Industry Investment Rating - Overweight rating for the automotive and auto parts industry [2] Core Views - October passenger vehicle wholesale sales hit a record high, with new energy vehicle (NEV) penetration rate stabilizing above 50% [2] - Retail and wholesale sales of passenger vehicles in October achieved double-digit year-on-year growth, with NEV sales increasing by 55.9% YoY and 6.5% MoM [2] - The cumulative penetration rate of NEVs in the first 10 months reached 46.5% [2] - Power battery sales and installations in October increased by 6.2% and 8.6% MoM, respectively, with lithium iron phosphate (LFP) batteries accounting for nearly 80% [2] - Both high-end and low-end market segments showed strong growth, and production and wholesale volumes are expected to continue growing in November during the restocking period [2] Market Performance - In October, retail sales of passenger vehicles reached 2.28 million units, up 12.1% YoY and 7.3% MoM, while wholesale sales reached 2.668 million units, up 12.6% YoY and 9.3% MoM [3] - NEV retail sales in October were 1.196 million units, up 55.9% YoY and 6.5% MoM, with a penetration rate of 52.5% [3] - Cumulative NEV retail and wholesale sales from January to October were 8.331 million and 9.208 million units, respectively, up 32.5% and 39.8% YoY [3] - Passenger vehicle exports in October were 441,000 units, up 13.0% YoY and 2.0% MoM, with cumulative exports in the first 10 months reaching 3.991 million units, up 30.0% YoY [3] - NEV exports in October were 120,000 units, up 10.4% YoY and 13.7% MoM, with cumulative exports in the first 10 months reaching 1.088 million units, up 27.7% YoY [3] Battery Market - In October, power and energy storage battery sales totaled 110.3 GWh, up 47.4% YoY and 6.2% MoM, with power battery sales accounting for 79.1 GWh, up 30.6% YoY and 3.3% MoM [4] - Cumulative power and energy storage battery sales from January to October were 796.0 GWh, up 43.2% YoY [4] - Power battery installations in October were 59.2 GWh, up 51.0% YoY and 8.6% MoM, with LFP batteries accounting for 79.4% of total installations [4] - Ternary battery installations in October were 12.2 GWh, down 1.1% YoY and 7.2% MoM, accounting for 20.6% of total installations [4] Market Segments - High-end and low-end market segments showed strong growth in October, driven by national scrappage and local replacement subsidy policies [5] - As of November 6, over 1.7 million applications for vehicle scrappage subsidies were submitted nationwide, indicating rapid growth in replacement demand [5] - November is traditionally a period of strong restocking, with manufacturers expected to increase production to meet year-end demand [5] Top NEV Models - The top 5 NEV models by sales in October were: BYD Seagull (51,288 units), BYD Qin L DM-i (39,316 units), BYD Seal 06 (38,069 units), Tesla Model Y (36,204 units), and Wuling Hongguang MINI EV (34,185 units) [7] Battery Installations by Companies - In October, CATL led with 25.32 GWh of battery installations, accounting for 42.78% of the market, followed by BYD with 15.82 GWh (24.73%) [11] - Cumulative installations from January to October were 183.02 GWh for CATL and 100.67 GWh for BYD [11] Policy Updates - Key policies in October included Shanghai's financial support for hydrogen storage and fuel cell vehicle projects, and the Ministry of Industry and Information Technology's announcement of new pilot cities for full electrification of public vehicles [16] - Other policies focused on promoting renewable energy and improving charging infrastructure [16] Company News - XPeng held its AI DAY on November 6, showcasing new technologies and launching the P7+ model with a starting price of 186,800 RMB [17] - Leapmotor announced that it expects to achieve profitability earlier than previously anticipated [17] - Huawei's HarmonyOS Smart Selection launched the new S7 model with a pre-sale price starting at 248,000 RMB [17] - BYD collaborated with Huawei to launch the Bao 8 smart off-road vehicle, priced between 379,800 RMB and 407,800 RMB [17] - Tesla CEO Elon Musk was announced as a co-leader of a proposed government efficiency department under the Trump administration [17] - Seres announced a cash dividend of 0.331 RMB per share, totaling 500 million RMB [17]

