Investment Rating - Buy rating with a target price of HKD 29 00 [2] Core Views - The company's 24Q3 performance showed significant improvement with a 5 3% QoQ revenue increase to $1 7 billion and a gross margin of 12 2% [2] - Net profit attributable to shareholders surged by 222 6% YoY and 571 6% QoQ to $0 45 billion [2] - Annualized ROE improved by 1 6ppts YoY and 2 4ppts QoQ to 2 8% [2] - The company's capacity utilization rate reached 105 3% with 12-inch capacity utilization at 98 5% [2] - The company is expected to benefit from the domestic substitution trend in the semiconductor industry with a current P/B ratio of 0 7x [2] Financial Performance - 24Q3 revenue guidance is $5 3-5 4 billion with a gross margin of 11%-13% [2] - Revenue breakdown by end market: consumer electronics (10 9%), industrial & automotive (11 9%), communications (10 9%), and computers (-44 7%) [2] - Revenue breakdown by technology platform: embedded memory (3 3%), standalone memory (23 9%), discrete devices (7 1%), analog & power management (21 5%), and logic & RF (21 4%) [2] - Wafer ASP in 24Q3 increased by 1 2ppts QoQ to $415 per wafer [2] - The company's 2024-2026 revenue is forecasted to be $19 9 billion, $25 6 billion, and $28 5 billion respectively [2] Operational Highlights - Wafer shipments in 24Q3 increased by 8 5% QoQ to 1 2 million 8-inch equivalent wafers [2] - The Wuxi Phase II 12-inch fab is progressing smoothly with a planned capacity of 20K wafers per month by the end of 2025 [2] - The total planned capacity for the Wuxi Phase II project is 80K wafers per month [2] Industry Outlook - The company is expected to benefit from the recovery in demand for power management and CIS products [2] - The company's mature process capacity is less affected by US semiconductor sanctions [2] - The company is well-positioned to benefit from the domestic substitution trend in the semiconductor industry [2]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 3.27 [2][3]. Core Insights - The company has transitioned from a loss to profit in Q3 2024, with a significant recovery in gaming revenue, achieving a 74.9% increase in gross gaming revenue compared to the previous quarter, and a 12.5% increase compared to the same period in 2019 [2][3]. - Non-gaming revenue also showed a positive trend, with a 10.4% increase to HKD 1.2 billion, contributing to the overall recovery of the company [2][3]. - The report highlights the performance of key properties, with "New Lisboa" and other self-operated venues showing a recovery to 69.4% and 84.8% of their 2019 levels, respectively [2][3]. Financial Summary - The company reported a net income of HKD 282.3 million for 2024, a significant turnaround from a loss of HKD 2,009.8 million in 2023 [5]. - EBITDA is projected to grow by 32.4% to HKD 3,826.2 million in 2024, with further growth expected in subsequent years [5]. - The company's total revenue is forecasted to reach HKD 28,633.7 million in 2024, reflecting a growth rate of 32.4% compared to 2023 [5]. Market Position - The company has improved its market share, with a reported increase of 40.8% in overall market share in Q3 2024 [2][3]. - The report indicates that the company is well-positioned to benefit from the ongoing recovery in the Macau gaming market, supported by strategic initiatives to enhance customer engagement and expand service offerings [2][3].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 32.00, indicating a potential upside of 19.63% from the current stock price of HKD 26.75 [1][3]. Core Insights - The company's revenue for Q3 2024 reached USD 2.17 billion, representing a year-on-year growth of 34.0% and a quarter-on-quarter increase of 14.2%, aligning with market expectations [1]. - The production capacity utilization rate has improved to 90.4%, up 13.3 percentage points year-on-year and 5.2 percentage points quarter-on-quarter [1]. - The average selling price (ASP) of wafers reached USD 966, showing a slight year-on-year increase of 0.5% and a quarter-on-quarter rise of 15.5% [1]. - The company anticipates a revenue increase of 0%-2% for Q4 2024, projecting revenue between USD 2.17 billion and USD 2.21 billion, which is above market consensus [1]. - The AI sector is expected to be a major growth driver in the coming year, with domestic substitution demand gradually being released [1]. Summary by Sections Financial Performance - Q3 2024 operating profit was USD 170 million, a year-on-year increase of 94.4%, while net profit attributable to shareholders grew by 58.3% to USD 150 million, with a net profit margin of 6.9% [1]. - The company’s gross margin improved by 6.6 percentage points to 20.5% quarter-on-quarter [1]. - The projected revenue for 2025 is expected to grow by 28.1% year-on-year, reaching USD 8.1 billion [1]. Capacity and Demand - The company plans to add an average of 50,000 pieces of 12-inch wafer capacity annually, with new orders primarily coming from AI edge products [1]. - The total monthly capacity is expected to reach 920,000 equivalent 8-inch wafers by 2025 [1]. Market Position - The company currently holds a 5.5% share in the global wafer foundry market, which is projected to increase to 8.0% by the end of the year [1]. - The report highlights that one-third of the supply chain is expected to complete domestic substitution in the long term [1].

