Investment Rating - The report assigns a "Buy" rating for Tencent Holdings (700 HK) with a target price of HKD 583.00, indicating a potential upside of 16.1% from the current price of HKD 502.00 [1][4][31]. Core Insights - Tencent's evergreen games contribute approximately 20% to the total revenue, with a significant focus on MOBA and shooting genres, showing strong overseas growth that outpaces the industry [2][8]. - The company is expected to maintain its leading position in the gaming industry, with a projected 9% revenue growth in 2025, contributing 30% to total revenue [17][22]. - Tencent's market share in the domestic market remains stable at around 55%, while overseas gaming revenue is expected to grow at a compound annual growth rate of 11% from 2022 to 2024 [22][24]. Financial Overview - Revenue projections for Tencent are as follows: - 2023: RMB 609,015 million - 2024: RMB 660,257 million - 2025E: RMB 713,818 million - 2026E: RMB 767,880 million - 2027E: RMB 818,920 million - The year-on-year growth rates are projected to be 9.8% for 2023, 8.4% for 2024, and gradually declining to 6.6% by 2027 [3][32]. - Net profit estimates are as follows: - 2023: RMB 157,688 million - 2024: RMB 222,703 million - 2025E: RMB 244,774 million - 2026E: RMB 268,648 million - 2027E: RMB 289,453 million - Earnings per share are projected to increase from RMB 16.33 in 2023 to RMB 31.91 in 2027 [3][32]. Game Performance and Strategy - Tencent's evergreen games are expected to maintain a strong revenue contribution, with 12 to 14 titles projected for 2023/24, generating an estimated RMB 1,300 to 1,400 billion in revenue [8][11]. - The company has a robust pipeline of new games, with over 25 titles in development, many based on popular IPs, which are expected to foster the growth of more evergreen games [11][12]. - The anticipated performance of new titles such as "Dungeon & Fighter: Origin" and "Delta Force" is expected to significantly contribute to revenue streams [11][12]. Market Position - Tencent's gaming division is expected to see a revenue increase of 9% in 2025, with domestic and overseas games projected to grow by 8% and 12% respectively [17][22]. - The report highlights the differentiation in game genres among competitors, with Tencent focusing on MOBA and shooting games, while others like NetEase and miHoYo target MMORPG and RPG genres [14][15].

Investment Rating - The report maintains a "Buy" rating for Yadea Group Holdings (1585 HK) with a target price raised to HKD 19.84, indicating a potential upside of 32.6% from the current price of HKD 14.96 [2][3][8]. Core Insights - Yadea Group is expected to benefit from the new national standards and the "trade-in" policy, which are anticipated to drive the two-wheeler industry into a new cycle. Despite a decline in revenue and net profit for 2024 due to inventory destocking and the transition between old and new standards, Yadea is positioned as an industry leader with enhanced technology, channels, and product strength [2][5]. - The company is focusing on high-end products, aiming for over 50% of its sales to come from this segment by 2025. The introduction of sodium-ion battery products is expected to enhance product competitiveness [5][10]. - Yadea's overseas sales are projected to grow significantly, with expectations of exporting 40,000 units in 2025, increasing to 160,000 units by 2027 [5][10]. Financial Summary - For 2024, Yadea's revenue is projected at RMB 28.236 billion, a decrease of 18.8% year-on-year, with a net profit of RMB 1.521 billion, down 51.8% [5][10]. - Revenue forecasts for 2025, 2026, and 2027 are RMB 37.865 billion, RMB 41.507 billion, and RMB 45.338 billion respectively, with net profits expected to be RMB 3.023 billion, RMB 3.518 billion, and RMB 3.967 billion [4][10]. - The gross profit margin is expected to improve from 15.2% in 2024 to 18.6% in 2025, reflecting a recovery in profitability [5][10].

