Investment Rating - The report maintains a "Buy" rating for China Telecom with a target price adjusted to HKD 5.2, reflecting a 27% upside potential from the current stock price of HKD 4.1 [2][3]. Core Views - China Telecom has entered a high-quality development phase focused on improving efficiency and returns, with service revenue expected to maintain good growth over the next three years. The reduction in capital expenditure is anticipated to enhance operating cash flow [2][3]. - The company emphasizes precise cost management and structural optimization, projecting profit growth to outpace revenue growth [2][3]. Summary by Sections Financial Performance - In 2023, China Telecom achieved revenue of CNY 513.6 billion (YoY +6.7%), with service revenue at CNY 465 billion (YoY +6.9%). EBITDA reached CNY 136.8 billion (YoY +5.0%), and net profit was CNY 30.4 billion (YoY +10.3%) [1][3]. - The company plans to increase its dividend payout ratio to over 75% over the next three years, with a dividend of CNY 0.23 per share in 2023 (YoY +19%) [1][3]. Business Segments - Mobile communication service revenue was CNY 195.7 billion (YoY +2.4%), with a mobile ARPU of CNY 45.4 (YoY +0.4%). The number of mobile users reached 408 million, with a net increase of 16.59 million users [1][3]. - The digital industry segment saw revenue of CNY 138.9 billion (YoY +17.9%), with Tianyi Cloud revenue at CNY 97.2 billion (YoY +67.9%), indicating rapid growth and a focus on upgrading to intelligent cloud services [1][3]. Future Outlook - The report anticipates that the capital expenditure for 2024 will be CNY 96 billion, accounting for less than 20% of service revenue, a decrease of 2.9% from the previous year [1][3]. - The company is expected to focus more on the quality of revenue growth in its cloud services, transitioning into a phase of high-quality development [1][2].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 21.43, indicating a potential upside of 21.8% from the current price of HKD 17.60 [2][4]. Core Insights - The company reported a total revenue of RMB 416.61 billion for 2023, a decrease of 1.33% year-on-year, and a net profit of RMB 123.84 billion, down 12.60% year-on-year, primarily due to declining international oil prices [1]. - The company achieved a net production of 678 million barrels of oil equivalent in 2023, an increase of 8.69% year-on-year, with a record high net proven reserves of 6,784 million barrels of oil equivalent [1]. - The company maintained a strong cost control with an average oil production cost of USD 28.83 per barrel, a decrease of 5.1% year-on-year [1]. - Capital expenditures for 2023 were raised to RMB 129.6 billion, an increase of 18.73% year-on-year, with plans for 2024 capital expenditures between RMB 125 billion and RMB 135 billion [1]. Summary by Sections Financial Performance - For 2023, the company reported revenues of RMB 416.61 billion and a net profit of RMB 123.84 billion, with a dividend payout of HKD 1.25 per share [1][5]. - The company forecasts revenues of RMB 440.23 billion, RMB 479.79 billion, and RMB 493.81 billion for 2024, 2025, and 2026 respectively, with net profits projected at RMB 134.57 billion, RMB 147.09 billion, and RMB 151.14 billion [2][5]. Production and Reserves - The company successfully discovered 9 new oil and gas fields and evaluated 22 oil and gas structures, maintaining its position as China's largest crude oil production base [1]. - The reserve replacement ratio reached 180%, with a stable reserve life of over 10 years for the past 7 years [1]. Cost Management - The company reported a decrease in operating costs, with a 10.7% reduction in taxes other than income tax and a 4.1% decrease in depreciation and amortization costs [1]. Capital Expenditure - The company plans to continue its strategy of increasing reserves and production while integrating green low-carbon projects with oil and gas production [1].