23 Aug 2024 CMB International Global Markets | Equity Research | Company Update CSPC Pharmaceutical (1093 HK) HK) Legacy products faced pricing pressures Moderate growth in 1H24. In 1H24, CSPC's total revenue increased by 1.3% YoY to RMB16.28bn and the attributable net profit increased by 1.8% YoY to RMB3.02bn, accounting for 46% and 45% of our previous full-year estimates. For 2Q24, the total revenue was RMB5.99bn (-8.1% YoY, -20.8% QoQ) and the attributable net profit was RMB2.19bn (+42.2% YoY, +35.7% QoQ ...

2024 年 8 月 23 日 招银国际环球市场 | 睿智投资 | 公司更新 韦尔股份 (603501 CH) 1H24 业绩稳健，CIS 业务持续复苏 韦尔股份公布了 2024 年上半年业绩。上半年收入同比增长 36.5%至 120 亿元人 民币，净利润较去年同期的低基数（1.53 亿元人民币）同比增长 790%至 13.7 亿元人民币。按季度来看，公司二季度收入为 64 亿元人民币（同比增长 42.5%，环比增长 14.2%，符合彭博一致预期），创历史新高。二季度净利润为 8.09 亿元人民币，环比增长 45.1%（2023 年二季度为净亏损）。公司二季度毛 利率提升至 30.2%（上季度和去年同期分别为 27.9%、17.3%）。毛利率的改善 表明公司业务正在稳步恢复。同时，得益于成本结构的持续优化，二季度净利润 率上升至 12.6%（上季度和去年同期分别为 9.9%、-1%）。管理层认为，公司 的强劲业绩主要得益于：1）2024 年上半年消费市场的逐步复苏；2）公司产品 在高端智能手机市场（尤其是国内安卓机型）上的份额提升、以及汽车 CIS 销 售的持续增长；3）产品组合优化推动毛利率改善。维持 "买 ...

23 Aug 2024 CMB 国际全球市场 | 股票研究 | 公司更新 AAC Tech （ 2018 香港 ）骑上新的升级周期 ； 升级购买 (上一个 TP HK$37.80 HK$22.44) 21.0% 我们将 AAC 升级为基于 SOTP 的 TP 为 37.8 港元 （ 25 财年市盈率为 19.6 倍 ） ， 因为我们相信声学 / 光学 / 触觉和即将到来的 AI 的规范升级 智能手机周期将推动收益增长至 FY25 / 26E 。 AAC 的 1H24 营收 / 净利润同比增长 22% / 257% 超市场预期 ， 。 得益于强劲的利润率恢复 (同比 + 7.4 个百分点 / + 2.3 个百分点) ， 更好 声学 / 光学 / PM 和 PSS 整合的产品组合。对于 FY24E ， 管理层。 在 GPM HoH 扩张的推动下 ， 销售额同比增长 15% （ 不包括 PSS ） 通过 ： 1 ） 光学 ： 更好的 HSL / HCM ASP / 出货量 ， 并将 GPM 提高到 4Q24E ， 2 ） 声学 ： SLS / Combo 产品渗透 ， 3 ） 触觉 / 外壳 / 铰链 ： 高 最终 ...

Investment Rating - The report maintains a BUY rating for Baidu with a target price of US$180.50, down from the previous target of US$183.00, indicating an upside potential of 101.1% from the current price of US$89.74 [3]. Core Insights - Baidu's 2Q24 revenue was RMB33.9 billion, a slight decline of 0.4% year-over-year, aligning with Bloomberg consensus. Non-GAAP net income was RMB7.4 billion, exceeding consensus by 9% due to effective control over sales and marketing expenses [2]. - The company is focusing on enhancing user experience through Gen-AI generated results, prioritizing this over short-term monetization, which may temporarily hinder ad revenue growth but is expected to improve long-term monetization prospects [2][10]. - Non-ad revenue grew by 10% year-over-year to RMB7.5 billion, now accounting for 28.2% of Baidu Core revenue, driven by AI-related GPU cloud revenue and cross-selling of CPU cloud services [2]. Financial Performance - In 2Q24, Baidu Core's online ads revenue was RMB19.2 billion, down 2.2% year-over-year, but slightly better than consensus expectations. The company anticipates a further decline in ad revenue growth in the near term, projecting a 3.4% year-over-year decline to RMB19.0 billion in 3Q24E [2][7]. - Baidu Core's gross profit margin (GPM) was 59.4% in 2Q24, down 1.1 percentage points year-over-year, while non-GAAP operating profit margin (OPM) improved to 26.1%, exceeding consensus by 1.4 percentage points due to stringent cost control [2][7]. Valuation and Forecast - The SOTP-based target price of US$180.5 reflects a valuation of US$71.6 for Baidu Core, US$1.8 for Apollo ASD, US$32.2 for Baidu Cloud, and US$64.1 in net cash. The valuation for iQIYI and other investments is set at US$10.8 [10][11]. - Revenue forecasts for FY24E, FY25E, and FY26E are RMB135.8 billion, RMB146.9 billion, and RMB157.9 billion respectively, with adjusted net profit estimates of RMB27.96 billion, RMB28.72 billion, and RMB31.94 billion [6][9].