Investment Rating - Buy rating maintained with a target price of $122.25, representing an 18% increase from the previous target price [1][4] - The target price implies a 25x 2025 P/E and a 17% upside from the current price [4][6] Core Views - Expansion logic remains sound with strong fundamentals, driven by successful entry into new product categories such as outdoor fans, portable coolers, and cold beverage machines [2] - Short-term catalysts are lacking, and the stock may continue to fluctuate within the $90-$110 range over the next 2-3 months [3] - Revenue and adjusted net profit for 2024 are expected to grow by 27.5% and 35.2% YoY, respectively [2][4] Financial Performance and Forecasts - 2024E revenue is projected at $5.423 billion, up 27.5% YoY, with adjusted net profit of $607 million, up 35.2% YoY [4][5] - 2025E revenue is forecasted at $6.100 billion, a 12.5% YoY increase, with adjusted net profit of $686 million, up 12.9% YoY [4][5] - 2026E revenue is expected to reach $6.830 billion, growing 12.0% YoY, with adjusted net profit of $783 million, up 14.2% YoY [4][5] Product and Market Expansion - Successful product launches, including the CREAMi ice cream maker, which now contributes high single-digit revenue share after initial slow growth [2] - Plans to expand SKUs for outdoor fans and portable coolers, with further growth expected in Europe [2] - New product categories such as semi-automatic coffee machines and multi-functional beauty devices are expected to drive future growth [2] Valuation and Peer Comparison - Current 2025E P/E of 21.3x, compared to the peer average of 13.8x [8] - SharkNinja's valuation is higher than peers like Whirlpool (9.8x 2025E P/E) and Reynolds Consumer (15.7x 2025E P/E) [8] Financial Ratios and Metrics - 2024E gross margin is expected to improve to 48.2%, up from 44.9% in 2023A [9] - 2024E adjusted net margin is forecasted at 11.2%, with ROE of 22.7% [9] - Free cash flow is projected to grow from $868 million in 2024E to $1.149 billion in 2026E [9]

Investment Rating - The report assigns an "Overweight" rating to the healthcare industry [1]. Core Viewpoints - The establishment of the medical insurance prepayment system is expected to enhance operational efficiency in the healthcare sector [1][2]. - The prepayment system will alleviate the financial pressure on medical institutions, thereby improving their operational efficiency and promoting stable operations for pharmaceutical and consumable companies [1][2]. - The report expresses optimism about the development prospects of the healthcare service industry, recommending companies such as Haijia (603939CH, Buy rating, target price RMB 47.90), Gushengtang (2273 HK, Buy rating, target price HK$ 73.95), and Jinxin Reproductive (1951 HK, Buy rating, target price HK$ 4.78) [3]. Summary by Sections Medical Insurance Prepayment System - The prepayment system aims to help medical institutions manage cash flow pressures and enhance service capabilities, specifically for drug and consumable expenditures [2]. - The prepayment amount will be based on the average monthly expenditure of the medical insurance fund over the previous 1-3 years, adjusted according to the annual comprehensive evaluation and credit rating of the medical institutions [2]. Industry Outlook - The report anticipates that the implementation of the prepayment system will accelerate cash flow in the Chinese healthcare service industry, leading to improved operational efficiency [3].

Industry Investment Rating - Overweight rating for the pharmaceutical retail industry [1] Core Views - The pharmaceutical retail business has shown strong revenue growth resilience in the first 8 months of 2024 [1] - The pharmaceutical retail industry is expected to achieve improved profit margins in the future, with Yifeng Pharmacy being the top recommendation [1][2] - The industry is transitioning from store expansion to profitability enhancement, maintaining long-term growth potential [2] Revenue Growth and Channel Analysis - From January to August 2024, the pharmaceutical retail market in China reached a sales scale of RMB 3,244 billion, with a year-on-year growth rate of 1.4% [1] - Retail pharmacies (including O2O) accounted for 87.0% of the market, with a year-on-year growth rate of 0.3% [1] - E-commerce B2C accounted for 13.0% of the market, with a year-on-year growth rate of 9.6%, and its market share increased by 1.0% compared to the previous year [1] - In July and August 2024, offline retail pharmacy revenue grew by 2% and 5% year-on-year, respectively, indicating a clear improvement in the performance of physical pharmacies [2] Channel Differentiation and Product Focus - Retail pharmacies, due to their professional nature, focus on categories such as oncology drugs, cardiovascular drugs, and hypertension medications [2] - Online platforms, leveraging privacy, prioritize categories like dermatological drugs and urological medications [2] - O2O, as an emerging field, is increasingly important for retail growth, particularly for acute medication needs such as cold medicines, cough suppressants, and systemic anti-infective drugs [2] Company Recommendation - Yifeng Pharmacy (603939CH) is recommended with a "Buy" rating and a target price of RMB 47.90 [2]

