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]

Investment Rating - The report maintains a "Buy" rating for Microsoft (MSFT) with a target price of $500, reflecting an 18.2% upside potential from the current price [1][16]. Core Insights - Microsoft reported a revenue of $65.6 billion for the quarter, a 16% year-over-year increase, surpassing Bloomberg consensus estimates of $64.5 billion [1][3]. - The company's GAAP net profit was $24.7 billion, an 11% increase year-over-year, also exceeding consensus expectations [1][3]. - Azure revenue grew by 33% year-over-year to $16.8 billion, with AI contributing 12 percentage points to this growth [1][3]. - The commercial order volume for Microsoft Cloud increased by 30% year-over-year, indicating strong demand despite supply constraints [1][3]. Summary by Sections Financial Performance - Revenue for the quarter was $65.6 billion, up 16% year-over-year, with product revenue at $15.3 billion (down 2%) and service revenue at $50.3 billion (up 23%) [1][3]. - Gross margin was 69.4%, a decrease of 180 basis points year-over-year, while operating margin was 46.6%, down 100 basis points [1][3]. - GAAP diluted earnings per share were $3.30, exceeding expectations of $3.11 [1][3]. Cloud Business - Azure revenue increased by 33% year-over-year to $16.8 billion, with AI contributing significantly to this growth [1][3]. - Microsoft Cloud revenue grew by 22% year-over-year to $38.9 billion, with commercial orders up 30% year-over-year [1][3]. M365 and Productivity - M365 commercial cloud revenue rose 15% year-over-year to $18.2 billion, driven by an 8% increase in paid commercial seats and higher ARPU [1][3]. - The daily active users of M365 Copilot doubled compared to the previous quarter, with nearly 70% of Fortune 500 companies now using it [1][3]. Future Guidance - Microsoft expects revenue for FY2025 Q2 to be between $67.8 billion and $69.1 billion, representing a year-over-year growth of 9.8% to 11.4% [1][3]. - The long-term growth rate is projected at 3%, with a WACC of 8.5% used for DCF valuation [1][16]. Market Position - Microsoft continues to face competition in the cloud computing market, particularly from AWS and GCP, but its Azure business is expected to benefit from AI service demand [1][18].

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]

Investment Rating - The report maintains a "Buy" rating for Coinbase Global with a target price of $350.00 per share [1][8][12]. Core Insights - The report highlights a long-term diversification of revenue for Coinbase, with expectations that subscription and service revenue will exceed $2 billion this year [7][12]. - Recent performance in the cryptocurrency market, particularly Bitcoin and Ethereum, has been strong, positively impacting Coinbase's outlook [8][10][12]. - The board has authorized a stock buyback plan of up to $1 billion, supported by significant cash resources on the balance sheet [7][12]. Summary by Sections Performance Summary - For Q3 2024, Coinbase reported revenue of $1.2 billion, a 17% decrease from the previous quarter but a 104% year-over-year increase, falling short of the consensus estimate of $1.26 billion [2][4]. - Net profit increased from $36 million in Q2 to $75.5 million in Q3, with adjusted EBITDA at $449 million, below the expected $469.2 million [2][4]. - Total trading revenue was $573 million, down 27% quarter-over-quarter, with retail revenue accounting for approximately 40% of total revenue [2][4]. Revenue Breakdown - Subscription and service revenue decreased by 7% to $556 million, representing about 49% of total revenue, primarily due to a decline in average cryptocurrency prices [2][4]. - Total operating expenses were $1 billion, a 6% decrease from the previous quarter, with technology and development, general and administrative, and sales and marketing expenses totaling $870 million, up 3% [2][4]. Future Outlook - The company anticipates that subscription and service revenue will be impacted by factors such as a 10% decline in Ethereum prices and decreasing interest rates [7][12]. - Projected technology and development expenses for Q4 are expected to be between $690 million and $730 million, while sales and marketing expenses are projected to be between $170 million and $220 million [7][12]. Financial Projections - Revenue for 2024 is forecasted to reach $5.1 billion, with a significant increase expected in subsequent years [14]. - The report indicates a projected net profit of $1.28 billion for 2024, with continued growth anticipated in the following years [14].

