Investment Rating - The report assigns a "BUY" rating for Pentamaster (01665.HK) [3] Target Price - The target price is set at HK$ 0.75, down from a previous target of HK$ 0.95 [4][20] Current Price and Market Capitalization - The current price is HK$ 0.61, with a market capitalization of HK$ 1.5 billion [5][7] Revenue and Profitability - Pentamaster recorded a revenue of MYR 150.1 million in Q3 2024, reflecting a 16.9% year-over-year decline, leading to a 5.9% decrease in revenue for the first nine months of 2024 [18] - The gross profit for 2023 is reported at MYR 209.6 million, with projections of MYR 187.3 million for 2024 and MYR 212.8 million for 2025 [10][26] - The gross margin is expected to improve from 28.8% in Q3 2024 to 31.0% by 2026 [11][20] Segment Performance - The medical segment achieved stable revenue of MYR 79.0 million, expected to grow due to increased automation and contributions from single-use medical devices [19] - The automotive segment generated MYR 32.6 million in Q3 2024, but faced challenges due to cautious customer spending and macroeconomic uncertainties [19] Financial Projections - Revenue projections for the upcoming years are MYR 651.2 million for 2024, MYR 735.0 million for 2025, and MYR 806.2 million for 2026, indicating a recovery trend [9][26] - Profit attributable to shareholders is projected to be MYR 117.7 million in 2024, with an expected increase to MYR 161.8 million by 2026 [12][26] Performance Metrics - The return on equity (ROE) is projected to decline from 18.0% in 2023 to 13.1% in 2024, before gradually improving to 14.2% by 2026 [13][26] - The company has experienced a significant decline in stock performance, with a 30.3% drop over the past year [15] Market Context - The report highlights macroeconomic uncertainties as a primary obstacle affecting the company's performance and outlook [20] - The automotive segment's recovery remains weak, influenced by political issues in the US and policy uncertainties [19][20]

Investment Rating - The report does not provide a specific investment rating for the company [1]. Core Insights - The company reported total revenue of 910 million RMB for the second quarter of 2024, representing a year-on-year growth of 43.3%. However, total display module shipments decreased by 25.5% to 8.949 million units, partially offset by a 92.2% increase in average selling price [1]. - Smartphone display module sales saw a significant decline of 51.0% to 5.658 million units, accounting for approximately 63.2% of total display module sales. The decline was attributed to inventory destocking by major customers and the loss of key clients [1]. - Despite the challenges, the company secured a project order from a Chinese smartphone manufacturer, which is expected to drive a rebound in display module sales in the second half of the fiscal year [1]. - The company has successfully expanded into the tablet and learning device display module market, with revenue from this segment increasing to 31.3% of total display module sales in the second quarter of 2024 [1]. - The gross profit margin for the first half of 2024 declined to 3.8%, primarily due to pressures from smartphone manufacturers and the increased proportion of tablet and learning device sales, leading to a compression of net profit margin to 0.4% [1]. Summary by Sections Financial Performance - Total revenue for 2023 was 2,576.8 million RMB, down 38.8% year-on-year. The gross profit was 174.1 million RMB, with a gross margin of 6.8% [7]. - The company recorded a net profit of 13.1 million RMB in 2023, reflecting a significant decline of 92.3% compared to the previous year [7]. - The operating profit margin for the first half of 2024 was 0.7%, indicating ongoing operational challenges [11]. Market Position - The company is positioned within a competitive landscape, with peers such as BYD Electronics and others showing varying market capitalizations and financial metrics [4]. - The average market capitalization for comparable companies is approximately 40.3 billion HKD, with the company itself having a market cap of 0.4 billion HKD [4]. Future Outlook - The report suggests that optimism regarding the company's recovery is premature, as it continues to face operational losses and challenges in improving profitability [1]. - The company needs to enhance its bargaining power and profit margins through new business lines and strategies to achieve significant transformation [1].

