Investment Rating - Maintain BUY with an unchanged target price of RMB75, representing a 61.3% upside from the current price of RMB46.50 [4]. Core Insights - Zhejiang Dingli's EBIT in 2Q24 increased by 72% YoY to RMB612 million, driven by a revenue growth of 34% YoY and a gross margin expansion of 2.6 percentage points YoY [2]. - The company reported a net profit growth of only 2% YoY to RMB522 million, primarily due to a reduction in net finance income from the absence of foreign exchange gains [2]. - Management maintains a positive outlook for the US market, with a full-year sales target for boom lifts set at 2,000 units [2]. Financial Performance - Revenue for 2Q24 reached RMB2.4 billion, marking a 34% YoY increase, while gross margin expanded to 31.8% [2]. - In 1H24, revenue from boom lifts surged 58% YoY to RMB1.8 billion, accounting for 49% of total revenue from main operations [2]. - Overseas revenue grew by 50% YoY in 1H24, with North America showing the highest growth at 100% [2]. Earnings Forecast - The earnings forecast remains unchanged, with projected revenues of RMB7.569 billion for FY24, RMB8.810 billion for FY25, and RMB10.409 billion for FY26 [3]. - Net profit is expected to grow to RMB2.105 billion in FY24, RMB2.425 billion in FY25, and RMB2.870 billion in FY26 [3]. Valuation Metrics - The projected P/E ratio for FY24 is 11.2x, decreasing to 9.7x in FY25 and 8.2x in FY26 [3]. - The projected dividend yield is expected to increase from 2.5% in FY24 to 3.4% in FY26 [3]. Market Dynamics - The boom lift segment remains the key growth driver, with significant contributions from both domestic and overseas markets [2]. - Management anticipates that potential tariff increases post-US presidential election will be manageable due to the reduction of anti-dumping duties [2].

28 Aug 2024 Earnings Summary CMB International Global Markets | Equity Research | Company Update Greentown Management (9979 HK) Weakening demand + intensifying competition, what is next? Greentown Mgmt's stock price plunged 32% post-1H24 earnings, partly due to the uncertainty on strategy execution among investors following the resignation of former CEO Mr. Li Jun. More importantly, the pullback was due to revenue/net profit deceleration (8%/6% YoY vs. guidance of 20%/30%), constrained by declining client p ...

28 Aug 2024 CMB 国际全球市场 | 股票研究 | 公司更新 绿城管理(9979 HK) 需求减弱 + 竞争加剧 ， 下一步是什么 ？ 绿地集团的股价在2024年第一季度财报公布后下跌了32%，部分原因是前CE O李先生离职后投资者对战略执行的不确定性。更为重要的是，这次回调主要 源于 收入 / 净利润 收入增速放缓（8%年对年/6%年对年，低于指导预期的20 %年对年/30%年对年），受到客户支付能力下滑和竞争加剧的限制。年对年收 入下降19%。 新合同价值 反映 土地供应减少 销售复苏缓慢 ， 挫伤了客户 的发展信心 ， 以及 由于资金不足无法启动项目。我们短期内看到房产销售快 速恢复的能见度较低，并将2024-26年的收入预期下调17%-27%，至年增长率 5%/9%/7%，利润预测下调20%-38%，至年增长率3%/9%/8%。然而，我们认 为PJM的长期需求仍然稳固，考虑到房产销售的复苏。我们将买入评级保持不 变，目标价下调41%至港币5.56元，相当于2024年市盈率的10倍。风险：应收 账款减值。 1) , 2) 3) 库存数据 Bella LI (852) 3757 6202 b ...

Investment Rating - The report maintains a BUY rating for Anta Sports, with a target price trimmed to HK$ 97.05, based on an 18x FY25E P/E [2][3]. Core Insights - The 1H24 results showed one-off gains and dividends that offset slow core profit growth, with Anta brand sales growth at 14% YoY, exceeding retail sales growth [2][7]. - The management reiterated a retail sales growth target of 10%+ for the Anta brand in FY24E, supported by various factors including a new product pipeline and rapid online sales growth [2][7]. - FILA brand's FY24E guidance has been revised down to high single digits due to sluggish sales growth and inventory management challenges [2][7]. - The report highlights a significant share buyback program of up to HK$ 10 billion over the next 18 months, which could provide downside protection for the stock [7]. Financial Summary - Revenue is projected to grow from RMB 62,356 million in FY23A to RMB 70,322 million in FY24E, reflecting a YoY growth of 12.8% [3][11]. - Net profit is expected to increase from RMB 11,277 million in FY23A to RMB 13,686.8 million in FY24E, with a YoY growth of 21.4% [3][11]. - The report indicates a net profit CAGR of 16% during FY23-26E, despite adjustments of -3% for FY24E and FY25E due to slower FILA sales growth [2][8]. Earnings Revision - The earnings estimates for FY24E and FY25E have been adjusted slightly downwards, with revenue for FY24E now at RMB 70,322 million, reflecting a 0.1% increase from the previous estimate [8][9]. - The gross profit margin is expected to be 62.7% for FY24E, slightly down from previous estimates [8][9]. - The diluted EPS for FY24E is revised to RMB 4.389, a decrease of 3.0% from earlier projections [8][9]. Operating Performance - The operating profit margin for 1H24 was reported at 30.4%, significantly higher than the previous year, driven by improved gross profit margins and effective cost management [10][12]. - The report notes a 30% drop in operating cash flow, attributed to a high base effect from 1H23, rather than a fundamental decline in business performance [7][10]. - The Anta brand's retail sales growth is projected to remain positive, with expectations of continued strong performance in the second half of FY24E [12].

