Investment Rating - The report assigns a target price of RMB 55.93, indicating a potential upside of 52% from the current valuation [11]. Core Insights - The company has seen significant revenue growth, with 2024H1 revenue reaching RMB 12.53 billion, a year-on-year increase of 45.98%. However, net profit attributable to shareholders was negative at RMB -154 million, down 176.17% year-on-year [2][14]. - The company is actively pursuing international expansion and has established new subsidiaries in Southeast Asia and the Middle East, enhancing its global service delivery capabilities [3][5]. - The company has successfully completed the acquisition of Tongfang Computer and Tongfang International, which are expected to enhance its product offerings and market position [5][14]. - The report highlights the company's advancements in AI capabilities and its commitment to developing AIPC products, showcasing new AI products at the 2024 World AI Conference [6][14]. - The company has achieved full-stack coverage of the HarmonyOS ecosystem, with significant investments in software development and successful commercial applications across various industries [7][14]. Financial Summary - For 2024E, the company is projected to achieve a revenue of RMB 31.07 billion, a significant increase of 76.7% compared to 2023. The net profit is expected to be RMB 655 million, with an EPS of RMB 0.69 [4][13]. - The report provides a detailed breakdown of revenue by business segments, indicating that digital technology services and computing products are key contributors to overall revenue [12][13]. - The company's gross profit margin is projected to decline to 13.8% in 2024E, down from 19.3% in 2023, reflecting increased competition and rising costs [4][13].

Investment Rating - The report indicates a positive investment outlook for premium consumer names in China, with UK long-term funds showing more aggressive allocation than market expectations [3][6]. Core Insights - The European tour involved visits to 22 companies across various sectors, including consumer, automotive, industrial, and healthcare, yielding valuable insights [1][5]. - L'Oréal is highlighted as a solid investment target due to its strong fundamentals and market position in the beauty sector, with a focus on product innovation and pricing strategies [2]. - AccorHotels and InterContinental Hotels maintain growth targets for revenue per available room (RevPAR) of 4-5% and 7-9% respectively, indicating resilience in the hospitality sector [2]. - Diageo's revenue distribution shows 50% from the US and 25-30% from Europe, with a new normal growth rate of around 3% expected [2]. - SAP is recognized for its robust growth driven by cloud services, contributing approximately 50% to its revenue with a growth rate of about 25% [2]. - UK long-term investors are increasingly optimistic about the A/H stock market, driven by low valuations and improving dividend yields [3][6]. Summary by Sections European Tour Insights - The tour covered Germany, France, and the UK, visiting cities like Munich, Paris, and London, and included meetings with major companies across multiple sectors [1][5]. - The focus was on identifying undervalued consumer investment opportunities in the A/H market [3][6]. Consumer Sector Highlights - L'Oréal, AccorHotels, and InterContinental Hotels are identified as high-quality assets with strong growth potential [2]. - The report ranks investor interest in consumer sub-sectors, with beer, sports, and wine being the most favored [3][6]. Investor Sentiment - UK long-term funds are showing a more positive stance towards Chinese consumer stocks compared to Asian investors, with a preference for H-shares over A-shares [3][6].

Investment Rating - The report assigns an "Outperform" rating to the company with a target price of RMB 118.38 for the next six months, based on a price-to-sales (PS) ratio of 2.5 times for 2024 [4][10]. Core Insights - The company has achieved steady revenue growth, with a reported revenue of RMB 2.03 billion in H1 2024, representing a 19% year-over-year increase. However, it recorded a net loss of RMB 333 million, compared to a loss of RMB 89 million in the same period last year [10]. - Significant investments in research and development (R&D) have been made, with R&D expenses amounting to RMB 656 million, RMB 968 million, and RMB 537 million in 2022, 2023, and H1 2024 respectively, reflecting growth rates of 44%, 48%, and 26% [10]. - The revenue growth is primarily driven by advancements in intelligent driving, new energy, chassis control, and self-developed software, with a focus on meeting the customized needs of various automakers [10]. - The company has developed a comprehensive product ecosystem for intelligent connected vehicles, including V2X vehicle-road collaboration products and a full-stack self-developed strategy [10]. Financial Summary - The company’s projected revenues for 2024, 2025, and 2026 are RMB 5.68 billion, RMB 6.87 billion, and RMB 8.25 billion respectively, with expected net profits of RMB -183 million, RMB 63 million, and RMB 189 million [4][10]. - The earnings per share (EPS) are forecasted to be RMB -1.52, RMB 0.53, and RMB 1.58 for the years 2024, 2025, and 2026 respectively [4][10]. - The company’s revenue growth rates for electronic products, R&D services, and high-level intelligent driving solutions are expected to be 18%/17%/16%, 30%/29%/28%, and 100%/90%/80% respectively from 2024 to 2026 [4][10]. Business Segmentation - The company’s revenue from electronic products is projected to grow from RMB 3.42 billion in 2023 to RMB 4.03 billion in 2024, with a gross margin of 20% [5]. - Revenue from R&D services and solutions is expected to increase from RMB 1.23 billion in 2023 to RMB 1.60 billion in 2024, maintaining a gross margin of 42% [5]. - The high-level intelligent driving solutions segment is anticipated to see substantial growth, with revenue expected to rise from RMB 12.15 million in 2023 to RMB 24.29 million in 2024, achieving a gross margin of 10% [5].

