Investment Rating - The report maintains a "Buy" rating for Anta Sports with a target price of HK$108.40, representing a 4% increase from the previous target price of HK$104.20 [1]. Core Views - Anta Sports' performance in Q3 2024 was below expectations, particularly for the FILA brand, while Descente and KOLON continued to show strong growth [1]. - The company is expected to achieve its annual guidance, with a projected revenue growth of 12.4% year-on-year for 2024 [1]. - The report highlights challenges for FILA in meeting its annual targets, with anticipated revenue growth between 4.6% and 5.2% for the year [1][2]. Financial Summary - Revenue for 2024 is projected at RMB 70,096 million, with a slight downward adjustment of 0.9% from previous estimates [2]. - Gross profit margin is expected to remain stable at 63.2% across the forecast period [2]. - Net profit for 2024 is forecasted at RMB 14,122 million, reflecting a decrease of 1.5% from earlier projections [2]. - Earnings per share (EPS) for 2024 is estimated at RMB 4.99, down 1% from previous estimates [1][2]. Market Performance - The current stock price is HK$91.40, with an upside potential of 19% to the target price [1]. - The market capitalization of Anta Sports is approximately US$33.273 billion [1]. - The report indicates that the company's stock is trading at a P/E ratio of 16.7 for 2024, which is competitive compared to peers [3].

Investment Rating - The report maintains a "Buy" rating for JS Global Life with a target price of HK$1.88, representing a potential upside of 25% from the current price of HK$1.50 [1][2][5]. Core Insights - The report highlights that JS Global's revenue is expected to grow by 21.4% year-on-year in 2024, while the net profit attributable to shareholders is projected to decline by 50% [4][5]. - The domestic kitchen small appliance market is maturing, leading to short-term pressure on the Joyoung segment, but the Asia-Pacific market shows significant growth potential [4][5]. - The report emphasizes the successful expansion of SN's product offerings in the Asia-Pacific region, which has led to a substantial revenue increase of approximately 153% in the first half of 2024 [4][5]. Revenue and Profit Forecast - Revenue projections for JS Global are adjusted to reflect a 6.8% increase for 2024 and 2025, with expected revenues of US$1.735 billion and US$1.911 billion respectively [5][7]. - The net profit forecast for 2024 is revised down to US$66 million, a 50% decrease, with a subsequent recovery expected in 2025 to US$84 million [5][6][7]. - The report introduces a 2026 forecast, estimating revenue of US$2.104 billion and net profit of US$105 million [6][7]. Market Dynamics - The report notes that the competitive landscape in the domestic kitchen small appliance market is intensifying, with a shift from price competition to a decline in both volume and price [4][5]. - SN's strategy of multi-category, multi-brand, and multi-channel development in the Asia-Pacific region is expected to replicate the success seen in Western markets, with a projected revenue growth of 75% in 2024 for this segment [4][5]. Valuation Metrics - The report sets a new target price based on a 10x P/E ratio for 2025, reflecting an increase of 19% from the previous target price [5][6]. - The expected earnings per share (EPS) for 2024 is revised down to US$0.02, with a gradual increase to US$0.03 by 2026 [5][6][7].

Investment Rating - The report maintains a "Buy" rating for Jiuyang Co., Ltd. with a target price of RMB 11.00, representing a potential upside of 19% from the current price of RMB 9.24 [1][4][5]. Core Insights - Jiuyang is facing a phase of developmental bottlenecks, testing its multi-category expansion capabilities as the domestic small kitchen appliance market matures. The expected revenue growth for 2024 is projected at 2.9% year-on-year, reaching RMB 9.9 billion [1][4][5]. - The report highlights that while the short-term profit margins are under pressure, the company is expected to maintain a net profit margin of 4.0% for 2024, with a slight increase in net profit by 1.6% to RMB 400 million [4][5]. Summary by Sections Revenue and Profit Forecast - Revenue for 2024 is expected to be RMB 9,896 million, with a growth of 2.9% year-on-year. The projections for 2025 and 2026 are RMB 10,378 million and RMB 10,879 million, respectively, indicating growth rates of 4.9% and 4.8% [6][9]. - The report anticipates a decline in net profit for 2024 to RMB 395 million, a decrease of 39.3% from previous estimates, with subsequent years showing recovery to RMB 447 million in 2025 and RMB 508 million in 2026 [5][6][9]. Market Conditions - The small kitchen appliance market is entering a mature phase, with online and offline retail sales declining by 5% and 12% respectively in the first half of 2024. This has led to intensified competition and a shift from volume growth to price declines [4][5]. - Jiuyang is adapting to the K-shaped consumption trend by innovating flagship products and expanding its price range to cater to different consumer segments, which is expected to stabilize domestic sales in the second half of 2024 [4][5]. Valuation Metrics - The report adjusts the target price down by 35% to RMB 11.00, corresponding to a P/E ratio of 19 times for 2025. The current valuation reflects a significant discount compared to peers, with Jiuyang's P/E for 2024 estimated at 17.9 times [5][8].

