Investment Rating - The report assigns an "Overweight" rating to the pharmaceutical industry [1]. Core Insights - The report highlights that the performance of the pharmaceutical sector is expected to improve, with industry revenue and profit projected to grow by approximately 10% in 2024, driven by policy support and recovery from previous negative factors [2][3]. - The report notes significant price stability in insulin procurement despite increased demand, indicating a balanced market environment [2]. - The report emphasizes the positive impact of Beijing's new policies aimed at supporting innovative drug development, which include the removal of restrictions on the number of drugs in medical institutions [2][3]. Summary by Sections Price Changes and Valuation Analysis (April 6, 2024 - May 6, 2024) - During the reporting period, 281 out of 461 A-share pharmaceutical companies saw stock price increases, with the top three sub-industries being chemical preparations (75 companies), traditional Chinese medicine (43 companies), and raw materials (32 companies) [5][6]. - In the H-share market, 78 out of 87 companies experienced price increases, with the leading sub-industries being other biological products (20 companies), chemical preparations (13 companies), and medical consumables (10 companies) [5][6]. Industry Policies - The report outlines key policies affecting the pharmaceutical industry, including the continuation of insulin procurement and the introduction of supportive measures for innovative drug development in Beijing [2][18]. - It also mentions ongoing anti-corruption efforts in the medical sector, which are expected to enhance regulatory oversight [2][18]. Company News - The report provides updates on several companies, including Yifeng Pharmacy, which reported a revenue increase of 13.59% year-on-year for 2023, and Mindray Medical, which achieved a 15.04% revenue growth for the same period [19]. - Other notable companies include Kangtai Biological, which reported a significant profit increase of 749.02% year-on-year, and Huazhu Sanjiu, which showed a 14.82% revenue growth in Q1 2024 [19]. Investment Recommendations - The report lists several companies with "Buy" ratings, including Hansoh Pharmaceutical, BeiGene, and Innovent Biologics, citing their innovative capabilities and growth potential as key reasons for the recommendations [20].

Investment Rating - The report maintains a "Buy" rating for JD Logistics (2618 HK) with a target price of HK$13.20 [1][20]. Core Insights - JD Logistics reported strong performance in Q1 2024, with revenue and net profit exceeding expectations. Revenue grew by 14.7% year-on-year, driven by significant increases in transactions with JD Group (JD US) and Debon Logistics, which rose by 14.9% and 25.5% respectively [1][20]. - The number of integrated supply chain customers has shown positive year-on-year growth, which is expected to accelerate revenue growth [1][20]. - The gross profit margin increased by 320 basis points to 7.7%, marking the first profitable quarter for JD Logistics, with adjusted net profit margin turning positive at 1.3% compared to -1.9% in Q1 2023 [1][20]. Summary by Sections Financial Performance - Q1 2024 revenue reached RMB 42,137 million, with a year-on-year growth of 14.7% [7]. - The gross profit for Q1 2024 was RMB 3,231 million, with a gross profit margin of 7.7% [7]. - The adjusted net profit for Q1 2024 was RMB 541 million, reflecting a significant turnaround from the previous year [7]. Revenue Breakdown - Revenue from JD Group accounted for RMB 12,883 million in Q1 2024, showing a year-on-year increase of 14.9% [7]. - Revenue from external customers grew by 14.7% in Q1 2024, indicating a recovery in the integrated supply chain business [7]. Future Guidance - The company has set a full-year revenue guidance for 2024 with a high single-digit growth expectation, and an adjusted net profit margin forecast of 1.7% to 2.0% [2][4]. - The management believes that the strong performance in Q1 2024 lays a solid foundation for achieving the annual targets [2][4]. Valuation Metrics - The target price of HK$13.20 is based on a DCF model with a perpetual growth rate of 2% and a WACC of 11.7% [4][6]. - The current stock price is HK$9.80, indicating a potential upside of 35% [6]. Market Comparison - The report notes that the revenue forecast for 2024E is RMB 181,860 million, which is 2% lower than market expectations [4]. - The projected EPS for 2024E is RMB 0.40, aligning closely with market estimates [4]. This comprehensive analysis highlights the positive trajectory of JD Logistics, underpinned by strong Q1 performance and optimistic future guidance.