Investment Rating - The report initiates coverage with an OUTPERFORM rating for CLP Holdings [3][31]. Core Views - CLP Holdings is a century-old energy operator rooted in Hong Kong, with diversified operations across the Asia Pacific region [5]. - The company has shown significant profit recovery in 2023, with a net profit of HK$6.655 billion, reflecting a 620.2% year-on-year increase [7][10]. - The company aims to achieve a net-zero power generation target by 2050, aligning with Hong Kong's climate action goals [18]. Summary by Sections 1. Company Overview - CLP Holdings is one of the largest private power companies in the Asia Pacific, with operations in Hong Kong, mainland China, Australia, India, Taiwan, and Thailand [5]. - The company operates a diverse generation portfolio, including coal, gas, nuclear, wind, hydro, and solar power [5]. 2. Financial Performance - Revenue has fluctuated from HK$85.689 billion in 2019 to HK$97.169 billion in 2023, with a CAGR of approximately 0.4% [7]. - The company’s operating profit before fair value changes was HK$101.27 billion in 2023, with Hong Kong contributing 76% [10]. - The company maintained a stable dividend policy, with a dividend yield of 4.81% in 2023 [14]. 3. Market Position - CLP Holdings is one of the two major electricity suppliers in Hong Kong, providing power to over 2.79 million customers [5]. - The company’s operations are regulated under a scheme that guarantees a return on investment, ensuring stable revenue streams [20]. 4. Renewable Energy Transition - The company is committed to expanding its renewable energy portfolio, with significant growth potential in mainland China, Australia, and India [26]. - CLP Holdings plans to phase out fossil fuel assets and increase renewable energy capacity, aiming for a reduction in greenhouse gas emissions intensity by 2030 [29]. 5. Future Outlook - The report forecasts revenues of HK$902.66 billion, HK$938.67 billion, and HK$985.31 billion for 2024-2026, with net profits projected at HK$69.41 billion, HK$73.38 billion, and HK$75.63 billion respectively [31].

研究报告 Research Report 7 Oct 2024 中国 & 中国食品饮料 China (A-share) & China (Overseas) Food & Beverage 政策红利提前兑现，消费值得长期持有 Policy Dividends are Realized in Advance, and Consumption is Worth Holding for the Long Term [Table_yemei1] 观点聚焦 Investment Focus | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|------ ...

Investment Rating - The report assigns an **OUTPERFORM** rating to Shanghai Hajime Advanced Material Technology with a target price of **RMB 18.48** [1] Core Views - The company achieved strong growth in the first half of 2024, with revenue reaching **RMB 340 million**, up **18.32% YoY**, and net profit attributable to shareholders at **RMB 78 million**, up **55.20% YoY** [1] - Gross profit margin improved to **35.38%**, up **4.08 percentage points**, and net profit margin reached **22.77%**, up **5.41 percentage points**, driven by efficient project management and cost control [1] - In Q2 2024, revenue was **RMB 182 million**, up **16.73% YoY** and **15.35% QoQ**, with net profit at **RMB 42 million**, up **41.72% YoY** and **18.49% QoQ** [1] - The company announced an equity incentive plan, granting **1.496 million restricted shares**, representing **0.62%** of total share capital, to **57 employees** at a grant price of **RMB 6.88 per share** [2] - Profit forecasts for 2024-2026 are **RMB 161 million**, **RMB 203 million**, and **RMB 250 million**, with EPS of **RMB 0.66**, **RMB 0.84**, and **RMB 1.03**, respectively [2] Financial Performance and Forecasts - Revenue for 2024E is projected at **RMB 804 million**, up **35.9% YoY**, with net profit at **RMB 161 million**, up **55.4% YoY** [3] - Gross margin is expected to remain stable at **34.1%** from 2024E to 2026E [3] - ROE is forecasted to increase from **9.0%** in 2023 to **15.3%** in 2026E [3] - Revenue from automotive parts is expected to grow **45.0% YoY** in 2024E, reaching **RMB 604 million**, with a gross margin of **34.99%** [4] - Revenue from precision molds is projected to grow **40.0% YoY** in 2024E, reaching **RMB 68 million**, with a gross margin of **41.27%** [4] Business Overview - The company specializes in the development and application of special engineering plastics, focusing on high-precision plastic parts and molds for industries such as automotive, home appliances, and medical devices [6] - It has obtained **78 patents**, including **4 invention patents**, **72 utility model patents**, and **2 design patents** [6] - The company has passed certifications such as **IATF16949:2016**, **ISO14001:2015**, and **OHSAS18001:2007** [6] Valuation and Peer Comparison - The company is valued at **28x PE** for 2024E, with a target price of **RMB 18.48** [2] - Comparable companies in the industry have an average PE of **27x** for 2024E, with an average EPS of **RMB 1.09** [5]

