Investment Rating - The report maintains a "Hold" rating for Shoulv Hotel (600258.CH) and raises the target price to RMB 15.5, indicating a potential upside of 11.5% from the current price of RMB 13.9 [4][12]. Core Views - The report highlights that Shoulv Hotel's RevPAR (Revenue per Available Room) faced pressure in Q3 2024, declining by 7.8% year-on-year due to a high base from the previous year. This decline in RevPAR led to a 6.4% decrease in revenue and a 2.3 percentage point drop in gross margin [2][3]. - Despite the current performance challenges, the company is optimistic about its store expansion plans, aiming to open 7000 operating stores by the end of the year, with a target of reaching 10,000 stores by 2026 [2][3]. - The report notes that the company’s performance during the National Day holiday showed a positive trend, with RevPAR increasing by 4.5%, which may support a better performance in Q4 2024 [2][3]. Financial Summary - Revenue for 2024E is projected at RMB 7,821 million, with a slight year-on-year increase of 0.4%. The net profit is expected to be RMB 857 million, reflecting a 7.7% increase [3][6]. - The report provides a detailed financial forecast, indicating a gradual increase in revenue and net profit through 2026, with revenue reaching RMB 8,879 million and net profit reaching RMB 1,201 million by 2026 [3][6]. - The operating profit margin is expected to improve from 19.7% in 2024E to 22.2% in 2026E, indicating a positive trend in operational efficiency [3][6]. Operational Insights - The report indicates that the company opened 385 new stores in Q3 2024, an increase of 48 stores compared to the same period last year, contributing to an improved store structure with a higher proportion of economy and mid-to-high-end hotels [2][3]. - The average daily rate (ADR) for Q3 2024 decreased by 5.5% year-on-year, contributing to the overall decline in RevPAR [2][3]. - The management is confident that the ongoing optimization of the store structure will enhance the hotel’s profitability in the future [2][3].

Investment Rating - The report maintains a "Hold" rating for the company [2][4] Core Views - The revenue outlook for the company remains unclear, and the valuation is considered to be low in terms of cost-effectiveness [2] - The company's net profit for Q3 2024 grew by 8.5% year-on-year, slightly better than expectations, but concerns about future performance persist [2] - The profit margin expansion in Q3 2024 was primarily due to a significant decline in raw milk prices, a trend that is not expected to be sustainable [2] - Weak terminal demand for liquid milk continues, with no significant improvement in consumer willingness to purchase [2] - The company has seen a substantial increase in sales expense ratio over three consecutive quarters, indicating limited room for cost reduction and efficiency improvements [2] Financial Performance Summary - Revenue for 2022 was CNY 123.171 billion, with a year-on-year growth of 11.4%, while 2023 revenue is projected at CNY 126.179 billion, reflecting a growth of 2.4% [3][6] - The company’s net profit for 2022 was CNY 9.431 billion, with a year-on-year increase of 8.3%, and is expected to reach CNY 10.429 billion in 2023, a growth of 10.6% [3][6] - The projected P/E ratio for 2025 is 15.7x, indicating a relatively low valuation compared to historical performance [3][6] - The gross profit margin for Q3 2024 expanded by 2.4 percentage points year-on-year, attributed to lower raw milk prices and the end of inventory clearance [2][6] Market Expectations - The target price for the company is set at CNY 32.1, representing a potential upside of 15.1% from the current price of CNY 27.9 [4][5] - The company’s market capitalization is approximately CNY 177.674 billion, with an average trading volume of CNY 1.7163 billion over the past three months [4][5]

