Investment Rating - The report assigns a "Neutral" rating to the company with a target price of HKD 5.80, indicating a potential upside of 13.0% from the current closing price of HKD 5.13 [1][4][9]. Core Insights - The company experienced significant pressure in its business segments during Q3 2024, with revenues and net profits declining by 17.8% and 50.4% respectively. The decline was attributed to various factors, including a 20% drop in the pharmaceutical segment, particularly a 31% decrease in the oncology sector due to competitive pricing pressures and inventory adjustments [1][2]. - The management anticipates a recovery in 2025, driven by the launch of six new products by the end of 2024, which is expected to restore positive growth in operating income outside of business development (BD) [1][2]. - The company has entered a significant business development phase, with a global rights deal for an Lp(a) inhibitor with AstraZeneca potentially worth up to USD 1.65 billion, including a USD 100 million upfront payment expected to be recognized in Q4 2024 [2][5]. Financial Model Updates - Revenue forecasts for 2024-2026 have been adjusted downward by 17-26%, and net profit forecasts have been reduced by 28-37% due to the disappointing Q3 performance [2][3]. - The updated financial projections indicate a revenue of RMB 29,632 million for 2024, down from the previous estimate of RMB 35,518 million, with a corresponding net profit of RMB 4,966 million, reflecting a significant decrease from the prior forecast [3][11]. Business Development Potential - The company is expected to generate at least two external licensing deals annually, with the potential for each deal to exceed the scale of the AstraZeneca transaction. This includes ongoing development in various innovative platforms such as ADC, siRNA, and mRNA vaccines [2][5]. - The management is actively exploring collaborations in early product development with AI drug discovery and gene therapy technologies, indicating a strategic focus on innovation and partnerships [2][5].

Investment Rating - The report maintains a "Buy" rating for the company with a target price raised from $4.50 to $7.30, indicating a potential upside of 47.5% from the current price of $4.95 [2][5][12]. Core Insights - The company achieved its first profitable quarter in Q3, with an adjusted net profit of 89 million RMB, exceeding market expectations of 35 million RMB. Revenue grew by 2% year-on-year, despite a 19% decline in learning services revenue due to reduced customer acquisition spending under strict ROI standards. AI-driven subscription services saw a significant increase, with sales reaching 70 million RMB, a 150% year-on-year growth [3][4]. - Hardware revenue increased by 25% year-on-year, driven by the launch of new products, particularly the X7 series of dictionary pens, which helped restore hardware revenue and gross margin, achieving a gross margin of 42.8%, up 13 percentage points quarter-on-quarter [3][4]. - The company continues to focus on its AI and education strategy, with a high school renewal rate reaching 70%, up 5 percentage points year-on-year, laying a solid foundation for long-term business growth [3][4]. Financial Forecast Changes - Revenue forecasts for 2024 and 2025 have been adjusted downwards by 6.2% and 7.2% respectively, reflecting a strategic shift towards profitability. The 2025 revenue is now projected at 6,419 million RMB, while the adjusted net profit for 2024 is expected to be 63 million RMB, increasing to 122 million RMB in 2025 [4][16]. - The gross profit margin is projected to be 49.3% in 2024, slightly improving to 50.1% in 2025, while the adjusted operating profit margin is expected to rise to 4.1% in 2025 [4][16].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of $56.00, indicating a potential upside of 67.9% from the current price of $33.35 [1][15]. Core Insights - The company has shown a revenue growth of 5% year-over-year in Q3 2024, with total revenue reaching 260.4 billion RMB. The growth was driven by a recovery in the sales of electronic products and strong performance in the supermarket and apparel categories [8]. - The adjusted net profit for Q3 2024 was 13.2 billion RMB, reflecting a 24% increase year-over-year, attributed to improved supply chain capabilities and competitive pricing [8]. - The report maintains a revenue growth forecast of 5.7% for Q4 2024, with an expected adjusted net profit