 39.07% increase year-on-year. The product is expected to maintain its market position as the only MCV4 product in China [3]. Summary by Sections Financial Performance - In Q3 2024, the company reported a revenue of HKD 264 million, marking a 76.1% increase year-on-year. The total revenue for the first three quarters was HKD 567 million, reflecting a 222.9% increase year-on-year, with a 36.9% growth after accounting for expected returns of COVID-19 vaccines [2]. - The company managed to reduce its asset impairment losses by HKD 777 million year-on-year, resulting in a narrowed net loss of HKD 222 million for the first three quarters [2]. Product Pipeline and Growth Drivers - The company has multiple product pipelines progressing well, including the PCV13i vaccine, which has received acceptance for market application and is expected to be approved next year, providing a second growth point [4]. - The company is actively pursuing the expansion of its meningococcal vaccine for ages 4-6, with approval anticipated next year, which will enhance sales growth [3]. - The company has also received a USD 17 million grant from the Gates Foundation to advance the development of a restructured polio vaccine, indicating strong support for its R&D initiatives [4].

Investment Rating - The report maintains a positive outlook on Walmart (WMT.US) with an upgraded fiscal year guidance, indicating resilience in U.S. consumer spending and improved e-commerce efficiency [2]. Core Insights - Walmart's total revenue for Q3 2025 reached $169.6 billion, reflecting a year-over-year growth of 5.5%. The gross margin was 24.2%, an increase of 21 basis points, primarily due to strong inventory management in the U.S. [2] - The operating profit was $6.7 billion, up 8.2% year-over-year, with an operating margin of 4.0%. Earnings per share (EPS) were $0.57, a significant increase of 850% year-over-year, while adjusted EPS was $0.58, up 13.7% [2]. - For the first three quarters of fiscal 2025, operating cash flow was $22.9 billion, a 21% increase year-over-year, and free cash flow was $6.2 billion, up 43% [2]. - Walmart's same-store sales in the U.S. grew by 5.3%, with essential goods maintaining positive growth. International sales increased by 8.0%, with double-digit growth in China [2]. - E-commerce revenue globally grew by 27%, with U.S. e-commerce up 22% and international e-commerce up 43%, driven by in-store pickup, delivery, and third-party seller services [2]. - The report highlights that U.S. retail sales in October increased by 0.4% month-over-month, indicating resilient consumer demand ahead of the holiday season [2]. Financial Projections - For fiscal year 2025, total revenue is expected to grow by 4.8% to 5.1%, with adjusted operating profit projected to increase by 8.5% to 9.25% [2]. - The earnings forecast for fiscal years 2025 to 2027 shows a steady increase in total revenue, operating profit, and EPS, with projected revenues of $680.5 billion in 2025 and $739.7 billion by 2027 [5].

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Investment Rating - The report does not explicitly mention an investment rating for Futu Holdings (FUTU) [2] Core Views - Futu Holdings continues to demonstrate strong growth through product innovation and market expansion, particularly in Southeast Asia [2] - The company achieved a 30% YoY increase in total revenue to HKD 3.4 billion in Q3 2024, driven by growth across all business segments [2] - FUTU's customer base and assets under management continue to expand rapidly, with total paying clients reaching 2.2 million, a 33% YoY increase [2][5] Financial Performance Revenue Breakdown - Brokerage commission and handling fee revenue grew 52% YoY to HKD 1.5 billion, despite a decrease in commission rates from 9.3 bps to 8.0 bps [2] - Interest income increased 13% YoY to HKD 1.7 billion, driven by margin financing and securities lending businesses [2] - Other income (including wealth management and corporate services) surged 52% YoY to HKD 209 million [2] Cost Structure - Total costs increased 43% YoY to HKD 625 million, primarily driven by higher interest expenses (up 43% YoY) and processing/service costs (up 51% YoY) [2] Profitability - Gross profit grew 27% YoY to HKD 2.8 billion, with a gross margin of 81.8% [2] - Operating profit increased 31% YoY to HKD 1.7 billion, with an operating margin of 50.4% [2] - Net profit rose 21% YoY to HKD 1.3 billion, with a net profit margin of 38.4% [2] Customer Growth and Market Performance - FUTU added 154,000 net new paying clients in Q3 2024, a 138% YoY increase [2] - Total client assets grew 48% YoY to HKD 693 billion, driven by stock appreciation and net asset inflows [5] - Hong Kong and Singapore markets contributed over one-third of new paying clients, while Malaysia remained the largest contributor for three consecutive quarters [4] Trading Volume and Market Activity - Total trading volume increased 17% QoQ to HKD 1.9 trillion [6] - US stock trading volume grew 23% QoQ to HKD 1.53 trillion, driven by increased interest in tech stocks and leveraged ETFs [6] - Hong Kong stock trading volume declined 3% QoQ to HKD 348 billion, despite a 267% weekly surge in late September [6] Product Innovation and Expansion - Launched US stock dividend reinvestment plan in Hong Kong [7] - Introduced NISA savings accounts and mutual funds in Japan, along with US stock margin trading and Japanese options [7] - Became the first broker in Malaysia to offer US stock options trading and launched MYR/USD-denominated money market funds [7] Capital Allocation - The board approved a special cash dividend of USD 0.25 per ordinary share or USD 2.00 per ADS, totaling approximately HKD 195 million [8] Financial Forecasts - Operating revenue is projected to grow from HKD 12.62 billion in 2024 to HKD 16.42 billion in 2026 [9] - Net profit is expected to increase from HKD 5.10 billion in 2024 to HKD 7.45 billion in 2026 [9] - EPS is forecasted to rise from HKD 4.59 in 2024 to HKD 6.78 in 2026 [9]

