Investment Rating - The report initiates a BUY rating on 361 Degrees with a target price (TP) of HK$6.23, based on a 10x FY24E P/E ratio, indicating a potential upside of 43.5% from the current price of HK$4.34 [4]. Core Insights - The report highlights a turnaround driven by star products and sponsorships, forecasting a 16% sales CAGR and a 20% net profit CAGR from FY22 to FY25, compared to previous growth rates of 7% and 20% from FY19 to FY22 [2][27]. - 361 Degrees is positioned as the 4th-largest domestic sportswear brand in China, with a market share of 3.1% in 2022 and a robust store network of approximately 5,480 adult stores and 2,288 kids stores [2][19]. Summary by Sections Company Overview - 361 Degrees is recognized as the 4th-largest domestic sportswear company in China, established in 2003 and listed on the HKEX in 2008, with significant sales and net profit figures of RMB7.0 billion and RMB747 million in FY22 [19][23]. Key Positives and Growth Drivers - The brand's successful rebranding strategy initiated in 2019 has led to improved market share and financial performance, with retail sales growth accelerating since FY21 [27][28]. - Significant improvements in product offerings, particularly in running and basketball segments, have been noted, with a focus on R&D and innovative designs [41][53]. - The e-commerce segment has shown remarkable growth, with a sales CAGR of 23% from FY19 to FY22, and is expected to continue its upward trajectory [38][35]. Financial Forecast - Revenue is projected to grow from RMB6.96 billion in FY22 to RMB10.97 billion by FY25, with net profit expected to increase from RMB747 million to RMB1.27 billion over the same period [3][9]. - The report anticipates a P/E ratio decline from 9.0x in FY22 to 6.2x by FY25, indicating an attractive valuation compared to industry averages [3][4]. Market Position and Strategy - The company has effectively utilized sponsorships and endorsements to enhance its professional image and connect with younger consumers, which is crucial for market share expansion [59][60]. - The strategic focus on lower-tier cities has been beneficial, as these markets are expected to show resilience in consumer spending [20][22].

Investment Rating - The report initiates coverage on Walt Disney Co with a BUY rating and a target price of US$142, implying a 28.7% upside from the current price of US$110.3 [4][5]. Core Insights - The report highlights that Disney is expected to benefit from streaming and sports industry tailwinds, alongside cost control initiatives. The company has shown significant improvement in streaming losses and operational efficiency, with management guiding for an EPS of US$4.6 (+22% YoY) and free cash flow of US$8 billion in FY24E. Streaming profitability is anticipated by 4QFY24E, with projected revenue and earnings CAGR of 5% and 16% respectively from FY24-26E [2][3][28]. Company Overview - Established in 1923, Disney is a global entertainment and media conglomerate with a diversified portfolio that includes film production, theme parks, and streaming services. The company is currently prioritizing its streaming and ESPN segments, supported by cash flow from its Experiences business [12][17]. Streaming and Sports Growth - Disney+ has reached 150 million paid subscribers as of 1QFY24, with expectations for continued growth driven by strong content, AVOD initiatives, and paid-sharing strategies. The report forecasts a 4% CAGR in Disney+ subscribers from FY24-26E, with net adds of 5.5-6 million expected in 2QFY24E [2][20][38]. Parks and Experiences - The Parks segment is projected to be a significant cash generator, contributing approximately two-thirds of the Group's operating income in FY24E, with an expected 10% CAGR in operating income from FY24-26E. Revenue from US parks is anticipated to accelerate in the second half of FY24E [2][3][9]. Financial Performance - For FY24E, Disney's revenue is expected to reach US$91.8 billion, with a YoY growth of 3.3%. Adjusted net profit is projected at US$8.5 billion, reflecting a 23.9% increase YoY. The diluted EPS is forecasted to be US$4.62, a 23.4% increase YoY [3][4]. Valuation Metrics - The report sets a target price based on a sum-of-the-parts (SOTP) valuation, implying a P/E ratio of 30.7x for FY24E, which is 14% below Netflix's valuation but slightly above the industry average [2][4]. Key Catalysts - The report identifies several key catalysts for Disney's growth, including the upcoming breakeven on streaming, strong net subscriber additions, resilient performance in parks, and progress in the sports segment [2][3][4].