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Investment Rating - The report maintains a "Buy" rating for the company with a target price of US$28.90, representing a potential upside of 15% from the current price of US$25.06 [1][4][12]. Core Insights - The company is expected to deliver between 160,000 to 170,000 new vehicles in Q4 2024, with projected revenue ranging from RMB 432 billion to RMB 459 billion, indicating a year-on-year growth of 3.5% to 10% [4][6]. - The gross margin for Q3 2024 improved significantly, reaching 21.5%, driven by a decrease in vehicle costs, despite some offset from the increased delivery of lower-priced models [5][10]. - The report highlights a substantial increase in operating profit for Q3 2024, which reached RMB 34.3 billion, a remarkable growth of 633.4% quarter-on-quarter [5][10]. Financial Performance Summary - The company reported Q3 2024 revenue of RMB 428.7 billion, a year-on-year increase of 23.6% and a quarter-on-quarter increase of 35.3% [5][9]. - The projected earnings per share (EPS) for 2024 is RMB 11.12, reflecting a 38% increase from previous estimates [1][11]. - The forecasted revenue for 2024 is RMB 145,464 million, with a gross profit of RMB 30,503 million, indicating a gross margin of 21.0% [8][11]. Adjustments and Forecasts - The report adjusts the company's 2024-2026 gross margin estimates upward to reflect the ongoing decrease in unit costs, with the gross margin expected to range from 21.0% to 23.2% [7][10]. - Non-GAAP net profit estimates for 2024, 2025, and 2026 have been revised to RMB 108.9 billion, RMB 147.0 billion, and RMB 191.2 billion respectively, showing a growth trajectory [10][11]. - The company is expected to maintain a steady monthly sales volume exceeding 50,000 units, supported by the upcoming BEV new vehicle cycle in 2025 [12][10].

Investment Rating - The report maintains a "Buy" rating for China Merchants Bank-H (3968 HK) with a target price of HK$48.90, representing a potential upside of 29% from the current price of HK$38.00 [1][5]. Core Views - The bank's 3Q24 earnings met expectations, benefiting from effective cost control that offset declines in interest and commission income. The adjusted net profit for 3Q24 was RMB 38.4 billion, a year-on-year increase of 0.8% [6][10]. - Revenue growth continues to slow, with a year-on-year decline of 2.6%, primarily due to a 14 basis point decrease in net interest margin, which offset a 4.7% increase in loans [6][12]. - The bank's asset quality showed relative improvement, with a non-performing loan ratio stable at 0.94% and a high coverage ratio of 432.2% [7][14]. - The outlook for 4Q24 and 2025 suggests a continued decline in net interest margin, although the pace of decline is expected to slow. Credit demand is anticipated to recover in 2025 [8][12]. Summary by Sections Earnings Performance - In 3Q24, adjusted net profit was RMB 38.4 billion, with a year-to-date adjusted net profit of RMB 111.2 billion, flat year-on-year [6][10]. - The bank's total revenue for 3Q24 was RMB 79.1 billion, down 2.6% year-on-year, driven by a decrease in net interest income and commission income [13]. Financial Metrics - The bank's cost-to-income ratio improved to 32.6%, down from 34.3% in 2Q24, indicating better cost management [7][14]. - The core Tier 1 capital ratio increased by 87 basis points to 14.73%, reflecting strengthened capital levels [7][14]. Future Outlook - The bank expects a decline in net interest margin in 4Q24, but the decrease is projected to be less severe than in 2024. Loan growth is expected to exceed 2024 levels, particularly in retail loans [8][12]. - The bank's ability to generate positive growth in commission income in 2025 will depend on regulatory decisions regarding fee reductions [8][12].

