Investment Rating - The report maintains a "Buy" rating for the company with an updated DCF target price of RMB 44.31, reflecting a 26% upside potential from the closing price on May 6 [1][4][14]. Core Insights - The company is expected to achieve a revenue and net profit CAGR of 19% and 24% respectively from 2023 to 2026, driven by strong growth in emerging business segments and rapid online sales growth [1][2]. - The company reported 2023 revenues and net profits of RMB 22.44 billion and RMB 0.93 billion, representing year-on-year growth of 11% and 18% respectively [1][8]. - The company is focusing on expanding its store network in advantageous provinces and penetrating lower-tier markets, with a total of 14,109 stores as of Q1 2024 [1][2]. Financial Performance - In Q1 2024, the company achieved revenues and net profits of RMB 5.54 billion and RMB 0.32 billion, showing a year-on-year growth of 2% and 10% respectively [1][8]. - The gross margin improved to 35.2% in Q1 2024, up 2.2 percentage points year-on-year, attributed to the implementation of the Torch Project [2][8]. - The company plans to open 4,000, 5,000, and 6,000 new stores in 2024, 2025, and 2026 respectively, focusing on advantageous provinces and key cities [1][2]. Revenue and Profit Forecasts - The company’s revenue is projected to reach RMB 27.04 billion in 2024, RMB 32.42 billion in 2025, and RMB 38.24 billion in 2026, with corresponding net profits of RMB 1.14 billion, RMB 1.47 billion, and RMB 1.76 billion [3][12][20]. - The report indicates a downward adjustment in the 2024-2025 profit forecasts due to a slowdown in acquisition speed and capital expenditure [11][14]. Market Position and Competitive Landscape - The company is actively expanding its online sales channels, with online sales reaching approximately RMB 2 billion in 2023, a 38% increase year-on-year [2][8]. - The company holds a significant market share in 11 provinces, with four of them being the top market share holders [1][2]. Valuation Metrics - The target price corresponds to a 2024 P/E ratio of 23x, which is higher than the industry average of 16x, indicating a premium valuation due to strong growth prospects [4][14].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 57.48, indicating a potential upside of 27% from the current price of RMB 45.40 [1][2][15]. Core Insights - The company is expected to achieve a revenue and net profit CAGR of 26% and 33% respectively from 2023 to 2026, driven by robust store growth and the trend of hospital prescription outflow [4][5]. - The company added 3,196 stores in 2023, with a total of 13,920 stores as of Q1 2024, and is projected to reach 23,774 stores by 2026, reflecting a CAGR of 22% in store count [6][11]. - The company’s 2023 revenue was RMB 22.59 billion, a 14% increase year-on-year, with a net profit of RMB 1.41 billion, up 12% [5][20]. Financial Performance - The company reported a gross margin of 38.2% in 2023, slightly down from the previous year, attributed to an increase in low-margin wholesale revenue [5][8]. - The forecast for 2024E revenue is RMB 28.53 billion, with a gross profit of RMB 11.22 billion and a net profit of RMB 1.99 billion [10][12]. - The report indicates a downward adjustment in EPS for 2024 and 2025 by 28% and 27% respectively, due to increased share capital from stock dividends [11][14]. Market Comparison - The company’s P/E ratio for 2024 is projected at 29, which is above the industry average of 15, suggesting a premium valuation due to expected high growth rates [15][17]. - Compared to peers, the company has a higher market capitalization of RMB 45.88 billion and a lower EPS than some competitors, indicating competitive positioning in the market [17]. Store Expansion and Strategy - The company is leveraging both online and offline channels to capture hospital prescription flows, with a significant number of stores qualifying for medical insurance [5][6]. - The report highlights the importance of acquisitions for expansion, with a focus on maintaining growth in a competitive retail pharmacy environment [18]. Future Projections - Revenue projections for 2024E, 2025E, and 2026E are RMB 28.53 billion, RMB 35.75 billion, and RMB 44.88 billion respectively, reflecting a strong growth trajectory [12][20]. - The company is expected to maintain a healthy net profit margin, with projections of 7.0% for 2024E and 7.4% for 2026E [21].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$6.72, representing a potential upside of 20% from the current price of HK$5.60 [1][2][4]. Core Views - The company plans to divest its loss-making subsidiary KP Global, which is expected to positively impact profits in the short term [4][5]. - Following the divestiture, the company anticipates revenue and net profit growth of 9.0% and 24.8% year-on-year, reaching RMB 15.64 billion and RMB 1.29 billion, respectively, in 2024 [4][5]. - The report highlights improvements in inventory management and sales performance, with online revenue expected to grow by approximately 14% due to a low base effect [5][6]. Summary by Sections Financial Projections - Revenue for 2024 is projected at RMB 15.64 billion, with a slight decrease in estimates for 2024-2026 due to the impact of KP Global's divestiture [6][8]. - The company expects a net profit of RMB 1.29 billion in 2024, reflecting an 8.5% increase from previous estimates [6][8]. - Earnings per share (EPS) for 2024 is estimated at RMB 0.49, with subsequent years showing continued growth [7][8]. Market Performance - The company’s market capitalization is approximately US$1.89 billion, with a three-month average daily trading volume of US$8 million [2][4]. - The stock has a price-to-earnings (P/E) ratio of 10.6 for 2024, indicating a favorable valuation compared to peers [9][10]. Strategic Initiatives - The divestiture of KP Global is expected to streamline operations and enhance profitability, with a special dividend of US$151 million planned for shareholders [4][5]. - The company aims to expand its product offerings and improve store efficiency, with plans to open 180 new stores in 2024 [5][6].