of 8.5 billion RMB, consistent with previous estimates [9]. Financial Projections - Total revenue projections for 2024E, 2025E, and 2026E are 1,135,232 million RMB, 1,199,132 million RMB, and 1,268,015 million RMB respectively, with growth rates of 4.7%, 5.6%, and 5.7% [4]. - The adjusted operating profit for 2024E is projected at 41,606 million RMB, with a margin of 3.7% [6]. - The adjusted net profit for 2024E is expected to be 45,029 million RMB, with a net profit margin of 4.0% [7]. Market Performance - The company's market capitalization is approximately $43.54 billion, with a 52-week high of $47.08 and a low of $21.44 [2]. - The stock has shown a year-to-date increase of 15.44% [2]. Earnings Forecast Changes - The report indicates minor adjustments in revenue and profit forecasts, with total revenue for 2024E slightly revised from 1,134,675 million RMB to 1,135,232 million RMB, reflecting a negligible change [4]. - The adjusted operating profit forecast for 2025E has been reduced from 50,187 million RMB to 48,400 million RMB, indicating a 3.6% decrease [6]. Competitive Position - The company is positioned favorably within the e-commerce sector, with strong growth in active user numbers and shopping frequency, contributing to its competitive edge [8]. - The report highlights the company's ability to leverage logistics and supply chain efficiencies to enhance profitability [9].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of USD 113.00, indicating a potential upside of 34.2% from the current closing price of USD 84.22 [1][4][7]. Core Insights - The company's strong performance in PC games is expected to drive revenue growth in 2025, with a projected 10% increase in game revenue. Mobile games are anticipated to stabilize, aided by the high base effect and the influence of "Hearthstone" [1]. - The third quarter saw a 4% year-over-year decline in total revenue, aligning with Bloomberg consensus expectations, while game revenue decreased by 1%. The adjusted net profit fell by 13% year-over-year due to foreign exchange losses [1][5]. - The company has a promising lineup of new game releases scheduled for late 2024 and 2025, including "Yanyun Sixteen Sounds" and "Marvel Showdown," which are expected to contribute positively to future revenue [2]. Financial Forecast Adjustments - Total revenue forecasts for 2024, 2025, and 2026 have been slightly adjusted downwards, with expected revenues of RMB 105,532 million, RMB 115,647 million, and RMB 127,046 million respectively, reflecting changes of -0.2%, -0.7%, and -1.0% [3]. - The adjusted operating profit margin is projected to be 30.9% for 2024, with a slight decrease from previous estimates [3][6]. - The adjusted net profit for 2024 is forecasted at RMB 31,509 million, with a net profit margin of 29.9% [3][6].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of USD 25.00, indicating a potential upside of 34.5% from the current price of USD 18.59 [5][15]. Core Insights - The company achieved its first operational profit in Q3 2024, with revenues of RMB 7.3 billion, reflecting a year-on-year growth of 26% and a quarter-on-quarter growth of 19% [1][2]. - The adjusted operational profit reached RMB 272 million, surpassing market expectations, driven by improved revenue structure and cost management [1][3]. - Game revenue surged by 84% year-on-year, significantly contributing to overall revenue growth, while advertising revenue grew by 28% [2][3]. Financial Overview - Total revenue projections for 2024E are RMB 26.7 billion, with a year-on-year growth of 18.6% [4]. - The company is expected to achieve a net profit of RMB 1.9 billion in 2025, reflecting a significant turnaround from previous losses [4]. - The gross margin is anticipated to improve to 36% in Q4 2024, supported by high-margin game and advertising revenues [2][13]. User Engagement Metrics - Monthly active users (MAU) reached 30 million, with a stable user engagement reflected in daily average usage time [11]. - The company reported a 10% year-on-year increase in total user hours, indicating strong content consumption growth [10]. Market Position and Valuation - The company’s market capitalization stands at approximately USD 6.17 billion, with a year-to-date stock price increase of 52.75% [6]. - The report suggests that the stock price has limited downside potential, with a reasonable target price range of USD 20-28 based on normalized profit margins [3][14].