Investment Rating - The report maintains a "Buy" rating for the company with an updated DCF target price of RMB 44.31, reflecting a 26% upside potential from the closing price on May 6 [1][4][14]. Core Insights - The company is expected to achieve a revenue and net profit CAGR of 19% and 24% respectively from 2023 to 2026, driven by strong growth in emerging business segments and rapid online sales growth [1][2]. - The company reported 2023 revenues and net profits of RMB 22.44 billion and RMB 0.93 billion, representing year-on-year growth of 11% and 18% respectively [1][8]. - The company is focusing on expanding its store network in advantageous provinces and penetrating lower-tier markets, with a total of 14,109 stores as of Q1 2024 [1][2]. Financial Performance - In Q1 2024, the company achieved revenues and net profits of RMB 5.54 billion and RMB 0.32 billion, showing a year-on-year growth of 2% and 10% respectively [1][8]. - The gross margin improved to 35.2% in Q1 2024, up 2.2 percentage points year-on-year, attributed to the implementation of the Torch Project [2][8]. - The company plans to open 4,000, 5,000, and 6,000 new stores in 2024, 2025, and 2026 respectively, focusing on advantageous provinces and key cities [1][2]. Revenue and Profit Forecasts - The company’s revenue is projected to reach RMB 27.04 billion in 2024, RMB 32.42 billion in 2025, and RMB 38.24 billion in 2026, with corresponding net profits of RMB 1.14 billion, RMB 1.47 billion, and RMB 1.76 billion [3][12][20]. - The report indicates a downward adjustment in the 2024-2025 profit forecasts due to a slowdown in acquisition speed and capital expenditure [11][14]. Market Position and Competitive Landscape - The company is actively expanding its online sales channels, with online sales reaching approximately RMB 2 billion in 2023, a 38% increase year-on-year [2][8]. - The company holds a significant market share in 11 provinces, with four of them being the top market share holders [1][2]. Valuation Metrics - The target price corresponds to a 2024 P/E ratio of 23x, which is higher than the industry average of 16x, indicating a premium valuation due to strong growth prospects [4][14].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 57.48, indicating a potential upside of 27% from the current price of RMB 45.40 [1][2][15]. Core Insights - The company is expected to achieve a revenue and net profit CAGR of 26% and 33% respectively from 2023 to 2026, driven by robust store growth and the trend of hospital prescription outflow [4][5]. - The company added 3,196 stores in 2023, with a total of 13,920 stores as of Q1 2024, and is projected to reach 23,774 stores by 2026, reflecting a CAGR of 22% in store count [6][11]. - The company’s 2023 revenue was RMB 22.59 billion, a 14% increase year-on-year, with a net profit of RMB 1.41 billion, up 12% [5][20]. Financial Performance - The company reported a gross margin of 38.2% in 2023, slightly down from the previous year, attributed to an increase in low-margin wholesale revenue [5][8]. - The forecast for 2024E revenue is RMB 28.53 billion, with a gross profit of RMB 11.22 billion and a net profit of RMB 1.99 billion [10][12]. - The report indicates a downward adjustment in EPS for 2024 and 2025 by 28% and 27% respectively, due to increased share capital from stock dividends [11][14]. Market Comparison - The company’s P/E ratio for 2024 is projected at 29, which is above the industry average of 15, suggesting a premium valuation due to expected high growth rates [15][17]. - Compared to peers, the company has a higher market capitalization of RMB 45.88 billion and a lower EPS than some competitors, indicating competitive positioning in the market [17]. Store Expansion and Strategy - The company is leveraging both online and offline channels to capture hospital prescription flows, with a significant number of stores qualifying for medical insurance [5][6]. - The report highlights the importance of acquisitions for expansion, with a focus on maintaining growth in a competitive retail pharmacy environment [18]. Future Projections - Revenue projections for 2024E, 2025E, and 2026E are RMB 28.53 billion, RMB 35.75 billion, and RMB 44.88 billion respectively, reflecting a strong growth trajectory [12][20]. - The company is expected to maintain a healthy net profit margin, with projections of 7.0% for 2024E and 7.4% for 2026E [21].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$6.72, representing a potential upside of 20% from the current price of HK$5.60 [1][2][4]. Core Views - The company plans to divest its loss-making subsidiary KP Global, which is expected to positively impact profits in the short term [4][5]. - Following the divestiture, the company anticipates revenue and net profit growth of 9.0% and 24.8% year-on-year, reaching RMB 15.64 billion and RMB 1.29 billion, respectively, in 2024 [4][5]. - The report highlights improvements in inventory management and sales performance, with online revenue expected to grow by approximately 14% due to a low base effect [5][6]. Summary by Sections Financial Projections - Revenue for 2024 is projected at RMB 15.64 billion, with a slight decrease in estimates for 2024-2026 due to the impact of KP Global's divestiture [6][8]. - The company expects a net profit of RMB 1.29 billion in 2024, reflecting an 8.5% increase from previous estimates [6][8]. - Earnings per share (EPS) for 2024 is estimated at RMB 0.49, with subsequent years showing continued growth [7][8]. Market Performance - The company’s market capitalization is approximately US$1.89 billion, with a three-month average daily trading volume of US$8 million [2][4]. - The stock has a price-to-earnings (P/E) ratio of 10.6 for 2024, indicating a favorable valuation compared to peers [9][10]. Strategic Initiatives - The divestiture of KP Global is expected to streamline operations and enhance profitability, with a special dividend of US$151 million planned for shareholders [4][5]. - The company aims to expand its product offerings and improve store efficiency, with plans to open 180 new stores in 2024 [5][6].

