Investment Rating - The report suggests a positive outlook for the pet industry in China, indicating it is in a rapid development phase compared to Western markets [1]. Core Insights - The pet industry in China is experiencing significant growth driven by young pet owners, leading to an increase in both the number of pets and per-pet spending [1]. - Domestic brands are rising by addressing the nutritional concerns of pet owners, which were previously dominated by foreign brands [1]. - Future product innovation will focus on addressing the health needs of pets, as pet owners become more knowledgeable about proper care [2]. Summary by Sections Industry Overview - The pet industry is currently thriving, with young pet owners being the primary driving force behind the increase in pet ownership and spending [1]. - The market is evolving from basic pet food offerings to more diverse and personalized products, reflecting a trend towards "humanization" of pets [1]. Domestic Brand Development - Domestic brands are innovating in product formulation and sourcing to meet the nutritional needs of pets, responding to the "nutritional anxiety" of young pet owners [1]. - The shift in market dynamics has allowed domestic brands to gain market share and improve their rankings in terms of revenue [1]. Future Trends - The focus for future product development will be on the health of pets, with an emphasis on research and innovation similar to successful foreign companies [2]. - As pets face aging and health issues, the demand for health-oriented products is expected to grow, providing opportunities for brands that prioritize research and development [2].

Investment Rating - The report assigns an "Overweight" rating to the tourism industry, including specific segments such as hotels, chain restaurants, tourist attractions, and travel agencies [2][3]. Core Insights - The recent modification of the national holiday policy, which adds two days to the statutory holidays, is expected to boost local consumption and outbound tourism. The potential for extended holidays through annual leave is also highlighted as a positive factor for consumer spending [2][3]. - The report emphasizes that the extended holiday periods will likely benefit various sectors, including supermarkets, department stores, and restaurants, as well as travel agencies for outbound tourism and domestic long-distance travel [3][4]. Summary by Sections Holiday Policy Changes - The new holiday arrangement includes an increase in statutory holidays, with 2024 having 11 days and 2025 having 13 days. The potential for creating longer holiday periods through annual leave is also discussed, with 2025 allowing for up to 27 days of extended holidays [4]. - The report notes that the changes are expected to catalyze local consumption, particularly in dining, retail, and jewelry sectors [4]. Beneficiary Companies - Recommended stocks include Yonghui Supermarket, Chongqing Department Store, Yum China, Haidilao, Zhongxin Tourism, Miniso, and Dingdong Maicai, all of which are expected to benefit from the holiday policy changes [3][6]. - Other tourism-related stocks are also anticipated to gain from the extended holiday periods [3]. Profit Forecasts and Valuations - The report provides a detailed table of profit forecasts and valuations for various recommended stocks, indicating a positive outlook for companies like Miniso, Dingdong Maicai, Chongqing Department Store, Yonghui Supermarket, and others, all rated as "Overweight" [6].

Investment Rating - The report maintains an "Overweight" rating for the cosmetics industry [1] Core Insights - The 2024 Double Eleven sales in the beauty sector exceeded expectations, achieving double-digit growth, driven by improved demand trends from the 618 shopping festival, Tmall's recovery, extended promotional periods, and bundling strategies [2][3] - The overall GMV for the Double Eleven event reached 1,441.8 billion yuan, a year-on-year increase of 27%, with comprehensive e-commerce GMV at 1,109.3 billion yuan, up 20% year-on-year, and live-streaming e-commerce GMV at 332.5 billion yuan, up 55% year-on-year [3] Summary by Relevant Sections Investment Highlights - Recommended to overweight: 1. High-growth flexible targets: brands like Ruanyucheng and Runben, which are accelerating through new product launches, and Marubi, which is entering a harvest phase with its flagship products [3] 2. Strong brand momentum leaders: Proya, with excellent organization and product-driven growth; Giant Bio, with significant growth in its collagen products; and Up Beauty, which continues to grow rapidly on Douyin [3] 3. Companies expected to bottom out and potentially turn around: companies like Dengkang Oral Care, Betaini, and Huaxi Biological [3] 4. Overseas expansion and acquisition catalysts: Jiabiyou [3] Key Company Performances - Proya's main brand showed steady growth, with Tmall, Douyin, and JD.com sales increasing by over 10%, 60%, and 30% respectively [3] - Giant Bio's products, including Kefu Mei and Keli Jin, achieved impressive growth, with Kefu Mei's GMV increasing by over 80% across all channels [3] - Ruanyucheng's flagship brand, Zhanjia, ranked first in the home cleaning brand list on Tmall, with significant growth driven by its seasonal laundry liquid [3] Financial Forecasts - The report includes updated earnings forecasts for key companies, with Proya expected to have an EPS of 3.92 in 2024, and Giant Bio projected to reach an EPS of 1.97 [4]