Investment Rating - The report maintains a "Hold" rating for Huaxi Biotech (688363 CH) with a target price of RMB 62 1, implying a potential upside of 3 7% from the current price of RMB 59 9 [2][9] Core Views - Huaxi Biotech's functional skincare business and management restructuring are still ongoing, leading to a 7 1% YoY decline in 3Q24 revenue and a 77% YoY drop in net profit attributable to shareholders [1] - The company's skincare business is expected to take a longer time to complete its transformation, with 3Q24 skincare revenue down 22% YoY, though the decline narrowed from 1H24 (-30%) [1] - The medical aesthetics business is driving growth, with 3Q24 revenue up 10% YoY, supported by new product launches and clear channel strategies [1] - Management expenses rose significantly in 3Q24 due to increased backend costs and consulting fees, leading to a 5 1ppt decline in core operating profit margin [1] Financial Performance and Forecasts - Revenue for 2024E is projected at RMB 5,741 million, down 5 5% YoY, with net profit attributable to shareholders expected to decline 30 6% YoY to RMB 411 million [4][5] - The company's gross margin improved to 72 4% in 3Q24, up 1 3ppt YoY, driven by higher-margin medical aesthetics products [1] - Operating cash flow is expected to improve, with 2024E operating cash flow projected at RMB 917 million, up from RMB 700 million in 2023 [6] Business Segments - Skincare business: Revenue declined 22% YoY in 3Q24, but the company has launched new products focusing on functional sugar and cell biology, aiming to stabilize Q4 revenue [1] - Medical aesthetics business: Revenue grew 10% YoY in 3Q24, with new products expected to drive further growth in 2025 [1] - Raw materials business: Revenue remained flat in 3Q24, while the medical terminal business became the only growth driver [1] Valuation and Market Performance - The target price of RMB 62 1 is based on an upward revision due to the rising valuation center of the cosmetics industry [1] - The company's PE ratio for 2024E is 70 1x, reflecting the market's expectation of future growth [4] - The stock's 52-week price range is RMB 44 7-84 6, with a current market cap of RMB 28,843 million [2]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of CNY 53.4, indicating a potential upside of 11% from the current price of CNY 48.3 [1][8]. Core Views - The company achieved a net profit growth of 11% year-on-year and 6% quarter-on-quarter in Q3, demonstrating stable business growth. The gross margin was recorded at 32.6%, a year-on-year decline of 1.9 percentage points but an increase of 8.6 percentage points quarter-on-quarter. The fluctuation in gross margin is attributed to accounting standard changes, while the operational gross margin remains relatively stable [1][2]. - The rail transit business is expected to continue its recovery, benefiting from increased demand due to major repairs. The expansion of IGBT capacity in Yixing is a solid foundation for the growth of the power semiconductor business. The current P/E ratios for the company's Hong Kong and A-shares are 9.6x and 16.4x, respectively, indicating attractive valuations [1][2]. Revenue and Profitability - In Q3, the company's revenue reached CNY 5,973 million, an 8% increase year-on-year but a 6% decrease quarter-on-quarter. The gross profit was CNY 1,945 million, reflecting a 2% year-on-year increase and a 27% quarter-on-quarter increase. The operating profit was CNY 994 million, up 15% year-on-year and 20% quarter-on-quarter [13][14]. - The emerging equipment segment generated revenue of CNY 2,661 million in Q3, a 14% year-on-year increase, with the power semiconductor revenue reaching CNY 9.65 billion, growing 27% year-on-year. The revenue from the new energy vehicle main drive segment surged by 67% year-on-year [2][15]. Financial Forecasts - The revenue forecast for the company is projected to grow from CNY 18,034 million in 2022 to CNY 31,956 million by 2026, with a compound annual growth rate (CAGR) of approximately 14%. The net profit is expected to increase from CNY 2,556 million in 2022 to CNY 3,853 million in 2026, with a slight decline in growth rate in the later years [3][10]. - The gross margin is anticipated to fluctuate, with estimates of 32.7% in 2022, peaking at 33.9% in 2023, and then stabilizing around 31.7% by 2026 [3][10]. Market Position and Valuation - The company holds a significant market share in the power semiconductor and new energy vehicle sectors, with the latter showing robust growth despite pricing pressures. The rail transit business contributes significantly to the overall revenue, accounting for 55.2% of total revenue in Q3 [2][15]. - The target P/E ratios for A-shares and Hong Kong shares are projected to decline from 29.6x in 2022 to 19.6x by 2026, indicating a potential for value appreciation as earnings grow [3][10].

Investment Rating - Maintains a "Buy" rating with a target price of RMB 350 [1][3] Core Views - Domestic revenue is expected to remain under pressure in 4Q24, with a potential recovery in 2025 [1] - Overseas business continues to grow steadily, while domestic growth is sluggish due to anti-corruption measures and delayed equipment renewal tenders [1] - 3Q24 revenue growth was modest, with domestic revenue declining by 10% YoY, while overseas revenue grew by 19% YoY [1] - Life Information & Support segment revenue fell by over 20% YoY in 3Q24, while IVD and Medical Imaging grew by less than 10% and 3% respectively [1] - Gross margin in 3Q24 declined by 5.5 ppts YoY, mainly due to accounting adjustments, but remained stable on a like-for-like basis [1] - Medical special bonds and local special bonds issuance accelerated in September 2024, but the impact on 4Q24 performance is expected to be limited [1] - The company plans to reduce inventory levels from 4 months to 2 months by the end of 2024, which may pressure 4Q24 revenue growth [1] - Full-year 2024 revenue growth is expected to slow to 7% YoY, with a significant recovery anticipated in 2025 as equipment renewal projects materialize [1] Financial Performance and Forecasts - 2024E revenue is projected at RMB 37.4 billion, with a 7.1% YoY growth, while 2025E revenue is expected to grow by 21% YoY to RMB 45.3 billion [2] - 2024E net profit attributable to shareholders is forecasted at RMB 12.5 billion, with a 7.6% YoY increase, and 2025E net profit is expected to grow by 21% YoY to RMB 15.1 billion [2] - Gross margin for 2024E is projected at 64.2%, slightly lower than 2023A's 66.2% [4] - Operating cash flow for 2024E is expected to be RMB 15.6 billion, with capital expenditures of RMB 6.8 billion [5] Dividend Policy - The company announced a second dividend of RMB 1.65 per share for 2024, maintaining a payout ratio of 65% [1] - The single dividend yield is 0.6% based on the closing price on the announcement date [1] Valuation Metrics - The target price of RMB 350 implies a 28x 2025E PE, in line with the 3-year historical average [1] - 2024E PE is projected at 26.4x, declining to 21.8x in 2025E [2] - The dividend yield for 2024E is expected to be 2.5%, increasing to 3.0% in 2025E [5]

