Investment Rating - The report maintains a "BUY" rating for New Hope Services with a target price of HK$2.79, reflecting an upside potential of 86.9% from the current price of HK$1.49 [1][3]. Core Insights - New Hope Services reported a net profit (NP) increase of 6% year-on-year (YoY) for FY23, with earnings slightly below expectations. The company achieved revenue growth of 10.7% YoY, totaling RMB1,261 million [1][6]. - The company raised its dividend payout ratio to 60% from 48% in FY22, resulting in a dividend yield of 12%, which positively impacted the share price by 6% following the announcement [1][6]. - New Hope Services has a strong cash position, with a cash balance of RMB1.15 billion, exceeding its market capitalization of HK$1.21 billion, indicating robust cash collection capabilities [1][3]. Financial Performance - FY23 revenue was RMB1,261 million, up 10.7% YoY, while net profit reached RMB215 million, reflecting a 6% increase YoY. The net profit margin slightly decreased to 17.1% [1][6]. - The gross profit margin narrowed to 34.9%, down 2.9 percentage points, attributed to increased competition in the third-party market and the exit from higher-margin non-owner value-added services [1][6]. - The company anticipates revenue growth of 10-20% and net profit growth of 5-10% in the upcoming periods [1][6]. Operational Highlights - The Basic Property Management segment's revenue contribution increased to 37.9% in FY23 from 31.3% in FY22, with expectations to stabilize around 40% [1][6]. - The catering services business experienced significant growth, achieving a 44% YoY revenue increase in FY23 and securing three new contracts valued at RMB65 million in Q1 2024 [1][6]. Valuation Metrics - The company is currently trading at a price-to-earnings (P/E) ratio of 5x for 2024E, while the target price is based on a P/E of 8x for 2024E [1][3]. - The report indicates a projected P/E of 4.6 for FY23, with a forecasted P/E of 4.8 for FY24 [2][12].

Investment Rating - The report maintains a "Buy" rating for the company, with the target price currently under review [1][3][16]. Core Insights - The company reported a revenue and net profit growth of 5.9% and 15.3% year-on-year for 2H23, respectively. Excluding the impact of the merger with Miaokelando, the comparable revenue growth for the year was 2.9% [1]. - The dividend payout ratio has increased from 30% to 40%, indicating a positive outlook on cash flow and profitability [1]. - The company aims for revenue growth in the low to mid-single digits for 2024, with an operational profit margin improvement target of 30-50 basis points [1]. - Despite a slowdown in industry growth, the company is focusing on high-quality development and optimizing its product mix, particularly in high-end liquid milk and cheese segments [1]. Financial Summary - For FY23E, the company expects sales revenue of RMB 99,315 million, with a year-on-year growth of 7.3%. The net profit is projected to be RMB 5,883.2 million, reflecting a 10.9% increase [2][9]. - The company anticipates a continued improvement in gross margin, with a forecasted gross profit of RMB 36,151 million for FY23E, translating to a gross margin of 36.4% [9][13]. - The earnings per share (EPS) for FY23E is estimated at RMB 1.49, with a price-to-earnings (P/E) ratio of 11.8 [2][9]. Business Strategy - The company has identified that a price-for-volume strategy is not suitable for current development, emphasizing the importance of maintaining quality [1]. - The company plans to enhance its digital marketing and channel strategies to adapt to changing consumer behaviors, particularly in the cheese segment [1]. - The company is cautious about expanding overseas due to geopolitical risks, despite strong growth in its Southeast Asian ice cream business [1].