Investment Rating - The report assigns an "Overweight" rating to the automotive and auto parts industry [2]. Core Insights - In April, the penetration rate of new energy vehicles (NEVs) increased to 43.5%, with retail sales reaching 674,000 units, a year-on-year growth of 27.9% [2]. - The implementation of the vehicle trade-in subsidy policy is expected to generate an additional demand for 1-2 million new cars [4]. - The production and sales of power and energy storage batteries reached 78.2 GWh and 73.5 GWh respectively in April, marking a year-on-year increase of 60.0% and 57.0% [3]. Summary by Sections New Energy Vehicle Sales - In April, NEV retail sales were 674,000 units, a year-on-year increase of 27.9% but a month-on-month decrease of 5.6% [2]. - The cumulative penetration rate for the first four months of the year reached 38.1% [2]. - The top five NEV models in April included BYD Qin Plus (46,314 units), BYD Song Plus (31,809 units), and BYD Seagull (28,797 units) [5]. Battery Production and Sales - The total production of power and energy storage batteries in April was 78.2 GWh, with a year-on-year increase of 60.0% [3]. - Cumulative battery sales for the first four months reached 241.2 GWh, reflecting a year-on-year growth of 41.4% [3]. - In April, the export of power and energy storage batteries was 12.7 GWh, a year-on-year increase of 28.5% [3]. Policy Impact - The new vehicle trade-in subsidy policy, effective until December 31, 2024, offers a subsidy of 10,000 yuan for scrapping eligible vehicles and purchasing new energy vehicles [4]. - It is estimated that around 150,000 new vehicles could be sold under this policy, assuming 10% of eligible vehicles participate [4]. Market Trends - The report notes a slight decline in NEV sales in April due to consumer hesitation amid ongoing price wars and expectations of stronger promotions during the May Day holiday [2]. - The export of NEVs in April was 115,000 units, a year-on-year increase of 26.8% [2].

Investment Rating - The report maintains a "Hold" rating for Tesla (TSLA US) with a target price of US$151.31, down from the previous target of US$159.84, reflecting a 5% decrease in the target price [1][11]. Core Insights - Tesla's 1Q24 performance showed a significant decline in net profit, with GAAP net profit down 55.1% year-over-year and Non-GAAP net profit down 47.6% year-over-year, attributed to a drop in delivery volumes and rising capital expenditures [2][3]. - The annual delivery forecast has been revised down to 1.773 million vehicles, indicating challenges in meeting previous expectations due to declining demand for electric vehicles [2][3]. - New product launches, including a low-cost model and Robotaxi, are expected to support future sales growth, although their timely rollout remains uncertain [3][11]. Financial Summary - For 1Q24, Tesla reported revenues of US$21.3 billion, a year-over-year decline of 8.7%, with automotive revenue at US$17.38 billion, down 12.9% year-over-year [2][5]. - The gross margin for the quarter was 17.4%, down 1.9 percentage points year-over-year, impacted by price promotions and production ramp-up of the Cybertruck [2][5]. - Free cash flow was negative at US$2.53 billion, primarily due to a 90% drop in operating cash flow and a 34% increase in capital expenditures [2][5]. Revenue and Earnings Forecast - Revenue projections for 2024 have been adjusted to US$96.039 billion, reflecting a 3.6% decrease from previous estimates, with expected revenues of US$115.973 billion in 2025 and US$138.961 billion in 2026 [10][16]. - The forecast for Non-GAAP net profit has been reduced to US$11.057 billion for 2024, with expected growth to US$14.705 billion in 2025 and US$18.527 billion in 2026 [10][16]. Valuation Methodology - The report employs a sum-of-the-parts (SOTP) valuation method, maintaining a 50x P/E ratio for the automotive business, resulting in a target price of US$151.31 per share [11][12].