Investment Rating - The report maintains a target price of HK$1.36 for SenseTime, reflecting a 15.3% upside from the current price of HK$1.18 [4]. Core Insights - SenseTime's total revenue for 1H24 grew by 21% YoY to RMB1.74 billion, with an adjusted net loss narrowing by 3% YoY to RMB2.33 billion, indicating improved net loss margin [2][3]. - The generative AI (Gen AI) business is identified as the key growth driver, with revenue increasing by 256% YoY to RMB1.05 billion, accounting for 60% of total revenue in 1H24 [2][3]. - The report anticipates total revenue growth to accelerate to 33% YoY in 2H24, driven by robust demand in the Gen AI sector [2][3]. Financial Performance Summary - Revenue projections for FY24E, FY25E, and FY26E are RMB4.36 billion, RMB5.48 billion, and RMB6.60 billion respectively, with adjusted net losses expected to be RMB3.51 billion, RMB2.52 billion, and RMB1.72 billion [3][5]. - The gross profit margin (GPM) for 1H24 was 44.1%, with expectations of a gradual decline to 38% by FY26E due to increased operational costs [2][5]. - The adjusted net margin improved by 33 percentage points YoY to -134% in 1H24, reflecting operational leverage and cost control [2][5]. Market Position and Competitive Edge - SenseTime has become the third largest AIDC service provider in China with a market share of 15.4% as of 2H23 [2]. - The company has a strong AI infrastructure with operational computing power exceeding 20,000 PetaFLOPS, expected to surpass 25,000 PetaFLOPS by the end of FY24 [2][3]. - The report highlights SenseTime's independence from direct competition with suppliers and clients, enhancing its competitive edge in the Gen AI market [2].

Investment Rating - The report reiterates a "BUY" rating for Trip.com Group (TCOM) with a target price of US$65.80, indicating a potential upside of 55.4% from the current price of US$42.34 [2][10]. Core Insights - Trip.com Group reported a net revenue of RMB12.8 billion for 2Q24, reflecting a year-over-year growth of 13.6%, which aligns with Bloomberg consensus estimates. The non-GAAP operating income was RMB4.2 billion, exceeding consensus forecasts by 6% due to effective cost control in R&D [2][3]. - The company is expected to experience resilient revenue growth driven by strong travel demand from its high-end customer base during the summer peak season, despite facing macroeconomic challenges and tougher comparisons in 3Q24 [2][3]. - The management anticipates a reacceleration in year-over-year revenue growth in 4Q24 as the impact of business adjustments diminishes and comparisons become easier [2][3]. Financial Performance Summary - For FY24E, Trip.com is projected to achieve revenue of RMB52.8 billion, representing an 18.5% year-over-year growth. The adjusted net profit is expected to reach RMB16.4 billion, with a year-over-year growth of 25.8% [3][8]. - The non-GAAP operating profit margin (OPM) for 2Q24 was reported at 33.1%, which is 1.9 percentage points higher than consensus estimates, driven by better-than-expected R&D expense ratios [2][3]. - The company achieved a gross profit margin of 81.8% for FY24E, with an operating margin of 27.5% and a non-GAAP net margin of 31.2% [8][9]. Revenue Breakdown - Domestic hotel reservations grew approximately 20% year-over-year in 2Q24, with double-digit growth continuing in 3Q24. Outbound air and hotel reservations have recovered to 110%-120% of 2019 levels, outperforming the market by 20-30% [2][3]. - Revenue from inbound travel accounted for 25% of total revenue in 2Q24, up from 20% in 1Q24, contributing approximately 2.6% to the total group-level revenue [2][3]. Future Projections - For 3Q24E, Trip.com is estimated to record revenue of RMB15.6 billion, reflecting a 13% year-over-year increase, consistent with Bloomberg consensus [2][3]. - The company expects to maintain a non-GAAP OPM of 33.1% for 3Q24E, with projections for FY25E showing continued growth in revenue and profitability [2][3].

