Investment Rating - The report maintains a "Buy" rating for China Railway Group (00390 HK) with a target price of HKD 7.70, corresponding to 6.0x, 5.2x, and 4.7x EV/EBITDA for 2024, 2025, and 2026 respectively [1]. Core Insights - The report highlights that the increase in copper and molybdenum prices, which have risen by 30% and 23% respectively since the beginning of the year, is expected to significantly enhance the operational performance of the company's resource utilization business [1]. - In 2023, the company's resource utilization business generated revenue of RMB 8.37 billion, reflecting a year-on-year increase of 11.5%, with new contract amounts reaching RMB 33.44 billion, up 41.7% year-on-year, and a gross margin of 59.7%, an increase of 4.1 percentage points [1]. - The real estate sales of China Railway Group in 2023 amounted to RMB 69.7 billion, ranking 21st nationally, with a sales area of 4.46 million square meters, ranking 20th [1]. - The report notes that the gross margin for the real estate development business was 14.5% in 2023, significantly down from 29.2% in 2019, indicating substantial recovery potential as market conditions improve [1]. Summary by Sections Resource Utilization Business - The company achieved a copper production of 283,800 tons and molybdenum production of 15,200 tons in 2023, leading the domestic market [1]. - The operational performance is expected to benefit from rising commodity prices [2]. Real Estate Development - The company’s land acquisition amounted to RMB 13.6 billion, ranking 18th, with an area of 2.12 million square meters, ranking 20th [1]. - The report anticipates a recovery in the real estate development business due to supportive policies and cost reductions from land purchases during the market downturn [2].

Investment Rating - The report maintains a "Buy" rating for FIT Hon Teng with a target price of HK$2.42 [1][2] - The target price is based on a 12.5x P/E ratio for 2024, reflecting the company's growth prospects and historical valuation levels [1] Core Views - FIT Hon Teng's Q1 2024 performance met expectations, with revenue increasing by 12.0% YoY to USD 965 million and gross margin improving by 4.5 percentage points to 20.3% [1] - The company's TWS business for a major North American customer is expected to see incremental growth in H2 2024 and accelerate in 2025 [1] - The first Airpods production line in Vietnam began shipments in Q1 2024, with the business expected to contribute 5%-7% of total revenue in 2024 [1] - The company plans to add 6 more production lines in India by 2025, leading to a surge in capacity and revenue growth [1] - Management expects double-digit revenue growth for 2024, with gross margin stabilizing around 20% and operating profit increasing significantly [1] - The company aims to reduce its three major operating expenses to below 13% by 2025 (from 14.4% in 2023) [1] - Revenue from electric vehicles, next-gen 5G AIoT, and acoustic businesses is expected to reach 30% in 2024 and 40% in 2025 [1] Financial Performance - Q1 2024 revenue breakdown: Smartphones (USD 202 million, -10.2% YoY), Network Infrastructure (USD 114 million, +8.6% YoY), PC & Consumer Electronics (USD 180 million, +5.9% YoY), Electric Vehicles (USD 116 million, +205.3% YoY), and System Terminal Products (USD 296 million, +6.9% YoY) [6] - Net profit for Q1 2024 was USD 10.2 million, compared to a net loss of USD 9.3 million in Q1 2023 [6] - Forecasted EPS for 2024-2026: USD 0.025, USD 0.034, and USD 0.042, respectively [1][5] Strategic Initiatives - The company's "3+3" strategy focuses on electric vehicles, 5G AIoT, and acoustic products, with electric vehicle business expected to be a strong growth driver [7] - The company is well-positioned to benefit from the AI-driven data center construction boom, with products like EDSFF connectors, MCIO, MXIO, and PCIE 6.0-compatible cables expected to drive growth in the network infrastructure segment [6] Market Opportunities - The company is targeting opportunities in the USD 1.7 billion server connector and cable market, with plans to mass-produce AI-related products in H2 2024 [6] - The Airpods business is expected to capture over 30% market share in the future [1]