Investment Rating - Maintain BUY rating for WuXi Biologics with a target price of HK$18.32, down from HK$39.65, reflecting geopolitical uncertainties [2][3]. Core Insights - WuXi Biologics reported 2023 revenue of RMB17.03 billion, an increase of 11.6% year-over-year, while attributable net income decreased by 23.1% to RMB3.40 billion [2]. - Excluding COVID-related revenue, total revenue would have increased by 37.7% year-over-year, with late-stage and CMO project revenue surging by 101.7% [2]. - The company anticipates total revenue growth of 5-10% year-over-year and non-COVID revenue growth of 8-14% for 2024 [2]. - The backlog stood at US$20.59 billion at the end of 2023, with a 6.4% year-over-year increase in backlog within three years [2]. Revenue and Profitability - Revenue from the European market grew by 101.9% year-over-year, contributing 30.2% to total revenue, indicating a strong demand from clients [2][3]. - Non-COVID revenue from Europe, North America, and other regions (excluding China) grew by 172.4%, 20.2%, and 37.7% year-over-year, respectively [2]. - Non-COVID revenue in China slightly declined by 1.2% year-over-year due to biotech funding constraints [2]. Financial Projections - Revenue projections for 2024E, 2025E, and 2026E are RMB17.91 billion, RMB20.35 billion, and RMB23.19 billion, respectively, with year-over-year growth rates of 5.2%, 13.6%, and 13.9% [3][7]. - Adjusted net profit is expected to increase to RMB5.05 billion, RMB5.78 billion, and RMB6.59 billion for 2024E, 2025E, and 2026E, with growth rates of 7.5%, 14.5%, and 13.9% [3][7]. Share Buyback - WuXi Biologics initiated a share repurchase plan valued at up to US$600 million, with 34.8 million H-shares repurchased by the end of 2023 [2][3]. - The company has the capacity to repurchase shares valued at approximately US$346 million, representing about 4.6% of its latest market capitalization [2].

Investment Rating - The report maintains a "BUY" rating for Zhihu with a target price adjusted to US$1.8, reflecting a potential upside of 153.5% from the current price of US$0.71 [4][24]. Core Insights - Zhihu's 4Q23 results exceeded expectations with a revenue increase of 2.2% YoY, driven by strong performance in marketing services and vocational training, while the adjusted net loss narrowed to RMB91 million [2][3]. - For FY24E, the management is prioritizing margin improvement and has set a breakeven target for 4Q24E, despite forecasting a 10% decline in total revenue [2][3]. - The company is expected to leverage its user data and analytics capabilities to benefit from AIGC trends, while focusing on high-margin vocational training subjects [2][3]. Financial Summary - Revenue for FY23 was RMB4,199 million, with a forecasted decline to RMB3,798 million in FY24E, followed by a slight recovery to RMB4,089 million in FY25E [20]. - Adjusted net profit is projected to improve from a loss of RMB659.1 million in FY23 to a loss of RMB226.1 million in FY24E, with a return to profitability expected in FY25E [20][21]. - The gross margin is expected to remain stable at around 54.6% in FY24E, with operating margins improving as the company focuses on cost discipline [20][22]. Revenue Breakdown - The revenue forecast for FY24E includes a 20% decline in marketing services, while membership revenue is expected to remain flat and vocational training revenue is projected to grow by 5% [2][3]. - The company has repurchased 26.3 million Class A ordinary shares for US$58.5 million as part of its buyback program [2][3]. Market Position - Zhihu is well-positioned to capture growth opportunities in the AIGC sector, leveraging its extensive user data and analytics capabilities [2][3]. - The company is focusing on strategic adjustments to its business model, particularly in its marketing services and vocational training segments, to enhance profitability [2][3].