Investment Rating - The report maintains a "BUY" rating for Ping An, with a target price (TP) unchanged at HK$52.0, implying a 0.6x FY24E P/EV [1]. Core Insights - Ping An reported resilient 1H24 results with a year-on-year (YoY) increase in new business value (NBV) of 11% to RMB 22.3 billion, surpassing forecasts by 3.6% and market consensus by 9.5% [1]. - The report anticipates a turnaround in Group operating profit after tax (OPAT) in FY24, driven by improved operating efficiency and a low base effect from the previous year [1]. - The NBV margin improved to 24.2%, reflecting a 6.5 percentage point increase YoY, indicating a focus on margin expansion rather than volume growth [1]. Summary by Sections New Business Value (NBV) - Ping An's NBV for 1H24 reached RMB 22.3 billion, an 11% increase YoY, with 2Q24 stabilizing at RMB 9.43 billion [1][3]. - The agency and bancassurance channels contributed significantly, with NBV growth of 10.8% and 17.3% YoY, respectively [1][3]. - The NBV margin increased to 24.2%, up 6.5 percentage points YoY, indicating improved profitability [1][3]. Operating Profit After Tax (OPAT) - Group OPAT declined by 0.6% YoY in 1H24, with core business lines showing a 1.7% YoY increase to RMB 79.6 billion [1]. - The report expects full-year Group OPAT to grow by 3.9% YoY, supported by stabilized life and health (L&H) OPAT and enhanced property and casualty (P&C) underwriting profit [1]. Property and Casualty (P&C) Performance - The P&C combined ratio (CoR) was 97.8% in 1H24, a slight improvement of 0.2 percentage points YoY, with a notable scale-back in high-loss guarantee business [1][10]. - P&C underwriting profits increased by 15.3% YoY to RMB 3.5 billion, driven by higher insurance revenue [1][10]. Valuation Metrics - The stock is currently trading at 0.42x FY24E P/EV and 0.61x FY24 P/BV, with a dividend yield of 7.6% and an average ROE of 12.3% over three years [1][19]. - The report highlights a positive outlook for the Group's OPAT turnaround, particularly in the asset management and technology segments [1][19].

Investment Rating - The report maintains a "Hold" rating for China Tower (788 HK) with a target price adjusted to HKD 0.95, reflecting a potential downside of 3.2% from the current price of HKD 0.98 [1][3]. Core Insights - The three major telecom operators in China have reduced capital expenditures by 5.4% in 2024, shifting their investment focus from 5G deployment to high-growth areas like cloud computing and computing power [1]. - Traditional communication business revenue growth is slowing, with China Mobile, China Unicom, and China Telecom reporting growth rates of 2.5%, 2.1%, and 4.3% respectively in the first half of 2024 [1]. - Cost control measures have led to a decrease in operating costs as a percentage of revenue for the telecom operators, which is expected to impact China Tower's traditional communication business [1]. - China Tower's traditional tower revenue is projected to grow at a modest rate of around 1% year-on-year for 2024 and 2025, while its indoor distribution and two wings businesses (Smart Connection and Energy) are expected to achieve double-digit growth [1]. Financial Summary - Revenue for FY24 is estimated at RMB 97,865 million, with a year-on-year growth of 4.1%, and projected to reach RMB 101,661 million in FY25 with a growth of 3.9% [2][7]. - Net profit for FY24 is forecasted to be RMB 10,543 million, reflecting an 8.1% increase, and is expected to grow to RMB 12,302 million in FY25, representing a 16.7% increase [2][7]. - Earnings per share (EPS) is projected to be RMB 6.03 for FY24 and RMB 7.04 for FY25, with respective growth rates of 8.1% and 16.7% [2][7]. Business Segments - Tower business accounted for 79% of China Tower's total revenue in the first half of 2024, maintaining stability with quarter-on-quarter growth rates of 1.7% and 0.3% in the first two quarters [1]. - The Smart Connection business saw a revenue increase of 17.6% year-on-year, while the Energy business grew by 2.4% in the same period, with the tower's Smart Connection revenue growing by 20.9% to RMB 2.5 billion [1].

27 Aug 2024 CMB International Global Markets | Equity Research | Company Update Jiumaojiu (9922 HK) Transforming despite tough macro backdrop HOLD (Maintain) The 1H24 results were inline but the underlying was slightly positive (e.g. resilient GP margin, as well as the restaurant-level OP margin). We agree that both Tai Er and Song are making loads of efforts to transform, but under such a tough industry and macro environment, we would not be able to turn positive, unless we can really see a compelling impr ...

27 Aug 2024 PDD Holdings (PDD US) 27 Aug 2024 PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE 2 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------|-------|-----------------|-------|-------|-------------------|-------|-------------|----------------|---------| | RMB bn | 2024E | Current 2025E | 2026E | 2024E | Consensus 2025E | 2026E | 2024E | Diff (%) 2025E | 2026E | | Revenue 413.0 544.5 678.3 | | | | 419.9 | 551.9 | | 678.9 -1 ...