Investment Rating - The report maintains a "BUY" rating for JD.com with a target price of US$52.00, indicating a potential upside of 142.5% from the current price of US$21.44 [1][6][23]. Core Insights - JD.com reported better-than-expected results for 4Q23, with revenue of RMB306.1 billion, up 3.6% year-over-year, and non-GAAP net income of RMB8.4 billion, surpassing estimates [6]. - The company aims to enhance user experience and market share in 2024, with a focus on reinvesting profits to drive user acquisition amid intensified market competition [6]. - JD's net product revenue for 4Q23 was RMB246.5 billion, reflecting a 3.7% year-over-year increase, with electronics and home appliance revenue growing by 6.1% [6][27]. - The new share repurchase program and increased dividends are expected to support valuation and drive a rerating of the stock [6][23]. Financial Performance Summary - For FY23, total revenue reached RMB1.1 trillion, up 3.7% year-over-year, with non-GAAP net income of RMB35.2 billion, a 25% increase [6][7]. - The forecast for FY24 estimates total revenue of RMB1,160.3 billion, with a gross profit of RMB173.6 billion and a non-GAAP net profit of RMB36.1 billion [5][22]. - JD's gross margin is projected to be 15.0% in FY24, with a non-GAAP net margin of 3.1% [5][22]. Revenue Breakdown - JD Retail generated RMB267.6 billion in revenue for 4Q23, up 3.4% year-over-year, driven by better-than-expected growth in electronics and home appliances [6]. - Net services revenue for 4Q23 was RMB59.6 billion, up 3.0% year-over-year, although marketplace and advertising revenues declined by 4% [6][27]. Future Outlook - The management's focus for 2024 includes enhancing merchant support and user acquisition strategies, with expectations for commission revenue to return to growth by 3Q24 [6]. - The company anticipates an 8% year-over-year growth in JD Retail's revenue and a 4% increase in non-GAAP operating profit for FY24 [6].

2024 年 3 月 13 日 招银国际环球市场 | 宏观研究 | 宏观视角 美国经济 CPI 再超预期，但不改 6 月首次降息可能 美国 2 月 CPI 和核心 CPI 环比增速连续第二个月高于市场预期，CPI 同比增速 也小幅反弹。食品价格回落，但能源与核心商品价格反弹。服务通胀小幅回 落，业主等价租金环比涨幅收窄令市场宽慰，但能源服务、运输服务价格反弹 推动超级核心服务通胀小幅回升。CPI 略超预期将强化美联储保持观望而不立 即降息的态度，预计 3 月和 5 月议息会议将保持利率不变。通胀数据公布后， 10 年国债收益率从 4.09%最高升至近 4.17%，美元指数走强，但美股小幅上 扬，货币市场预期 6 月美联储降息概率保持在 70%不变。由于春季出行需求推 动汽油价格回升与基数效应，3 月 CPI 同比可能延续反弹；但二手车等核心商品 与房租通胀回落将推动核心 CPI 增速延续回落。预计第二季度美国经济和就业 将有所降温。美联储可能避免在临近大选前的第三季度启动政策转向，6 月首次 降息的可能性相对更大，预计全年降息幅度 100 个基点，年末联邦基金利率在 4.3%左右。 食品价格回落，能源与核心商 ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 48.84, indicating a potential upside of 25.1% from the current price of HKD 39.05 [1]. Core Insights - The company has shown strong online sales performance, particularly during promotional events, with significant growth in its key brands, especially 可复美 and 可丽金 [1][2]. - The report highlights that the online sales growth is expected to continue, driven by the company's strong product offerings and market positioning [1]. - The financial projections indicate a steady increase in revenue and net profit over the next few years, with sales expected to reach RMB 4,358 million in FY24E and RMB 5,590 million in FY25E [15][16]. Sales Performance - In February 2024, the online sales of 可复美 reached RMB 2,143.6 million, showing a year-on-year growth of 51.9% [1]. - The brand ranked seventh in terms of GMV among beauty brands during a recent promotional event, achieving sales of RMB 2,385.69 million [2]. - The report notes that the sales growth for 可丽金 was robust, with a year-on-year increase of 463.9% in February 2024 [1]. Financial Projections - The company is projected to achieve a net profit of RMB 1,607 million in FY24E, with a growth rate of 23.1% [15][16]. - The gross margin is expected to remain stable around 83.8% for FY24E [15]. - The report anticipates a steady increase in free cash flow, reaching RMB 1,364 million in FY24E [13]. Market Positioning - The company is well-positioned in the beauty and skincare market, with its products performing strongly on major e-commerce platforms like Tmall and Douyin [1][3]. - The report emphasizes the importance of the company's innovative product launches and marketing strategies in maintaining its competitive edge [1]. Valuation Metrics - The DCF model values the company's equity at RMB 43,735 million, translating to a per-share value of HKD 48.84 [13][14]. - The report indicates a favorable valuation with a P/E ratio projected to decrease from 41.4 in FY23E to 21.8 in FY26E, suggesting potential for growth [19].

M N 8 Mar 2024 CMB International Global Markets | Equity Research | Company Update Bilibili (BILI US) Steady progress towards a sustainable business model Target Price US$20.50 Bilibili announced its 4Q23 results on 7 Mar: total revenue grew by 3% YoY to (Previous TP US$24.00) RMB6.35bn, in line with our/consensus estimate; adjusted net loss narrowed by Up/Downside 89.6% 58% YoY to RMB556mn, beating our/consensus estimate of RMB677/633mn, Current Price US$10.81 mainly attributable to the better-than-expecte ...