Investment Rating - The report assigns a "Buy" rating for Tencent Holdings with a target price of 540 HKD, indicating a potential upside of 33.9% from the last closing price [1][19]. Core Insights - Tencent's Q3 2024 performance exceeded market expectations, with revenue reaching 167.2 billion RMB, a year-on-year increase of 8% and a quarter-on-quarter increase of 4%. Net profit attributable to shareholders was 54 billion RMB, reflecting a significant year-on-year growth of 47% [1][2]. - The report highlights the effectiveness of Tencent's evergreen game strategy and the promising future of WeChat's small shop initiative, which is expected to enhance the company's e-commerce capabilities [1][14]. Revenue Overview - In Q3 2024, Tencent's revenue from value-added services was 82.7 billion RMB, up 9% year-on-year. Social network revenue grew by 4% to 29.7 billion RMB, driven by music subscription services and mobile game sales [2][3]. - The gaming segment reported domestic revenue of 32.7 billion RMB, a 14% increase year-on-year, primarily due to the success of "Honor of Kings" and "Peacekeeper Elite" [3][8]. - International gaming revenue reached 13.3 billion RMB, marking a 9% year-on-year increase, supported by titles like "PUBG MOBILE" [3][8]. Advertising and Marketing Services - The advertising business upgraded to marketing services, generating 30 billion RMB in Q3 2024, a 17% increase year-on-year, benefiting from growth in video accounts and WeChat search revenues [3][17]. - The report notes that the advertising loading rate is currently below industry standards but has significant growth potential as Tencent enhances its advertising technology [3][17]. Financial Technology and Enterprise Services - Financial technology and enterprise services revenue was 53 billion RMB, reflecting a 2% year-on-year increase. The growth in wealth management services offset declines in payment revenues [3][4]. - The gross margin for financial technology and enterprise services improved to 48%, driven by increased efficiency in cloud services and technology service fees [4]. Game Development Strategy - Tencent's focus on evergreen games aims to maintain player engagement and revenue over the long term. Key titles include "Honor of Kings" and "Peacekeeper Elite," which continue to show strong performance [8][9]. - The report emphasizes the importance of community interaction and continuous content updates in sustaining the success of these games [8][9]. E-commerce Initiatives - WeChat's small shop initiative is highlighted as a critical component of Tencent's e-commerce strategy, with expectations for significant growth as infrastructure and features are enhanced [14][15]. - The report indicates that the integration of WeChat's small shop with the broader ecosystem will facilitate better customer engagement and sales conversion [14][15]. Future Outlook - The report maintains a positive long-term outlook for Tencent's various business segments, anticipating continued robust growth driven by strategic initiatives and market expansion [19].

Investment Rating - The report assigns a "Buy" rating for the company with a target price of HKD 18.3, indicating a potential upside of 20.8% from the last closing price of HKD 15.18 [4]. Core Insights - The company reported a 20.7% year-on-year decline in adjusted net profit for the first half of 2024, with total revenue increasing by 1.0% to HKD 8.57 billion. Excluding COVID-19 impacts, non-COVID revenue grew by 7.7% [1]. - The decrease in profit is attributed to a reduction in high-margin revenue from the R&D segment and the ramp-up phase of overseas factories, leading to a 2.8 percentage point drop in gross margin to 39.1% [1]. - The company has a strong cash position with net cash of HKD 7.37 billion and reported a free cash flow of -HKD 600 million for the first half of 2024 [1]. Summary by Sections Financial Performance - For the first half of 2024, the company’s revenue was HKD 8.57 billion, with a gross profit margin of 39.1%, down from the previous year [1]. - Adjusted net profit decreased by 20.7% to HKD 2.25 billion, with an adjusted profit margin of 26.2% [1]. - The company’s total project count increased by 61 to 742, showcasing its competitiveness in the R&D sector [2]. Project Pipeline - The company has 359 preclinical projects and 311 early-stage clinical projects, indicating a slowdown in the pipeline flow from preclinical to clinical stages [2]. - The XDC project segment saw significant growth, with revenue increasing by 88.1% to HKD 1.61 billion, contributing 18.8% to total revenue [2]. - The company’s WuXiBody platform projects increased to 50, reflecting recognition from major international firms [2]. Market and Policy Impact - A recent U.S. legislative proposal could potentially impact about 2% of the company’s total projects, introducing uncertainty into future operations [2]. - The company has initiated a share buyback program, repurchasing approximately 130 million shares at a cost of about HKD 1.94 billion [2]. Valuation Metrics - The report projects revenue growth from HKD 17.03 billion in 2023 to HKD 22.24 billion by 2026, with a compound annual growth rate (CAGR) of 11.2% [3]. - The forecasted earnings per share (EPS) is expected to decline from HKD 0.82 in 2023 to HKD 0.75 in 2024, before recovering to HKD 0.97 by 2026 [3]. - The company’s price-to-earnings (P/E) ratio is projected to be 16.8 in 2024, reflecting a valuation adjustment due to the anticipated profit decline [3].