Investment Rating - The investment rating for the company is "Buy" with a target price raised to HKD 64.00, indicating a potential upside of 12.7% from the current price of HKD 56.80 [4][27]. Core Insights - The company's Q4 performance met expectations, with total revenue and adjusted net profit reaching RMB 35.4 billion and RMB 4.7 billion respectively, reflecting year-on-year growth of 9% and 8% [2][8]. - The report highlights the acceleration of commercialization for the company's AI product, "可灵", which has generated RMB 100 million in revenue as of February [8]. - Revenue growth is projected to continue, with expectations of a 12% increase in 2025, driven by e-commerce GMV growth of 13% and online marketing revenue growth of 14% [8]. Financial Overview - Revenue projections for the company are as follows: RMB 113.47 billion in 2023, RMB 126.90 billion in 2024, RMB 141.64 billion in 2025, RMB 152.94 billion in 2026, and RMB 164.07 billion in 2027, with corresponding year-on-year growth rates of 20.5%, 11.8%, 11.6%, 8.0%, and 7.3% [3][28]. - Net profit is expected to rise from RMB 10.27 billion in 2023 to RMB 28.59 billion in 2027, with adjusted net profit projected at RMB 20.16 billion in 2025 [3][28]. - The company's earnings per share (EPS) are forecasted to increase from RMB 2.31 in 2023 to RMB 6.55 in 2027, with a significant jump to RMB 4.60 in 2025 [3][28]. Market Performance - The stock has shown a year-to-date increase of 37.36% and has a market capitalization of approximately HKD 202.49 billion [6][8]. - The stock's 52-week high and low are HKD 66.35 and HKD 38.15 respectively, indicating a strong recovery from its lows [6]. Business Segments - E-commerce GMV grew by 14% year-on-year, with the number of active merchants increasing by over 25% [8]. - Online marketing revenue increased by 13%, primarily driven by external advertising, while live streaming revenue saw a slight decline of 2% [8]. - The local life services segment reported a significant increase, with monthly payment users and GMV growing by 52% and 100% respectively [8].

Investment Rating - The investment rating for the company is Neutral [2][19]. Core Views - The company is expected to see a recovery in performance in the second half of 2024, with revenue and adjusted net profit projected to grow by 9.6% and 1.8% year-on-year, respectively. Revenue growth excluding COVID-related projects is anticipated to be 13.1% [6][21]. - The target price has been raised to HKD 25.00, reflecting a potential downside of 3.5% from the current price of HKD 25.90 [1][19]. Financial Overview - Revenue projections for the company are as follows: - 2023: RMB 17,034 million - 2024: RMB 18,675 million (11.6% growth) - 2025E: RMB 21,417 million (14.7% growth) - 2026E: RMB 25,299 million (18.1% growth) - 2027E: RMB 28,918 million (14.3% growth) [5][21]. - Net profit estimates are: - 2023: RMB 3,837 million - 2024: RMB 4,097 million - 2025E: RMB 5,051 million (43.7% growth) - 2026E: RMB 6,580 million (30.3% growth) - 2027E: RMB 7,788 million (18.4% growth) [5][21]. - The company’s market capitalization is approximately HKD 106.37 billion, with a year-to-date stock price change of 47.49% [4][21]. Business Performance - The company added 151 comprehensive projects in the year, with 90 in the second half and 61 in the first half of 2024. The CRDMO industry is showing signs of improvement [6][21]. - The backlog of uncompleted orders reached USD 18.5 billion at the end of 2024, a decrease of 10% year-on-year, primarily due to the termination of a Merck vaccine project [6][21]. - The management has guided for a revenue growth of 12-15% in 2025, driven by existing orders and pipeline conversions [6][21]. Valuation Metrics - The company is currently trading at a price-to-earnings (P/E) ratio of 21 times the 2025 earnings and a price-to-earnings growth (PEG) ratio of 1.1 [6][21]. - The projected earnings per share (EPS) for 2025 is RMB 1.18, with a corresponding P/E ratio of 20.5 [5][21]. Market Context - The biotechnology financing environment is showing signs of recovery, which is expected to support the company's growth trajectory [11][21]. - The company operates in a competitive landscape, with external uncertainties still present, making the current valuation reasonable [6][21].

Investment Rating - The report maintains a "Buy" rating for Yadea Group Holdings (1585 HK) with a target price raised to HKD 19.84, indicating a potential upside of 32.6% from the current price of HKD 14.96 [2][3][8]. Core Insights - Yadea Group is expected to benefit from the new national standards and the "trade-in" policy, which are anticipated to drive the two-wheeler industry into a new cycle. Despite a decline in revenue and net profit for 2024 due to inventory destocking and the transition between old and new standards, Yadea is positioned as an industry leader with enhanced technology, channels, and product strength [2][5]. - The company is focusing on high-end products, aiming for over 50% of its sales to come from this segment by 2025. The introduction of sodium-ion battery products is expected to enhance product competitiveness [5][10]. - Yadea's overseas sales are projected to grow significantly, with expectations of exporting 40,000 units in 2025, 80,000 in 2026, and 160,000 in 2027 [5][10]. Financial Summary - For 2024, Yadea's revenue is projected at RMB 28.236 billion, a decrease of 18.8% year-on-year, with a net profit of RMB 1.521 billion, down 51.8% [5][10]. - Revenue forecasts for 2025, 2026, and 2027 are RMB 37.865 billion, RMB 41.507 billion, and RMB 45.338 billion respectively, with net profits expected to be RMB 3.023 billion, RMB 3.518 billion, and RMB 3.967 billion [4][10]. - The gross profit margin is expected to improve to 18.6% in 2025, with a gradual increase to 19.5% by 2027 [4][10].

