Investment Rating - The report does not explicitly state an investment rating for the company [1]. Core Insights - The company's main products include vitamin products and biological preservatives, with a focus on biotin and folic acid, which are used in various industries such as feed additives, food additives, and pharmaceuticals [1][21]. - The company has seen a significant increase in sales of folic acid, with a year-on-year growth of 69.10% in sales volume and 77.24% in sales revenue [2][21]. - The price of folic acid has surged by 87.5% since November 1, 2024, reaching RMB 330 per kg, which is expected to enhance the company's profitability [4][17]. - The company plans to raise funds through a stock issuance to increase the production capacity of D-isoascorbic acid and its sodium salt, which has a total demand exceeding 200,000 tons [3][16]. Summary by Sections Company Overview - The company primarily produces vitamin products, biological preservatives, and clean label products, with biotin and folic acid being key offerings [1][21]. - In the first three quarters of 2024, the company achieved operating income of RMB 609 million, a year-on-year increase of 11.90% [1][21]. Sales Performance - In 2023, biological preservatives generated sales of RMB 305 million, accounting for 41.89% of total revenue, while vitamin sales were RMB 248 million, representing a decline of 18.96% [2][8]. - Clean label products saw a significant increase in sales, reaching RMB 65 million, a growth of 48.27% year-on-year [2][21]. Market Position - The company is the largest global supplier of biotin with a market share of approximately 30% and has a growing market share of 26% in folic acid [4][17]. - The biological preservatives market is primarily driven by lactic acid streptococcus and natamycin, with the company being a leading manufacturer in this segment [4][18]. Future Prospects - The planned stock issuance aims to fund the expansion of D-isoascorbic acid production, which is expected to create new growth opportunities for the company [3][16]. - The demand for D-isoascorbic acid has expanded significantly, with domestic demand increasing 60 times since 1996, indicating a robust market potential [3][16].

[Table_Title] 研究报告 Research Report 28 Nov 2024 中国电子半导体 China (A-share) Technology Semiconductor 莱宝高科 MED 电子纸及面板级玻璃封装载板样品发布，新业务蓄势待发 Laibao Hi-Tech MED E-Paper and Glass PLP Samples Released, Awaiting Ramp up 赵方舟 Eugene Zhao 蒲得宇 Jeff Pu, CFA 荆子淇 Michelle Jing Evan Lee eugene.fz.zhao@htisec.com jeff.dy.pu@htisec.com michelle.zq.jing@htisec.com evan.ny.lee@htisec.com [Table_yemei1] 热点速评 Flash Analysis [Table_summary] (Please see APPENDIX 1 for English summary) 事件 我们与其他投资者于 11 月 18 日一同调研了位于深圳的莱宝高科 (002106 CH)，参观 ...

Industry Overview - Embodied AI (EAI) is a key technology driving the development of General Artificial Intelligence (AGI) and the robotics industry, combining multimodal large models (MLMs) and world models (WMs) to enable perception, interaction, and planning in both virtual and physical environments [2] - The global embodied AI market is expected to grow significantly, particularly in industrial automation and service robotics, with China's humanoid robot market projected to exceed 20 billion yuan by 2026 [5] - Policies in Shanghai and Beijing are accelerating the development of intelligent robotics and high-quality manufacturing, with Shanghai aiming to establish industry-leading enterprises by 2025 [2][18] Technology Background - Simulators play a crucial role in training embodied AI by providing realistic virtual environments for algorithm development and model training, reducing costs, improving safety, and accelerating iteration [3][28] - Embodied perception involves technologies like visual SLAM (vSLAM) and 3D visual positioning, enabling AI to understand and navigate dynamic environments [3][55] - Embodied interaction focuses on AI's ability to interact with humans and environments in physical or simulated spaces, exemplified by tasks like Embodied Question Answering (EQA) [3][73] Application Scenarios - Fixed-base robots are widely used in laboratory automation, education, and industrial manufacturing due to their high precision and stability [4][85] - Wheeled and tracked robots excel in logistics, warehousing, and complex terrains like agriculture and military applications [4][94] - Quadruped robots are utilized for exploration, rescue missions, and military operations due to their stability and adaptability [4][103] - Humanoid robots are increasingly popular in service, healthcare, and collaborative environments, with applications in smart interaction, precision manufacturing, and medical surgery [4][108] Key Companies - **Figure AI**: Focused on humanoid robots, Figure AI's Figure 02 features advanced hand design with 16 degrees of freedom and enhanced AI capabilities for industrial and potential household applications [118][119][121] - **Tesla Optimus**: Tesla's humanoid robot is being deployed in factories for tasks like battery sorting, with plans to scale up to over 1,000 units by 2025 [127][128] - **Unitree Robotics**: A leader in quadruped robots, Unitree's products like Go2 and B2 are used in consumer and industrial applications, with global market dominance in sales [132][136][140] - **Zhongke Chuangda**: Leveraging Arm technology, Zhongke Chuangda is advancing multimodal intelligent robots with a focus on edge computing and AI integration [142][144] - **Youlu Robotics**: Introduced the "Universal Intelligent Brain" concept, with its LPLM-10B model enabling cross-modal, cross-scene, and cross-industry applications for various robots [146][149][151] - **iFlytek**: Through its "Super Brain 2030" plan, iFlytek aims to develop AI robots with advanced learning and evolution capabilities, targeting widespread household adoption [155][157][163] - **Hikvision**: A provider of machine vision and mobile robotics solutions, Hikvision focuses on industrial IoT, smart logistics, and intelligent manufacturing [165][166] - **BYD Electronics**: Developed autonomous mobile robots (AMRs) using NVIDIA's Isaac platform, offering comprehensive logistics solutions for factories [168][172]