Investment Rating - The report assigns an "Overweight" rating to the automotive and auto parts industry [2]. Core Insights - In April, the penetration rate of new energy vehicles (NEVs) increased to 43.5%, with retail sales reaching 674,000 units, a year-on-year growth of 27.9% [2]. - The implementation of the vehicle trade-in subsidy policy is expected to generate an additional demand for 1-2 million new cars [4]. - The production and sales of power and energy storage batteries reached 78.2 GWh and 73.5 GWh respectively in April, marking a year-on-year increase of 60.0% and 57.0% [3]. Summary by Sections New Energy Vehicle Sales - In April, NEV retail sales were 674,000 units, a year-on-year increase of 27.9% but a month-on-month decrease of 5.6% [2]. - The cumulative penetration rate for the first four months of the year reached 38.1% [2]. - The top five NEV models in April included BYD Qin Plus (46,314 units), BYD Song Plus (31,809 units), and BYD Seagull (28,797 units) [5]. Battery Production and Sales - The total production of power and energy storage batteries in April was 78.2 GWh, with a year-on-year increase of 60.0% [3]. - Cumulative battery sales for the first four months reached 241.2 GWh, reflecting a year-on-year growth of 41.4% [3]. - In April, the export of power and energy storage batteries was 12.7 GWh, a year-on-year increase of 28.5% [3]. Policy Impact - The new vehicle trade-in subsidy policy, effective until December 31, 2024, offers a subsidy of 10,000 yuan for scrapping eligible vehicles and purchasing new energy vehicles [4]. - It is estimated that around 150,000 new vehicles could be sold under this policy, assuming 10% of eligible vehicles participate [4]. Market Trends - The report notes a slight decline in NEV sales in April due to consumer hesitation amid ongoing price wars and expectations of stronger promotions during the May Day holiday [2]. - The export of NEVs in April was 115,000 units, a year-on-year increase of 26.8% [2].

Investment Rating - The report maintains a "Hold" rating for Tesla (TSLA US) with a target price of US$151.31, down from the previous target of US$159.84, reflecting a 5% decrease in the target price [1][11]. Core Insights - Tesla's 1Q24 performance showed a significant decline in net profit, with GAAP net profit down 55.1% year-over-year and Non-GAAP net profit down 47.6% year-over-year, attributed to a drop in delivery volumes and rising capital expenditures [2][3]. - The annual delivery forecast has been revised down to 1.773 million vehicles, indicating challenges in meeting previous expectations due to declining demand for electric vehicles [2][3]. - New product launches, including a low-cost model and Robotaxi, are expected to support future sales growth, although their timely rollout remains uncertain [3][11]. Financial Summary - For 1Q24, Tesla reported revenues of US$21.3 billion, a year-over-year decline of 8.7%, with automotive revenue at US$17.38 billion, down 12.9% year-over-year [2][5]. - The gross margin for the quarter was 17.4%, down 1.9 percentage points year-over-year, impacted by price promotions and production ramp-up of the Cybertruck [2][5]. - Free cash flow was negative at US$2.53 billion, primarily due to a 90% drop in operating cash flow and a 34% increase in capital expenditures [2][5]. Revenue and Earnings Forecast - Revenue projections for 2024 have been adjusted to US$96.039 billion, reflecting a 3.6% decrease from previous estimates, with expected revenues of US$115.973 billion in 2025 and US$138.961 billion in 2026 [10][16]. - The forecast for Non-GAAP net profit has been reduced to US$11.057 billion for 2024, with expected growth to US$14.705 billion in 2025 and US$18.527 billion in 2026 [10][16]. Valuation Methodology - The report employs a sum-of-the-parts (SOTP) valuation method, maintaining a 50x P/E ratio for the automotive business, resulting in a target price of US$151.31 per share [11][12].

