Investment Rating - The report maintains a "Buy" rating for Budweiser APAC with a target price of HK$11.00, reflecting a potential upside of 27% from the current price of HK$8.66 [1][8]. Core Insights - The report indicates that Budweiser APAC's sales during the Chinese New Year were encouraging, with management stating that shipments to retailers matched last year's levels. The company is expected to achieve mid-single-digit volume growth in 2025, with a 3% increase in the Chinese market [6][13]. - A strategic shift has been announced, focusing on the "Core++" segment rather than ultra-premium products, aiming to enhance market share amidst a challenging macroeconomic environment [7][13]. - The company declared a dividend of $0.0566 per share, with a high payout ratio of 96%, which is expected to support long-term investor returns [7][8]. Financial Adjustments - The target price has been adjusted downwards from HK$11.60 to HK$11.00, while the earnings per share (EPS) estimates for 2025 and 2026 have been slightly increased by 0.7% and 1.9% respectively [2][8]. - Revenue forecasts for 2025 and 2026 have been raised by 2.0% and 3.2% respectively, reflecting better-than-expected recovery in beer sales in China [13][14]. - The normalized net profit for 2025 is projected at $887 million, with an adjusted net profit margin of 13.4% [10][14]. Market Performance - Budweiser APAC's stock has shown a 52-week range of HK$14.08 to HK$6.84, with a market capitalization of approximately $14.75 billion [1][8]. - The report highlights that the company's valuation is currently at a forward P/E of 21.1x for 2025, which is one standard deviation below the average of the past three years [15][17]. Strategic Focus - The management emphasizes that the strategic adjustment does not neglect high-end products but rather aims for a more comprehensive approach to current market conditions [7][8]. - The report suggests that the focus on the "Core++" segment will create significant synergies within Budweiser APAC's overall product portfolio [7][8].

Investment Rating - The report maintains a "Buy" rating for Li Ning (2331 HK) with a target price of HK$19.30, indicating a potential upside of 16% from the current price of HK$16.68 [1][4][5] Core Views - The report projects a revenue growth of 2.2% and a decline in net profit of 3.3% for 2024, with expected revenues of RMB 28.2 billion and net profits of RMB 3.08 billion [2][5] - The company is entering a stable development phase, with a forecasted revenue increase of 3.9% to RMB 29.33 billion and a net profit increase of 6.4% to RMB 3.28 billion for 2025 [2][3] Summary by Sections Revenue and Profit Forecast - For 2024, revenue is expected to grow by 2.2% to RMB 28.2 billion, while net profit is projected to decline by 3.3% to RMB 3.08 billion [2][5] - For 2025, revenue is forecasted to increase by 3.9% to RMB 29.33 billion, and net profit is expected to rise by 6.4% to RMB 3.28 billion [2][3] Financial Data Summary - The financial data for Li Ning shows a revenue of RMB 27.6 billion for 2023, with projections of RMB 28.2 billion for 2024 and RMB 29.3 billion for 2025 [4][6] - The net profit for 2023 is recorded at RMB 3.19 billion, with expectations of RMB 3.08 billion for 2024 and RMB 3.28 billion for 2025 [4][6] Valuation and Earnings - The report maintains the earnings forecast and target price, corresponding to a P/E ratio of 14 times for 2025 [3][5] - The projected earnings per share (EPS) for 2024 is RMB 1.19, for 2025 is RMB 1.27, and for 2026 is RMB 1.34 [4][5]