Investment Rating - The report maintains a "Buy" rating and adjusts the earnings forecast downward while raising the target price to 12.23 CNY from the previous 11.20 CNY [1][6]. Core Views - The company's performance in Q3 was under pressure due to oil price fluctuations and weaker-than-expected demand recovery. The partnership with Saudi Aramco aims to expand the downstream market, and the controlling shareholder's continued stock buyback reflects confidence in the company's long-term development [2][4]. Financial Summary - Revenue for 2022 was 289,095 million CNY, with a projected increase to 341,429 million CNY in 2024, reflecting a growth rate of 5.0% [3]. - Net profit attributable to shareholders was 3,341 million CNY in 2022, expected to rise to 1,352 million CNY in 2024, indicating a 16.8% increase [3]. - Earnings per share (EPS) is forecasted to be 0.13 CNY in 2024, up from 0.11 CNY in 2023 [3]. - The return on equity (ROE) is projected to improve significantly from 2.6% in 2023 to 20.8% in 2026 [3]. Q3 Performance Insights - In the first three quarters of 2024, the company achieved a net profit of 877 million CNY, a year-on-year increase of 714.73%. However, Q3 net profit dropped to 19 million CNY, a decline of 98.48% year-on-year [1][2]. - The average oil price in Q3 was 78.60 USD/barrel, down 6.44 USD/barrel from Q2, leading to a decline in the average prices of related chemical products [1][4]. Strategic Developments - The company signed multiple strategic agreements with Saudi Aramco to explore the downstream market and develop overseas markets through mutual equity participation and project collaboration [1][2]. - The controlling shareholder plans to increase their stake in the company by investing between 500 million CNY and 1 billion CNY, without setting a price range for the buyback [1][2].

Investment Rating - The report maintains an "Accumulate" rating for the company [5][3]. Core Views - The revenue for the first three quarters of 2024 reached 698 million, representing a year-on-year growth of 29.9%. Product revenue grew by 45.0%, with a gross margin of 86.0%, driven primarily by the high-margin product, Orelabrutinib [5][3]. - The net loss narrowed to 285 million, a reduction of 254 million year-on-year, attributed to cost control measures [5]. - The company has a strong cash reserve of approximately 7.8 billion, indicating robust liquidity [5]. - The revenue forecast for 2024-2026 has been revised upwards to 989 million, 1.33 billion, and 1.81 billion respectively, from previous estimates of 963 million, 1.316 billion, and 1.781 billion [5]. Summary by Sections Revenue and Growth - Orelabrutinib's revenue for Q1-Q3 2024 was 693 million, with a year-on-year increase of 30%. The quarterly breakdown shows revenues of 164 million, 254 million, and 276 million, with year-on-year growth rates of 9%, 49%, and 76% respectively [5]. - The inclusion of the exclusive indication for MZL in the medical insurance system has led to accelerated sales growth [5]. Pipeline Development - The company is progressing well in its pipeline, with several innovative products expected to launch in the next 1-3 years. The domestic ITP Phase III registration clinical trial for Orelabrutinib is expected to complete enrollment by Q1 2025 [5]. - The company has also initiated international Phase III clinical trials for PPMS and plans to start SPMS trials in H1 2025 [5]. - The BLA for Tafasitamab for r/r DLBCL has been accepted, with approval expected in 2025 [5]. Financial Performance - The financial summary indicates a significant increase in operating income from 1.04 billion in 2023 to projected figures of 989 million, 1.33 billion, and 1.81 billion for 2024, 2025, and 2026 respectively [7]. - The gross profit is expected to rise from 610 million in 2023 to 856 million in 2024, with net losses projected to decrease over the next few years [7].