Investment Rating - The report maintains a "BUY" rating for Kelun-Biotech [2][4][17]. Core Insights - Kelun-Biotech recorded RMB1.54 billion in revenue for FY23, primarily from licensing and collaboration agreements with MSD, with a significant upfront payment of RMB1.21 billion received in March 2023 [2][11]. - The company expects to receive over US$100 million in payments from MSD in FY24, indicating strong future revenue potential [2]. - The net loss for FY23 decreased to RMB574 million from RMB616 million in FY22, showing improvement in financial performance [2][11]. - SKB264 is anticipated to unlock commercial value upon approval in China in the second half of 2024, with ongoing clinical trials expected to validate its global potential [2][3]. - The company is preparing for domestic commercialization by building a commercial team, expected to grow to approximately 500 employees by the end of 2024 [2][4]. Financial Summary - Revenue for FY23 was RMB1.54 billion, a 91.6% increase year-over-year, while FY24 revenue is projected to decline by 40.4% to RMB918 million [3][11]. - R&D expenses increased by 21.9% year-over-year to RMB1.03 billion in FY23, reflecting the company's commitment to advancing its clinical trials [2][11]. - The company had a cash balance of RMB2.53 billion at the end of 2023, providing a solid financial foundation for ongoing operations [2][11]. Clinical Development - SKB264's NDA for 3L+ TNBC has been under review since December 2023, with approval expected in 2H24 [2]. - The company has initiated a Phase 3 trial for SKB264 in 1L TNBC treatment and plans to start pivotal trials in various indications, including NSCLC and HR+/HER2- BC [2][6]. - MSD is actively registering multiple global Phase 3 trials for SKB264, enhancing its development prospects [2][6]. Valuation - The report revises the DCF-based target price from HK$189.25 to HK$200.77, reflecting a potential upside of 25% from the current price of HK$160.60 [4][9].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 57.14, indicating a potential upside of 34.4% from the current price of HKD 42.50 [1][3][17]. Core Insights - The company achieved a revenue of RMB 3.52 billion in 2023, a year-on-year increase of 49.0%, surpassing Bloomberg consensus estimates by 3% [1]. - The net profit attributable to shareholders reached RMB 1.45 billion, reflecting a 44.9% year-on-year growth, exceeding Bloomberg consensus estimates by 6% [1]. - The strong performance is attributed to the robust growth of the "可复美" brand, particularly in functional skincare products, which saw a revenue increase of 69.5% to RMB 2.65 billion, accounting for 75.1% of total revenue [1]. - The company has initiated its first dividend payout, planning to distribute a final dividend of RMB 0.44 per share and a special dividend of RMB 0.45 per share, resulting in a total payout ratio of 61% [1]. Financial Performance Summary - **Revenue**: The company reported a revenue of RMB 3,524 million for FY23, with projections of RMB 4,602 million for FY24, RMB 5,865 million for FY25, and RMB 7,377 million for FY26, indicating a growth trajectory [2][12]. - **Net Profit**: The net profit for FY23 was RMB 1,452 million, with estimates of RMB 1,711 million for FY24, RMB 2,150 million for FY25, and RMB 2,637 million for FY26 [2][12]. - **Gross Margin**: The gross margin for FY23 was 83.6%, with a slight decline expected to 83.0% in FY24 [2][12]. - **Earnings Per Share (EPS)**: The EPS for FY23 was RMB 1.49, projected to increase to RMB 1.72 for FY24, RMB 2.16 for FY25, and RMB 2.65 for FY26 [2][12]. Market Position and Strategy - The company is focusing on expanding its online sales channels, with direct sales revenue growing by 72.7% to RMB 2.42 billion, representing 68.7% of total revenue [1]. - The "可复美" brand continues to show strong growth, with its core product, collagen sticks, contributing significantly to sales [1]. - The company is expected to maintain a strong online presence, which is anticipated to drive further growth in the coming years [1].

M N 27 Mar 2024 CMB International Global Markets | Equity Research | Company Update Weichai Power (000338 CH) Key takeaways from post-results call Target Price RMB20.40 During the post-results call yesterday, Weichai expected the industry HDT (Previous TP RMB20.40) demand in 2024E will be ~900k units (-2% YoY). Of this, China demand is Up/Downside 23.6% expected to fall by 10% YoY to 600k units while exports are expected to grow Current Price RMB16.51 20% YoY to 300k units. Weichai expects the LNG price to ...

M N 27 Mar 2024 CMB International Global Markets | Equity Research | Company Update Weichai Power (000338 CH) Key takeaways from post-results call Target Price RMB20.40 During the post-results call yesterday, Weichai expected the industry HDT (Previous TP RMB20.40) demand in 2024E will be ~900k units (-2% YoY). Of this, China demand is Up/Downside 23.6% expected to fall by 10% YoY to 600k units while exports are expected to grow Current Price RMB16.51 20% YoY to 300k units. Weichai expects the LNG price to ...

M N 26 Mar 2024 CMB International Global Markets | Equity Research | Company Update Weichai Power (000338 CH) 4Q23 net profit +58% YoY; Payout increased to 50%; Higher earnings forecast on margin Target Price RMB20.40 Weichai’s net profit in 2023 surged 84% YoY to RMB9bn, which is in line with (Previous TP RMB17.80) the profit range of RMB8.58-9.32bn announced in Jan. In 4Q23, net profit grew Up/Downside 25.4% 58% YoY to RMB2.5bn. It’s worth noting that Weichai has declared a final Current Price RMB16.27 di ...

+M N 26 Mar 2024 CMB International Global Markets | Equity Research | Company Update Jiumaojiu (9922 HK) Resilient margin in 2H23 with positive outlook Target Price HK$8.39 Maintain BUY and raise TP to HK$8.39 (we now assume a gradual improvement in SSS recovery rate onwards as the group is rolling out more new initiatives (Previous TP HK$7.05) this year). We are still cautious about catering sector, but JMJ’s numbers have Up/Downside 49.9% stabilized lately. A rebound in share price is possible given undem ...