Investment Rating - The report provides an investment rating for Southeast Asia discretionary and staples, specifically highlighting Malaysia as a relatively developed economy with a strong retail market led by modern channels [1]. Core Insights - Malaysia is the fourth largest consumer market in ASEAN, with total consumer spending reaching approximately 239.2 billion USD in 2023, reflecting a compound annual growth rate (CAGR) of 4.4% from 2015 to 2023 [21][22]. - The retail market in Malaysia is dominated by modern channels, which account for about 73% of the market share, with e-commerce growing rapidly at a CAGR of approximately 16% from 2018 to 2023 [36][39]. Economic Overview - Malaysia's GDP in 2023 is approximately 399.5 billion USD, contributing 11% to the total ASEAN GDP, with a projected growth rate of 4.4% for 2024-2025 [5][6]. - The service sector is the largest contributor to GDP, accounting for about 57% in 2023, while the manufacturing sector contributes around 36% [7][16]. Consumer Behavior - The average disposable income in Malaysia is approximately 6,822 USD, with consumer spending exceeding disposable income by 105%, the highest among major ASEAN countries [29][30]. - The population is characterized by a high urbanization rate of 79% and a median age of 32.8 years, contributing to a favorable consumer demographic [31][34]. Retail Channels - The retail market size in Malaysia is estimated at 56.1 billion USD in 2023, with traditional, modern, e-commerce, and other channels comprising approximately 6%, 73%, 11%, and 10% respectively [36][38]. - Convenience stores and e-commerce are the fastest-growing retail channels, with convenience stores expected to grow at a CAGR of about 10% from 2023 to 2028 [39][54]. Import and Export Dynamics - Malaysia maintains a trade surplus, with exports totaling approximately 320.5 billion USD and imports at 272.5 billion USD in 2023, resulting in a trade surplus of 48 billion USD [5][6]. - The country is a significant exporter of palm oil and other agricultural products, while it imports grains and livestock products [5][6].

Group 1: Economic Impact of Fiscal Policy - The effect of Japan's fiscal expansion in the 1990s on corporate profits weakened over time due to a declining capacity cycle and limited inventory cycle elasticity, with a trend reversal after 2012[2] - In China, fiscal expansion from 2013 to 2014 saw weak recovery in corporate inventory and profits, while a capacity cycle upturn post-2016 improved both inventory and profit recovery elasticity[2] - Currently, the A-share market is at the bottom of the capacity and inventory cycles, with projected non-financial net profit growth of 20% and 10% for 2025 under strong and weak fiscal scenarios, respectively[2] Group 2: Historical Lessons from Japan - Japan's corporate inventory cycle weakened during the long capacity de-leveraging phase post-1990s, with limited amplitude and duration of inventory recovery[3] - After 2012, strong stimulus policies led to a sustained expansion phase for Japanese corporations, improving both inventory cycle amplitude and duration[3] - The relationship between capacity cycles and corporate profitability is significant; a downtrend in capacity correlates with declining revenue and profit growth, while an uptrend supports sustained improvements[4] Group 3: Predictions for A-Share Market - If fiscal policies are effectively strengthened, A-share profit growth could significantly improve, similar to the 2016 scenario where non-financial revenue growth increased by approximately 14 percentage points[5] - In a limited fiscal scenario, A-share profit recovery would be weak, with revenue growth only increasing by about 2 percentage points in 2013[5] - Based on historical models, projected revenue and net profit growth for A-shares in 2025 could range from 5% to 10% and 10% to 20%, respectively, compared to 2024[5]