Investment Rating - The investment rating for FIT Hon Teng is maintained as "Buy" with a target price (TP) set at HK$2.42, corresponding to a 12.5x 2024 price-to-earnings ratio (PER) [2][3][7]. Core Insights - FIT Hon Teng's 1Q2024 results were in line with expectations, showing a revenue increase of 12.0% year-over-year (yoy) to US$965 million, with a gross profit margin improvement of 4.5 percentage points yoy to 20.3% [2][8]. - The company anticipates a ramp-up in its True Wireless Stereo (TWS) business for major customers in North America in the second half of 2024, with significant growth expected in 2025 [2][10]. - The management projects a double-digit revenue growth for the full year 2024, with gross margins stabilizing around 20% and a significant increase in operating profit [10][11]. Financial Performance - In 1Q2024, the gross profit increased by 44% yoy, and shareholders' net profit reached US$10 million, compared to a net loss of US$9 million in 1Q2023 [2][8]. - Forecasted earnings per share (EPS) for 2024, 2025, and 2026 are US$0.025, US$0.034, and US$0.042, respectively [2][7]. - The revenue mix from Electric Vehicle (EV) Mobility, new Generation 5G AIoT, and Audio is expected to reach 30% in 2024 and 40% in 2025 [11]. Strategic Initiatives - The company is implementing a "3+3" strategy focusing on the development of EVs, 5G AIoT, and acoustics, which is expected to drive growth [11]. - FIT Hon Teng plans to expand its production capacity significantly, including the addition of six more production lines in India by 2025 [2][10]. - The management is optimistic about capturing opportunities in the US$1.7 billion server connector and cable market, with plans to mass-produce AI-related products in the second half of 2024 [9][10].

Investment Rating - The report maintains a "Buy" rating for Longyuan Power (00916 HK) with a target price of HK$7.75, based on a 7.5x P/E ratio for 2024 [2][3]. Core Insights - Short-term pressure on wind power generation is noted, but long-term growth potential remains promising due to a rich project reserve and gradual advancements in technology [2]. - The first quarter of 2024 showed revenue of RMB 9.88 billion, a slight increase of 0.1% year-on-year, with net profit reaching RMB 2.39 billion, up 2.5% [2]. - The increase in investment income significantly contributed to the earnings growth in Q1 2024, with a new installed capacity of 562 MW, including 26 MW from wind and 536 MW from solar [2]. - Wind power generation for Q1 2024 was 17 GWh, a modest increase of 1.4% year-on-year, impacted by a decrease in utilization hours [2]. Financial Summary - Revenue and net profit forecasts for 2024-2026 are projected at RMB 41.61 billion, RMB 7.97 billion; RMB 46.83 billion, RMB 9.46 billion; and RMB 50.64 billion, RMB 10.69 billion respectively [5][6]. - The earnings per share (EPS) is expected to grow from RMB 0.95 in 2024 to RMB 1.28 in 2026, reflecting a growth rate of 26.7% and 18.9% for the respective years [5][6]. - The company’s gross margin is projected to improve from 37.6% in 2024 to 39.0% in 2026, indicating operational efficiency [7]. Market Performance - The stock price performance shows a 2.9% increase over the past month and a 20.3% increase over the past three months, although it has decreased by 31.2% over the past year [4]. - The average share price over the last year was HK$6.5, with a current share price of HK$5.640 [3][4]. Operational Highlights - The company has a significant project reserve, with 54 GW of new resources added in 2023 and 23 GW of development indicators obtained [2]. - The report emphasizes the optimistic long-term growth outlook, particularly with the ongoing transition to larger, more efficient projects [2].

Investment Rating - The report maintains a "Buy" investment rating for BYD Electronic with a target price of HKD 38.70, which corresponds to a price-to-earnings ratio of 15.1x for 2024, 12.0x for 2025, and 10.4x for 2026 [1][2]. Core Insights - BYD Electronic's Q1 2024 earnings met market expectations, with revenue and net profit reaching RMB 36.48 billion (up 38.3% year-on-year) and RMB 610 million (up 33.0% year-on-year), respectively. The gross margin decreased by 0.8 percentage points to 6.9% due to changes in product mix [1][2]. - The company is expected to continue strong profit growth, driven by contributions from the acquisition of the Jabil factory, recovery in the Android business, and the mass production of smart driving and suspension products. Revenue is projected to grow by over 30% starting in 2024 [1][2]. - The expansion into artificial intelligence is anticipated to exceed market expectations, leveraging long-standing partnerships with NVIDIA and expertise in cooling technologies from the automotive sector [2]. Summary by Sections Financial Performance - Q1 2024 revenue was RMB 36.48 billion, a 38.3% increase year-on-year, while net profit was RMB 610 million, reflecting a 33.0% year-on-year growth. The gross margin was 6.9%, down 0.8 percentage points [1][2]. Business Growth Drivers - The acquisition of the Jabil factory is expected to enhance production efficiency and profitability. The recovery of the Android business and the introduction of new smart driving products are also key growth factors [1][2]. - The company is actively replicating its automation and lean management practices at the Jabil factory, which is expected to significantly improve profitability [1]. Artificial Intelligence Expansion - BYD Electronic has a long-standing relationship with NVIDIA, which positions it well for growth in AI servers and AMR robots. The company plans to leverage its existing technologies and experience in cooling systems to enhance its offerings in these new markets [2].