23 Aug 2024 CMB International Global Markets | Equity Research | Company Update AAC Tech (2018 HK) Riding on new upgrade cycle; Upgrade to BUY We upgrade AAC to BUY with SOTP-based TP of HK$37.8 (19.6x FY25E P/E), as we believe spec upgrade in acoustics/optics/haptics and upcoming AI smartphone cycle will boost earnings growth into FY25/26E. AAC's 1H24 revenue/net profit growth of 22%/257% YoY is ahead of market expectations, thanks to stronger margin recovery (+7.4 ppts YoY/+2.3 ppts HoH), better product m ...

Investment Rating - The report maintains a "Buy" rating for Willsemi, with a target price adjusted to RMB 115.39, based on a 2024E price-to-earnings ratio of 40.7 times [1][2]. Core Insights - Willsemi reported a robust performance in 1H24, with revenue increasing by 36.5% year-on-year to RMB 12 billion and net profit soaring by 790% to RMB 13.7 billion, attributed to improved consumer sentiment and growth in high-end smartphone and automotive CIS markets [1][2]. - The company's CIS sales in mobile, automotive, IoT, and medical sectors showed strong growth, with year-on-year increases of 78.5%, 53.0%, 77.8%, and 41.6% respectively, despite a decline in security and notebook sectors [1][2]. - The report anticipates a 15% growth in CIS sales for the second half of 2024, projecting an annual growth rate of 29% for the year [1]. Financial Summary - Revenue is projected to reach RMB 26.1 billion in FY24, with a year-on-year growth rate of 24.3%. The gross profit margin is expected to be 29.7% [3][9]. - Net profit for FY24 is estimated at RMB 3.37 billion, reflecting a significant year-on-year increase of 507.2% [3][9]. - The report indicates a gradual recovery in the touch/display business, with a forecasted return to growth starting in 2025 due to the introduction of low-power and automotive-grade products [2][3]. Market Performance - Willsemi's sales in the CIS segment for the first half of 2024 continued to show strong momentum, with a 49.8% year-on-year increase in sales to the CIS market [1][2]. - The report highlights the company's leading position in the market and ongoing market share growth, despite a challenging overall market environment [2][3].

Investment Rating - The report maintains a BUY rating for Willsemi with a target price adjusted to RMB115.39, based on a 40.7x 2024E P/E ratio [2][3]. Core Insights - Willsemi reported solid 1H24 results, with revenue increasing by 36.5% YoY to RMB12 billion and net profit growing 790% YoY to RMB1.37 billion [2]. - The company achieved record quarterly revenue of RMB6.4 billion in 2Q24, reflecting a 42.5% YoY increase and a 14.2% QoQ increase [2]. - The growth in net profit for 2Q24 was RMB809 million, up 45.1% QoQ, indicating a strong recovery from a net loss in 2Q23 [2]. - Gross profit margin (GPM) improved to 30.2% in 2Q24, up from 27.9% in 1Q24 and 17.3% in 2Q23, suggesting a favorable product mix [2]. - Net profit margin (NPM) expanded to 12.6% in 2Q24, compared to 9.9% in 1Q24 and a negative margin in 2Q23, attributed to a better cost structure [2]. Revenue and Profit Forecasts - Revenue is projected to grow from RMB21.021 billion in FY23 to RMB26.119 billion in FY24, representing a 24.3% YoY growth [3][9]. - Net profit is expected to increase significantly from RMB555.6 million in FY23 to RMB3.3738 billion in FY24, reflecting a 507.2% YoY growth [3][9]. - The company anticipates continued growth in CIS sales, projecting a 15% HoH increase in 2H24, leading to a 29% YoY growth in 2024 [2]. Segment Performance - CIS sales showed strong growth, with mobile, auto, IoT, and medical segments growing 78.5%, 53.0%, 77.8%, and 41.6% YoY, respectively [2]. - The touch/display business remains weak, with a 28.6% YoY revenue decline due to inventory digestion and ASP pressure, while the analog segment grew by 24.7% YoY [2]. - The report expects the touch/display segment to recover in 2025, driven by new product introductions [2]. Financial Metrics - The report revises net profit forecasts for 2024 and 2025 by -1% and +3%, respectively, due to higher R&D costs as the company enhances its competitiveness [2]. - The projected P/E ratio for FY24 is 32.5x, which is significantly lower than the previous year's 196.3x, indicating improved valuation [3][9].