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 236.91 RMB, indicating a potential upside of 25.30% from the current price of 189.08 RMB [2][5]. Core Insights - The company achieved a revenue of 400.92 billion RMB in 2023, a year-on-year increase of 22.01%, and a net profit of approximately 44.12 billion RMB, up 43.58% from the previous year [1]. - The company holds a significant competitive advantage in the battery sector, with a global market share of 36.8% in power batteries and 40% in energy storage batteries, maintaining its position as a market leader [1]. - The company is expanding its international presence through partnerships, including a battery factory with Ford in Hungary, which is expected to have a capacity of 100 GWh [1]. Financial Performance Summary - Revenue (in million RMB): - 2022: 328,594 - 2023: 400,917 - 2024 (forecast): 428,773 - 2025 (forecast): 492,657 - 2026 (forecast): 538,627 - Year-on-year growth rates: - 2023: 22% - 2024: 7% - 2025: 15% [3][6] - Net Profit (in million RMB): - 2022: 30,729 - 2023: 44,121 - 2024 (forecast): 53,818 - 2025 (forecast): 61,034 - 2026 (forecast): 66,685 - Year-on-year growth rates: - 2023: 44% - 2024: 22% - 2025: 13% [3][6] - Gross Margin: - 2023: 22.91% - 2024 (forecast): 24.4% - 2025 (forecast): 24.5% [6] Cash Flow and Dividend - The company reported a strong operating cash flow of 928 billion RMB and cash reserves of 2,643 billion RMB at the end of the year [1]. - The company plans to distribute a total cash dividend of 220.6 billion RMB for 2023, which includes a regular cash dividend of 20.11 RMB and a special cash dividend of 30.17 RMB per share [1].

腾讯控股（700） 更新报告 金融科技与企业服务增速稳定：2023Q4 金融科技和企业服务收入录得 544 亿元人民币，同比增长 15%，增速上升主要得益于商业支付活动增加以及理 财服务及消费贷款收入增长。另外，企业服务收入同比约 20%增长得益于视 频号直播带货的技术服务收入以及云服务的稳定 增长。全年金融科技和企业 服务收入录得 2038 亿元人民币，同比增长 15%。 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------|-------|----------|----------|----------|-------|----------|-------|----------|----------------| | 盈利摘要 \n截至12月31日止财政年度 | | 22年实际 | 23年实际 | 24年预测 | | 25年预测 | | 26年预测 | 股价表现 \n450 | | 总营业收入（人民币百万元） | | 554,552 | 609,015 | 6 ...

Investment Rating - The report maintains a "Buy" rating for Meituan-W (3690) and sets a target price of HKD 130, reflecting a potential upside of 47% from the current price of HKD 88 [5][26]. Core Insights - Meituan's revenue and profit exceeded market expectations, driven by a strong recovery in local commerce and robust performance in core local business and new initiatives. In Q4 2023, revenue reached RMB 737 billion, a year-on-year increase of 22.6%, with a net profit of RMB 22 billion and a net profit margin of 3.0% [2][32]. - For the full year 2023, Meituan reported revenue of RMB 2,767 billion, up 25.8% year-on-year, with a net profit of RMB 139 billion and a net profit margin of 5.0% [2][32]. Summary by Sections Financial Performance - In Q4 2023, Meituan's core local business revenue was RMB 551 billion, up 26.8% year-on-year, with an operating profit of RMB 80 billion and an operating profit margin of 14.5% [10][12]. - For the full year 2023, core local business revenue was RMB 2,069 billion, a 28.7% increase year-on-year, with an operating profit of RMB 387 billion, reflecting a 31.2% year-on-year growth [10][12]. New Initiatives - New business revenue in Q4 2023 was RMB 186 billion, an 11.5% year-on-year increase, with operating losses narrowing to RMB 48 billion [21][31]. - For the full year 2023, new business revenue reached RMB 698 billion, up 18.0% year-on-year, with operating losses reduced to RMB 202 billion [21][31]. Market Position and Strategy - Meituan's local commerce business is expected to maintain its leadership position, supported by its ecosystem and competitive pricing strategies. The report notes that if Douyin does not significantly enter the food delivery market, Meituan's food delivery business could retain a market share of 70% [25][26]. - The management plans to focus on improving core competencies and user experience rather than merely expanding market share, aiming to significantly reduce operational losses in the new business segment [15][31]. Cost Management - Sales and marketing expenses increased by 55.3% year-on-year to RMB 167 billion in Q4 2023, reflecting a strategic shift to capture market share and enhance user engagement [17][33]. - Research and development expenses remained stable at RMB 54 billion, while general and administrative expenses showed a slight decrease, indicating a focus on operational efficiency [17][24].

