Investment Rating - The report maintains a "BUY" rating for Sino Biopharm with a target price of HK$4.50, up from a prior target price of HK$4.20, indicating a potential upside of 22% from the current price of HK$3.70 [1][10]. Core Insights - Sino Biopharm reported a revenue increase of 10.2% year-on-year to RMB28.9 billion, slightly below expectations, while adjusted net profit surged by 33.5% year-on-year to RMB3.46 billion, exceeding market expectations. The management anticipates continued double-digit growth in revenue driven by innovative and biosimilar drugs, alongside stable growth in generic drugs [3][7]. - The company has fine-tuned its revenue forecasts and adjusted its expense assumptions, leading to the revised target price. The management expects to achieve double-digit growth in 2025, with innovative drug sales projected to contribute significantly to revenue [3][10]. Financial Forecasts - Revenue projections for Sino Biopharm are as follows: RMB32.17 billion for 2025, RMB34.20 billion for 2026, and RMB35.62 billion for 2027. The reported net profit is expected to be RMB3.28 billion in 2025, with core EPS projected at RMB0.174 [5][14]. - The report indicates a gross margin improvement to 81.6% in 2025, with operating profit margins expected to stabilize around 23% [14][16]. Key Performance Metrics - The company achieved a gross profit of RMB23.53 billion in 2024, with a gross margin of 82%. The selling and administrative expenses ratio decreased slightly to 42.1% [11][16]. - The report highlights a significant increase in the sales of innovative drugs, which grew by 21.9% year-on-year, accounting for 41.8% of total revenue [7][11]. Market Position and Strategy - Sino Biopharm's management plans to expand its innovative drug portfolio, expecting to have over 30 innovative drugs by the end of 2027, which will enhance revenue contributions from these products [7][8]. - The company is also focusing on cost control while anticipating a slight increase in R&D expenses in absolute terms, with a goal of maintaining profitability [7][10].

Investment Rating - The report assigns a "BUY" rating to the company with a target price of US$25.00, up from a prior target price of US$23.00 [2][4]. Core Insights - The company reported a record high of 222,054 LiDAR units shipped in 4Q24, leading to a total revenue increase of 33.4% QoQ to RMB702 million, and achieved its first quarterly GAAP net profit of RMB147 million [4][5]. - For 2025, the company anticipates LiDAR shipments between 1.2 million to 1.5 million units, driven by strong demand from major clients and new product launches [6][9]. - The management expressed confidence in maintaining a gross margin of around 40% despite a projected decline in average selling price (ASP) due to product mix changes [9][11]. Revenue and Profit Forecasts - Revenue is expected to grow from RMB2,077 million in 2024 to RMB3,440 million in 2025, with a projected net profit of RMB265 million for 2025 [7][9]. - The company aims for a non-GAAP net profit of RMB350 million to RMB500 million in 2025, significantly exceeding consensus estimates [9][11]. Shipment and Product Mix - The company expects to ship 1.0 million to 1.3 million units of ADAS LiDAR and around 200,000 units of robotics LiDAR in 2025, with new products contributing significantly to growth [6][11]. - The ASP for ADAS LiDAR is projected to decline to RMB2,300 to RMB2,500 in 2025, down from over RMB4,000 in 2024, due to a shift towards more affordable products [9][11]. Valuation Methodology - The valuation methodology has shifted from price-to-sales (P/S) to price-to-earnings (P/E) multiples, with a target price of US$25.00 based on a 25x 2026E P/E ratio [4][11]. - The current multiples for the company are lower than its competitors, indicating potential undervaluation [11].

Investment Rating - The report maintains a "BUY" rating for the company with a target price (TP) revised to HK$98.00 from the previous HK$107.00, reflecting a 53% upside potential based on the current price of HK$64.05 [1][4][7]. Core Insights - The company reported 4Q24 revenue at the upper range of guidance, driven by strong Advanced Packaging (AP) growth, although weak margins in both Semiconductor (SEMI) and Surface Mount Technology (SMT) segments led to net income missing estimates. The report emphasizes a positive outlook on structural demand for TCB and other AP tools, particularly in AI applications, despite challenges in mainstream and non-AI sectors [4][10][11]. - The earnings forecasts for 2025 and 2026 have been cut by 28% and 16% respectively, reflecting adjustments in revenue and margin expectations due to competitive dynamics in the packaging business [4][7][27]. Revenue and Earnings Forecasts - Revenue projections for the years ending December are as follows: - 2025E: HK$14,934 million - 2026E: HK$17,908 million - 2027E: HK$20,458 million - Reported net profit estimates are: - 2025E: HK$1,286 million - 2026E: HK$1,771 million - 2027E: HK$2,265 million - Core EPS estimates are: - 2025E: HK$3.088 - 2026E: HK$4.253 - 2027E: HK$5.439 [8][31]. Financial Performance - The company reported a flat revenue of HK$3.4 billion in 4Q24, with gross profit margins decreasing to 37.2%, down from 42.3% in 4Q23. The operating profit margin fell significantly to 0.1% [10][20]. - The 4Q24 results showed a net income of HK$4 million, a drastic decline of 94% year-over-year, primarily due to weak demand in automotive and industrial sectors, along with a one-time restructuring cost of HK$95 million [10][20]. Market Position and Growth Potential - The report highlights that AP revenues are expected to exceed 30% of total revenues and contribute over 50% to net income from 2025 onwards, indicating a strong growth trajectory driven by AI demand [4][11]. - The company aims to capture 35-40% of the global TCB market share by 2027, with significant investments planned for R&D in AP tools [10][11]. Valuation Metrics - The report uses a valuation multiple of 23x the 2026E EPS to assess the company's value, reflecting a competitive landscape in the mainstream packaging business [7][26]. - Key financial metrics include: - Core P/E for 2025E: 20.7x - EV/EBITDA for 2025E: 14.1x - P/B ratio for 2025E: 1.7x [8][31].