Investment Rating - Maintains an "Outperform" rating with a target price of $7.20 per share [1] Core Views - The company's Q3 revenue and gross profit margin exceeded market expectations, with Q4 expected to achieve GAAP profitability [1] - The company aims to ship over 1 million LiDAR units in 2025, driven by strong demand in the ADAS market [1][9] - The company's ADAS LiDAR maintains a leading market share in the front-load passenger vehicle market, with the more cost-effective ATX series set for mass production next year [1] Financial Performance - Q3 revenue reached RMB 539 million, a 27% YoY and 32% QoQ increase, significantly exceeding management guidance [1] - Gross profit margin reached 47.7%, surpassing market expectations due to cost optimization, economies of scale, and additional NRE service contributions [1] - GAAP net loss narrowed to RMB 70 million in Q3, with Q4 expected to achieve a GAAP net profit of $20 million [1] - Q3 LiDAR shipments reached 134,000 units, a 183% YoY increase, with ADAS LiDAR accounting for 97% of total shipments [1] Market Expansion - The company has secured design cooperation agreements with 5 global leading OEMs, including 4 joint venture automakers [1] - A new development and verification project was signed with a top 3 Japanese automaker in Q3, further demonstrating the company's product competitiveness [1] Valuation and Forecast - The target price of $7.20 is based on a 2.0x PS multiple for 2025, considering the company's historical average PS of 2.3x [1] - Revenue forecasts for 2024-2026 are RMB 2.071 billion, RMB 3.267 billion, and RMB 4.257 billion, respectively, with growth rates of 10%, 58%, and 30% [1][6] - Net profit is expected to turn positive in 2025, reaching RMB 69 million, and further increasing to RMB 302 million in 2026 [6]

Investment Rating - The report indicates a positive outlook for the aviation sector, suggesting a focus on Spring Airlines, Hainan Airlines Holding, and Juneyao Airlines as key investment opportunities [5][6][61]. Core Insights - The transportation index decreased by 1.1% from November 18 to November 22, 2024, outperforming the Shanghai Composite Index, which fell by 1.9% during the same period [3][33]. - The aviation sector showed a significant increase of 3.9%, while express delivery faced a decline of 5.6% [3][33]. - The report highlights the recovery of international flight demand and the expected rise in airline profits in 2024, driven by strong travel demand during peak seasons [5][59]. Weekly Market Review - The transportation index experienced a decline of 1.1%, with various subsectors showing mixed performance: air transport (+3.9%), warehousing (+2.9%), public transport (+1.0%), while road freight and shipping saw declines of -2.5% and -2.7% respectively [3][33]. - The report emphasizes the importance of monitoring oil transport prices and national road freight traffic as key indicators for the sector [3][58]. Shipping Data Observation - As of November 22, 2024, the SCFI index was at 2160.08, down 4.1% from the previous week, while the BDI index fell by 13.9% to 1537 [4][40]. - The report notes a significant increase in the BCTI index by 31.4%, indicating a tightening supply-demand situation in oil shipping [4][41]. Recent Highlights - The Pudong Airport terminal is designed to accommodate 50 million passengers annually, marking a significant infrastructure development in the aviation sector [4][49]. - Liaoning Port's container sea-rail transport has seen a growth of over 17% in dispatch volume from January to October 2024, reflecting a positive trend in logistics [4][51]. - Jilin Province is developing a comprehensive cold chain logistics network, which is expected to enhance the efficiency of express delivery services [4][52]. Investment Strategy - The report suggests a focus on the aviation sector due to the expected recovery in international travel and stable growth in domestic demand, with specific recommendations for Spring Airlines, Hainan Airlines Holding, and Juneyao Airlines [5][59][61]. - In the express delivery sector, the report indicates a decline in average selling prices for major companies, suggesting a cautious approach [5][60].