Investment Rating - The report maintains a "Buy" rating for China State Construction International (03311 HK) with a target price of HKD 15.00 [1][2]. Core Insights - In Q1 2024, the operating profit increased by 15.1% year-on-year to HKD 3.91 billion, with new contracts signed rising by 69.6% to HKD 80.09 billion [1]. - The company forecasts earnings per share of HKD 2.028, HKD 2.266, and HKD 2.503 for 2024, 2025, and 2026 respectively, maintaining a target price that corresponds to EV/EBITDA multiples of 7.2x, 7.1x, and 6.9x for the same years [1]. - The total value of contracts on hand as of March 31, 2024, was HKD 394.95 billion, reflecting a year-on-year increase of 24.0% [1]. Summary by Sections Financial Performance - Q1 2024 revenue reached HKD 24.17 billion, marking an 11.7% year-on-year increase [1]. - The operating profit for the same period was HKD 3.91 billion, up 15.1% year-on-year [1]. Contractual Developments - New contracts signed in Q1 2024 totaled HKD 80.09 billion, a significant increase of 69.6% year-on-year [1]. - The company, in partnership with Veolia Group, won the New Territories West Landfill Extension project, valued at HKD 61.1 billion, which is the largest single contract in the company's history [2]. Future Outlook - The company aims to secure new contracts worth no less than HKD 210 billion in 2024, representing an 11.7% year-on-year growth target [1].

Investment Rating - The investment rating for ZTE Corporation is "Buy" with a target price of HKD 23.80, which corresponds to a price-to-earnings ratio of 10.5x for 2024, 9.5x for 2025, and 8.2x for 2026 [1][5]. Core Insights - ZTE's Q1 2024 performance met expectations, with revenue of RMB 30.578 billion, a year-on-year increase of 4.9%. The gross margin decreased by 2.5 percentage points to 42.0%. Net profit attributable to shareholders rose by 3.7% to RMB 2.741 billion, while net profit excluding non-recurring items increased by 7.9% [1]. - The company is focusing on innovation and expansion based on connectivity, maintaining a leading position in wireless and fixed-line sectors, and is expected to excel in next-generation ICT technologies such as 5G-A, all-optical networks, and 6G [1]. - ZTE is poised to continue expanding in the intelligent computing sector, launching products such as intelligent servers, high-performance storage, and AI integration solutions, which are anticipated to drive growth in its computing business [1]. Summary by Sections Financial Performance - For Q1 2024, ZTE reported revenue of RMB 30.578 billion, a 4.9% increase year-on-year. The gross margin was 42.0%, down 2.5 percentage points. Net profit attributable to shareholders was RMB 2.741 billion, up 3.7% year-on-year, with a 7.9% increase in net profit after excluding non-recurring items [1]. Business Strategy - ZTE is leveraging its strong capabilities in chips, algorithms, and architecture to innovate and expand its market presence. The company aims to maintain its leadership in the ICT market through continuous research and development [1]. Product Development - The company is actively developing products in the intelligent computing space, including intelligent servers and high-performance data center switches, which are expected to enhance its competitive edge in the market [1].