M N 11 Mar 2024 CMB International Global Markets | Equity Research | Company Update ZTE (000063 CH) Improved margins in 2023 Target Price RMB34.20 ZTE released its FY23 results. Revenue grew by 1.1% YoY to RMB124bn, in line with consensus and 3% higher than our forecast. Net profit increased by 15.4% (Previous TP RMB36.90) YoY to RMB9.3bn, 5% lower than consensus and in line with our forecasts. Gross Up/Downside 13.3% margin for 2023 was 41.5%, representing a 434bps increase from FY22. NPM Current Price RMB ...

2024 年 3 月 11 日 招银国际环球市场 | 宏观研究 | 宏观视角 就业温和降温，联储 6 月可能降息 叶丙南, Ph.D (852) 3761 8967 yebingnan@cmbi.com.hk 刘泽晖 (852) 3761 8957 frankliu@cmbi.com.hk 资料来源：Wind, 招银国际环球市场 资料来源：Wind, 招银国际环球市场 (1,000) (800) (600) (400) (200) 0 200 400 600 800 201320142015201620172018201920202021202220232024 政府 服务 商品 月均新增就业(千人) 敬请参阅尾页之免责声明 请到彭博 (搜索代码: RESP CMBR )或 http:// www.cmbi.com.hk 下载更多招银国际环球市场研究报 告 2024 年 3 月 11 日 图 1: 劳动力人数和非农就业人数 资料来源：Wind，招银国际环球市场 130 135 140 145 150 155 160 165 170 175 2017 2018 2019 2020 2021 2022 2023 ...

Investment Rating - The report maintains a BUY rating on Prada SpA, indicating a potential return of over 15% over the next 12 months [2][16]. Core Insights - Prada's 4Q23 net revenue grew by approximately 18.1% year-over-year, driven by a remarkable 82% growth in the Miu Miu brand, surpassing expectations [2]. - The company reported strong growth across all regions, particularly in Japan (cFX +38%) and APAC (cFX +32%), while the US showed sequential improvement [2]. - Management confirmed positive sales momentum has continued into 2024, with expectations of sustained growth despite challenging market conditions [2]. - Prada plans to implement routine price hikes of 4-8% in 2024, focusing on clothing and leather goods, which is expected to support long-term margin expansion [2]. - The closure of outlet stores is progressing, with this segment contributing only about 10% to overall sales, set to be phased out in the next 2-3 years [2]. Financial Summary - Revenue is projected to grow from EUR 4,726 million in FY23A to EUR 5,091 million in FY24E, reflecting a year-over-year growth of 7.7% [3]. - Net profit is expected to increase from EUR 671 million in FY23A to EUR 739 million in FY24E, with a year-over-year growth of 10.1% [3]. - The report indicates a gross margin of 80.8% for FY24E, with EBIT margin projected at 22.9% [8]. - The target price for Prada is set at HK$65.2, representing a 17.1% upside from the current price of HK$55.7 [4]. Earnings Revisions - The earnings estimates for 2024E have been revised to reflect a revenue increase to EUR 5,091 million, up from EUR 5,008 million previously [7]. - Gross profit estimates for 2024E have been adjusted to EUR 4,113 million, indicating a 2.0% increase from prior estimates [7]. - Net profit for 2024E is now projected at EUR 739 million, a slight increase from the previous estimate of EUR 732 million [7].

Investment Rating - Maintain BUY rating with an adjusted target price of HK$24.8, based on 10x 2024E P/E, close to its 3-year average [3][4] Core View - ZTE is expected to capitalize on emerging trends in the telecom industry, focusing on the evolution towards 5.5G/6G and AI compute power [3] - The company's profitability improved steadily due to operation optimization and cost reduction, including the use of self-developed components [3] - Revenue growth is projected to be steady, with FY24E revenue expected to reach RMB133.7bn, a 7.6% YoY increase [1][3] Financial Performance - FY23 revenue grew by 1.1% YoY to RMB124.3bn, in line with consensus and 3% higher than forecasts [3] - FY23 net profit increased by 15.4% YoY to RMB9.3bn, 5% lower than consensus but in line with forecasts [3] - Gross margin for FY23 was 41.5%, a 434bps increase from FY22, driven by cost optimization and favorable revenue mix [3] - FY24E net profit is projected to grow by 16.3% YoY to RMB10.8bn, with a net margin of 8.1% [1][3] Segment Performance - Carrier segment revenue increased by 3.4% YoY, driven by domestic market share gains and overseas progress [3] - Consumer segment sales declined by 1.3% YoY due to overseas inventory digestion and intensified competition, partially offset by domestic growth in family network business [3] - Enterprise & government segment sales declined by 7.1% YoY in 2023 due to a slowdown in investment [3] Valuation Metrics - FY24E P/E is projected at 7.3x, with ROE expected to reach 14.3% [1] - FY25E P/E is projected at 6.5x, with ROE expected to reach 14.5% [1] Market Data - Current price is HK$17.92, with an upside potential of 38.4% to the target price of HK$24.8 [4] - Market capitalization is HK$13.5bn, with an average 3-month turnover of HK$162mn [5]