Macroeconomic Overview - As of 2023, the central and local public finance revenue shares are 45.9% and 54.1% respectively, indicating a balanced distribution of fiscal income[1] - Local governments bear 86.1% of public finance budget expenditures, highlighting a mismatch between revenue and expenditure responsibilities[1] Tax Revenue Structure - In 2023, local government tax revenue reached 76,643.03 billion CNY, with the largest contributors being domestic VAT (31.9%), corporate income tax (20.7%), land value-added tax (8.3%), and personal income tax (7.8%)[1] - The total domestic VAT revenue for the first three quarters of 2024 was 50,473.0 billion CNY, down 5.6% year-on-year, contributing to a 2.2 percentage point decline in overall tax revenue growth[9] Expenditure Analysis - Central government spending on social security, education, and technology was notably low in 2020, at 3.48%, 35.74%, and 4.58% respectively, indicating a need for increased central investment in these areas[1] - The structure of public finance budget expenditures shows that social security and employment spending grew by 4.3% year-on-year in the first three quarters of 2024, contributing positively to overall fiscal spending[1] Fiscal Reform Directions - The ongoing fiscal reform aims to balance the fiscal powers and responsibilities between central and local governments, addressing the existing imbalances[1] - The reform also emphasizes enhancing the revenue-sharing system and improving the tax refund mechanism to support enterprise profitability and economic stability[1]

Investment Rating - The investment rating for the company is "Buy" with a market price of RMB 20.30 and a sector rating of "Outperform" [1][3]. Core Insights - The company's revenue for Q3 2024 reached RMB 2.975 billion, representing a year-on-year growth of 23.12%. However, the net profit attributable to shareholders decreased by 9.60% to RMB 49 million. The adjusted net profit, excluding stock incentive effects, showed a positive growth of 14.78% [3]. - The flexible employment business continues to drive revenue growth, with over 360,000 personnel dispatched and a revenue growth rate of 20.59%. The headhunting business also showed signs of recovery with a 2.33% year-on-year revenue increase in Q3 [3]. - Domestic business has maintained healthy growth with a revenue increase of 27.08% in mainland China, while overseas markets face challenges due to inflation and economic uncertainties [3]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved total revenue of RMB 8.516 billion, a year-on-year increase of 18.77%. The net profit attributable to shareholders was RMB 135 million, down 10.96% year-on-year [3][5]. - The Q3 revenue was RMB 2.975 billion, with a gross margin of 6.87%, slightly down from 7.05% in Q2 2024 and 8.04% in Q3 2023 [3][5]. Business Segments - The flexible employment segment remains the main driver of revenue growth, while the headhunting business is showing signs of recovery, which could positively impact the company's profitability if the trend continues [3][5]. - The company has reached over 38,000 clients through various platforms, with a 13.31% year-on-year increase in client reach [3]. Valuation - The company’s earnings per share (EPS) estimates for 2024-2026 are adjusted to RMB 0.96, RMB 1.22, and RMB 1.53, respectively, with corresponding price-to-earnings ratios of 21.2, 16.7, and 13.3 times [3][5].

Investment Rating - The report maintains an "Accumulate" rating for the company [1][3] Core Views - The company reported a decrease in revenue and profit in Q3 2024, with revenue at RMB 2.156 billion, down 6.38% year-on-year, and net profit at RMB 366 million, down 9.54% year-on-year [3] - Despite the Q3 decline, the overall performance for the first three quarters of 2024 showed growth in profit, with a year-on-year increase in net profit of 5.63% [3] - The company is focusing on expanding its standard brand stores, with 60.3% of new openings in Q3 being standard brand stores, reflecting a strategic shift towards quality [3] Summary by Sections Financial Performance - Q3 revenue decreased to RMB 2.156 billion, a 6.38% decline year-on-year, while net profit was RMB 366 million, down 9.54% [3] - For the first three quarters, revenue and profit showed slight growth, with net profit increasing by 5.63% [3] - The company’s RevPAR (Revenue per Available Room) for Q3 decreased by 6.0% due to high base effects and market conditions [3] Store Expansion - The company opened 385 new stores in Q3, with 232 being standard brand stores, marking an 18.4 percentage point increase year-on-year [3] - The total number of new openings for the first three quarters reached 952, achieving 79.33% of the annual target of 1,200 stores [3] Valuation - The report adjusts the EPS forecast for 2024-2026 to RMB 0.74, 0.88, and 0.98 respectively, with corresponding P/E ratios of 18.7, 15.8, and 14.2 [3][5]