Investment Rating - The report maintains a "Buy" rating for Li Ning with a target price of HK$26.55, indicating a potential upside of 33% from the current price of HK$19.90 [1][2][3]. Core Insights - The report projects a revenue growth of 5.2% year-on-year for 2024, reaching RMB 29.03 billion, and a net profit growth of 5.1% to RMB 3.35 billion, maintaining a net profit margin of 11.5% [3][4]. - The company is focusing on growth drivers such as running shoes and basketball products, with plans to expand its product lines and optimize store configurations in lower-tier cities [3][4]. - The report slightly adjusts the target price down by 0.5% but maintains the earnings forecasts for 2024-2026, with expected revenue growth rates of 5.2%, 6.0%, and 5.8% respectively [4][6]. Summary by Sections Financial Projections - Revenue for 2024 is projected at RMB 29,033 million, with a gross profit margin of 49.6% [5][6]. - The net profit for 2024 is expected to be RMB 3,349 million, with an EPS of RMB 1.30 [5][6]. - The report anticipates a stable management expense ratio of 4.6% and an increase in sales expense ratio to 33.3% [6]. Market Position and Strategy - Li Ning plans to launch new products in the running and basketball categories, targeting both high-end and value segments to capture market share [3][4]. - The company aims to open 75 new stores in 2024, focusing on lower-tier cities while closing underperforming stores in higher-tier cities [3][4]. Valuation Metrics - The report maintains a P/E ratio of 17x for 2025, with a slight adjustment in net profit forecasts for 2024-2026 [4][6]. - The projected net profit for 2025 and 2026 is RMB 3,673 million and RMB 4,023 million respectively, with corresponding EPS of RMB 1.42 and RMB 1.56 [5][6].

Investment Rating - The report maintains a "Buy" rating for Jiumaojiu International (9922 HK) with a target price of HK$6.10, representing a potential upside of 27% from the current price of HK$4.79 [1][2][5]. Core Views - Jiumaojiu's short-term performance is constrained by a high base, but steady growth is expected in the future. The company is exploring new demand through brand transformation, which requires further observation [4][5]. - The target price has been adjusted downwards by 13% from HK$7.00 to HK$6.10, corresponding to a 15x P/E ratio for 2024 [5]. Summary by Sections Financial Performance - In Q1 2024, same-store sales for the brand "Tai Er" declined by 13.9% year-on-year, with a table turnover rate dropping to 3.9 times per day. However, the decline is expected to narrow as the base effect diminishes [4]. - The company plans to open 105 new stores in 2024, with 84 in domestic markets and 21 overseas, aiming for a total of 683 stores. The average customer price is projected to decrease slightly by 1.0% to RMB 74.3 [4][5]. - Revenue from restaurant operations is expected to grow by 14.5% year-on-year to RMB 5.12 billion in 2024 [4]. Brand Development - The "Song" brand saw a 34.8% decline in same-store sales in Q1 2024, indicating that existing demand has been largely met. The brand is focusing on enhancing its menu and appealing to younger consumers [4]. - The "Song" brand is expected to open 30 new stores in 2024, with revenue projected to increase by 32.0% year-on-year to RMB 1.06 billion [4]. Earnings Forecast and Valuation - Revenue forecasts for 2024-2026 have been reduced by 7.1%, 10.7%, and 12.4% to RMB 69.5 billion, RMB 80.3 billion, and RMB 90.3 billion respectively. Net profit estimates have also been lowered by 13.1%, 18.1%, and 19.6% to RMB 5.3 billion, RMB 6.1 billion, and RMB 6.9 billion [5][6]. - The report projects a market capitalization range of HK$61 billion to HK$107 billion based on a P/E ratio of 12-16x for 2024, with the current market cap at HK$69 billion [5].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 282.55, down from RMB 324.49, reflecting a 13% decrease in the target price [1][13]. Core Insights - The company is expected to experience a revenue and net profit CAGR of 13% and 22% respectively from 2023 to 2026, driven by price increases in liver disease medications and a significant boost in dividend payout [4][5]. - The first quarter of 2024 showed strong recovery with revenue and net profit growing by 21% and 27% year-on-year, primarily supported by the liver disease medication segment and cosmetics business [5][6]. - The report highlights that the liver disease medication segment achieved revenue of RMB 15.1 billion in Q1 2024, marking a 28% increase year-on-year, attributed to a price increase implemented in May 2023 [5][10]. Financial Summary - The company reported a revenue of RMB 10,058 million for 2023, with a projected revenue of RMB 11,619 million for 2024, reflecting a 1% downward adjustment from previous estimates [11][12]. - The projected EPS for 2024 is RMB 5.70, down from RMB 6.57, indicating a 13% reduction in earnings expectations [1][11]. - The report indicates that the company's gross profit margin is expected to face pressure due to rising raw material costs, leading to a 7% and 8% downward adjustment in gross profit forecasts for 2024 and 2025 respectively [11][12]. Valuation - The report employs a two-stage DCF valuation method, maintaining a perpetual growth rate of 6.0% and a WACC of 7.3% [13][15]. - The target price of RMB 282.55 implies a 24% upside potential from the closing price of RMB 227.39 as of April 22, 2024, with a projected P/E ratio of 50x for 2024, which is higher than the industry average of 19x [13][15].

