Investment Rating - The report maintains a "BUY" rating for Kuaishou, with a target price of HK$97, implying an upside of 85.6% from the current price of HK$52.25 [2][3]. Core Insights - Kuaishou is expected to see margin improvement driven by gains in advertising and e-commerce. The company reported solid 4Q23 results, with revenue growth of 15% YoY and a net profit of RMB4.4 billion, which was 34% above consensus estimates [2][3]. - For FY24E, total revenue is projected to grow by 10.6% YoY, with specific segments showing varied performance: livestreaming revenue is expected to decline by 8%, while advertising and other services are forecasted to grow by 20% and 24% YoY, respectively [2][3]. - The adjusted net profit margin (NPM) improved to 13.4% in 4Q23, exceeding estimates, primarily due to a higher-than-expected gross profit margin (GPM) and reduced losses from overseas operations [2][3]. Financial Summary - Revenue for FY23A was RMB113.47 billion, with a YoY growth of 20.5%. For FY24E, revenue is expected to reach RMB125.54 billion, reflecting a growth of 10.6% [3][16]. - The adjusted net profit for FY23A was RMB10.27 billion, with projections for FY24E at RMB16.03 billion, indicating a significant growth of 56.1% YoY [3][16]. - The report highlights a projected GPM of 53.1% for FY24E, with an expected operating profit of RMB13.17 billion, marking a substantial recovery from previous losses [3][16]. Segment Performance - In 4Q23, the revenue breakdown showed online marketing services growing by 24% YoY, while live streaming remained flat at 0% growth. Other services and e-commerce saw significant growth of 36% and 31% YoY, respectively [2][7]. - For 1Q24E, advertising revenue is expected to increase by 26% YoY, while e-commerce GMV is projected to grow by 29% YoY, indicating strong momentum in these segments [2][3]. Valuation Metrics - The report provides a SOTP-based valuation, with the target price set at HK$97, based on a P/E ratio of 24x for FY24E and 17x for FY25E [2][3]. - The current market capitalization is reported at HK$2.27 billion, with a P/S ratio of 1.7 for FY24E, indicating a favorable valuation compared to historical performance [4][16].

Investment Rating - The report maintains a BUY rating for Kingdee with a target price of HK$15.50, reflecting a potential upside of 66.3% from the current price of HK$9.32 [4]. Core Insights - Kingdee reported a revenue of RMB5.7 billion for 2023, representing a 17% year-over-year growth, and a net loss of RMB210 million, which is a significant reduction from a loss of RMB389 million in 2022 [2][12]. - The company is well-positioned to benefit from the domestic substitution trend, supported by strong product capabilities and an enhanced partner ecosystem [2]. - The cloud segment contributed 79% of total revenue, with cloud revenue growing 21% year-over-year to RMB4.5 billion [2]. Financial Performance - Revenue growth is projected to continue with a compound annual growth rate (CAGR) of 15-20% from 2023 to 2026 [2]. - The annual recurring revenue (ARR) grew by 34% year-over-year, indicating a solid SaaS growth outlook for 2024 [2]. - Kingdee's core SaaS product, Galaxy, achieved revenue of RMB2.0 billion, up 16.3% year-over-year, with a stable dollar retention rate of 97.2% [2]. Business Segments - The Galaxy product line recorded over 39,000 customers by the end of 2023, with a net addition of over 8,000 customers year-over-year [2]. - The Cosmic & Constellation (C&C) segment saw a revenue increase of 40.9% year-over-year, and management expects revenue growth to reaccelerate in 2024 due to strong project pipelines [2]. Financial Guidance - Management has guided for a subscription ARR CAGR of 30% from 2023 to 2026 and aims for at least RMB900 million in operating cash flow in 2024, indicating a growth of at least 38% year-over-year [2].

M N 20 Mar 2024 CMB International Global Markets | Equity Research | Company Update WuXi AppTec (603259 CH) Best effort to ensure business continuity Target Price RMB67.53 WuXi AppTec reported revenue of RMB40.3bn in 2023, up 2.5% YoY, (Previous TP RMB116.01) attributable recurring net income of RMB9.7bn, up 16.8% YoY, and attributable Up/Downside 32.9% adjusted non-IFRS net income of RMB10.9bn, up 15.5% YoY. Revenue was in- Current Price RMB50.81 line with Bloomberg consensus while attributable adjusted no ...

M N 20 Mar 2024 CMB International Global Markets | Equity Research | Company Update Akeso (9926 HK) Expect another fruitful year in 2024 In FY23, Akeso recorded RMB4.53bn in revenue, including RMB1.63bn from Target Price HK$59.61 product sales and RMB2.92bn from license income relevant to AK112 (PD- (Previous TP HK$51.23) 1/VEGF). Cadonilimab/AK104 (PD-1/CTLA-4) achieved RMB1.36bn in sales in Up/Downside 19.3% FY23, surpassing the Company’s initial guidance of RMB1.2-1.3bn. In 2H23, Current Price HK$49.95 A ...