Investment Rating - The investment rating for the company is "Buy" [1] - The market price is RMB 34.70, with a sector rating of "Outperform" [1] Core Insights - The company reported a significant increase in revenue and profit for the first three quarters of 2024, achieving revenue of RMB 3.179 billion, a year-on-year increase of 32.97%, and a net profit of RMB 187 million, marking a turnaround from losses [3] - The company's gross margin improved to 21.68%, up 5.46 percentage points year-on-year, and the net profit margin reached 5.87%, up 6.60 percentage points year-on-year [3] - The growth is driven by advancements in the telecommunications, server, and automotive sectors, with AI applications contributing to profitability [3] - The company is expected to continue its growth trajectory, with revenue projections for 2024, 2025, and 2026 set at RMB 4.414 billion, RMB 5.866 billion, and RMB 7.031 billion, respectively [3] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of RMB 3.179 billion, a 32.97% increase year-on-year, and a net profit of RMB 187 million, reversing previous losses [3] - The gross margin for Q3 2024 was reported at 24.93%, reflecting a year-on-year increase of 10.77 percentage points [3] - The company’s revenue for Q3 2024 was RMB 1.206 billion, a 49.27% increase year-on-year [3] Market Position and Growth Drivers - The PCB market is steadily growing, with AI and HPC being significant drivers, projected to have a compound annual growth rate of 32.5% from 2023 to 2028 [3] - The company has made early investments in R&D for 800G high-speed switch products, which have started to receive bulk orders [3] - The server product revenue has seen substantial growth, with a 42.45% share of total revenue, up 20.87 percentage points year-on-year [3] Future Projections - The company’s earnings forecasts have been adjusted upwards, with expected net profits of RMB 271 million, RMB 575 million, and RMB 758 million for 2024, 2025, and 2026, respectively [3] - The projected price-to-earnings ratios for 2024, 2025, and 2026 are 106.4, 50.2, and 38.1 times, respectively [3]

Investment Rating - The report maintains an "Accumulate" rating for the company [1][3]. Core Views - The company reported a decrease in revenue and profit in Q3 2024, with revenue of RMB 2.156 billion, down 6.38% year-on-year, and a net profit of RMB 366 million, down 9.54% year-on-year. However, the overall performance for the first three quarters remains positive, with revenue and profit growth [3]. - The decline in RevPAR (Revenue per Available Room) is attributed to high base effects and market conditions, with a 6.0% decrease for non-light management hotels [3]. - The company is focusing on the expansion of standard brand hotels, with 385 new openings in Q3, of which 232 were standard brand stores, representing 60.3% of new openings [3]. Summary by Sections Financial Performance - Q3 2024 revenue decreased to RMB 2.156 billion, a 6.38% decline year-on-year. Net profit was RMB 366 million, down 9.54% year-on-year. For the first three quarters, revenue and profit showed slight growth, with overall revenue growth of 0.37% and net profit growth of 5.63% [3][5]. - The company’s RevPAR for all hotels decreased by 7.8% in Q3, with ADR (Average Daily Rate) and OCC (Occupancy Rate) also declining [3]. Expansion Strategy - The company opened 385 new stores in Q3, with a focus on standard brand hotels, which accounted for 60.3% of new openings. The total number of new stores for the first three quarters reached 952, achieving 79.33% of the annual target of 1,200 [3][5]. Valuation - The report slightly adjusts the EPS forecast for 2024-2026 to RMB 0.74, RMB 0.88, and RMB 0.98, respectively, with corresponding P/E ratios of 18.7, 15.8, and 14.2 [3][5].