Investment Rating - The report maintains a "Buy" rating for SharkNinja, Inc. with a target price of US$122.25, indicating a potential upside of 19% from the current price of US$102.70 [1][5]. Core Insights - SharkNinja has demonstrated a strong track record of product innovation and market expansion, with a revenue CAGR of 17% to 21% over the past years, reflecting its high success rate in new product launches [3]. - The company is expected to achieve double-digit revenue growth this year, with new product introductions contributing significantly to its sales [3]. - The financial outlook remains positive, with revenue and profit guidance raised to a year-on-year growth of 10%-12% and 12%-15%, respectively [4]. Financial Summary - Revenue projections for SharkNinja are as follows: - 2025E: US$6.367 billion - 2026E: US$7.241 billion - 2027E: US$8.084 billion [6][11]. - Adjusted net profit estimates are: - 2025E: US$731 million - 2026E: US$854 million - 2027E: US$976 million [6][11]. - The expected EPS for 2025 is US$5.21, increasing to US$6.09 in 2026 and US$6.96 in 2027 [6][11]. Valuation Metrics - The report maintains a target price of US$122.25, corresponding to a P/E ratio of 20x for 2026, indicating a favorable risk-reward profile [5][7]. - The company’s current P/E ratio is 19.7, which is competitive compared to its peers in the durable consumer goods sector [9]. Market Performance - SharkNinja's stock has shown a trading range between US$90 and US$110, with expectations of continued fluctuations in the near term [4]. - The company is focusing on meeting demand for its top products in North America while expanding into European markets [4]. Product Innovation - SharkNinja plans to introduce 25 new products this year, including enhancements to existing lines and new entries into beauty and kitchen appliance categories [3]. - The successful launch of products like the CryoGlow beauty device has already shown promising sales, further validating the company's innovation strategy [3]. Shareholder Information - The major shareholder, Wang Xuning, holds 48% of the company, indicating a strong insider commitment to the company's future [1]. Conclusion - Overall, the report presents a positive outlook for SharkNinja, highlighting its strong growth potential driven by innovation and market expansion, while maintaining a favorable valuation compared to peers [5][9].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$8.88, indicating a potential upside of 77% from the current price of HK$5.01 [1][4]. Core Insights - The company has achieved a significant milestone in its innovative transformation with the exclusive licensing agreement for SYS6005, a targeted ADC drug, which covers key markets including the US, Canada, UK, Australia, and the EU. The agreement includes an upfront payment of US$15 million and potential milestone payments totaling up to US$1.575 billion [1][2][7]. - SYS6005 targets ROR1, which is highly expressed in various malignancies, positioning it as a promising new "golden target" for cancer treatment. The drug's mechanism involves mediating non-canonical Wnt signaling pathways, particularly Wnt5a, which activates the NF-κB pathway in tumor cells [2][7]. - The company has rapidly advanced in the ADC development space, with nearly 10 ADC products having received clinical trial approvals, and several progressing to Phase III trials. The company also recently entered into a licensing agreement for SYS6002, targeting Nectin-4, with a total deal value close to US$700 million [3][6]. Financial Summary - The company's revenue is projected to grow from RMB 30,937 million in 2022 to RMB 32,296 million in 2025, with a slight decline expected in 2026 [6]. - Gross profit is expected to remain stable, with projections of RMB 22,256 million in 2022 and RMB 23,517 million in 2026 [6]. - Net profit attributable to shareholders is forecasted to increase from RMB 6,232 million in 2022 to RMB 6,909 million in 2026, reflecting a steady growth trajectory [6].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$60.00, representing a potential upside of 19% from the current price of HK$50.25 [1][9]. Core Insights - The stock price of the company has increased by 74% year-to-date, significantly outperforming the Hang Seng Index, which rose by 16%. This growth is attributed to a revaluation of the company's value driven by multiple factors, including renewed market interest in Chinese-made AI hardware and language models, potential benefits from domestic consumption stimulus policies, and new land use rights for expansion [7][9]. - The management's optimistic outlook includes a target to exceed overall industry growth, particularly benefiting from the recovery in demand for consumer electronics and automotive sectors. The company is well-positioned to capitalize on the trend of migrating to 28nm process technology [8][9]. Summary by Sections Investment Rating - The investment rating remains "Buy" with a target price adjustment from HK$21.30 to HK$60.00, reflecting a 182% increase in target price [2][9]. Financial Performance - Revenue estimates for 2025 have been increased to US$9,693 million, a 4% rise from previous estimates, with net profit projections raised by 69% to US$927 million [11][10]. - The expected EPS for 2025 is now US$0.12, up from US$0.07, indicating a 70% increase [2][11]. Market Position and Trends - The company is expected to benefit from favorable domestic policies and a recovering demand environment, particularly in the consumer electronics sector, with anticipated growth in smartphone, PC, and tablet demand [7][8]. - The report highlights the company's strategic advantage in the semiconductor industry, particularly in the context of local production and technological advancements [9][10]. Valuation - The valuation approach has shifted to a price-to-book (P/B) ratio of 2.85, which is a significant increase from the previous year's P/B of 1.05, indicating a strong market sentiment towards the company's future prospects [9][13].

