Investment Rating - The report maintains a "Buy" rating for the company, with a target price adjusted to HKD 67.87, indicating a potential upside of 74.9% from the current price of HKD 38.80 [3][16]. Core Insights - The company reported a revenue increase of 38.4% year-on-year to RMB 1.37 billion, with adjusted net profit rising 45.3% to RMB 150 million for the first half of 2024 [1]. - The management has raised the annual store expansion target from 10-15 to 18-25 new stores, reflecting a faster-than-expected pace of growth [1]. - The company continues to strengthen its competitive advantage in doctor resources, with a total of 26 medical alliance units established, enhancing its reputation and quality of service [1]. Financial Performance - Revenue for FY24E is projected at RMB 3.112 billion, with a year-on-year growth of 33.9%, and adjusted net profit expected to reach RMB 417 million, reflecting a growth of 36.9% [2][11]. - The adjusted earnings per share for FY24E is forecasted to be RMB 1.70, with a decreasing adjusted P/E ratio from 27.8 in FY23A to 21.0 in FY24E [2][14]. Store Expansion and Market Position - As of July 2024, the company has added 16 new stores, bringing the total to 74, with a focus on high-potential regions such as the Yangtze River Delta and major cities [1]. - The management aims to increase store density in cities where it already operates, leveraging economies of scale [1]. Shareholder Returns - The company plans to increase the proportion of dividends and buybacks to 30-50% of net profit over the next 3-5 years, with an interim dividend of approximately HKD 31.54 million announced [1].

22 Aug 2024 CMB International Global Markets | Equity Research | Company Update Xiaomi (1810 HK) 2Q24 beat on EV GPM and resilient core earnings; Reiterate BUY Xiaomi delivered strong 2Q24 revenue/adj.net profit growth of 32%/20% YoY. Adj. net profit is 21%/27% ahead of our/consensus estimates, mainly driven by stronger EV/internet GPM and improving efficiency. Xiaomi reported its first EV business financials with a quarterly GPM at 15.7%, well above market expectation of 5-10%, and mgmt. guided QoQ GPM exp ...

Investment Rating - Maintain BUY rating with a target price of HK$14.00, implying a 77.7% upside from the current price of HK$7.88 [2][4]. Core Insights - Geely's 1H24 core earnings exceeded prior forecasts by 18%, driven by a lower R&D capitalization ratio and improved gross margins [2]. - The Galaxy E5 BEV, based on the GEA platform, is expected to drive sales volume and improve margins compared to previous models [2]. - Zeekr's introduction of hybrid models is anticipated to enhance competitiveness in the premium vehicle segment [2]. - The current valuation of Geely is considered attractive, with a projected net profit of RMB4.1 billion for 2H24 and a 12% increase in FY25E net profit to RMB8.7 billion [2][3]. Financial Performance - 1H24 revenue was RMB107.3 billion, slightly below forecasts, with a gross margin of 15.1%, which is 1 percentage point higher than estimates [2][7]. - The net profit for 1H24, excluding certain items, was approximately RMB4 billion, marking an 18% increase over forecasts [2]. - Revenue projections for FY24E have been raised from RMB227.5 billion to RMB227.6 billion, with net profit estimates increasing significantly from RMB7 billion to RMB14.7 billion [7][9]. Sales and Production Outlook - The order backlog for the Galaxy E5 BEV is estimated to exceed 25,000 units, supported by competitive pricing [2]. - Sales volume forecast for FY24E has been increased from 1.98 million units to 2.01 million units [2]. - Geely's total revenue is projected to grow at a CAGR of 27.0% for FY24E, followed by 9.3% and 7.3% for FY25E and FY26E, respectively [3][9]. Valuation Metrics - Zeekr is valued at 0.7x FY25E core revenue, translating to a valuation of approximately US$8.4 billion [2][8]. - Geely's other businesses are valued at a P/E of 12x for FY25E, reflecting a comprehensive valuation approach [2][8]. - The projected P/E ratio for FY24E is 5.0, significantly lower than historical averages, indicating potential undervaluation [9].