6 李宁（2331） 更新报告 买入 2024年03月26日 2023年全年业绩符合预期；库存周转和 零售折扣在改善 王柏俊  2023 年全年业绩概况：公司录得收入 276 亿元人民币（下同），同比 增 长 7% 。 自 营 零 售 / 批 发 / 电 商 / 海 外 业 务 分 别 增 长 852-25321915 29.6%/0.6%/0.9%/16.6%。品类来看：跑步增长最好+40% (三大核心IP patrick.wong@firstshanghai.com.hk 累计销量破 900 万双), 健身增长 25%, 篮球及运动生活都是持平。毛 主要数据 利率维持稳定在48.4%；线下直营店铺的折扣是有所改善，但电商渠道 毛利率随线上竞争环境的加剧被拉低。经营开支比率增加 4.9pct 到 行业 服装纺织 37.5%(主要受租金，直接销售人员工资奖金，广告宣传及赞助和研发 股价 20.20港元 开支增加，在高级市场布局和部分亏损店铺计提资产减值的影响)。经 营利润和股东应占净利润分别减少 27.2%和 21.6%%到 35.6 及 31.9 亿 目标价 25.28港元 元。经营利润率和股东应占净利润 ...

康方生物-B（9926） 更新报告 买入 20 24 年3月25日 研发管线高效推进，逐渐进入商业化收获期 但玉翠  23 年不考虑 BD 公司净亏损收窄 45%至 7.9 亿元：2023 年公司产品销售总收入 852-25321956 16.3 亿元，其中卡度尼利（PD-1/CTLA-4）销售收入 13.6 亿元，同比增加 149%； tracy.dan@firstshanghai.com.hk 派安普利单抗（PD-1）销售收入同比下降51%至2.7亿元。由于23年1月公司以总 价50亿美元授权summit公司AK112(PD-1/VEGF)海外发达国家的独家权益，目前5 高小迪 亿美元首付款已经到账，23 年计入 29.2 亿元产品及许可费销售额。扣除派安普利 分销成本后，公司23年录得收入同比增长440%至45.3亿元。公司23年毛利43.9 852 2532 1960 亿元，其中产品毛利 15.0 亿元，产品毛利率高达 91.8%。23 年公司研发开支下降 xiaodi.gao@firstshanghai.com.hk 5%至12.6亿元，销售费用增长61%至8.9亿元，产品销售费用率从去年的75% ...