Investment Rating - The report maintains a positive outlook on the online pharmacy sector, suggesting a "buy" rating for JD Health, with a target price of HK$42.61 [4]. Core Insights - The overall growth rate of China's retail pharmaceutical market is expected to remain low at 5-6% in 2025, with a sales scale reaching approximately 574 billion yuan in 2024, reflecting a year-on-year growth of 3.7% [1][4]. - Online pharmacies are experiencing significant growth, with sales reaching 75.8 billion yuan in 2024, marking a year-on-year increase of 14.4%, while traditional brick-and-mortar pharmacies face challenges with a closure rate of 5.7% [2][4]. - The report highlights the potential of online pharmacies, driven by changing consumer habits, policy support for prescription drug sales online, and the gradual implementation of online medical insurance payments [2][3]. Summary by Sections Market Overview - The retail pharmaceutical market in China is projected to grow at a rate of 5-6% in 2025, with the market size reaching 574 billion yuan in 2024 [1][4]. - The growth of the retail market is influenced by demographic changes, macroeconomic conditions, and healthcare reforms [1]. Channel Performance - In 2024, online pharmacies accounted for 13.2% of the market share, up from 12% in 2023, while traditional pharmacies saw a mere 2.3% growth in sales [2][4]. - The number of traditional pharmacies closing has accelerated, with 39,000 closures in 2024, indicating increased competition and declining profit margins [2]. Future Outlook - The report expresses optimism about the future of online pharmacies, anticipating continued growth due to supportive policies and increasing penetration of online medical insurance [3][4]. - The demand for flu medications in December 2024 led to a peak in sales, although overall sales for the year showed a slight decline compared to 2023 [3].

Investment Rating - The report indicates a neutral investment rating for the automotive and auto parts industry, reflecting a cautious outlook on the sector's performance in the near term [2]. Core Insights - January saw a decline in overall passenger car sales, with retail sales dropping by 12.1% year-on-year to 1.794 million units, while wholesale sales decreased by 0.3% to 2.101 million units [2]. - New energy vehicle (NEV) retail sales reached 744,000 units in January, marking a year-on-year increase of 10.5% and a penetration rate of 41.5%, up 9 percentage points from the previous year [2]. - The report highlights the launch of BYD's advanced driving system "Tian Shen Zhi Yan," indicating the arrival of a new era of affordable intelligent driving features in the market [4]. Summary by Sections Passenger Vehicle Sales - January passenger vehicle retail sales were 1.794 million units, down 12.1% year-on-year and 31.9% month-on-month [2]. - NEV retail sales were 744,000 units, with a year-on-year growth of 10.5% and a penetration rate of 41.5% [2]. - Exports of passenger vehicles reached 380,000 units, a year-on-year increase of 3% [2]. Battery Installation and Performance - The total installed capacity of power and energy storage batteries in January was 80.4 GWh, a year-on-year increase of 40.8% [3]. - Power battery sales were 62.9 GWh, with a year-on-year growth of 24.6% [3]. - The average energy capacity of new energy vehicles was 48.5 kWh, showing a month-on-month decrease of 1.9% [3]. Intelligent Driving Technology - BYD's "Tian Shen Zhi Yan" system is segmented into three versions, aiming to integrate intelligent driving features into more affordable vehicle models [4]. - The report anticipates that models priced above 100,000 yuan will increasingly include basic intelligent driving functionalities, intensifying market competition [4].

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group with an updated target price of HK$52.00, reflecting a P/E ratio of 38.5 times the adjusted EPS for 2025 [2][6][21]. Core Insights - The report anticipates strong performance in Q4 2024, with revenue expected to exceed RMB 100 billion for the first time, reaching RMB 105 billion, a year-on-year increase of 43% [4][14]. - Key growth drivers for 2025 include national consumption subsidy policies, expansion in electric vehicle (EV) production capacity, and the monetization of CEO Lei Jun's personal brand [5][19]. - The report emphasizes that Xiaomi's strong financial performance from 2024 to 2025 marks the beginning of a structural growth phase rather than a cyclical recovery peak [5][21]. Financial Summary - Revenue projections for Xiaomi are as follows: - 2024E: RMB 361.95 billion - 2025E: RMB 444.69 billion - 2026E: RMB 487.60 billion - Adjusted net profit estimates are: - 2024E: RMB 25.96 billion - 2025E: RMB 31.62 billion - 2026E: RMB 38.52 billion [7][18][24]. Segment Performance - Smartphone revenue is projected to reach RMB 206.99 billion in 2025, with a year-on-year growth of 9% [16]. - IoT and lifestyle products are expected to generate RMB 121.74 billion in 2025, reflecting a 18% increase [16]. - The electric vehicle segment is forecasted to grow significantly, with revenues projected at RMB 76.19 billion in 2025, marking a 136% increase [16]. Adjustments and Forecasts - The report revises revenue forecasts upward by 2%-5% for 2024-2026, driven by higher expectations for IoT and EV segments [5][18]. - Adjusted net profit forecasts have been increased by 4%-21% for the same period, with a projected CAGR of 22% from 2024 to 2026 [5][18]. Valuation - The updated target price reflects a 53% increase from the previous target of HK$34.00, based on a higher adjusted net profit estimate of RMB 316.24 billion for 2025 [6][19]. - Xiaomi's current trading price shows a slight discount compared to Apple, despite faster revenue and profit growth [6][19].