Investment Rating - The report maintains a "BUY" rating for Goertek with a new target price (TP) of RMB 25.9, reflecting a 27% upside from the current price of RMB 20.39 [4][12]. Core Insights - Goertek's 1H24 revenue and net profit growth were reported at -11% and +190% year-on-year (YoY), respectively, aligning with earlier profit alerts [2]. - The gross profit margin (GPM) improved to 13.6% in 2Q24, up 4.4 percentage points quarter-on-quarter (QoQ) and 5.9 percentage points YoY, driven by enhanced efficiency and profitability in acoustics and smart products [2][7]. - The outlook for 2H24 and FY25E is positive, with expectations of continued GPM recovery and increased demand for augmented reality (AR) and virtual reality (VR) products, particularly with new launches from major players [2][12]. - Earnings per share (EPS) estimates for FY24-26E have been raised by 19-38% to reflect the strong performance in 1H24 and improved operating leverage [2][8]. Financial Performance Summary - 1H24 revenue was RMB 98,561 million, with a net profit of RMB 1,088.1 million, showing a significant recovery from previous quarters [3][11]. - The company expects net profit growth of +164% and +23% YoY for FY24 and FY25E, respectively [2][12]. - The report highlights strong revenue growth in precision components and acoustic products segments, with increases of +21% and +38% YoY, although smart products saw a decline of -32% YoY due to product cycle delays [2][10]. Earnings Revisions - Revenue estimates for FY24E have been adjusted to RMB 98,561 million, with net profit revised to RMB 2,876 million, reflecting a 19% increase from previous estimates [8][9]. - The gross profit margin is expected to stabilize around 11.4% for FY24E, with operating profit margins projected to improve to 3.3% [8][9]. Market Position and Future Outlook - Goertek is well-positioned to capitalize on the upcoming AR/VR product cycle, with anticipated launches from companies like Meta and Sony [2][12]. - The report emphasizes Goertek's leadership in the XR, acoustics, and gaming segments, which are expected to drive market share gains and profitability recovery in FY24 and FY25E [12][15].

21 Aug 2024 CMB 国际全球市场 | 股票研究 | 公司更新 Xpeng Inc. (XPEV US) Mona M03 可能不会改变游戏规则 保持持有。小鹏集团2024年第二季度的盈利表现基本符合我们的预测。尽管我们假设其2024 年下半年的销售量将较上年同期增长超过一倍，但我们预计下半年的亏损情况不会出现环比下 降。我们认为，小鹏汽车的车辆毛利率可能受到较低价格的Mona系列车型的影响而受限，因 为公司目前依赖这些车型来提升销量。我们认为，这种策略背后的基本理由是小鹏品牌的形象 正在减弱，尤其是在自动驾驶（AD）技术方面，竞争对手正在缩小差距。 第二季度收益基本持平。小鹏汽车2024年第二季度的收入约为我们先前预测的2%更高， 主要归功于大众（VW GR, NR）提供的研发服务。其2024年第二季度的车辆利润率为 6.4%，略高于我们的预测和2024年第一季度的5.5%，尽管季度内折扣有所增加。我们归 因于供应商的价格削减导致了这一超预期的表现。研发与销售、管理及一般费用（SG&A ）支出略高于预期，导致净亏损为人民币13亿，与预期相符。 毛利率困境。我们将FY24E的销售量预测下调10%，至 ...

2024 年 8 月 20 日 招银国际环球市场 | 睿智投资 | 行业研究 中国医药 海外 CXO/生命科学上游 2Q24 业绩剖析：生命科学上游继 续预期需求复苏 我们总结了海外主要 CXO 和生命科学上游公司的 2Q24 业绩情况，所关注的公 司涉及临床 CRO、临床前 CRO、C(D)MO以及生命科学上游。我们发现，2023 年各子板块业绩出现分化，后期阶段 CXO 业绩好于早期阶段 CXO，非生产类 CXO 的业绩好于生产类 CXO。但 1Q24 各子板块业绩差异减小，2Q24 业绩差 异继续缩窄，同时生命科学上游和 C(D)MO 公司的业绩表现较好。值得注意的 是，2Q24 仅有生命科学上游公司管理层继续预计 24 年下半年需求将复苏。 生命科学上游和 C(D)MO 公司的 2Q24 业绩表现较好。我们认为药企将更多 资源用于推进重点临床后期临床项目、新冠药物需求造成 C(D)MO 业绩基数 高、以及疫情后 C(D)MO 产能利用率相对较低导致了 2023 年子板块业绩分 化。从 1Q24 开始各子板块业绩差异持续减小，我们认为有三个原因：1） 临床 CRO 公司 2023 年业绩基数高；2）临床 ...