Core Viewpoints - The establishment of the National Energy Council (NEC) aims to coordinate policies and increase U.S. energy production, with a focus on reducing bureaucratic hurdles and enhancing private sector investment [1][2][3] - The NEC will unify and coordinate energy strategies across federal departments, potentially diminishing the regulatory powers of the Federal Energy Regulatory Commission (FERC) [3][5] - The Trump administration plans to expand coal, oil, natural gas, and nuclear energy production while reducing support for wind and solar energy [2][3][5] Summary by Sections Event - Trump pledged to create the NEC to enhance energy policy coordination and increase U.S. energy output, led by Secretary of the Interior Doug Burgum [1][5] Commentary - The NEC will represent federal agencies involved in energy regulation, aiming to streamline processes and focus on innovation [2][5] - Doug Burgum's dual role may improve policy implementation efficiency, aligning with the administration's energy goals [2][3] - The NEC's formation reflects dissatisfaction with existing bureaucratic processes and aims to accelerate the development of nuclear and natural gas energy [3][5] Investment Advice - Recommended companies to focus on include Vistra, Talen Energy, GE Vernova, Mitsubishi Heavy Industry, Cummins, CAT, and Quanta, which are involved in AI industrial equipment, services, and energy consumption [4][5]

Investment Rating - The report assigns an "Outperform" rating to the company with a target price of RMB 63.54, based on a 2024 PE valuation of 20 times [5][20] Core Views - The company achieved revenue of RMB 1.85 billion in the first three quarters of 2024, a YoY increase of 27.13%, and net profit attributable to shareholders of RMB 431 million, a YoY increase of 33.56% [2][17] - Overseas business growth remains strong, with the top 10 customers being from the USA, and 70% being retailers. Except for one, all top 10 customers increased purchases by 4.33% to 316.62% [4][19] - The company plans to establish nearly or over 500 MOTO Gallery stores by Q1 2025 to enhance MotoMotion's brand influence and boost sales [4][19] Financial Performance - In 2024Q3, the company achieved revenue of RMB 642 million, up 26.12% YoY, and net profit attributable to shareholders of RMB 146 million, up 19.89% YoY [2][17] - The company's net profit margin and gross profit margin in the first three quarters of 2024 were 23.30% and 33.72%, up 1.13 and 1.68 percentage points YoY, respectively [3][18] - The company's sales, G&A, R&D, and finance expense ratios in the first three quarters of 2024 were 2.98%, 3.43%, 4.92%, and -2.63%, respectively [3][18] Business Segments - Smart electric sofas, as the core business, are expected to grow by 36.5%, 30.0%, and 23.6% YoY in 2024-2026, respectively [8] - Smart electric beds and accessories, as supplementary businesses, are expected to grow by 2.0%, 1.0%, and 0.0% YoY in 2024-2026, respectively [8] Industry Comparison - The company's 2024E PE ratio of 16.90 is lower than the average PE ratio of 17.0 for comparable companies in the industry [9] - Comparable companies include Qisheng Technology (603610.SH) with a 2024E PE of 18.8 and Henglin Co., Ltd. (603661.SH) with a 2024E PE of 9.4 [9]

Investment Rating - The report suggests focusing on Japanese consumer companies with significant overseas business exposure, such as ASICS, PPIH, Fast Retailing, and Asahi Group [2]. Core Insights - Retail growth in Japan has slowed, with September retail sales increasing by only 0.5%, the lowest since 2022, while food and beverage demand is gradually improving [2][12]. - The consumer confidence index fell to 36.2 in October, marking a five-month low, despite a 0.9% quarter-on-quarter increase in private consumption [4][9]. - The report highlights the impact of weather on winter clothing sales, leading to a negative growth in department store sales for the first time in 32 months [27]. Macroeconomic Summary - Q3 GDP grew by 0.3% year-on-year and 0.2% quarter-on-quarter, with private consumption up by 0.9% [9]. - The inflation rate dropped to 2.3% in October, the lowest level since January [6]. - Real wages decreased by 0.4% year-on-year in September, marking the second consecutive month of decline [4]. Industry Summary - Retail sales growth has slowed, with department store sales declining by 0.7% year-on-year in September, the first negative growth since February 2022 [12]. - Food and beverage retail sales in September were approximately 40.37 billion yen, with a year-on-year growth of 0.5% [13]. - The report notes that the demand for essential goods, particularly food and beverages, is improving, with PPIH and 711 Japan reporting year-on-year same-store sales growth of 3.9% and 0.4%, respectively [13]. Selected Company Performance - Asahi Group's domestic beer revenue increased by 6% year-on-year in October, while Kirin's beer sales rose by 36% [19]. - Fast Retailing's same-store sales for Uniqlo fell by 7.5% year-on-year in October, attributed to high temperatures affecting winter clothing sales [30]. - The report indicates that major dining companies like Salia and Toridoll saw same-store sales growth of 17.4% and 13.4%, respectively, in October [27].