Investment Rating - The investment rating for Central China New Life is maintained as "Neutral" with a target price of HK$1.20, revised down from HK$2.30 [14][24]. Core Insights - The company reported a net loss of RMB 574 million for 2023, with total revenue declining by 9.6% year-on-year to RMB 2.8447 billion [24]. - The gross profit margin decreased by 6.5 percentage points to 26.6%, although it remains at a reasonable level within the industry [24]. - Significant impairment losses were recorded, totaling RMB 1.2224 billion for the year, reflecting ongoing risks from related developers and a weak real estate market in Henan province [24]. - The basic property management business showed robust growth, with service revenue increasing by 16.0% year-on-year to RMB 1.9922 billion, supported by a 16.0% increase in managed area [24]. Financial Summary - For 2023, the company reported total revenue of RMB 2,845 million and a net profit of RMB (574) million, resulting in an EPS of RMB (0.449) [19]. - The forecast for 2024 and 2025 EPS is adjusted to RMB 0.326 and RMB 0.360, respectively, with a new forecast for 2026 introduced at RMB 0.397 [24]. - The company’s market capitalization is approximately HK$1.3655 billion, with a free float of 25.1% [19]. Market Performance - The stock price has seen significant declines, with absolute changes of (25.2)% over the past month and (57.9)% over the past year [1]. - The average share price over the last month was HK$0.9, with a current price of HK$1.050 [14][1]. Growth Potential - The company has potential upside risks, including faster-than-expected improvements in profitability and accelerated property deliveries in Henan [24]. - The growth in property management services and the increase in managed areas present opportunities for revenue enhancement [24].

Investment Rating - The report maintains a "Buy" rating for Great Wall Motor, with an increased target price of HK$16.00, up from HK$14.00 [2][3]. Core Insights - The first quarter of 2024 showed impressive performance, with revenue reaching RMB 42.86 billion, a year-on-year increase of 47.6% and a quarter-on-quarter decrease of 20.2%. The net profit attributable to shareholders was RMB 3.23 billion, reflecting a year-on-year increase of 1,752.6% and a quarter-on-quarter increase of 59.3% [2][3]. - The company is actively expanding its overseas market, with export sales reaching 92,800 units in the first quarter of 2024, a year-on-year increase of 78.5%. The gross margin for the first quarter was 20.0%, showing significant improvement due to product structure optimization and overseas exports [2][3]. Financial Performance Summary - For 2024, the forecasted revenue is RMB 218.25 billion, with a net profit of RMB 10.60 billion, translating to an EPS of RMB 1.24, which is a 51.2% increase from the previous year. The forecast for 2025 is a revenue of RMB 264.08 billion and a net profit of RMB 13.32 billion, with an EPS of RMB 1.56 [5][6]. - The company’s financial metrics indicate a strong recovery, with a projected net profit growth rate of 51.0% for 2024 and a gross margin improvement to 20.0% [6][8]. Market Position and Strategy - Great Wall Motor is enhancing its global product matrix through technological innovation, channel expansion, and localized production, with brands like Wey, Tank, and Ora making significant strides in overseas markets [3][6]. - The company is expected to maintain a high growth momentum in export sales throughout 2024, driven by its successful overseas strategies [3][6].

Investment Rating - The report maintains a "Buy" rating for Datang Renewable (01798 HK) [2] Core Views - The cautious growth outlook and continuous improvement of the balance sheet are highlighted, with a downward revision of earnings per share (EPS) for 2024 and 2025 by 32.7% and 41.4% to RMB 0.348 and RMB 0.395 respectively, and a forecast of RMB 0.441 for 2026 [1][2] - The target price has been revised down to HK$2.30 from HK$3.10 based on a price-to-earnings (P/E) ratio of 6.0 times for 2024 [1][2] - Despite 2023's earnings falling short of expectations, the cautious expansion strategy has led to an improved balance sheet, with a net profit of RMB 2.753 billion, a decrease of 21.9% year-on-year [1][2] Financial Summary - In 2023, Datang Renewable recorded a total revenue of RMB 12.802 billion, with a net profit of RMB 2.753 billion and an EPS of RMB 0.308, reflecting a 23.6% decline [4] - The company plans to add 2.0 GW of new capacity in 2024, with a total of 1.8 GW under construction as of the end of 2023 [1] - Operating cash flow was robust at RMB 7.140 billion in 2023, with a continued decrease in leverage, as the net debt-to-equity ratio fell by 3.6 percentage points to 169.1% [1][4] Operational Insights - The report emphasizes the potential for upgrading old wind farms, with approximately 1.96 GW of capacity eligible for transformation, expected to reach around 4 GW by the end of 2025 [4] - The management anticipates that upgrading old wind farms could potentially double the installed capacity and triple the power generation [4]