Investment Rating - Investment advice indicates that over the past decade, the current rise in H-share banks is supported by lower trading volumes for China Merchants Bank compared to the period from October 2020 to January 2021, but stronger than in May and August 2017 [9]. Core Insights - The performance of state-owned banks is relatively weaker compared to both 2020 and 2017, with China Merchants Bank's price increase significantly outpacing that of state-owned banks over the past two weeks [9]. - China Merchants Bank's 2024E price-to-book (PB) ratio exceeds 1.0x, while state-owned banks' PB is currently below 0.5x [9]. - Despite China Merchants Bank having a higher return on equity (ROE) compared to state-owned banks, there is no clear outperformance in profit expectations, particularly regarding year-on-year growth in pre-provision operating profit and net profit attributable to shareholders [9]. - If the Hong Kong stock market undergoes a correction in the short term, the extent of China Merchants Bank's pullback may be greater [9]. Summary of Related News - As of now, there is no official progress on the creation of special loans for stock repurchases and share increases [10]. - Pictet Asset Management has stated that it does not hold the 8.32% subscription rights for China Construction Bank H-shares as disclosed by Hong Kong Exchange filings [10].

Industry Investment Rating - The report highlights a positive outlook for the real estate-linked appliance sector, with low valuations providing a strong safety margin and potential for valuation and performance recovery [1][3] Core Views - Central policies, including interest rate cuts and demand stimulation, are expected to benefit leading real estate-linked appliance companies [1][3] - The kitchen appliance sector's valuation is low, with strong safety margins, and long-term growth is anticipated as real estate recovers [1][3] - Leading companies in the household appliance sector maintain high dividend yields, with average dividend yields at the 80% quantile [2][3] Company Analysis Traditional Kitchen Appliances - Hangzhou Robam Appliances, Opple Lighting, Vatti, and Vanward Electric have market capitalization rankings of 15%/17%/43%/58% and PE-TTM valuations of 12.18x/14.36x/12.86x/14.28x [1][3] Integrated Stoves - Marssenger, Zhejiang Meida Industrial, Zhejiang Entive Smart Kitchen Appliance Co Ltd, and SANFER have market capitalization rankings of 11%/5%/6%/11% and PE valuations of 18.09x/9.03x/15.12x/9.18x [1][3] High Dividend Yield Companies - Midea Group, Gree Electric Appliances Inc of Zhuhai, Haier Smart Home, Hisense Home Appliances Group, and Zhejiang Supor have dividend yields of 4.7%/6.1%/3.4%/3.7%/4.2%, at 82%/37%/92%/74%/85% quantiles [2][3] - Minimum dividend yields for these companies were 1.6%/4.5%/1.2%/1.2%/1.6%, with potential increases of 191%/36%/186%/199%/157% [2][3] - Median dividend yields were 3.2%/6.4%/2.3%/2.9%/2.2%, with potential increases of 45%/-5%/48%/25%/88% [2][3] Investment Recommendations - Focus on high dividend, stable growth, low valuation appliance leaders like Midea Group, Gree Electric Appliances Inc of Zhuhai, Haier Smart Home, and Hisense Home Appliances Group [2][3] - Consider growth companies expanding globally, such as Beijing Roborock Tech and TCL Electronics Holdings [2][3] - Real estate-linked leaders like Hangzhou Robam Appliances, Vatti, Opple Lighting, and flexible integrated stove leaders like Marssenger, Zhejiang Meida Industrial, and Zhejiang Entive Smart Kitchen Appliance Co Ltd are also recommended [2][3]