Investment Rating - The report assigns a stock rating of NR (Not Rated) for CDOT (00334.HK) [3] Core Insights - The report indicates that it is too early to be optimistic about CDOT's performance, highlighting stagnant sales volume in Q2 2024 and a potential rebound in the second half of the year [3] - CDOT recorded RMB 909.3 million in revenue for Q2 2024, reflecting a year-on-year increase of 43.3%, despite a significant drop in shipping volume [3] - The gross margin has decreased to 3.8% in 2024 H1, raising concerns about profit margins and the company's ability to withstand market fluctuations [3] Financial Performance Summary - Revenue for CDOT has shown fluctuations over the years: - 2020: RMB 3,571.2 million - 2021: RMB 5,840.1 million - 2022: RMB 4,208.4 million - 2023: RMB 2,576.8 million [3][12] - The net profit has also varied significantly: - 2020: RMB 6.3 million - 2021: RMB 199.7 million - 2022: RMB 169.0 million - 2023: RMB 13.1 million [3][12] - The gross margin has decreased from 7.8% in 2020 to 6.8% in 2023, with a notable drop to 3.8% in 2024 H1 [3][12] - The report notes a significant decline in sales volume for display modules, particularly for smartphones, which fell by 51.0% year-on-year in Q2 2024 [3] Market Dynamics - The sales volume of display modules for tablets and learning devices has increased, contributing 31.3% to total revenue in Q2 2024, indicating a diversification in revenue sources [3] - The report emphasizes the importance of improving bargaining power and profit margins for a potential turnaround in the company's performance [3]

Investment Rating - The report assigns a "BUY" rating to Newborn Town (09911.HK) with a target price of HK$ 3.80, an increase from the previous target price of HK$ 3.31 [2]. Core Insights - Newborn Town reported a year-on-year revenue increase of 65.3% to RMB 2,271.9 million for the half year ended June 30, 2024, with RMB 2,070.4 million coming from the social networking business [2]. - The performance of Sugo and TopTop was highlighted as resilient, contributing over 30% to total revenue, driven by strong performance in the MENA market [2]. - The report anticipates more than 1x growth for TopTop and Sugo in FY 2024, projecting over 50% year-on-year growth for the social networking business [2]. - Mico's performance was stable, accounting for over 40% of revenue from the social networking business, with operational optimization strategies leading to improved results [2]. - The acquisition of a non-wholly owned subsidiary that owns social entertainment products is expected to enhance profits attributable to shareholders [2]. - The innovative business segment saw a year-on-year growth of 53.7%, with one-third of this growth attributed to IAA games [2]. Financial Summary - Revenue projections for the upcoming years are as follows: RMB 3,307.8 million in 2024, RMB 4,401.4 million in 2025, RMB 5,281.1 million in 2026, and RMB 5,573.5 million in 2027, reflecting a year-on-year growth of 33.1% in 2024 [9]. - Gross profit is expected to increase from RMB 1,722.1 million in 2023 to RMB 2,203.5 million in 2024, with a gross margin of 52.1% [9]. - Net profit attributable to shareholders is projected to rise from RMB 512.8 million in 2023 to RMB 803.7 million in 2025 [9]. - The report indicates a significant increase in cash flow from operations, with projections of RMB 753.5 million in 2025 and RMB 831.3 million in 2026 [12]. Market Comparison - Newborn Town's market capitalization is approximately HKD 4.1 billion, with a P/E ratio of 6.4 and a gross margin of 52.1% [5]. - Compared to peers in the gaming and social networking sectors, Newborn Town's performance metrics indicate competitive positioning [5].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HK$ 3.80, up from a previous target of HK$ 3.31 [1]. Core Insights - The company achieved total revenue of RMB 2.27 billion in the first half of 2024, representing a year-on-year growth of 65.3%, with approximately RMB 2.07 billion coming from social business [1]. - Strong performance from Sugo and TopTop, driven by robust results in the MENA region, contributed over 30% of the group's revenue and remains a key growth driver [1]. - Sugo is expected to achieve over 100% revenue growth in the fiscal year 2024, contributing to more than 50% year-on-year growth in the group's social business [1]. - Mico World showed ideal performance, with Mico accounting for over 40% of the group's social business revenue, benefiting from optimized operational and commercialization strategies [1]. - The company announced the acquisition of non-wholly owned subsidiaries holding Mico and YoHo, which is expected to enhance profits attributable to shareholders [1]. Financial Summary - Total revenue projections for the company are as follows: RMB 3,307.8 million (2023), RMB 4,401.4 million (2024E), RMB 5,281.1 million (2025E), and RMB 5,573.5 million (2026E), with year-on-year growth rates of 18.1%, 33.1%, 20.0%, and 5.5% respectively [8]. - The gross margin is projected to be 52.1% in 2023, decreasing slightly to 49.6% by 2026 [8]. - Net profit attributable to shareholders is expected to rise from RMB 512.8 million in 2023 to RMB 806.1 million in 2026 [8]. - The company’s operating cash flow is projected to increase from RMB 753.5 million in 2024E to RMB 961.6 million in 2026E [13]. Market Comparison - The company’s market capitalization and financial ratios are compared with peers, showing a market capitalization of HK$ 4.1 billion and a price-to-earnings ratio of 6.4 [3].