Investment Rating - The report assigns a "Buy" rating for China Mobile [3] Core Views - China Mobile's revenue has surpassed 1 trillion yuan, achieving a record high in profit, with a revenue of 1,009.3 billion yuan in 2023, representing a year-on-year increase of 7.7% [3] - The company aims to increase its dividend payout ratio to over 75% within the next three years, with a projected dividend payout ratio of 71% for 2023 [3] - The report highlights the continuous optimization of revenue structure and strong growth in various segments, including personal market revenue and enterprise market revenue [3] Financial Summary - Revenue for 2022 was 937,259 million yuan, with a projected increase to 1,068,640 million yuan in 2024, reflecting a growth rate of 5.9% [7] - Net profit for 2022 was 125,459 million yuan, expected to rise to 141,007 million yuan in 2024, with a growth rate of 7.0% [7] - The report forecasts an increase in earnings per share (EPS) from 6.35 yuan in 2022 to 7.14 yuan in 2024 [7] - The company’s EBITDA for 2023 is projected at 341.5 billion yuan, with an EBITDA margin of 39.5% [3][11] Capital Expenditure and Cash Flow - Capital expenditure for 2023 is reported at 180.3 billion yuan, with a year-on-year decrease of 1.9% [3] - Free cash flow is expected to improve, with a focus on returning value to shareholders through increased dividends [3] Market Position and Growth - China Mobile has a strong market presence with 990 million mobile users, including 180 million 5G subscribers [3] - The company is expanding its cloud services and digital content offerings, with significant growth in enterprise market revenue [3][11] Valuation - The report sets a target price of 80 Hong Kong dollars for China Mobile, maintaining a buy rating based on the company's strong governance and growth potential [3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 63.2 / USD 24.6, indicating a potential upside of 75% from the current price [1][2]. Core Insights - The company demonstrated resilient performance in Q4 2023, with adjusted net profit increasing by 10.8% year-on-year, reaching CNY 17.1 billion. The total transaction value for the quarter was CNY 735.6 billion, a 13.7% increase year-on-year [1]. - The company reported a total revenue of CNY 202 billion in Q4 2023, reflecting a year-on-year growth of 13.5% and a quarter-on-quarter growth of 20.6%. The gross margin improved to 25.5%, up 1.1 percentage points year-on-year [1]. - The company has a strong cash reserve and solid financial management, having repurchased over USD 1 billion in shares and declared a total dividend of approximately USD 600 million, with a payout ratio of about 74% [1]. Summary by Sections Financial Performance - In Q4 2023, the company recorded a total transaction value of CNY 735.6 billion, with net income of CNY 202 billion, marking a 13.5% year-on-year increase. The adjusted net profit for the year reached CNY 9.8 billion, a significant increase of 245% year-on-year [1][3]. - The company’s revenue for the full year 2023 was CNY 77.8 billion, up 28.2% year-on-year, with adjusted net profit showing substantial growth [2][3]. Business Segments - The existing home business saw a transaction value of CNY 468.1 billion in Q4 2023, a 30.1% increase year-on-year, while the new home business experienced a transaction value of CNY 238 billion, down 9.7% year-on-year [1]. - The home decoration and furniture business achieved a transaction value of CNY 3.9 billion, a remarkable growth of 99.7% year-on-year, driven by increased orders and improved delivery capabilities [1]. Future Outlook - The report forecasts adjusted net profits for the next three years to be CNY 8.3 billion, CNY 8.7 billion, and CNY 8.9 billion respectively, applying a PE ratio of 16 times for 2024 [1][2]. - The company is expected to continue benefiting from its leading position in the residential services sector and the integration of its business lines, enhancing its resilience in the post-real estate cycle [1].

6 特步国际（1368） 更新报告 买入 2024年03月25日 2023年全年业绩符合预期, 库存恢复到正常水平 王柏俊  2023 年全年业绩概况：公司收入同比增长 10.9%至 143.5 亿元(人民币,同下)，受益于所 有业务的增长， 尤其是内地业务。鞋类增长 5.3%, 服装类增长 20.6%。毛利率增加 852-25321915 1 .3pct到42.2%; 主要受益于功能产品的需求增长（其利润率较高）及时尚运动业务毛利 patrick.wong@firstshanghai.com.hk 率的明显提升。SG&A 费用率增加了 2.2 pct 至 34.2%,因为广告及推广费用和研发费用分 别 增加27.5%及33.1% (其比率分别提升1.8pct和0.5pct到13.7%和2.8%) 。经营利润 和归母净利润同比增长 7.9%及 11.8%至到 15.8 及 10.3 亿元, 归母净利润率为 7.2%；业 主要数据 绩符合预期。集团宣布派发末期股息每股 8 港仙，派息率为 50%。经营现金流同比增长 行业 服装纺织 119.5%到12.6亿元。库存金额减少21.6%到17.9亿元，恢复到正常水 ...