Investment Rating - The report initiates coverage on Dizal Pharmaceutical-U (688192 SH) with an "Overweight" rating and a target price of 61 82 RMB [1][2][3] Core Views - Dizal Pharmaceutical focuses on source innovation and has a globally competitive pipeline with core products Suvotinib and Golvatinib entering the harvest phase [2] - The company is expected to achieve revenues of 467 973 and 1 582 billion RMB in 2024 2025 and 2026 respectively driven by the commercialization of Suvotinib and Golvatinib [2] - Suvotinib has shown global best-in-class potential in treating EGFR ex20ins NSCLC and has received breakthrough therapy designations in both China and the US [2] - Golvatinib a next-generation JAK1 inhibitor has demonstrated clinical breakthroughs in treating r/r PTCL and is expected to provide new treatment options [2] - The early-stage pipeline is robust with several first-in-class molecules such as DZD8586 showing promising early data [2] Product Pipeline Suvotinib - Suvotinib is a targeted therapy for EGFR ex20ins NSCLC a difficult-to-treat mutation with limited treatment options [2] - It has shown superior efficacy with ORRs of 60 8% and 53 3% in domestic and international trials respectively outperforming existing therapies [2] - The drug has been approved in China and is under review in the US with potential for significant market penetration [2] - Suvotinib is also being developed for first-line treatment with early data showing mPFS of 10 2 and 12 4 months for different dose groups [2] Golvatinib - Golvatinib is a highly selective JAK1 inhibitor with a long half-life of 40-50 hours allowing for once-daily dosing [2] - It has shown breakthrough efficacy in r/r PTCL with an ORR of 44 3% and a CR rate of 23 9% significantly higher than existing treatments [2] - The drug has been approved in China and is expected to enter the commercialization phase in overseas markets [2] Early-Stage Pipeline - DZD8586 a first-in-class LYN/BTK inhibitor has shown promising early data and potential to overcome BTK inhibitor resistance [2] - Other early-stage candidates such as DZD6008 DZD2269 and DZD1516 are progressing through clinical trials with potential to validate their first-in-class or best-in-class potential [2] Financial Projections - The company is expected to achieve significant revenue growth from 467 million RMB in 2024 to 1 582 billion RMB in 2026 driven by the commercialization of Suvotinib and Golvatinib [2] - Despite being in a strategic loss-making phase the company's net loss is expected to narrow as revenues grow [2] Valuation - The target price of 61 82 RMB is derived using both absolute and relative valuation methods with a focus on the discounted cash flow (DCF) model [2][19] - The relative valuation method using PS multiples suggests a target price of 74 93 RMB but the more conservative DCF-based target is chosen [19]

Investment Rating - The report assigns a "Buy" rating to Dingdong (Cayman) Limited (DDL N) [4] Core Views - Dingdong's Q3 2024 performance met expectations with accelerated growth in GMV and revenue driven by strong seasonal demand [2] - The company demonstrates strong scale effects in the fresh food category [2] - Regional expansion is progressing smoothly with accelerated growth in orders and average order value [5] - Scale effects are driving continuous quarter-over-quarter improvement in profit margins [5] - The company has achieved regional profitability in its fresh food category with strong category scale effects [5] Financial Performance - Q3 2024 revenue reached RMB 6 538 billion +27 21% YoY [5] - Adjusted net profit attributable to parent company was RMB 164 million compared to RMB 13 32 million in Q3 2023 [5] - Q3 2024 GMV reached RMB 7 267 billion +28 27% YoY [5] - Fulfillment expense ratio reached a historical low of 21 38% [5] - Profit margin stood at 2 47% indicating successful operations in Shanghai and regional expansion in Jiangsu-Zhejiang [5] Growth Drivers - Accelerated warehouse openings with 80 new warehouses in Q3 2024 completing the annual target [5] - Full-year 2024 warehouse opening target is 110 [5] - Profit improvement mainly from supply chain scale effects and increased order density [5] - The company expects GMV growth to maintain 17-18% for the full year with adjusted net profit margin of 1 7-1 8% [5] Industry Landscape - Recent changes in the industry include increased investment by JD com in front warehouses and Hema's restart of front warehouses [5] - Xiaoxiang Supermarket is advancing rapidly in North and South China with relatively steady expansion in East China [5] - The report suggests that these competitors have different models and regional focuses with no aggressive price wars expected in the short term [5] Historical Financials - 2024E revenue is projected at RMB 22 979 52 million +15 06% YoY [6] - 2024E gross profit is projected at RMB 6 893 86 million [6] - 2024E adjusted net profit attributable to parent company is projected at RMB 409 60 million with a margin of 1 78% [6]