Investment Rating - The report does not explicitly mention an investment rating for Cloudflare (NET US) [1] Core Viewpoints - Cloudflare is strategically positioning itself in the distributed computing network to meet the growing demand for AI inference [1] - The company is investing heavily in high-performance GPUs to enhance its Workers AI platform, which offers better performance and ROI compared to hyperscale public clouds [3] - Cloudflare has signed a $7 million annual contract with a fast-growing AI company to shift AI inference workloads to its platform [3] Financial Performance - Q3 2024 revenue reached $430 million, a 28% YoY increase, with direct customers contributing 79% ($341 million) and channel partners contributing 21% ($89 million) [1] - Non-GAAP gross margin was 78 8%, slightly above the long-term target range of 75%-77% and higher than the previous year's 78 7% [1] - Non-GAAP operating margin was 14 8%, with operating income of $63 5 million [1] - Free cash flow for the quarter was $45 3 million, exceeding market expectations [1] - The company added 219 new large customers with annualized payments exceeding $100,000, bringing the total to 3,265, a 28% YoY increase [1] - 35% of Fortune 500 companies are now Cloudflare's paying customers [1] - Revenue contribution from large customers remained stable at 67%, with a dollar-based net retention rate of 110%, down 2 percentage points QoQ [1] Strategic Initiatives - Cloudflare is shifting towards more pooled funding deals with its largest customers, accounting for nearly 10% of new ACV this quarter [1] - The company is upgrading its Workers AI platform to improve AI inference performance and expanding its GPU network across 180+ cities [3] Q4 2024 Guidance - Expected Q4 2024 revenue is projected to be between $451-$452 million, a 25% YoY increase [5] - Adjusted operating income for Q4 2024 is expected to be between $57-$58 million [5] - Full-year 2024 revenue is projected to be between $1 661-$1 662 billion, a 28% YoY increase [5] - Full-year 2024 adjusted operating income is expected to be between $220-$221 million [5] Market Data - Cloudflare's stock price is $90 91, with a market cap of $31 2 billion [2] - The company has 343 million shares outstanding [2] - The 52-week high/low is $116 00/$62 39 [2] - Net asset value per share is $2 84 [2]