Investment Rating - The report maintains a **Buy** rating for Xiaomi Group-W (1810) with a target price of **32.91 HKD**, representing a **17.54%** upside from the current price [2][5] Core Views - Xiaomi's smartphone, IoT, and automotive businesses are entering a positive growth cycle, with revenue slightly exceeding expectations and strong cash reserves [2] - The company achieved **925 billion RMB** in revenue in Q3 2024, a **30.5% YoY increase**, with adjusted net profit reaching **63 billion RMB**, up **18.7% YoY** [2] - Cash reserves stood at **1516 billion RMB**, reflecting a **9.7% YoY growth** [2] Smartphone Business - Xiaomi's smartphone business is showing initial success in the high-end market, with revenue reaching **828 billion RMB**, a **16.8% YoY increase** [2] - Shipments grew **3.1% YoY** to **431 million units**, driven by increased domestic high-end smartphone shipments and a **10.6% YoY increase in ASP** to **1102 RMB** [2] - The newly launched Xiaomi 15 series achieved strong sales, with expectations of further competitiveness in the **4000-6000 RMB price segment** [2] IoT Business - IoT revenue reached **261 billion RMB**, a **26.3% YoY increase**, with gross margin hitting a record high of **20.8%**, up **2.9 percentage points YoY** [2] - Strong performance in domestic smart home appliances and global tablet/wearable businesses is expected to continue benefiting from national subsidies and holiday promotions [2] Internet Services - Internet services revenue grew **9.1% YoY** to **85 billion RMB**, with gross margin improving **3.1 percentage points YoY** to **77.5%** [2] - Global MAUs reached **686 million**, a **10.1% YoY increase**, with overseas internet services revenue growing **18.3% YoY** to **27 billion RMB** [2] Automotive Business - Xiaomi's automotive business delivered **39,790 units** in Q3 2024, with monthly deliveries stabilizing at **10,000 units** [2] - The company aims to achieve **200,000 units** in annual deliveries, with gross margin improving **1.7 percentage points YoY** to **17.1%** [2] - The SU7 Ultra model, with an ASP of **239,000 RMB**, is expected to drive profitability as scale expands and promotional costs decrease [2] Financial Projections - Revenue is projected to grow from **355.9 billion RMB** in 2024 to **518.4 billion RMB** in 2026, with net profit increasing from **19.9 billion RMB** to **31.8 billion RMB** over the same period [5] - Adjusted net profit is expected to rise from **25.1 billion RMB** in 2024 to **37.1 billion RMB** in 2026 [5] Valuation - The target price of **32.91 HKD** is based on **18x PE** for core businesses and **12x PS** for the automotive segment, implying a **17.54% upside** [5]