Investment Rating - The report does not explicitly mention an investment rating for the company [1] Core Views - Tencent Holdings (700) is expected to announce its Q3 2024 financial results on November 13, 2024, with a subsequent earnings call at 20:00 Beijing time [1] - Visible Alpha consensus estimates Q3 2024 revenue at 167 billion RMB, an 8% YoY increase [1] - Value-added services are expected to contribute 82.3 billion RMB, up 8.71% YoY [1] - Advertising revenue is projected to rise 15.18% YoY to 29.6 billion RMB, driven by video accounts [1] - Cloud and fintech revenues are anticipated to reach 53.5 billion RMB, a 2.75% YoY increase [1] - Non-GAAP net profit is forecasted to grow 19.55% YoY to approximately 53.7 billion RMB [1] Revenue Breakdown - Value-added services: 82.3 billion RMB, +8.71% YoY [1] - Advertising: 29.6 billion RMB, +15.18% YoY [1] - Cloud and fintech: 53.5 billion RMB, +2.75% YoY [1] Gaming Segment - Tencent's evergreen gaming strategy continues to drive growth, with AI enhancing monetization efficiency [1] - Domestic games like Peacekeeper Elite maintain 100 million users, while DNF remains stable on the game bestseller list [1] - Overseas games, including the overseas version of Honor of Kings, performed well, ranking in the top three on Sensor Tower's China mobile game overseas market download list in July [1] - New game Delta Action reached 25 million registered users within a week of its launch in late September [1] Advertising Business - Advertising revenue is expected to benefit from the rapid development and operational optimization of video accounts [1] - AI technology is enhancing the efficiency of Tencent's advertising 3.0 platform, supporting high gross margins in the advertising business [1] Cloud and Fintech - Cloud business is focusing on operational efficiency and cost reduction while pursuing high-quality growth [1] - Fintech is expected to see increased demand due to the rising market environment for large models and the commercialization progress of projects like mini-programs [1] - The interconnection between WeChat Pay and Taobao Tmall starting in September is anticipated to significantly boost Q4 2024 and 2025 technical service fees [1] Overall Outlook - The company's overall revenue is expected to improve, with continued cost reduction and efficiency improvements [1] - Sales and management expense ratios are lower than expected, with promising data from video accounts anticipated [1] - Management is expected to provide further insights during the earnings call regarding new game releases and future commercialization strategies [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 48.96, equivalent to 14 times the expected EV/EBITDA for 2025 [1]. Core Views - The company's Q3 2024 performance met expectations, with a net revenue increase of 10.5% year-on-year, although it decreased by 2.3% quarter-on-quarter [1]. - The introduction of smart gaming tables and the launch of new products are expected to help the company regain market share, which is estimated to exceed 20% [1][2]. - The company has a strong balance sheet and management execution capabilities, contributing to confidence in its long-term development [1]. Financial Summary - Total net revenue for 2022 was HKD 11,474 million, with a significant increase to HKD 35,683.6 million in 2023, and projected revenues of HKD 43,358.2 million for 2024 [2]. - EBITDA for 2023 was HKD 9,955 million, with forecasts of HKD 12,278.2 million for 2024 and HKD 14,220.4 million for 2025, indicating a growth trend [2]. - Net profit for 2023 was HKD 6,828 million, with projections of HKD 9,166.4 million for 2024 and HKD 10,301.6 million for 2025, reflecting a positive outlook [2]. Operational Highlights - The company's EBITDA margin is expected to improve, with rates projected at 28.3% for 2024 and 29.9% for 2025 [2]. - The occupancy rates for the "Galaxy Macau™" and StarWorld Hotel were reported at 98% and 100%, respectively, indicating strong demand [1]. - The company plans to continue expanding its offerings, including the development of new hotel brands and entertainment facilities [1].