16 Aug 2024 JD.com (JD US) better-than-expected 2Q earnings growth | --- | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|---------------------------------------| | Target Price Up/Downside Current Price | | US$51.90 100.4% US$25.90 | | China Internet | | | | Saiyi HE, CFA (852) 3916 1739 hesaiyi@cmbi.com.hk | | | | Ye TAO franktao@cmbi.com.hk | | | | Wentao LU, CFA luwen ...

21 Aug 2024 CMB International Global Markets | Equity Research | Company Update Xpeng Inc. (XPEV US) Mona M03 may not be the game-changer Maintain HOLD. Xpeng's 2Q24 earnings were largely in line with our forecast. Although we assume its 2H24E sales volume to more than double HoH, we see no loss narrowing HoH in 2H24E. We believe that Xpeng's vehicle gross margin could be capped by the lower-priced Mona models, as the company now bets on these models to boost sales. We are of the view that the underlying ra ...

21 Aug 2024 CMB International Global Markets | Equity Research | Company Update Kelun-Biotech (6990 HK) Innovative bispecific ADC product licensed to MSD Kelun-Biotech recorded RMB1.38bn (+32% YoY) revenue in 1H24, including a total of US$90mn (or RMB641mn) milestone payments from MSD regarding multiple collaborated pipelines. In 1H24, Kelun-Biotech spent RMB652mn on R&D, +33% YoY, mainly driven by an uptick in clinical trials. The company is gearing up for the near-term launch of several key assets in Chin ...

Investment Rating - Initiate at BUY with a target price (TP) of HK$21.41, representing a 21.1% upside from the current price of HK$17.68 [3][4][12]. Core Insights - Rimag Group is a leading medical imaging service provider in China, holding the largest market share in terms of medical imaging centers, equipment units, and registrations by practicing radiologists [1][16]. - The medical imaging service market in China is projected to grow at a CAGR of 13.6%, reaching RMB661.5 billion by 2030, with the third-party medical imaging center market expected to grow at a CAGR of 30.7% to RMB18.6 billion by 2030 [1][7]. - Rimag's revenue increased at a CAGR of 25.3% from RMB592 million in 2021 to RMB928.9 million in 2023, with a projected CAGR of 23.3% from 2023 to 2026 [10][12][29]. Summary by Sections Investment Thesis - The third-party medical imaging center market in China has significant growth potential due to unmet demand for quality services and favorable government policies [6][7]. - Rimag is positioned to lead this market with a comprehensive suite of services and a strong operational model [7][8]. Market Overview - The medical imaging market in China faces challenges such as low equipment per capita and an imbalance in resource distribution, leading to long wait times in public hospitals [6][20]. - Rimag has established 97 imaging centers across 17 provinces, conducting approximately 20,000 examinations daily [8][16]. Business Model - Rimag operates a comprehensive medical imaging platform that includes imaging center services, imaging solution services, and Rimag Cloud services [22][24]. - The company provides operational management services to enhance the capabilities of regional and primary healthcare institutions [11][32]. Financial Performance - Rimag's attributable net profit increased from RMB0.4 million in 2022 to RMB44 million in 2023, with a net profit margin of 4.8% [10][29]. - Revenue from imaging center services accounted for 68.7% of total revenue in 2023, growing at a CAGR of 20.1% [36]. Competitive Landscape - Rimag holds 31 out of 163 third-party medical imaging center licenses in China, representing 19% of the total market [16][17]. - The company ranks second in revenue generated from imaging center services among all third-party operators in China [10][29].