Investment Rating - The report assigns an "Overweight" rating to the semiconductor industry [2]. Core Insights - The report emphasizes the importance of establishing industry standards and unifying model parameter specifications for the healthy development of the EDA industry [3]. - There is a noticeable integration of DTCO systems with both manufacturing and design processes, enhancing collaboration [3]. - Key updates from the IDAS Design Automation Industry Summit include a stronger focus on early-stage design planning, challenges posed by Chiplet technology, and the blurring lines between chip testing and packaging [3]. Summary by Sections Chip Design - Increased emphasis on early-stage design layout and the establishment of packaging design standards and chip library models [3]. Chiplet & Packaging - Challenges from Chiplet technology include thermal effects and electromagnetic interference, necessitating improvements in EDA tools for electromagnetic and thermal simulation [3]. Chip Testing - Leading domestic manufacturers believe that the boundaries between chip testing and packaging are becoming increasingly blurred, indicating a trend towards enhanced collaboration among testing machines, probes, and sorting machines [3]. Chip Manufacturing - Smart chip manufacturing encompasses the "tape-out, testing, and virtual manufacturing" stages, with AI models expected to reduce process time and costs [3]. - Intelligent EDA tools are deeply integrated with manufacturing processes, and DTCO collaboration is effectively applied in HBM and AI chips [3].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of US$19.71, indicating a potential upside of 66% from the current price of US$11.91 [1][4]. Core Insights - The company is positioned as a key beneficiary in the rapidly developing low-altitude economy, particularly with the commercialization of eVTOL (Electric Vertical Takeoff and Landing) aircraft. The EH216-S model has received all necessary certifications, marking a significant milestone for commercial operations [3][11]. - The report forecasts strong sales growth for the EH216-S, with projected deliveries of 190, 400, and 700 units from 2024 to 2026, respectively, leading to a compound annual growth rate (CAGR) of 138% [2][13]. - Financial projections indicate substantial revenue growth, with total revenues expected to reach RMB 4.38 billion, RMB 9.04 billion, and RMB 15.67 billion for 2024, 2025, and 2026, respectively, reflecting year-on-year growth rates of 272.6%, 106.5%, and 73.4% [6][13]. Summary by Sections Investment Overview - The report highlights the acceleration of eVTOL commercialization as a turning point for the low-altitude economy, with the company being a leading player in this sector. The EH216-S has become the first eVTOL to receive the necessary certifications for commercial operation [11][14]. Product Strength and Market Demand - The EH216-S is noted for its competitive advantages, including a compact design, cost-effective operation due to its unmanned nature, and strong market demand, with over 1,100 orders already secured [12][34]. - The report emphasizes the expected demand for eVTOLs in various applications, particularly in tourism and urban air mobility, with a long-term forecast suggesting a domestic demand exceeding 100,000 units [18][21]. Financial Analysis - The financial outlook includes a narrowing of net losses, with projections of RMB 2.03 billion and RMB 1.26 billion for 2024 and 2025, respectively, and a return to profitability with a net profit of RMB 1.42 billion by 2026 [6][13]. - The valuation is based on a price-to-sales (P/S) ratio of 10 times the 2025 forecast, leading to the target price of US$19.71 [4][13]. Government Support and Market Environment - The report notes significant government support for the low-altitude economy, which is expected to create a favorable environment for the company's growth and the broader eVTOL market [23][24]. - The EH216-S's early certification provides a competitive edge, as it is currently the only eVTOL capable of commercial operation, while competitors are still in the certification process [25][27].