10 月国内需求有所回暖 10 月新订单、出厂价格指数回升，产成品库存指数有所下滑，制造业出现"被 动去库存"迹象。10 月非制造业 PMI 指数小幅回升。 10 月国内需求有所回暖。10 月制造业 PMI 指数为 50.1%，较 9 月继续上 升 0.3 个百分点，制造业景气度重返扩张区间，为 2024 年 5 月以来首次。 着眼重要细分项，10 月新订单指数 50.0%，较 9 月上升 0.1 个百分点，新 出口订单指数较上月继续下滑 0.2 个百分点，实现 47.3%；在海外需求收 缩的背景下，新订单指数整体微幅回升，10 月国内需求有所回暖。生产 指数实现 52.0%，较 9 月延续增长 0.8 个百分点；原材料库存指数为 48.2%， 较 9 月回升 0.5 个百分点；产成品库存指数为 46.9%，较 9 月下滑 1.5 个 百分点；从业人员指数为 48.4%，小幅回升 0.2 个百分点；供货商配送时 间指数为 49.6%，较 9 月微幅回升 0.1 个百分点。企业预期方面，制造业 生产经营活动预期指数实现 54.0%，较 9 月回升 2.0 个百分点。 10 月生产指数延续回升，从细分指标看，月内 ...

Core Insights - The report highlights the performance of various companies in the oil and gas, electronics, and computer sectors, with a focus on revenue and profit trends in the third quarter of 2024 [1][2][6][10]. Oil and Gas Sector - China Petroleum achieved a revenue of 22,562.79 billion yuan in the first three quarters of 2024, a year-on-year decrease of 1.1%, while net profit attributable to shareholders was 1,325.18 billion yuan, an increase of 0.7% [2]. - In Q3 2024, the company reported a revenue of 7,024.10 billion yuan, down 12.5% year-on-year and 5.3% quarter-on-quarter, with a net profit of 439.11 billion yuan, a decrease of 5.3% year-on-year but an increase of 2.3% quarter-on-quarter [2][3]. - The company’s cash flow from operating activities was 3,389.28 billion yuan, with a net cash outflow from investing activities of 2,039.41 billion yuan, and an asset-liability ratio of 39.5%, the lowest in nearly 14 years [3]. - The group’s oil and gas equivalent production was 1,342.3 million barrels, a year-on-year increase of 2.0%, with crude oil production at 708.3 million barrels, up 0.3% [3][4]. - Natural gas sales reached 2,098.20 billion cubic meters, a growth of 8.6%, with domestic sales at 1,629.64 billion cubic meters, up 4.9% [4]. Electronics Sector - Deep South Circuit reported a revenue of 13,049 million yuan in the first three quarters of 2024, a year-on-year increase of 37.92%, and a net profit of 1,488 million yuan, up 63.86% [6][7]. - The company’s PCB business is capitalizing on structural opportunities, with a gross margin of 25.91%, an increase of 2.79 percentage points year-on-year [7]. - In Q3 2024, the company achieved a revenue of 4,728 million yuan, a year-on-year increase of 37.95% and a quarter-on-quarter increase of 8.45% [8]. Computer Sector - Chuangyi Huikang reported a revenue of 1,170 million yuan in the first three quarters of 2024, a year-on-year increase of 1.0%, but a net profit decrease of 42.3% to 52.75 million yuan [10][11]. - The company is expected to benefit from the government's debt replacement policy, which aims to alleviate the debt burden on local governments and improve cash flow [11][12].