Investment Rating - The report maintains a "BUY" rating for China Lilang with a target price raised to HK$5.75, reflecting a 29.2% upside from the current price of HK$4.45 [2][4]. Core Insights - China Lilang is expected to outperform in FY24E due to operational efficiency improvements and product quality upgrades, with a robust retail sales growth target of 15%, including 20% growth for e-commerce [2][6]. - The company reported FY23 results that slightly beat expectations, with sales and net profit increasing by 15% and 18% year-over-year, respectively [2][9]. - The report highlights a significant improvement in working capital, with inventory and receivable days reduced to 170 and 42 days, respectively [2][9]. Financial Performance - FY23 revenue was RMB 3,544 million, with a gross profit margin of 48.2% and a net profit of RMB 530 million, reflecting a year-over-year growth of 15% and 18% [3][9]. - For FY24E, revenue is projected to reach RMB 4,047 million, with a net profit of RMB 626 million, indicating a year-over-year growth of 14% [6][9]. - The company declared a dividend per share (DPS) of HK$0.36 for FY23, resulting in a payout ratio of 74% and an 8% yield based on the current market capitalization [2][4]. Segment Performance - Sales growth rates for key segments in FY23 were 10% for the core brand, 35% for smart casual, and 18% for e-commerce [2][9]. - The smart casual segment is expected to continue its rapid growth, with sales per store already exceeding that of the core brand [2][6]. Valuation Metrics - The report indicates a P/E ratio of 8x for FY24E, which is considered attractive compared to the target P/E of 10x [2][4]. - The projected sales and net profit CAGR for FY23-26E is 11% and 14%, respectively, supporting the valuation [2][6].

M N 21 Mar 2024 CMB International Global Markets | Equity Research | Company Update Huya (HUYA US) Margin improvement to continue Target Price US$6.80 Huya delivered upbeat 4Q23 results, with revenue 2% above consensus and adj. (Previous TP US$6.80) NPM at -12.4% (vs. consensus of -13.9%). Looking into FY24E, we suggest to focus Up/Downside +54.5% on its margin improvement and game monetization from more titles cooperation. We Current Price US$4.40 forecast stable topline YoY in FY24E, with advertising & ot ...

M N 21 Mar 2024 CMB International Global Markets | Equity Research | Company Update Geely Automobile (175 HK) Most businesses are trending up Target Price HK$14.00 Maintain BUY. We are of the view that Geely’s FY23 earnings quality was better (Previous TP HK$14.00) than FY21-22. We believe most of its businesses are poised to enjoy higher Up/Downside 58.6% profits in FY24E. Some investors may overlook Geely’s recent assets disposal Current Price HK$8.83 to ease its lingering D&A burden by leveraging its par ...

M N 20 Mar 2024 CMB International Global Markets | Equity Research | Company Update Xiaomi (1810 HK) Raise TP and estimates on 4Q23 beat; All eyes on EV official launch on 28 March Target Price HK$20.25 Xiaomi’s 4Q23 revenue/net profit of 11%/236% YoY growth beat our/consensus (Previous TP HK$19.54) estimates, driven by stronger margins, improving mix and investment gains. Up/Downside 36.3% Looking ahead, mgmt. is positive on smartphone recovery, premiumization Current Price HK$14.86 strategy and EV busines ...

M N 21 Mar 2024 CMB International Global Markets | Equity Research | Company Update Li Ning (2331 HK) Expectations reset with positive initiatives Target Price HK$24.86 We do find Li Ning’s FY23 results and FY24E guidance are inline, even though the views from the market are quite mixed. Anyhow, we do appreciate (Previous TP HK$32.93) management’s efforts to fix the bugsell and the branding power issues, as well Up/Downside 15.9% as resetting investors’ expectation with a prudent guidance. With all the prog ...

Investment Rating - The investment rating for the company is "Hold" [1]. Core Views - The company reported a strong performance in Q4 2023, which boosted its annual results, with Q4 revenue and net profit accounting for 30% and 35% of the total annual performance, respectively [1]. - The PCB industry is believed to have reached the bottom of the cycle in the second half of 2023, with expectations for a moderate recovery in 2024, projecting a revenue growth of 12.5% for the company [1][2]. - Despite the anticipated recovery, concerns remain regarding the continuous decline in PCB product prices and weak demand in the telecommunications market, which may hinder a full recovery in the first half of 2024 [1]. - The target price has been adjusted to 79 RMB, based on a 27x P/E ratio for 2024, which is higher than the previous 25x but lower than the 5-year average of 32x [1][3]. Financial Summary - For FY23, the company reported a revenue of 13.526 billion RMB, a decrease of 3.3% year-on-year, and a net profit of 1.398 billion RMB, down 14.8% year-on-year [2]. - The revenue for FY24 is projected to be 15.212 billion RMB, with a year-on-year growth of 12.5% [2]. - The net profit for FY24 is expected to be 1.538 billion RMB, reflecting a growth of 10% [2]. - The company’s gross margin for PCB and packaging substrates was 26.6% and 23.9% in 2023, respectively, with improvements noted in the second half of the year [2]. Business Segmentation - In 2023, the revenue from printed circuit boards (PCB) and packaging substrates was 8.1 billion RMB and 2.3 billion RMB, both down 8.5% year-on-year, while PCBA sales increased by 21.5% to 2.1 billion RMB [2]. - The second half of 2023 showed stronger performance compared to the first half, with significant growth in revenue driven by the recovery in automotive and energy sectors, although the telecommunications and data center sectors remained weak [2]. Market and Price Performance - The current stock price is 88.92 RMB, with a potential upside of 11.2% to the target price of 79 RMB [3]. - The company has a market capitalization of 45.607 billion RMB [4].