Investment Rating - The report assigns an "Overweight" rating to the automotive and auto parts industry, indicating a positive outlook for investment in this sector [1]. Core Insights - In August, the penetration rate of new energy vehicles (NEVs) increased to 53.5%, with expectations that the "Golden September and Silver October" period will further boost overall vehicle sales [1][2]. - August saw a significant year-on-year increase in NEV sales, with retail sales reaching 1.027 million units, a 43.4% increase compared to the previous month [1]. - The report anticipates continued support for subsidies in September for passenger cars and NEVs, which will likely enhance market performance during the upcoming sales season [2]. Summary by Sections NEV Sales Performance - In August, the retail sales of narrow-sense passenger cars reached 1.921 million units, with a slight month-on-month increase of 0.1% and a year-on-year decrease of 3.0% in wholesale sales [1]. - Cumulative retail and wholesale sales of NEVs from January to August reached 6.012 million and 6.608 million units, respectively, representing year-on-year growth of 35.3% and 30.1% [1]. Battery Sales and Installation - In August, the sales and installation of power batteries increased by 10.0% and 13.5% month-on-month, respectively, with total battery sales reaching 92.8 GWh, a year-on-year increase of 43.2% [2]. - Cumulative battery sales from January to August reached 581.8 GWh, with a year-on-year growth of 42.1% [2]. Market Outlook - The report projects that the overall vehicle market sales will continue to rise in September, driven by favorable sales expectations and the gradual onset of winter purchasing trends [2]. - It is estimated that the retail and wholesale sales of NEVs in China for the entire year of 2024 will be approximately 10 million and 11 million units, respectively, reflecting year-on-year growth of 29% and 24% [2].

Investment Ratings - Luxshare Precision (002475 CH) - Buy, Target Price: RMB 46.43 [2][5] - Will Semiconductor (603501 CH) - Buy, Target Price: RMB 131.00 [2][5] - Sunny Optical (2382 HK) - Buy, Target Price: HK$ 64.00 [2][5] Core Insights - The report highlights the new iPhone 16's camera control features and AI specifications upgrades, which exceeded market expectations [3][10] - The introduction of the iPhone 16 series is expected to support sales momentum due to stable pricing and improved camera capabilities [10][25] - The report upgrades Sunny Optical's rating to Buy based on optimistic revenue growth and operational leverage from R&D and marketing investments [4][25] Summary by Sections Investment Ratings and Target Prices - Luxshare Precision's target price increased by 9% from RMB 42.70 to RMB 46.43 [2] - Will Semiconductor's target price increased by 9% from RMB 120.00 to RMB 131.00 [2] - Sunny Optical's target price increased by 3% from HK$ 62.00 to HK$ 64.00 [2] iPhone 16 Features - The iPhone 16 Pro and Pro Max have screen sizes increased to 6.3 inches and 6.9 inches respectively [3][10] - The A18 chip shows a 100% improvement in GPU performance and a 30% improvement in CPU performance compared to the A16 chip [3][10] - The ultra-wide camera resolution upgraded from 12MP to 48MP, and the telephoto lens zoom improved from 3x to 5x [3][10] Market Outlook - The report expresses confidence in Luxshare Precision's profitability outlook for 2025, positioning it as a top choice in the smartphone supply chain [4][25] - Will Semiconductor is expected to benefit from the domestic CMOS localization trend, with an anticipated increase in market share in the mid-to-high-end Android smartphone CIS market [4][25] - Sunny Optical's projected compound annual growth rate for EPS from 2023 to 2026 is estimated at 52.7%, leading to an upgrade in its rating [4][25]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$61.98, reflecting a potential upside of 42% from the current price of HK$43.50 [2][4][8]. Core Insights - The company is expected to achieve a revenue CAGR of approximately 30% from 2024 to 2026, driven by strong market demand for its products [2][3]. - The company reported a significant increase in product revenue for 1H24, reaching RMB 3.81 billion, a year-on-year growth of 55.1% [2][6]. - The gross margin for 1H24 was 84.1%, an increase of 1.8 percentage points compared to the previous year, attributed to rising sales and decreasing production costs [2][3]. - The company has multiple key products in the cardiovascular and metabolic (CVM) fields awaiting approval, which are considered crucial for future growth [2][3]. Financial Summary - The company's revenue is projected to grow from RMB 6,206 million in 2023 to RMB 12,948 million by 2026, with a gross profit increasing from RMB 5,070 million to RMB 10,667 million over the same period [1][12]. - The net profit is expected to turn positive by 2025, reaching RMB 1,004 million, and further increasing to RMB 2,508 million by 2026 [1][12]. - The earnings per share (EPS) is forecasted to improve from a loss of RMB 0.66 in 2023 to a profit of RMB 1.61 by 2026 [1][12]. Valuation Analysis - The report employs a two-stage DCF valuation method, resulting in a target price of HK$61.98, which corresponds to a 2025 enterprise value/revenue multiple of 7.7x, significantly higher than the comparable company average of 4.0x [8][9]. - The WACC used in the valuation is 10.2%, with a perpetual growth rate of 3% [8][9].