Investment Rating - The report maintains a "Buy" rating for JD Logistics (2618 HK) with a target price raised to HKD 18.00, indicating a potential upside of 20.6% from the current closing price of HKD 14.92 [1][4][7]. Core Insights - JD Logistics reported a strong performance in Q3, exceeding market expectations, with a projected net profit of over RMB 2 billion for Q4, corresponding to a profit margin of over 4% [1][2]. - The company is expected to enter a relatively stable profit margin phase in 2025, with a projected adjusted net profit of RMB 7.9 billion for 2024, reflecting a 30% increase from previous estimates [2][3]. - The report highlights the company's cost reduction strategies, including product upgrades, network optimization, and increased automation, which have significantly improved profitability [1][2]. Financial Performance Summary - For Q3 2024, JD Logistics achieved a revenue of RMB 44.4 billion, a year-on-year increase of 7%, with a gross profit margin improvement of nearly 4 percentage points to 12% [1][5]. - The adjusted net profit for Q3 was RMB 2.6 billion, approximately double the previous year, resulting in a net profit margin of 5.8%, the highest quarterly level since the company went public [1][3]. - The report projects total revenue for 2024 to reach RMB 180.83 billion, with a profit margin of 4.4% [2][9]. Earnings Forecast Changes - The adjusted net profit forecast for 2024 has been increased to RMB 7.9 billion, with a profit margin of 4.4%, and for 2025, the adjusted net profit is projected at RMB 7.9 billion [3][9]. - Revenue estimates for 2024 and 2025 have been slightly adjusted, with 2024 revenue expected at RMB 180.83 billion and 2025 at RMB 193.08 billion [3][9]. Market Position and Valuation - JD Logistics' market capitalization is approximately HKD 98.86 billion, with a year-to-date stock price increase of 52.56% [4][5]. - The stock has a 52-week high of HKD 16.34 and a low of HKD 6.80, indicating significant volatility and growth potential [4][5].

Investment Rating - The investment rating for Dada Group (DADA US) is Neutral, with a target price adjusted to $1.40, indicating a potential downside of 10.8% from the current price of $1.57 [4][9]. Core Insights - The report highlights that Dada Group is experiencing short-term impacts from business adjustments, but the performance in JD's ecosystem is strong, laying a foundation for long-term growth [3][4]. - For Q3 2024, Dada Group reported revenues of 2.4 billion RMB, a year-on-year decline of 7%, which was better than market expectations. Dada Express saw a revenue increase of 39% due to higher delivery volumes from chain brands, while JD's same-day delivery revenue fell by 40% due to a decline in advertising revenue and reduced fulfillment service income [1][2][3]. Summary by Sections Q3 2024 Performance - Total revenue was 2.4 billion RMB, down 7% year-on-year, exceeding expectations by 3% [1]. - Dada Express revenue increased by 39% year-on-year, driven by increased delivery volumes from chain brands [2]. - JD's same-day delivery revenue decreased by 40%, attributed to a drop in advertising revenue and lower fulfillment service income [1][2]. Operational Highlights - JD's same-day delivery saw a 100%+ year-on-year increase in average monthly active users and order volume, with peak daily orders during the Double Eleven shopping festival [2]. - Dada Express completed orders and gross revenue increased by 36% and 33% year-on-year, respectively, due to improved pricing competitiveness and operational efficiency [2]. Outlook and Valuation - The report anticipates that adjustments in JD's same-day delivery business will continue until 2025, with uncertainties regarding revenue from marketing monetization impacting forecasts [3]. - The revenue forecast for 2025-2026 has been adjusted downwards primarily due to uncertainties in advertising monetization, leading to an expected loss of 430 million RMB in 2025 and 245 million RMB in 2026 [3][11].

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings with a target price of HKD 513, representing a potential upside of 27.0% from the current price of HKD 403.80 [1][3]. Core Insights - Tencent's Q3 2024 performance showed robust revenue growth of RMB 167.2 billion, up 8% year-on-year and 4% quarter-on-quarter, aligning with market expectations. Key revenue drivers included gaming, social networks, and advertising, with respective growth rates of 13%, 4%, and 17% [1][2][3]. - The adjusted net profit for Q3 2024 reached RMB 59.8 billion, a 33% increase year-on-year, benefiting from high-margin businesses such as domestic gaming and video services [1][3]. - The report anticipates continued growth in Q4 2024, projecting an 8.2% year-on-year revenue increase, driven by domestic gaming and advertising [3]. Revenue and Profitability - Total revenue for Tencent is projected to grow from RMB 609.0 billion in 2023 to RMB 766.8 billion by 2026, with a compound annual growth rate (CAGR) of approximately 8.6% [4]. - The adjusted earnings per share (EPS) is expected to rise from RMB 16.33 in 2023 to RMB 28.35 in 2026, reflecting a strong growth trajectory [4]. - The report