Investment Rating - The report assigns a "Buy" rating for the company Kuaishou (1024 HK) with a target price raised to HKD 64.00, indicating a potential upside of 12.7% from the current price of HKD 56.80 [4][27]. Core Insights - The fourth quarter performance met expectations, with total revenue and adjusted net profit reaching RMB 35.4 billion and RMB 4.7 billion respectively, reflecting year-on-year growth of 9% and 8% [2][8]. - The report highlights the acceleration of commercialization for Kuaishou's AI capabilities, with a focus on increasing investment in inference computing power and R&D talent, which may impact profit margins by 1-2 percentage points [8]. - Revenue growth projections for 2025 are maintained at 12%, driven by e-commerce GMV growth of 13% and online marketing revenue growth of 14% [8]. Financial Overview - Revenue is projected to grow from RMB 113.47 billion in 2023 to RMB 164.07 billion by 2027, with a compound annual growth rate (CAGR) of approximately 11.8% [3][28]. - Net profit is expected to increase from RMB 10.27 billion in 2023 to RMB 28.59 billion in 2027, with adjusted net profit margins remaining stable around 14% [3][28]. - The report notes a decrease in the forecasted EPS for 2025 by 8% to RMB 4.60, reflecting adjustments in profit expectations [8]. Business Segments - E-commerce GMV grew by 14% year-on-year, with a significant increase in the number of active merchants [8]. - Online marketing revenue increased by 13%, primarily driven by external advertising, while live streaming revenue saw a slight decline of 2% [8]. - The local life services segment showed strong growth, with monthly payment users and GMV increasing by 52% and 100% respectively [8]. Valuation and Market Performance - The report maintains a valuation premium for Kuaishou based on its leading AI video generation capabilities, applying a 13x P/E ratio for the 2025 estimates [8]. - The stock has shown a year-to-date increase of 37.36%, with a 52-week high of HKD 66.35 and a low of HKD 38.15 [6][27].

Investment Rating - The report assigns a "Buy" rating for Tencent Holdings (700 HK) with a target price of HKD 583.00, indicating a potential upside of 16.1% from the current price of HKD 502.00 [4][31]. Core Insights - Tencent's evergreen games contribute approximately 20% to the total revenue, with a significant focus on MOBA and shooting genres, showing strong overseas growth that outpaces the industry [2][8]. - The company is expected to maintain its leading position in the gaming industry, with a projected 9% revenue growth in 2025, contributing 30% to total revenue [17][22]. - Tencent's market share in the domestic market remains stable at around 55%, while overseas gaming revenue is expected to grow at a compound annual growth rate of 11% from 2022 to 2024, surpassing the overall market growth of 7% [22][24]. Financial Overview - Revenue projections for Tencent are as follows: - 2023: RMB 609,015 million - 2024: RMB 660,257 million (up 8.4% YoY) - 2025E: RMB 713,818 million (up 8.1% YoY) - 2026E: RMB 767,880 million (up 7.6% YoY) - 2027E: RMB 818,920 million (up 6.6% YoY) [3][32]. - Net profit estimates are: - 2023: RMB 157,688 million - 2024: RMB 222,703 million (up 44.1% YoY) - 2025E: RMB 244,774 million (up 12.0% YoY) - 2026E: RMB 268,648 million (up 11.3% YoY) - 2027E: RMB 289,453 million (up 8.9% YoY) [3][32]. Game Performance and Strategy - Tencent's evergreen games are projected to generate a total revenue of approximately RMB 1,300-1,420 million in 2024, with a significant contribution from new titles like "Dungeon & Fighter: Origin" and "Delta Force" [7][11]. - The company has a robust pipeline of over 25 upcoming games, primarily based on popular IPs, which are expected to enhance its evergreen game portfolio [11][27]. - The report highlights the differentiation in game genres among competitors, with Tencent focusing on MOBA and shooting games, while other companies like NetEase and miHoYo target MMORPG and RPG genres respectively [14][15].