22 Aug 2024 CMB 国际全球市场 | 股票研究 | 公司更新 小米 （ 1810 HK ） 第二季度在 EV GPM 和弹性核心收益方面表现突 出 ； 重申买入 小米在2024年第二季度实现了强劲的收入/调整后净利润增长，同比增长32%/20%。调整后 净利润比我们的预测高出21%/27%，主要是由于电动汽车（EV）/互联网业务的毛利率更强 以及运营效率的提升所驱动。小米首次公布了其电动汽车业务的财务数据，季度毛利率为 15.7%，远高于市场预期的5%-10%，管理层预计下一季度的毛利率将实现环比增长。展望未 来，我们对小米在全球智能手机市场份额的增长、新零售战略的执行、AIoT业务的增长势头 以及电动汽车出货量的交付以推动FY24E-25E的盈利增长持乐观态度。我们将FY24-26E的每 股收益上调6-8%，以反映强劲的第二季度结果和更佳的电动汽车盈利能力，并将基于SOTP的 股价目标上调至港币24.4元，相当于FY24E的市盈率23.9倍。即将到来的催化剂包括每月出货 量SU7和智能手机市场份额的增加。 2Q24 盈利超过强劲的物联网 / 互联网 / 电动汽车利润率。小米2024年第二季度全球 ...

Investment Rating - The report maintains a "BUY" rating for Sunny Optical, with a target price (TP) raised to HK$72.52 from the previous HK$67.88, indicating a potential upside of 47.3% [2][23]. Core Insights - Sunny Optical's 1H24 revenue and net profit grew by 32% and 145% year-on-year, respectively, driven by a recovery in average selling prices (ASP) and gross profit margins (GPM) in the smartphone segment, as well as strong growth in automotive and XR (extended reality) products [2][12]. - The company has revised its shipment guidance for HLS (High-Level Sensors) and VLS (Vehicle Lens Systems) for 2024, expecting a year-on-year increase of 5-10% and 10-15%, respectively [2][12]. - The report highlights upcoming catalysts, including the iPhone 16 launch and the rise of Android AI smartphones, which are expected to drive further growth [2][12]. Summary by Sections Financial Performance - 1H24 revenue reached HK$16,225 million, with a gross profit margin of 17.2%, reflecting a year-on-year increase of 2.3 percentage points [12][14]. - The net profit for 1H24 was HK$2,452 million, exceeding consensus estimates by 4% [12][14]. - Revenue projections for FY24E are set at HK$39,765 million, with expected growth continuing into FY25E and FY26E [14][26]. Market Position and Growth Drivers - Sunny Optical is positioned as a leader in the optical components market, with significant growth expected from the smartphone and automotive sectors [2][12]. - The report emphasizes the positive outlook for the company's ASP and GPM, particularly in the high-end smartphone segment and automotive lenses, which are projected to grow significantly [2][12]. Valuation Metrics - The new target price of HK$72.52 is based on a sum-of-the-parts (SOTP) valuation, reflecting a price-to-earnings (P/E) ratio of 24.9x for FY25E [2][23]. - The report assigns different P/E multiples to various business segments, with 18x for camera modules, 25x for smartphone lenses, and 35x for automotive lenses, indicating strong growth potential across these areas [2][23].

22 Aug 2024 CMB International Global Markets | Equity Research | Company Update Sunny Optical (2382 HK) Gearing up for new growth cycle; Raise TP to HK$72.52 Sunny's 1H24 revenue/NP growth of 32%/145% YoY is largely in-line with prior positive profit alert, driven by smartphone's HLS/HCM ASP/GPM recovery and rapid auto/XR growth. Mgmt. raised 2024 shipment guidance for HLS/VLS to 5-10% YoY /10-15% YoY (vs prior +5%/10% YoY), and guided ASP/GPM improvement into 2H24E and 2025. For 2025, we are positive on Ap ...