Investment Rating - The report maintains a "Hold" rating for Qingdao Beer (168.HK/600600.CH) [4][11] Core Views - The report indicates that Qingdao Beer is facing short-term challenges, including weak overall sales, pressure on product structure, and increased sales expenses impacting profit margins [4][9] - The forecast for revenue and profit has been adjusted downward for 2024-2026 due to the performance in Q3 2024 [4][9] Financial Performance Summary - Q3 2024 net profit decreased by 9.0% year-on-year, while revenue fell by 5.3%, with profit decline outpacing revenue decline due to a significant rebound in sales expense ratio [4][6] - The overall sales volume in Q3 2024 dropped by 5.1% year-on-year, with the main brand's sales volume down by 4.1% [4][8] - The average selling price saw a slight decline of 0.2% year-on-year, indicating pressure on product structure [4][8] - Core operating profit margin contracted by 70 basis points year-on-year, with core operating profit down by 9% [4][8] Revenue and Profit Forecasts - Revenue forecasts for 2024E, 2025E, and 2026E are adjusted to RMB 31.839 billion, RMB 32.971 billion, and RMB 34.082 billion respectively, reflecting a decrease of 8.4% from previous estimates [9] - The forecast for net profit attributable to shareholders for 2024E, 2025E, and 2026E is revised to RMB 4.352 billion, RMB 4.822 billion, and RMB 5.269 billion, representing a decrease of 13.1% from prior estimates [9] Target Prices - The target price for Qingdao Beer A-shares is adjusted to RMB 70.6, with a potential upside of 3.1% from the current price of RMB 68.5 [4][11] - The target price for Qingdao Beer H-shares is set at HKD 58.4, indicating a potential upside of 10.6% from the current price of HKD 52.8 [4][11]

Investment Rating - The report maintains a "Buy" rating for the Hong Kong stock with a target price of HKD 16.8, and a "Hold" rating for the A-share with a target price of RMB 22.4 [2][6][7]. Core Insights - The company's 3Q24 performance met expectations, with revenue of RMB 3.21 billion, reflecting a year-on-year increase of 10.0% and a quarter-on-quarter increase of 9.5%. The adjusted net profit was RMB 420 million, down 13.2% year-on-year but up 18.7% quarter-on-quarter [3][4]. - The company has adjusted its full-year revenue guidance down to a mid-to-high single-digit growth rate, primarily due to slower-than-expected recovery in laboratory services and delays in major clinical service orders [5][7]. Financial Performance - For 3Q24, the CMC segment showed the fastest revenue growth at 20.9% year-on-year and 34.9% quarter-on-quarter, with a gross margin increase [4]. - The laboratory services segment also experienced a revenue increase of 9.4% year-on-year, driven by growth in the biosciences sector [4]. - The company reported a gross margin of 34.4% for 3Q24, with an adjusted net profit margin of 13% [3][4]. Revenue Breakdown - In the first nine months of 2024, new orders increased by over 18% year-on-year, with significant contributions from the top 20 pharmaceutical companies, which saw a revenue growth of 3.4% year-on-year [3][4]. - North American customer revenue grew by 4.3% year-on-year, while European customer revenue accelerated to 15.7% year-on-year [3][4]. Future Outlook - The company expects to achieve over 10% year-on-year revenue growth in the second half of 2024, with a projected full-year revenue growth in the mid-to-high single digits [5][7]. - The adjusted non-IFRS net profit forecast for 2024 has been reduced by 5% due to lower revenue expectations and higher gross margin forecasts [7].