Investment Rating - Target price of $823.00, with a Hold rating [8][10] Core Viewpoints - Netflix's business model benefits from a two-sided network effect, creating a virtuous cycle between high-quality content and a large user base [1] - Despite competition from tech giants like Apple, Amazon, and Disney, Netflix maintains a leading position in terms of return on investment and profitability [1] - User engagement metrics remain strong, with an average daily usage time of 2 hours per paying user [1] - The ad-supported subscription plan is highly attractive, with ad revenue expected to become a more significant income source by 2026 [1] - Revenue CAGR is projected at 15% from 2023 to 2026, with EPS CAGR at 32% [1] Financial Performance Summary 2024Q3 Performance - Revenue increased by 15% YoY to $9.825 billion, exceeding the company's guidance of 14% [1] - Net subscriber additions reached 5.07 million, bringing the total global user base to 283 million, a 14% YoY increase [1] - Operating margin rose by 7.2 percentage points to 29.6%, surpassing the guidance of 28.1% [1] - Diluted EPS was $5.40, higher than the guidance of $5.10 [1] - The company repurchased 2.6 million shares for $1.7 billion, with $3.1 billion remaining in the current buyback program [1] - Ad-supported user base grew by 35% QoQ, with over 50% of new users in ad-supported regions [1] 2024Q4 Guidance - Revenue is expected to grow by 15% YoY to $10.128 billion, with user growth exceeding 5.07 million [1] - Operating margin is projected at 21.6%, with diluted EPS of $4.23 [1] 2024 and 2025 Guidance - 2024 revenue is expected to grow by 14-15%, with an operating margin of 27% [1] - Free cash flow is projected to be between $6.0-6.5 billion [1] - 2025 revenue is expected to grow by 11-13%, with an operating margin of 28% [1] Valuation and Financial Metrics - DCF valuation assumes a WACC of 9.0% and a long-term growth rate of 3.0%, resulting in a target price of $823.00 [8][10] - Current price implies P/E multiples of 41x, 34x, and 29x for 2024, 2025, and 2026, respectively [8] Regional Performance - North America: Revenue grew by 16% YoY, driven by a 10% increase in members and a 5% rise in ARPU [4] - EMEA: Revenue grew by 16% YoY, primarily driven by new user additions [4] - APAC: Revenue grew by 19% YoY [4] - LATAM: Revenue grew by 9% YoY, with negative net user additions in Q3 but recovery expected in Q4 [4] Ad-Supported Business - Ad-supported monthly active users reached 70 million globally [1] - Ad sales contracts grew by over 150% YoY [4] - Netflix's proprietary ad tech platform is set to launch in Canada in Q4 2024 [4]

微软（MSFT） 更新报告 微软云商业订单增长快速，资本开支高增长扩大供给 业绩摘要：本季度公司收入为 656 亿美元，同比增长 16%，超过 彭博一致预期的 645 亿美元。毛利率为 69.4%，同比下降 180bps，超过彭博一致预期的 69%。经营利润率为 46.6%，同比 下降 100bps。GAAP 净利润为 247 亿美元，同比增长 11%，超过一 致预期的 233 亿美元，净利润率为 37.6%。GAAP 摊薄每股收益为 3.30 美元，超过彭博一致预期的 3.11 美元。公司预计 FY2025Q2 财季收入区间为 678 亿美元至 691 亿美元，同比增长 9.8%至 11.4%，中值不及彭博一致预期的 699 亿美元。 Azure 收入继续受供给限制，商业订单增长快速：本季度 Azure 收入同比增长 33%至 168 亿美元，AI 贡献了 12ppts 收入增 速，略高于市场预期的 32%增速。公司表示影响 Azure 收入增速 的主要由于第三方 GPU 交付晚于预期，因此下半年的收入将加 速。同时，数据中心建造到云实例上线也存在一定延迟。微软云 收入同比增长 22%至 389 亿美元。本 ...

Investment Rating - The report assigns a **Buy** rating to TAL Education Group (TAL) with a target price of **$14.9**, representing a **48.1% upside** from the current price [4] Core Views - TAL's FY25Q2 results exceeded expectations, driven by strong growth in quality education and learning device businesses [2] - Revenue for FY25Q2 reached **$619 million**, up **50.4% YoY**, beating market expectations by **6.3 percentage points** [2] - Non-GAAP operating profit was **$64.52 million**, up **22.5% YoY**, with a margin of **10.4%** [2] - Non-GAAP net profit reached **$74.33 million**, up **25.4% YoY**, with a margin of **12.0%** [2] - The company ended the quarter with **$3.45 billion** in cash and short-term investments, with no bank debt [2] Business Performance Education Business - Education and training accounted for **~70%** of total revenue, growing over **45% YoY** [3] - Quality education contributed **~50%** of education revenue, growing **~70% YoY** [3] - High school education accounted for **~15%**, showing stable growth [3] - The company added **over 400 offline learning centers** in FY25Q2, with full-year capacity expansion expected to grow **50% YoY** [3] Content Solutions - Content solutions accounted for **~25%** of revenue, growing **over 50% YoY**, driven by learning device sales [3] - The company launched the **xPad Classic 2024** priced at **$450-500** and a lower-priced practice device, expanding its product line [3] - Learning device sales reached **~150,000 units** in the quarter, with a **weekly active rate of 80%** [3] Financial Outlook - For FY25Q3, revenue is expected to grow **39% YoY** to **$520 million**, with continued strong growth in non-academic training and learning devices [3] - The company's profitability is expected to improve as upfront investments in various businesses gradually taper off [4] Valuation - The target price of **$14.9** is based on a DCF valuation with a **WACC of 11%** and a **long-term growth rate of 3%** [4] - The company is well-positioned to benefit from a stabilizing regulatory environment and continued market demand for education services [4]

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