| 研究報告 2024 年 9 月 12 日 中創新航 | 03931.HK 經營情況預期得到改善 評級 目標價 HK$ 16.64 維持全年出貨目標: 2024 年上半財年，中創新航(03931.HK)取得 124.7 億元人民幣 總收入，較去年同期輕微成長 1.4%，其中動力電池銷售按年減少 6.3%，而儲能系 統產品銷售則同比增長 43.2%，佔總收入比進一步提升至 22.0%。動力電池銷售下 降主要來自於平均售價下滑導致，抵銷銷售量上升的正面影響。然而，市場上動力 電池的銷售價格自六月起漸趨穩定，跌幅在低基數的帶動下顯著減少，需求端方面 新能源汽車滲透率提升至五成，反映市場供需差的問題暫無進一步惡化。根據我們 與集團的溝通，集團對下半年及明年的出貨保持樂觀，全年出貨量預期保持不變， 而海外項目的貢獻將於 2026/27 年開始體現。此外，集團對單一客戶的依賴持續減 少，主要客戶如吉利(00175.HK)、廣汽(02238.HK)、長安(000625.CH)、小鵬 (09868.HK)及零跑(09863.HK)等車企貢獻的比例維持在 10% - 20%左右的水平，與 其他知名的內地及國外廠商的項目亦正積 ...