Investment Rating - The investment rating for WuXi Biologics (2269 HK) is Neutral [2][19]. Core Views - The report indicates a recovery in performance for the second half of 2024, with strong margin improvements across the three main business segments of RDM [6]. - The target price has been raised to HKD 25.00, reflecting a potential downside of 3.5% from the current price of HKD 25.90 [1][6]. Financial Overview - Revenue projections for WuXi Biologics are as follows: - 2023: RMB 17,034 million - 2024: RMB 18,675 million (growth of 9.6%) - 2025E: RMB 21,417 million (growth of 14.7%) - 2026E: RMB 25,299 million (growth of 18.1%) - 2027E: RMB 28,918 million (growth of 14.3%) [5][21]. - Net profit estimates are: - 2023: RMB 3,837 million - 2024: RMB 4,097 million - 2025E: RMB 5,051 million (growth of 43.7%) - 2026E: RMB 6,580 million (growth of 30.3%) - 2027E: RMB 7,788 million (growth of 18.4%) [5][21]. - The company expects a revenue growth of 12-15% in 2025, driven by existing orders and pipeline conversions [6]. Market Performance - The stock has shown a year-to-date increase of 47.49% [4]. - The 52-week high and low for the stock are HKD 28.50 and HKD 10.26, respectively [4]. Business Segments - The report highlights that the antibody/protein business has demonstrated resilience amid external fluctuations, with a total of 151 new integrated projects added in the year [6]. - The report notes that the North American market recorded a high growth rate of 32.5%, while Europe and mainland China showed low single-digit growth [6]. Valuation Metrics - The current stock price corresponds to a P/E ratio of 21 times the 2025 earnings and a PEG ratio of 1.1 [6]. - The report emphasizes that despite positive free cash flow, the company plans to invest and repurchase shares, which may limit dividend payouts [6].

Investment Rating - The report maintains a "Buy" rating for the company 康诺亚 (2162 HK) with a target price adjusted to HKD 57.00, indicating a potential upside of 42.7% from the closing price of HKD 39.95 [2][3][12]. Core Insights - 康诺亚 is expected to achieve sales of RMB 500 million in its first year, driven by multiple competitive advantages such as multi-indication approvals and superior clinical data compared to competitors [3][7]. - The company has a robust cash reserve of RMB 2.16 billion, which is projected to support stable development over the next three years [7]. - The sales growth for 康悦达 (the company's product) is anticipated to be propelled by its approval for multiple indications, a well-established commercialization team, and effective market access strategies [7][8]. Financial Forecasts - Revenue projections for 2025 are set at RMB 689 million, reflecting a decrease of 12.6% from previous estimates, with further declines expected in 2026 and 2027 [6][13]. - The gross profit for 2025 is forecasted at RMB 478 million, with a gross margin of 69.5%, down from 74.4% in prior estimates [6][13]. - The net loss for 2025 is projected to be RMB 870 million, widening from RMB 840 million in the previous forecast [6][13]. Market Position and Strategy - 康诺亚 has established a commercialization team of approximately 300 personnel, effectively covering over 1,100 hospitals across more than 220 cities [7]. - The company is expected to submit applications for additional indications in the first half of 2025, which could further enhance its market presence [7]. - Despite competitive pricing pressures, 康诺亚 is positioned to leverage its superior efficacy data to capture market share [7].

Investment Rating - The report assigns a "Buy" rating to the company 京能清洁能源 (579 HK) with a target price of HKD 2.46, indicating a potential upside of 20.6% from the current price of HKD 2.04 [1][14]. Core Insights - The company is expected to achieve a net profit of RMB 3.34 billion in 2024, reflecting a year-on-year increase of 6.1%, which is 15% higher than previous expectations. This is attributed to higher-than-expected compensation for shut-down hydropower projects, reduced operational costs for wind and solar projects, and a 7% decrease in financial expenses [6][15]. - The company plans to maintain a generous dividend of RMB 0.14 per share, which is a 2% increase year-on-year [6]. - The company has a total renewable energy capacity target of 21 GW by 2025, with a current construction of 2.1 GW. The ability to meet this target will be assessed in the upcoming half-year report [6][15]. Financial Overview - Revenue projections for the company are as follows: RMB 20.45 billion in 2023, RMB 20.56 billion in 2024, and RMB 21.88 billion in 2025, with a compound annual growth rate (CAGR) of 11% expected from 2024 to 2027 [3][15]. - The net profit is projected to grow from RMB 3.15 billion in 2023 to RMB 4.55 billion in 2027, with a steady increase in earnings per share from RMB 0.37 in 2023 to RMB 0.54 in 2027 [3][15]. - The company maintains a dividend yield of 7.5% for 2025 and 2026, which is considered attractive for investors [6][15]. Operational Data - The company’s installed capacity is expected to grow significantly, with wind power capacity increasing from 5,566 MW in 2023 to 11,958 MW by 2027, and solar power capacity from 3,818 MW to 10,368 MW in the same period [8][9]. - The proportion of wind and solar power in the total energy mix is projected to rise from 64.7% in 2023 to 81.2% by 2027 [8]. Market Position - The company is positioned favorably within the renewable energy sector, with a focus on wind and solar energy, which are expected to dominate its energy production in the coming years [6][15].