Industry Overview - The pet economy is booming, with domestic pet brands catching up to foreign brands by addressing pet owners' nutritional concerns [1][2] - The pet industry is in a rapid development stage, driven by the increasing number of young pet owners and rising per-pet spending [4] - The pet industry is expected to grow 4 times in the next 10 years, with pet food accounting for 40%-50% of the market [8] - The global pet market reached $136 billion in 2022 and is expected to reach $225 billion by 2027 [15] Domestic Pet Brands - Domestic pet brands are rising by innovating in product ingredients and processes to address pet owners' nutritional anxiety [4][33] - Key domestic brands include Guaibao Pet, Zhongchong, Petty, and Ruipu Biology, all rated as "Overweight" [3][4] - Domestic brands are gaining market share by focusing on online channels and catering to young pet owners' preferences [43][44] - Guaibao Pet's domestic revenue grew from 540 million yuan in 2018 to 2.863 billion yuan in 2023, with a CAGR of 28.8% [64] Market Trends - Young people are the main pet-owning group, with 90s and 80s generations accounting for a large proportion [19] - The number of pets in China is expected to continue growing, with pet ownership penetration still low compared to mature markets like the US (70%) [20] - Pet consumption is becoming more "humanized," with pet food, supplies, medical care, and grooming services all growing [22] - The average annual spending per pet in China is lower than in Japan and the US, indicating significant growth potential [26] Product Innovation - Domestic brands are innovating in product processes (freeze-dried, baked, air-dried) and ingredients (duck, pigeon, shrimp) to meet pet owners' demands [33][36] - High-protein pet food is gaining popularity, with brands like Guaibao Pet and Blue Buffalo emphasizing fresh meat and natural ingredients [37] - Domestic brands are outperforming foreign brands in online sales, with 7 out of the top 10 brands in the 2024 Double 11 shopping festival being domestic [38] Future Outlook - The future of domestic pet brands lies in addressing pets' health needs, such as aging and specific health conditions [4][47] - Overseas brands like Royal Canin and Nestlé Purina focus on pet health through prescription diets and high R&D investment [48][51] - Domestic companies are increasing R&D investment, with Guaibao Pet spending over 73 million yuan on R&D in 2023 [52] - Guaibao Pet's high-end brand Fregate is innovating with fresh meat processing technology, achieving up to 80% fresh meat content in pet food [54]

Group 1: Domestic Carbon Market Trends - Last week's total trading volume in domestic pilot carbon markets was 242,000 tons, a significant decrease of 63.34% compared to the previous week[1] - The average weekly transaction price of carbon quotas in domestic pilot markets generally declined, with Shenzhen's SZA experiencing the largest drop at 13.32%[1] - The trading volume in Hubei, Fujian, Beijing, and Guangdong accounted for 89.73% of the total trading volume in all pilot carbon markets[1] Group 2: National Carbon Market Performance - The cumulative trading volume of carbon quotas in the national carbon market reached 7.108 million tons, showing an increase compared to the previous week[3] - The cumulative transaction amount was 72,325.66 million yuan, significantly up from the previous week[3] - The daily average transaction price of CEA as of November 1 was 101.74 yuan/ton, reflecting a 6.66% increase from the previous week[3] Group 3: International Carbon Market Insights - In the European market, EUA spot prices rose from €64.93 to €67.74 per ton, a weekly increase of 4.33%[8] - EUA futures trading volume increased by 63.01%, totaling 4.09 million tons compared to the previous week[8] - In the U.S. market, EUA futures prices rose by 4.26%, with a trading volume of 205.14 million tons, up 14.06% from the previous week[11] Group 4: Investment Activity in Carbon Neutrality - Investment activity in the carbon neutrality sector increased, with three equity investment events in the new energy vehicle industry last week[21] - No equity investment events occurred in the new energy industry, while one event was noted in the energy-saving and environmental protection sector[21]

Group 1: Financial Indicators - In October 2024, the social financing stock growth rate decreased to 7.8% from the previous 8.0%, with new social financing of 1.40 trillion yuan, a year-on-year decrease of 448.3 billion yuan[6] - The M2 growth rate rebounded to 7.5% in October, up from 6.8%, while M1 growth improved to -6.1% from -7.4%, indicating a narrowing of the M1-M2 gap[15] - The net financing of local special bonds in October was 576.4 billion yuan, with cumulative net financing exceeding 98% of the annual new quota[6] Group 2: Credit Trends - New credit in October was 500 billion yuan, a year-on-year decrease of 238.4 billion yuan, with corporate medium and long-term loans down by 212.8 billion yuan[10] - The early repayment rate for loans has reached a historical low, indicating a slowdown in the private sector's "balance sheet reduction" process[19] - Residents are beginning to leverage credit, with short-term loans increasing significantly due to seasonal factors and consumption policies[10] Group 3: Market Dynamics - Non-bank deposits continued to show high growth, reflecting a shift of funds towards higher short-term investment returns in the capital market[19] - The proportion of margin trading in A-share trading volume has reached a historical high, indicating increased market activity[19] - The narrowing of the M1-M2 gap is seen as a sign of effective implementation of incremental policies, although sustainability remains a concern as fiscal impulses may slow down[15]