Investment Rating - The report maintains a "BUY" rating for Intron (01760.HK) with a target price of HK$ 1.95, down from a previous target of HK$ 2.85 [3][4]. Core Insights - Intron faced a challenging first half of 2024, with revenue growth slowing to 8% year-on-year and a significant drop in gross margin to 15.9%, resulting in a net margin of 3.4% [3][4]. - The automotive market's sluggishness has adversely affected Intron's performance, particularly in the Advanced Driver Assistance Systems (ADAS) and new energy vehicles (NEV) segments, which were previously key growth drivers [4]. - Despite increasing penetration rates for NEVs, intense price competition has pressured profit margins and hindered original equipment manufacturers (OEMs) from upgrading ADAS hardware [4]. - The report anticipates a potential recovery in 2025, driven by the mass production of new solutions and a significant year-on-year increase in revenue from rendering services, which grew by 83.4% [4][3]. Revenue Breakdown - Intron's revenue segments showed varied performance, with NEV growth at 13.0%, Body Control at 24.9%, Safety at -8.9%, Powertrain at -26.3%, and Automated & Connected Vehicles at 15.9% [4]. - The overall revenue for 2024 is projected to be RMB 6,277.2 million, with a year-on-year growth of 8.2% [10]. Financial Performance - The gross profit for 2024 is estimated at RMB 1,002.7 million, with a gross margin of 16.0% [10]. - Net profit is projected to decline by 31.9% year-on-year to RMB 212.9 million in 2024, with a subsequent recovery expected in 2025 [10]. - The report highlights a significant drop in the company's stock performance, with a 63.9% decline over the past year [4]. Market Context - The report notes that Intron's pricing strategies have limited room for improvement due to fierce competition in the automotive market, particularly in the ADAS segment [4]. - The anticipated mass production of the "Motor Control Unit Power Brick" in the second half of 2025 is expected to contribute positively to revenue and profit margins in 2026 [4].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$ 1.95, reflecting a downward adjustment from the previous target of HK$ 2.85 [1]. Core Insights - The company experienced a disappointing revenue growth of 8% in the first half of 2024, with a further decline in gross margin to 15.9% and net profit margin dropping to 3.4% [1]. - Revenue growth was the lowest since 2021, primarily due to weak performance in the automotive market, which negatively impacted the company's key revenue segments: new energy and intelligent driving [1]. - Despite the increasing penetration rate of new energy vehicles, intense price competition has compressed profit levels for upstream participants, limiting growth potential for the company [1]. - The report indicates that the company needs to enhance pricing and offer upgraded product combinations to achieve significant improvement, although a major turnaround is unlikely before downstream price wars improve [1]. - Positive signals for recovery are anticipated in 2025, with new solutions expected to contribute significantly to profits by 2026 [1]. Summary by Sections Financial Performance - Revenue for 2024 is projected at RMB 6,277.2 million, with a year-on-year growth of 8.2% [5]. - Gross profit is expected to be RMB 1,002.7 million, with a gross margin of 16.0% [5]. - Net profit is forecasted to decline by 31.9% to RMB 212.9 million in 2024 [5]. Market Position - The company holds a market capitalization of approximately HK$ 1.3 billion [1]. - The report highlights the competitive landscape, noting that the average price-to-earnings ratio for similar companies is significantly higher, indicating potential undervaluation [2]. Future Outlook - The company is expected to see initial recovery in 2025, with profit margins normalizing by 2026 as new solutions are launched [1]. - The anticipated increase in the proportion of self-produced batteries by GAC is expected to bring more orders to the company [1].

| 研究報告 2024 年 8 月 26 日 速騰聚創 | 02498.HK 產品迭代導致量增價跌 評級 買入 更新報告 敖曉風, Brian, CFA 高級分析師 brianngo@westbullsec.com.hk +852 3896 2965 目標價 HK$ 19.90 2024 年上半財年，速騰聚創(02498.HK)實現 7.3 億元人民幣總收入，其中 83.8%及 10.7%分別 | --- | --- | --- | --- | --- | --- | |----------------------------------------------------------------------------------------------------|---------------------|--------------------------------------------------------|---------------------------------------------|----------------------------------|------------- ...

| RESEARCH 26 Aug, 2024 RoboSense (02498.HK) Stock Rating (Previous Rating) BUY (BUY) Target Price (Previous TP) HK$ 19.90 (23.30) Current Price HK$ 11.42 52-Week Range HK$ 11.40 – 137.50 Market cap. (HKD, bn) HK$ 5.1 RMB, mn 23(A) 24(E) 25(E) 26(E) Revenue 1,120.1 2,300.3 3,726.0 4,863.5 Gross Profit 93.6 352.4 687.1 1,090.7 Gross Margin 8.4% 15.3% 18.4% 22.4% Profit Attr. (4,336.6) (473.1) (230.9) 30.8 Performance 1 mth 3 mth 6 mth 1 year Absolute -21.0% -83.0% -68.8% - Relative to HSI -24.5% -77.6 % -74. ...