Macroeconomic Overview - Real wages in Japan continued to grow for the second consecutive month, with a 0.4% year-on-year increase in July, driven by spring wage negotiations and summer bonuses [2][4] - The consumer confidence index slightly decreased to 36.7 in August, with improvements in the willingness to purchase durable goods, while overall living conditions remained stable [2][4] - The Consumer Price Index (CPI) rose by 3.0% year-on-year in August, with core CPI increasing by 2.8% and the Core Consumer Price Index (CCPI) up by 2.0% [4][6] Industry Performance - Despite high base effects, consumer discretionary spending showed strong growth, with retail and dining benefiting from an additional holiday in August [6][16] - The demand for emergency food surged due to recent earthquakes and typhoons, impacting store operating days but still resulting in strong same-store sales growth for listed companies [6][7] - The retail sales of food and beverages in July were approximately 4,167 billion yen, showing a slight decline of 0.1% year-on-year, while convenience store sales showed mixed results [7][10] Consumer Discretionary Sector - Major restaurant chains reported significant same-store sales growth in August, with companies like Sally's and Skylark achieving year-on-year increases of 22.3% and 13.4% respectively [16][18] - The average spending on dining out for households increased by 7.3% year-on-year in July, indicating a recovery in consumer spending on dining experiences [16][18] - The duty-free sales from January to July exceeded the total for the entire year of 2013, highlighting a strong rebound in tourism-related spending [6][16] Consumer Staples Sector - The retail sales of essential goods, particularly emergency food items, saw a notable increase due to heightened demand from natural disasters [7][10] - The same-store sales for major retailers like Aeon and PPIH showed positive growth, with Aeon reporting a 5.8% increase in August [7][10] - The average spending on essential food items remained stable, with slight year-on-year increases in categories such as rice and beverages [10][12] Clothing and Apparel - The average spending on clothing for households decreased by 3.6% year-on-year in July, while same-store sales for major apparel brands like Uniqlo and ABC-MART showed strong growth [16][20] - Department stores reported a 5.5% increase in sales year-on-year in July, with luxury goods driving significant sales growth [20][21] - The performance of specialty stores like Muji and Nitori also improved, with same-store sales increasing by 12.8% and 7.8% respectively [20][21]

Investment Rating - The report does not explicitly state an investment rating for Tesla, but it discusses the potential for significant advancements and market impact from the upcoming Robotaxi launch, indicating a positive outlook for the company's future performance [2][3]. Core Insights - Tesla is set to unveil its new autonomous taxi, Robotaxi, on October 10, 2024, which is expected to showcase advancements in autonomous driving and robotics technology [2][3]. - The Robotaxi, tentatively named "Cybercab," is anticipated to rely entirely on Tesla's Full Self-Driving (FSD) technology, potentially eliminating traditional driving controls and enhancing interior space efficiency [3][5]. - The Cybercab is projected to feature a next-generation AI5 platform with computing power of 3000-5000 TOPS, significantly surpassing the current HW4 platform [3][5]. - The operating cost of the Cybercab is estimated at $0.18 per mile, which is substantially lower than traditional taxi services, positioning Tesla to challenge the dominance of Uber and Lyft in the ride-sharing market [3][5]. - The report highlights the potential for Tesla's business model to shift from hardware sales to software services, which could lead to higher profit margins [3][5]. - The launch of the Cybercab is seen as a pivotal moment for the commercialization of autonomous driving technology, with 2025 expected to be a key year for global Robotaxi commercialization [3][5]. Summary by Sections Event Overview - Tesla will host the "We, Robot" event to unveil the Robotaxi, marking a significant moment in the company's history since the Model 3 launch [2][4]. Technological Advancements - The Cybercab is expected to introduce revolutionary design changes and a new profit model focused on software services, with mass production anticipated in the first half of 2025 [3][5]. Market Impact - The introduction of the Cybercab is likely to disrupt the ride-sharing industry, allowing Tesla to expand its market reach through a platform that enables vehicle owners to share their idle Tesla cars [3][5]. - The report suggests that Tesla's entry into the ride-sharing market could lead to significant transformations, whether through competition or collaboration with existing players like Uber [3][5]. Competitive Landscape - Tesla faces challenges from competitors such as Waymo and Cruise, which are also advancing in the autonomous vehicle space [3][5]. - The report notes that 2025 may become a landmark year for Robotaxi commercialization, with various domestic players also vying for market share [3][5]. Broader Technological Vision - The "We, Robot" event may also reveal updates on other key product lines, such as the Optimus humanoid robot, emphasizing Tesla's commitment to AI and robotics innovation [3][5].