highlights a significant improvement in gross margin, which increased to 53% in Q3 2024, driven by cost optimization in cloud services and high-margin business growth [1][3][10]. Segment Performance - The gaming segment saw a 13% year-on-year revenue increase, with domestic games growing by 14% due to the successful launch of new titles and the recovery of existing games [2][6]. - Advertising revenue surged by 17%, fueled by strong demand for video ads and increased spending from the gaming and e-commerce sectors [2][3][15]. - Financial technology and enterprise services remained stable, with slight growth in enterprise service revenue, while payment services faced challenges due to consumer spending impacts [2][14]. Valuation Metrics - The current price corresponds to a price-to-earnings (P/E) ratio of 15.3 times for 2025, which is considered low compared to historical averages [3][4]. - The report suggests that Tencent's strong performance and shareholder returns exceeding RMB 100 billion annually justify the target price of HKD 513, based on a 20 times P/E ratio for 2025 [3][4].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 159.00, indicating a potential upside of 38.0% from the current closing price of HKD 115.20 [7]. Core Insights - The company has shown strong sales growth in Q3 2024, with total revenue increasing by 28.2% year-on-year to USD 1.002 billion, driven primarily by a 66.9% increase in product revenue to USD 993 million [1]. - The sales of the drug Zebutinib reached USD 690 million globally, marking a 93.0% year-on-year increase, with a notable performance in the U.S. market [1][2]. - The adjusted non-GAAP operating profit for Q3 2024 was USD 65.63 million, marking the second consecutive quarter of positive operating profit [1]. - The company is expected to continue facing accelerated depreciation costs in Q4 2024, but profitability is anticipated to improve as product volumes increase in the following year [1]. Financial Forecast Changes - Revenue forecasts for 2024-2026 have been increased by 6-7%, with peak sales for Zebutinib revised up by 4% to USD 5.4 billion [2]. - The new revenue projections for 2024, 2025, and 2026 are USD 3.712 billion, USD 4.630 billion, and USD 5.566 billion, respectively, reflecting a 7% increase for 2024 [3]. - The gross profit for 2024 is projected at USD 3.108 billion, with a gross margin of 83.6% [3]. Key Developments - The report highlights several upcoming catalysts, including potential approvals for additional indications of the drug Tarelizumab in key markets and the initiation of Phase III studies for the Bcl-2 inhibitor sonrotoclax in early 2025 [2]. - The company is also advancing multiple candidates for solid tumors into clinical stages, with eight candidates already in clinical trials this year [2]. Financial Data Overview - The company reported a net loss of USD 698 million for 2024, with expectations of narrowing losses in subsequent years [8]. - Cash and cash equivalents are projected to decrease to USD 2.551 billion in 2024, with a gradual recovery expected in 2025 [8].

Investment Rating - Maintains a **Buy** rating with a target price of $76.00, implying a potential upside of 89.1% from the current price of $40.18 [1][3][5] Core Views - **3Q24 Performance Exceeds Expectations**: Revenue grew 67% YoY to $160 million, driven by a 88% increase in collaboration revenue to $143 million Carvykti sales surged 54% QoQ and 88% YoY to $286 million, with expectations of continued growth in 4Q24 due to strong demand for second-line treatment, market share expansion, and capacity ramp-up [1] - **Competition Concerns Overblown**: Despite Arcellx's anito-cel data at ASH, Carvykti's competitive position remains strong due to differences in patient baseline characteristics, higher sCR rates (83% vs anito-cel), and reduced neurotoxicity risks with extended follow-up in CARTITUDE-1 and CARTITUDE-4 studies [2] - **Operational Improvements**: Outpatient administration rate increased to 48% (vs 45% in 2Q24 and 35% in 1Q24), reflecting better safety profile Gross margin improved to 63% (vs 37% in 2Q24 and 51% in 1Q24) [1] Financial Model Updates - **Revenue Forecasts**: 2024E revenue remains unchanged at $630 million, with 2025E and 2026E forecasts also steady at $1,051 million and $1,382 million respectively [4] - **Profitability Adjustments**: Gross margin assumptions raised to 58.0% for 2024E (vs 48.0% previously), 60.0% for 2025E (vs 53.0%), and 63.0% for 2026E (vs 60.0%) Net loss for 2024E revised to $276 million (vs $264 million previously), with breakeven expected in 2026E [4] - **Sales Expense Increase**: Sales expenses surged 110% YoY in 3Q24 due to expanded marketing efforts and team growth following 2-4L MM approval [1] Industry Context - **CAR-T Market Dynamics**: Carvykti's rapid adoption in frontline therapy is expected to limit opportunities for competitors in later-line treatments, reinforcing its market leadership [2] - **Peer Comparisons**: Among covered biotech companies, Legend Biotech (LEGN US) has the highest potential upside at 89.1%, followed by Genscript Biotech (1548 HK) at 163.3% and Novotech (6996 HK) at 487.2% [8]