Investment Rating - The report maintains an "overweight" rating for the Chinese healthcare industry [2][3]. Core Insights - The healthcare reform aims to empower the pharmaceutical industry chain and promote healthy industry development [3]. - The implementation of healthcare reform will further improve the medical security system, enhancing the efficiency and quality of healthcare services [3]. - Key reforms include instant settlement between medical insurance and designated medical institutions, direct settlement for collected drugs and medical supplies, and a unified national review process for drug listings [1][2]. Summary by Sections Instant Settlement - The push for instant settlement between medical insurance and designated medical institutions is a significant step towards improving service efficiency. By the end of 2025, approximately 80% of coordinated areas nationwide are expected to achieve this service [1]. - The realization of instant settlement relies on the construction of healthcare information platforms and the improvement of data sharing mechanisms, which will significantly shorten the payment cycle of healthcare funds [1]. Direct Settlement - The direct settlement policy for collected drugs and medical supplies will accelerate the cash flow for pharmaceutical companies and reduce operational costs [2]. - This policy is a key measure for optimizing the business environment in the healthcare sector [2]. National Review Process - The establishment of a unified national portal for drug listing applications will simplify the process, allowing companies to submit materials once for verification across multiple provinces, thus reducing administrative costs and speeding up market access for new products [2]. - This initiative is expected to enhance the market competitiveness of pharmaceutical products and promote innovation to meet patient demands for new and specialty drugs [2].

Investment Rating - The report maintains a "Buy" rating for Smoore International with a target price of HK$16.50, indicating an upside potential of 18% from the current price of HK$13.98 [1][10][16]. Core Insights - Smoore International is expected to face short-term performance pressure due to competition from illegal products, particularly in the U.S. market, which may lead to a slowdown in revenue growth [7][10]. - The launch of the GloHilo product by British American Tobacco, which is exclusively supplied by Smoore, could provide a long-term growth opportunity for the company [6][10]. - The revenue and profit forecasts for 2024-2026 have been adjusted downward due to the anticipated prolonged negative impact from illegal e-cigarette products and increased price competition [13][14]. Summary by Sections Investment Rating - The investment rating remains "Buy" with a revised target price of HK$16.50, up from HK$11.80, reflecting a 40% increase [2]. Financial Adjustments - The target price has been increased to HK$16.50 from HK$11.80, while the 2024E EPS has been reduced by 20% to RMB 0.23, and the 2025E EPS has been cut by 33% to RMB 0.24 [2][14]. - Revenue estimates for 2024E and 2025E have been adjusted to RMB 11,761 million and RMB 12,857 million, respectively, reflecting a decrease of 12% and 15% from previous estimates [5][14]. Market Performance - Smoore's stock price has shown fluctuations, with a 52-week high of HK$15.26 and a low of HK$4.89, indicating significant volatility in the market [1]. Growth Opportunities - The GloHilo product launch is seen as a potential driver for long-term growth, especially if it successfully penetrates larger markets like Japan and the EU [6][8]. - The global HNB market is projected to be valued at USD 17 billion in 2024, with Smoore's involvement in this segment expected to enhance its profitability significantly [16]. Financial Projections - The adjusted net profit for 2024 is projected to decline by 18.6%, with revenue growth expected to slow to 5.3% [7][13]. - The report anticipates that HNB products will not significantly contribute to Smoore's revenue until 2026, with modest growth expected in the interim [8][10].