Investment Rating - Buy rating with a target price of $108.00 USD / HK$168.05, implying a 26.05% / 24.39% upside potential for the US and HK markets respectively [2] Core Views - Blizzard games' return drives PC gaming revenue growth, with new product cycle expected in 2025 [2] - Q3 2024 revenue of RMB 26.21 billion, down 3.9% YoY, below Bloomberg consensus of RMB 26.59 billion [2] - GAAP net profit of RMB 6.54 billion, down 16.6% YoY, while Non-GAAP net profit of RMB 7.50 billion, down 13.3% YoY [2] - Mobile gaming revenue under pressure due to lack of new titles, while PC gaming revenue grows 29.0% YoY [2] - Youdao achieves record operating profit in Q3, driven by smart hardware and advertising business growth [2] - Cloud Music enters Hong Kong Stock Connect, with Q3 revenue of RMB 2.0 billion, up 1.3% YoY [2] Financial Performance Revenue - Q3 2024 total revenue: RMB 26.21 billion, down 3.9% YoY [2] - Gaming and value-added services revenue: RMB 20.86 billion, down 4.2% YoY [2] - Mobile gaming revenue: RMB 14.3 billion, down 9.7% YoY [2] - PC gaming revenue: RMB 4.55 billion, up 29.0% YoY [2] - Youdao revenue: RMB 1.57 billion, up 2.2% YoY [2] - Cloud Music revenue: RMB 2.0 billion, up 1.3% YoY [2] Profitability - Operating profit margin: 27.3%, down 40bps YoY [2] - GAAP net profit: RMB 6.54 billion, down 16.6% YoY [2] - Non-GAAP net profit: RMB 7.50 billion, down 13.3% YoY [2] - Youdao operating profit: RMB 110 million, up 186% YoY [2] Future Projections - 2024-2026 revenue CAGR: 10.5% [2] - 2024-2026 Non-GAAP net profit CAGR: 8.5% [2] - 2025 PC gaming revenue expected to decline 12% to RMB 21.6 billion [2] - 2025 mobile gaming revenue expected to grow 5.4% to RMB 60.0 billion [2] Business Segments Gaming - Blizzard games' return drives PC gaming growth, with World of Warcraft and Hearthstone contributing to revenue increase [2] - New titles expected in 2025, including Marvel Rivals and Yan Yun Shi Liu Sheng [2] - Pipeline includes Code: Infinity, Marvel Rampage, and Destiny: Rise [2] Youdao - Smart hardware revenue grows 25.2% YoY to RMB 320 million, driven by X7Pro dictionary pen sales [2] - Online marketing revenue grows 45.6% YoY to RMB 490 million, supported by AI optimization [2] Cloud Music - DAU/MAU ratio remains above 30%, with 24.4% paying user ratio [2] - ARPU reaches RMB 6.2 per month, with 730,000 independent musicians on the platform [2] Valuation - Target price of $108.00 USD / HK$168.05, based on 14.9x 2025 PE [2] - Gaming business valued at 1.2x PEG, with 12x PE for Non-GAAP net profit [2] - Youdao and Cloud Music valued based on NetEase's shareholding, with 5% discount applied to group valuation [2]

Investment Rating - The report assigns a "Buy" rating for Alibaba (BABA.US/9988.HK) with a target price of $112.00 USD / 109.00 HKD, indicating a potential upside of approximately 29% from the current price [4][6]. Core Insights - Alibaba's e-commerce business is focusing on enhancing user experience and retention through competitive pricing and improved customer service, which is expected to strengthen market share and monetization in the long term despite short-term uncertainties [1][2]. - Alibaba Cloud is positioned as a leading cloud provider in China, expected to drive demand related to AI, contributing to future growth and profitability [1][3]. - The company is actively reducing losses in underperforming segments and has repurchased shares worth $4.1 billion, resulting in a 2.1% reduction in the number of shares outstanding this quarter [2][3]. Financial Performance Summary - For the fiscal quarter ending September 30, 2024, Alibaba reported revenues of RMB 236.5 billion, a year-on-year increase of 5%. Operating profit also grew by 5% to RMB 35.2 billion, while net profit surged by 63% to RMB 43.5 billion, primarily due to changes in equity investments [2][3]. - Adjusted net profit decreased by 9% to RMB 36.5 billion, with operating cash flow down 36% and free cash flow down 70%, attributed to increased investments in Alibaba Cloud and other operational adjustments [2][3]. - The Tmall Group's revenue grew by 1% to RMB 98.99 billion, with customer management revenue increasing by 2% to RMB 70.36 billion, while the EBITA margin improved by 2 percentage points [3][4]. Segment Performance - The overseas e-commerce segment saw a 29% revenue increase to RMB 31.67 billion, although it reported an EBITA margin of -9% [3]. - The Cloud Intelligence Group's revenue grew by 7% to RMB 29.61 billion, with public cloud services achieving double-digit growth and AI revenue increasing by triple digits [3]. - The local services segment, including platforms like Ele.me, reported a 14% revenue increase to RMB 17.73 billion, indicating strong order growth [3]. Future Projections - Revenue forecasts for FY2025 to FY2027 are projected at RMB 1,003.4 billion, RMB 1,091.4 billion, and RMB 1,205.5 billion respectively, with operating profits expected to reach RMB 147.8 billion, RMB 153.9 billion, and RMB 173.7 billion [4][5]. - The diluted earnings per share are anticipated to be $6.9, $7.2, and $8.2 for FY2025, FY2026, and FY2027 respectively, reflecting a significant growth trajectory [4][5].