Investment Rating - The report maintains a "Buy" rating for Li Ning with a target price of HK$26.55, indicating a potential upside of 33% from the current price of HK$19.90 [1][2][3]. Core Insights - The report projects a revenue growth of 5.2% year-on-year for 2024, reaching RMB 29.03 billion, and a net profit growth of 5.1% to RMB 3.35 billion, maintaining a net profit margin of 11.5% [3][4]. - The company is focusing on growth drivers such as running shoes and basketball products, with plans to expand its product lines and optimize store configurations in lower-tier cities [3][4]. - The report slightly adjusts the target price down by 0.5% but maintains the earnings forecasts for 2024-2026, with expected revenue growth rates of 5.2%, 6.0%, and 5.8% respectively [4][6]. Summary by Sections Financial Projections - Revenue for 2024 is projected at RMB 29,033 million, with a gross profit margin of 49.6% [5][6]. - The net profit for 2024 is expected to be RMB 3,349 million, with an EPS of RMB 1.30 [5][6]. - The report anticipates a stable management expense ratio of 4.6% and an increase in sales expense ratio to 33.3% [6]. Market Position and Strategy - Li Ning plans to launch new products in the running and basketball categories, targeting both high-end and value segments to capture market share [3][4]. - The company aims to open 75 new stores in 2024, focusing on lower-tier cities while closing underperforming stores in higher-tier cities [3][4]. Valuation Metrics - The report maintains a P/E ratio of 17x for 2025, with a slight adjustment in net profit forecasts for 2024-2026 [4][6]. - The projected net profit for 2025 and 2026 is RMB 3,673 million and RMB 4,023 million respectively, with corresponding EPS of RMB 1.42 and RMB 1.56 [5][6].

Investment Rating - The report maintains a "Buy" rating for Jiumaojiu International (9922 HK) with a target price of HK$6.10, representing a potential upside of 27% from the current price of HK$4.79 [1][2][5]. Core Views - Jiumaojiu's short-term performance is constrained by a high base, but steady growth is expected in the future. The company is exploring new demand through brand transformation, which requires further observation [4][5]. - The target price has been adjusted downwards by 13% from HK$7.00 to HK$6.10, corresponding to a 15x P/E ratio for 2024 [5]. Summary by Sections Financial Performance - In Q1 2024, same-store sales for the brand "Tai Er" declined by 13.9% year-on-year, with a table turnover rate dropping to 3.9 times per day. However, the decline is expected to narrow as the base effect diminishes [4]. - The company plans to open 105 new stores in 2024, with 84 in domestic markets and 21 overseas, aiming for a total of 683 stores. The average customer price is projected to decrease slightly by 1.0% to RMB 74.3 [4][5]. - Revenue from restaurant operations is expected to grow by 14.5% year-on-year to RMB 5.12 billion in 2024 [4]. Brand Development - The "Song" brand saw a 34.8% decline in same-store sales in Q1 2024, indicating that existing demand has been largely met. The brand is focusing on enhancing its menu and appealing to younger consumers [4]. - The "Song" brand is expected to open 30 new stores in 2024, with revenue projected to increase by 32.0% year-on-year to RMB 1.06 billion [4]. Earnings Forecast and Valuation - Revenue forecasts for 2024-2026 have been reduced by 7.1%, 10.7%, and 12.4% to RMB 69.5 billion, RMB 80.3 billion, and RMB 90.3 billion respectively. Net profit estimates have also been lowered by 13.1%, 18.1%, and 19.6% to RMB 5.3 billion, RMB 6.1 billion, and RMB 6.9 billion [5][6]. - The report projects a market capitalization range of HK$61 billion to HK$107 billion based on a P/E ratio of 12-16x for 2024, with the current market cap at HK$69 billion [5].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 282.55, down from RMB 324.49, reflecting a 13% decrease in the target price [1][13]. Core Insights - The company is expected to experience a revenue and net profit CAGR of 13% and 22% respectively from 2023 to 2026, driven by price increases in liver disease medications and a significant boost in dividend payout [4][5]. - The first quarter of 2024 showed strong recovery with revenue and net profit growing by 21% and 27% year-on-year, primarily supported by the liver disease medication segment and cosmetics business [5][6]. - The report highlights that the liver disease medication segment achieved revenue of RMB 15.1 billion in Q1 2024, marking a 28% increase year-on-year, attributed to a price increase implemented in May 2023 [5][10]. Financial Summary - The company reported a revenue of RMB 10,058 million for 2023, with a projected revenue of RMB 11,619 million for 2024, reflecting a 1% downward adjustment from previous estimates [11][12]. - The projected EPS for 2024 is RMB 5.70, down from RMB 6.57, indicating a 13% reduction in earnings expectations [1][11]. - The report indicates that the company's gross profit margin is expected to face pressure due to rising raw material costs, leading to a 7% and 8% downward adjustment in gross profit forecasts for 2024 and 2025 respectively [11][12]. Valuation - The report employs a two-stage DCF valuation method, maintaining a perpetual growth rate of 6.0% and a WACC of 7.3% [13][15]. - The target price of RMB 282.55 implies a 24% upside potential from the closing price of RMB 227.39 as of April 22, 2024, with a projected P/E ratio of 50x for 2024, which is higher than the industry average of 19x [13][15].