Investment Rating - The report maintains a "Buy" rating for the company [1][2]. Core Views - The company achieved a revenue of RMB 29.485 billion in Q1-Q3 2024, representing a year-on-year growth of 7.99%, and a net profit attributable to shareholders of RMB 10.637 billion, up 8.16% year-on-year [2]. - Domestic market revenue is under pressure, while international market revenue continues to grow steadily, with international market revenue increasing by over 18% in Q1-Q3 2024 [2]. - The company’s gross margin for Q3 2024 was 61.69%, a decrease of 5.52 percentage points year-on-year [2]. Summary by Sections Financial Performance - For Q3 2024, the company reported a revenue of RMB 8.954 billion, a year-on-year increase of 1.43%, and a net profit of RMB 3.076 billion, down 9.31% year-on-year [2]. - The company’s revenue for 2024 is projected to reach RMB 42.058 billion, with a growth rate of 20.4% [3]. Market Analysis - Domestic market growth is constrained due to regulatory adjustments and delays in hospital procurement, with domestic revenue growth in Q1-Q3 2024 being less than 2% [2]. - The international market is benefiting from high-end strategic clients and significant growth in seed businesses such as animal healthcare and minimally invasive surgery [2]. Business Segments - The in-vitro diagnostics and medical imaging segments are showing robust growth, with in-vitro diagnostics revenue increasing by over 20% year-on-year [2]. - The life information and support business faced challenges, with a revenue decline of over 10% in Q1-Q3 2024, primarily due to delayed procurement processes [2]. Valuation - Expected net profits for 2024, 2025, and 2026 are projected at RMB 13.927 billion, RMB 16.723 billion, and RMB 20.099 billion respectively, with corresponding EPS of RMB 11.49, RMB 13.79, and RMB 16.58 [2][3].

Investment Rating - The report maintains an "Accumulate" rating for the company [1][3] Core Views - The company's gross margin has improved due to optimization of product and customer structure, with a gross margin of 48.2% in Q3 2024, reflecting a QoQ increase of 0.9 percentage points and a YoY increase of 2.7 percentage points [3] - The revenue for the first three quarters of 2024 reached 467 million RMB, a YoY increase of 24%, with a net profit of 71 million RMB, a YoY increase of 51% [3] - The company has seen significant growth in its Bluetooth speaker SoC products, with increased penetration in leading brands and substantial revenue growth from low-latency, high-quality audio products [3] - The edge AI revenue has experienced exponential growth, driven by rising demand for edge AI computing [3] Financial Summary - The company’s projected revenues for 2024, 2025, and 2026 are 693 million RMB, 827 million RMB, and 943 million RMB respectively, with growth rates of 33.2%, 19.4%, and 14.0% [4][5] - The expected EPS for 2024, 2025, and 2026 are 0.66 RMB, 0.82 RMB, and 0.99 RMB respectively, with corresponding P/E ratios of 46.4, 37.3, and 31.1 [4][5] - The gross margin is projected to be 47.2% in 2024, 47.0% in 2025, and 47.0% in 2026 [6]

Investment Rating - The report maintains an "Accumulate" rating for the company [1][3]. Core Views - The company has shown a notable improvement in profit performance in Q3 2024, with a revenue of RMB 13.3 billion, up 2.2% year-on-year, and a net profit of RMB 2.3 billion, up 32.9% year-on-year [3][5]. - Internal reforms are ongoing, leading to a stabilization in the main seasoning business, with price adjustments and inventory control measures being implemented [3][5]. - The company is expected to benefit from a recovery in dining demand and consumer spending, with revenue growth forecasts of 7.1%, 14.1%, and 14.0% for 2024 to 2026, respectively [3][4]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported a total revenue of RMB 39.5 billion, a slight decrease of 0.2% year-on-year, while the net profit attributable to shareholders was RMB 5.8 billion, reflecting a growth of 19.3% [3][5]. - In Q3 2024, the company achieved a gross margin of 38.8%, an increase of 5.0 percentage points year-on-year, attributed to lower raw material costs and a higher proportion of high-margin products [5][3]. Product and Regional Performance - The company's main product, soy sauce, generated RMB 7.4 billion in revenue in Q3 2024, a year-on-year increase of 0.5%, while chicken essence and powder saw a significant growth of 14.0% year-on-year [3][5]. - Revenue growth varied by region, with the eastern and southern regions showing increases of 8.6% and 1.2%, respectively, while the central region experienced a decline of 12.9% [3][5]. Valuation and Forecast - The report maintains previous profit forecasts, projecting net profit growth rates of 58.2%, 27.2%, and 22.9% for 2024 to 2026, with corresponding price-to-earnings ratios of 24.9X, 19.6X, and 16.0X [3][4].