Investment Rating - The report assigns a "Hold" rating to the company with a target price of RMB 25.90, reflecting a 15% decrease from the previous target price of RMB 30.62 [1][2] Core Insights - The company's performance in the first three quarters of 2024 was below expectations, with revenue and net profit declining by 6.8% and 12.4% year-on-year, respectively [1][2] - The "old-for-new" policy has shown significant effects, but there is still a lack of long-term logic, leading to concerns about the risk-reward ratio [1][2] - The company is expected to see a revenue growth of 3% year-on-year in Q4 2024, driven by the "old-for-new" policy and improved online channel revenue growth [1][2] Financial Performance Summary - Revenue for 2024E is adjusted to RMB 10,749 million, a decrease of 14.1% from previous estimates [2] - The net profit for 2024E is revised down to RMB 1,662 million, reflecting a 25.7% reduction [2] - The EPS for 2024E is adjusted to RMB 1.76, down 25.3% from earlier projections [2] Market Position and Valuation - The current market capitalization of the company is approximately USD 3,199 million [1] - The company’s P/E ratio for 2025E is projected at 14 times, with a target price corresponding to this valuation [1][2] - The stock price has a potential upside of 8% from the current price of RMB 24.07 [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$6.95, representing a 24% increase from the previous target price of HK$5.61 [1][7]. Core Insights - The company's brand, Xtep, has shown a month-to-date (MTD) revenue growth of over 10% in October, indicating a strong performance that is expected to meet the annual guidance [4][6]. - For the fiscal year 2024, the overall revenue and net profit attributable to the parent company are projected to grow by 1.5% and 21.3%, reaching RMB 14.56 billion and RMB 1.25 billion, respectively [6][9]. - The report highlights that the company's inventory and discount levels are healthy, with expectations for continued improvement in gross margin [5][6]. Financial Projections - The revenue forecast for 2024 has been adjusted to RMB 14.56 billion, reflecting a 3.6% decrease from previous estimates, while the net profit forecast has been adjusted to RMB 1.25 billion, a decrease of 3.0% [9]. - The earnings per share (EPS) for 2024 is projected at RMB 0.47, with subsequent years showing growth to RMB 0.53 in 2025 and RMB 0.59 in 2026 [8][9]. - The report anticipates a gross margin improvement of 2.1 percentage points to 44.2% for 2024, alongside a net profit margin increase of 1.4 percentage points to 8.6% [6][9].

Investment Rating - The report maintains a "Buy" rating for Eve Energy (300014 CH) with a target price of RMB64.30, representing a 30% upside from the current price of RMB49.44 [1][2] - The target price has been revised upward by 16% from RMB55.30 to RMB64.30 [2] Core Views - Eve Energy's 3Q24 gross margin improved significantly to 19.0%, driven by higher capacity utilization in power and energy storage batteries, as well as lower raw material costs [4] - The company's overseas energy storage business is expected to grow significantly in 2025/26, with the first global cooperative project (ACT) progressing smoothly [5] - The report forecasts a 40.2% YoY growth in net profit attributable to shareholders in 2025, supported by improving capacity utilization and strong demand for energy storage and consumer batteries [6] Financial Performance - 3Q24 revenue was RMB12.39 billion, down 1.3% YoY but up 0.4% QoQ [4] - 3Q24 gross profit reached RMB2.355 billion, with a gross margin of 19.0%, up 3.4 percentage points QoQ [4] - Non-GAAP net profit attributable to shareholders grew 25.5% QoQ to RMB1.0 billion in 3Q24 [4] - The company's energy storage battery shipments reached 35.7GWh in the first three quarters of 2024, up 115.6% YoY [5] Business Outlook - Power battery shipments are expected to increase in 4Q24 with new customer Leapmotor's volume contribution [5] - The ACT project, a joint venture with Cummins, Daimler Truck, and PACCAR, is on track to start production in 2026 with an annual capacity of 21GWh [5] - Consumer batteries have been operating at full capacity for six consecutive months, with the Malaysia factory progressing well [5] Valuation - The battery business is valued at 19x 2025E P/E, implying a valuation of RMB112.4 billion [11][12] - Including the stake in Smoore International, the total valuation is RMB131.6 billion, leading to the target price of RMB64.30 [11][12] - The 2025E EPS is forecasted at RMB3.19, representing a 40.2% YoY growth [6][12] Peer Comparison - Eve Energy's 2025E P/E of 15.5x is slightly below the peer average of 19x, with a PEG ratio of 0.39 [13] - The company's valuation multiples are comparable to industry leaders like CATL (22x 2024E P/E) and Gotion High-Tech (28x 2024E P/E) [13]