Investment Rating - The report maintains a "Hold" rating for Rongchang Biologics with a target price of HKD 26.0 for the Hong Kong stock and RMB 35.0 for the A-share [11][18]. Core Insights - Rongchang Biologics' Q3 2024 revenue met expectations, with a significant improvement in net loss primarily due to effective control of R&D expenses. The company reported a revenue of RMB 470 million, a year-on-year increase of 34.6% and a quarter-on-quarter increase of 13.6% [11][12]. - The gross margin for Q3 2024 was 82.1%, showing a significant year-on-year and quarter-on-quarter improvement, attributed to the economic effect of increased revenue scale [11]. - The management indicated that the sales of Taitasip reached approximately RMB 270 million in Q3 2024, with a 43% year-on-year increase, driven by enhanced market access and recognition of product efficacy [12]. - R&D expenses for Q3 2024 were RMB 350 million, reflecting a 9.3% year-on-year increase but a 26.9% quarter-on-quarter decrease, indicating effective cost management [14]. Financial Summary - For 2024E, the company expects total revenue of RMB 1.769 billion, with a year-on-year growth of 64.4%. The net loss is projected to be RMB 1.34 billion [19]. - The report forecasts a gradual improvement in net loss over the next few years, with estimates of RMB 1.165 billion for 2025E and RMB 816 million for 2026E [18][19]. - The cash and cash equivalents as of September 30 were RMB 1.12 billion, with a loan credit line of RMB 2.8 billion, indicating a solid liquidity position [11].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of CNY 112.4, indicating a potential upside of 16% from the current price of CNY 97.2 [2][4][12]. Core Insights - The company's third-quarter performance showed improvement compared to the low point in the second quarter, driven by stable demand in the industrial control sector and rapid growth in automotive-related revenue. The photovoltaic sector also began to recover from earlier lows [2][8]. - The silicon carbide (SiC) business is progressing steadily, with expectations of doubling revenue compared to last year. The increasing penetration of new energy vehicles is anticipated to sustain high growth in the company's automotive main drive modules [2][7]. - Despite significant price pressures in the automotive sector, the company is expected to stabilize and potentially increase its gross margin through various cost-reduction measures and product mix upgrades [2][9]. Financial Performance Summary - In Q3 2024, the company reported revenue of CNY 880 million, a year-on-year decline of 5% but a quarter-on-quarter increase of 21%. The gross margin was 32.0%, down 4.6 percentage points year-on-year but up 0.8 percentage points from the previous quarter [2][8]. - The net profit for Q3 2024 was CNY 149 million, reflecting a 35% year-on-year decline but a 32% quarter-on-quarter increase. The adjusted net profit, excluding non-recurring items, also showed a similar trend [2][8]. - The company’s forward P/E ratio is currently at 26.2x, which is below the historical average, suggesting room for valuation upside [2][12]. Earnings Forecast Adjustments - The report adjusts the earnings forecasts for 2024 and 2025, with expected revenues of CNY 3,342 million and CNY 4,089 million respectively, reflecting a 23% decrease from previous estimates [2][7]. - The gross profit for 2024 is projected at CNY 1,065 million, with a gross margin of 31.9%, and net profit is expected to be CNY 596 million, indicating a 46% increase from prior forecasts [2][7]. Valuation Analysis - The report employs a DCF valuation method, assuming a risk-free rate of 2.2% and a WACC of 13.5%. The target price of CNY 112.4 corresponds to a P/E of 32.3x for 2024 and 25.1x for 2025 [2][9][10]. - The company’s free cash flow projections indicate a significant increase in revenue and operating profit over the next several years, with a long-term growth rate assumption of 3% [2][9].

Economic Overview - In September, non-farm payrolls unexpectedly increased by 254,000, indicating a stronger labor market than anticipated[3] - The unemployment rate fell by 0.1 percentage points to 4.1% in September[5] - Core CPI inflation rates exceeded expectations for two consecutive months, driven primarily by a rebound in super-core services CPI[7] Monetary Policy Outlook - The expectation remains for a 25 basis point rate cut by the Federal Reserve in November, with a total of seven cuts anticipated by July next year, bringing the policy rate down to 3%[1] - Risks are skewed towards a slower pace of rate cuts, as more economic data is needed to support the "no landing" narrative[16] Political Landscape - Trump's chances of winning the election have increased, with a 15 percentage point lead over Harris in key swing states[17] - If Trump wins and implements his tax cuts, the economic growth and inflation impact could be more significant compared to Harris's policies[21] Financial Market Insights - The dollar index rose by 3.5% in October, while the 10-year U.S. Treasury yield increased by 12.3%[24] - The market anticipates that if Trump wins, the dollar index could continue to rise, with a year-end forecast of 106[24] Investment Risks - Potential risks include rapid rate cuts by the Fed, geopolitical tensions leading to inflation, and unexpected outcomes from the U.S. elections[1]