Investment Rating - The report assigns a "Hold" rating to Guoxuan High-Tech with a target price of RMB 16.70 [1][5] Core Views - Guoxuan High-Tech delivered 45.3 GWh of power and energy storage batteries in 2023, with net profit attributable to the parent company increasing by 201.3% YoY [1] - The company's overseas business is expected to account for 60% of total revenue in 2024, up from 30% in 2023 [1][5] - The report downgrades the target price to RMB 16.70 and the rating to "Hold" due to intensified competition in the domestic battery industry and a higher PEG ratio compared to industry peers [5] Financial Performance - In 2023, Guoxuan High-Tech achieved revenue of RMB 31.605 billion, a 37.1% YoY increase, with a gross margin of 16.9% [1] - The company's 1Q24 revenue was RMB 7.508 billion, with a gross margin of 17.9%, up 0.9 percentage points QoQ [1][2] - Net profit attributable to the parent company in 1Q24 was RMB 69.1 million, down 8.6% YoY and 89.3% QoQ [2] Profit Forecast - The report lowers the 2024-2025 revenue forecasts by 32.0% and 31.2% to RMB 37.805 billion and RMB 47.252 billion, respectively [3] - The 2024-2025 net profit forecasts are reduced by 40.2% and 43.1% to RMB 1.492 billion and RMB 2.127 billion, respectively [3] - For 2026, the company is expected to achieve revenue of RMB 61.471 billion and net profit of RMB 2.945 billion [3] Valuation - The report assigns a 20x P/E ratio for 2024, slightly above the historical average of 18x, resulting in a target price of RMB 16.70 [5] - Guoxuan High-Tech's 2024 PEG ratio is 0.36, higher than the industry average of 0.32 [5] Industry Outlook - The downstream new energy vehicle industry is experiencing a price war, leading to intensified competition in the domestic battery market [5] - The company's overseas business expansion, particularly in the US and Europe, is expected to drive future growth [1][5]

Investment Rating - The report maintains a "Buy" rating for the company with a target price raised to RMB 244.10 from RMB 236.60 [2][11]. Core Insights - The company's Q1 2024 earnings exceeded expectations, with a gross margin of 26.4% and a net margin of 13.2%, reflecting year-on-year increases of 5.1 and 2.2 percentage points respectively [2][3]. - Despite a decline in revenue due to falling raw material prices, the company improved its cash flow significantly, achieving operating cash flow of RMB 283.6 billion, a 35% year-on-year increase [2][3]. - The company captured a domestic market share of 48.9% in the power battery segment, benefiting from the launch of new models [2][3]. Financial Performance Summary - Q1 2024 revenue was RMB 797.7 billion, down 10.4% year-on-year and 24.9% quarter-on-quarter, primarily due to lower sales prices from raw material price declines [2][8]. - The gross profit for Q1 2024 was RMB 21.072 billion, with a gross margin of 26.4%, up from 21.3% in Q1 2023 [8]. - The net profit attributable to shareholders was RMB 10.51 billion, representing a 7.0% year-on-year increase [8]. Earnings Forecast - The report maintains revenue forecasts for 2024-2026 but raises gross margin estimates by 1.7, 1.0, and 0.6 percentage points to 24.0% for 2024, 2025, and 2026 respectively [3][9]. - The net profit forecasts for 2024-2026 are adjusted upwards by 3.2%, 3.0%, and 0.8% to RMB 488.1 billion, RMB 578.2 billion, and RMB 617.3 billion respectively, indicating year-on-year growth of 10.6%, 18.5%, and 6.8% [3][9]. Valuation - The report maintains a valuation of 22 times earnings for 2024, reflecting the company's strong market position and cash flow capabilities [11]. - The target price of RMB 244.10 suggests a potential upside of 24% from the current share price of RMB 197.14 [7].