Investment Rating - The report assigns a **Buy** rating to Shenwei Pharmaceutical (2877 HK) with a target price of HK$18.00, representing a 106% upside potential from the current price of HK$8.75 [1][2] Core Views - Shenwei Pharmaceutical's exclusive products are growing steadily, and traditional Chinese medicine (TCM) formula granules are expected to recover growth after 2H24 [3] - The company's revenue and net profit are forecasted to grow at a CAGR of 11% and 10% respectively from 2023 to 2026 [3] - The target price is based on a DCF model with a WACC of 12.1% and a perpetual growth rate of 0.5%, implying a 2025E P/E of 11x, in line with the industry average [14] Financial Performance - In 1H24, Shenwei Pharmaceutical reported revenue of RMB 2.087 billion, down 13% YoY, while net profit grew 28% YoY to RMB 626 million [4] - Excluding one-time items, adjusted net profit declined 5% YoY to RMB 409 million [4] - Gross margin improved slightly by 0.1 ppts to 75.3% in 1H24 [4] - Free cash flow was RMB 489 million in 1H24, with an interim dividend of RMB 83 million and a trailing 12-month dividend yield of 40% [4] - Net cash per share stood at HK$7.64, representing 87% of the latest closing price [4] Product Performance - Injection sales declined 19% YoY to RMB 779 million in 1H24, with the flagship product Qingkailing down 9% YoY to RMB 366 million [4] - Soft capsule sales fell 18% YoY to RMB 289 million, while granule sales grew 4% YoY to RMB 345 million, driven by a 12% increase in Huamoyan granules [4] - TCM formula granule sales dropped 12% YoY to RMB 555 million in 1H24, with sales in Hebei and Yunnan hospitals down 1% YoY, accounting for 90.4% of total formula granule revenue [5] Forecast Adjustments - Revenue forecasts for 2024-26 were lowered by 5%/8%/8%, mainly due to weaker-than-expected injection and formula granule sales [11] - Gross profit forecasts for 2024-26 were revised down by 5%/8%/9%, while net profit and EPS forecasts were cut by 5%/8%/8% [13] - Injection revenue forecasts for 2024-26 were reduced by 8%/12%/13%, and formula granule revenue forecasts were lowered by 9%/13%/16% [12] Valuation - The DCF target price of HK$18.00 implies a 2025E P/E of 11x, in line with the industry average of 10x [14] - Shenwei Pharmaceutical trades at a discount to A-share peers, with a 2025E P/E of 6x vs. the A-share average of 20x [19]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 10.78, representing a potential upside of 34% from the current price of RMB 8.02 [1][12]. Core Views - The company is expected to achieve long-term growth driven by the development of new products, particularly in the oncology treatment sector with the launch of its first antibody drug, trastuzumab [4][5]. - The company has a stable revenue growth outlook, with a projected revenue CAGR of 9% and net profit CAGR of 18% for the years 2023-2026, despite a downward adjustment from previous estimates [4][10]. - The report highlights a decrease in R&D expenses by 26.44% in 1H24, which has contributed to stabilizing net profit growth [4][7]. Financial Summary - For 1H24, the company reported revenue of RMB 1.299 billion, a year-on-year increase of 1%, and a net profit of RMB 416 million, up 5% from the previous year [7][8]. - The company's gross profit margin for 1H24 was 78.2%, reflecting a slight improvement from 77.7% in 1H23 [7]. - The projected earnings per share (EPS) for 2024E is RMB 0.63, with a slight increase of 6% from previous estimates [9][10]. Revenue and Profit Forecasts - The revenue forecast for 2024E is adjusted to RMB 2.982 billion, down 18% from previous estimates, while the net profit forecast is increased to RMB 1.048 billion, up 6% [9][10]. - The company’s product segments show varied performance, with biological products expected to generate RMB 2.133 billion in revenue for 2024E, down 23% from previous estimates [11][12]. Valuation - The report employs a two-stage DCF valuation method, resulting in a target price of RMB 10.78, which corresponds to a P/E ratio of 16 for 2025, higher than the average of comparable companies [12][15]. - The report notes that the company’s continuous growth in biological products justifies a premium valuation [12][15].