Investment Rating - The report maintains a focus on Hangzhou Oxygen Plant Group as a top pick and suggests attention to other companies such as Suzhou Jinhong Gas, Guangdong Huate Gas, Xi'An Shaangu Power, Hunan Kaimeite Gases [12][13]. Core Insights - In August, the average prices for liquid oxygen and nitrogen increased, while liquid argon prices decreased. Specifically, liquid oxygen averaged RMB 437 per ton (up 2.1% MoM, down 18.56% YoY), and liquid nitrogen averaged RMB 485 per ton (up RMB 40.1 per ton MoM, down RMB 60.79 per ton YoY) [9][10]. - The weekly operating load rate for China's industrial gas sector was reported at 67.21%, reflecting a decrease of 0.28 percentage points MoM [11]. - Hangzhou Oxygen Plant Group achieved ExxonMobil's global supplier qualification certification and secured a gas operation contract with Fangda Special Steel Technology, which includes the acquisition of air separation assets and the construction of new air separation units [12][13]. Summary by Sections Price Trends - As of August 28, 2024, liquid oxygen prices were RMB 400.88 per ton (down 5.63% MoM, down 20.7% YoY), liquid nitrogen at RMB 454 per ton (down 4.7% MoM, down 17% YoY), and liquid argon at RMB 629 per ton (down 2.02% MoM, down 40.51% YoY) [10]. - Rare gases showed similar trends, with helium prices for bulk 40L bottles averaging RMB 691.07 (down RMB 2.57 MoM, down RMB 535.67 YoY) and xenon at RMB 32,714.29 per cubic meter (down RMB 1,700 MoM, down RMB 25,600 YoY) [10]. Operational Metrics - The industrial gas sector's weekly operating load rate was noted at 67.21%, indicating a slight decline from the previous period [11]. Company Developments - Hangzhou Oxygen Plant Group's recent achievements include passing ExxonMobil's supplier qualification and acquiring significant air separation assets from Fangda Special Steel Technology, which will enhance its operational capacity [12][13].

Investment Rating - The report maintains an "Outperform" rating for Innovent Biologics with a target price adjusted to HKD 67.8 per share [9][17]. Core Insights - Innovent Biologics reported strong revenue growth in H1 2024, with total revenue reaching RMB 39.5 billion, a 46.3% increase year-on-year, and product revenue of RMB 38.1 billion, up 55.1% [3][14]. - The company's gross margin improved to 82.9%, reflecting operational efficiency enhancements, while R&D expenses increased by 51.6% to RMB 14.0 billion, accounting for 35.4% of revenue [3][14]. - The report highlights the successful sales performance of key products, including Tyvyt (PD-1 inhibitor) and several biosimilars, contributing to the revenue growth [4][14]. Financial Performance - For H1 2024, the company reported a net loss of RMB 3.9 billion, compared to a loss of RMB 1.4 billion in the same period last year [3][14]. - Adjusted LBITDA for the period was RMB 1.6 billion, a decrease of 39.9% from RMB 2.7 billion in the previous year [3][14]. - As of June 30, 2024, the company had cash and short-term financial assets totaling RMB 101.1 billion [3][14]. Product Pipeline and Growth Potential - The oncology pipeline is rich with catalysts, including the recent NMPA approval of Fulzerasib (KRAS G12C) and expected approval of IBI344 (ROS1) in H2 2024 [5][15]. - Upcoming clinical data updates for several early-stage products are anticipated, including IBI363 (PD-1/IL-2 α-bias) and IBI343 (CLDN18.2 ADC) [5][15]. - The non-oncology field is also progressing, with NDA submissions for Mazdutide (GLP-1R/GCGR) and Teprotumumab (IGF-1R) expected to bolster future revenue [5][16]. Revenue Forecast - Revenue forecasts for 2024-2026 have been adjusted to RMB 78.6 billion, RMB 102.5 billion, and RMB 133.9 billion, respectively, reflecting year-on-year growth rates of 26.7%, 30.3%, and 30.7% [9][17]. - The company is projected to achieve profitability by 2026, with a net profit attributable to shareholders of RMB 760 million [9][17].

Market Observation - Japan's stock market showed resilience this week, with the Nikkei 225 closing at 38,647.75, up 0.7% week-over-week, and the TOPIX closing at 2,712.63, up 1.04% [1][14] - After a sharp sell-off at the beginning of the month due to rapid unwinding of carry trades, both major indices have recovered most of their losses by the end of August [1][14] - The Bank of Japan's Governor Ueda expressed confidence in achieving a sustainable 2% inflation rate, indicating that the central bank will continue its normalization of monetary policy as long as economic and inflation data meet expectations [1][2] Economic Indicators - Tokyo's core CPI for August was 2.4%, an increase of 0.2% from the previous month [2] - Nationwide retail sales in July rose by 2.6% year-on-year, marking the 29th consecutive month of positive growth [2] - The recent appreciation of the yen is expected to alleviate the burden on domestic consumers caused by previous currency depreciation, alongside rising overall household income, indicating a gradual recovery in domestic consumption [2] Company Updates - **Toyota** announced a plan to repurchase its own shares worth 806.8 billion yen, equivalent to 2% of its outstanding shares, as part of a broader trend among Japanese companies to reduce cross-shareholdings [8] - **Rakuten** reported significant improvements in its wireless operations, with a net addition of 300,000 users in the first half of the year, leading to a strong stock performance [10] - **Sony** will increase the price of its PS5 console in Japan by 19% due to rising component and manufacturing costs, which is expected to improve overseas revenue and reduce resale activities by tourists [11] - **Seven & i** is evaluating a takeover bid from Alimentation Couche-Tard, which could become one of the largest acquisitions of a Japanese company by a foreign entity, potentially boosting the yen's value [12] - **SBI Holdings** plans to invest 10 billion yen in AI startup Preferred, aiming to collaborate on the commercialization of next-generation AI semiconductors [13] Sector Performance - The overall TOPIX index returned 1.0% this week, with notable sector performances including Industrials at 2.2% and Consumer Discretionary also at 2.2% [7] - The Information Technology sector showed a modest return of 0.3%, while Financials experienced a decline of 0.4% [7]

Investment Rating - The report maintains an "OUTPERFORM" rating for MINISO Group (MNSO US) with a target price of USD 25.40, down from a previous target of USD 31.30 [2][6]. Core Insights - MINISO reported solid performance in Q2 2024, with revenue reaching RMB 4.04 billion, a year-on-year increase of 24%. The gross profit margin (GPM) hit a record high of 43.9%, up 4.1 percentage points year-on-year [10]. - The company plans to implement a share repurchase program with a maximum limit of HKD 2 billion over the next 12 months and declared an interim dividend of RMB 620 million, approximately 50% of the adjusted net profit for the first half of the year [4][10]. - Domestic revenue was RMB 2.53 billion, up 18% year-on-year, while overseas revenue reached RMB 1.51 billion, up 35% year-on-year [10]. Financial Performance Summary - Revenue projections for 2024-2026 are RMB 17.3 billion, RMB 21.2 billion, and RMB 25.4 billion, respectively, with adjusted net profits expected to be RMB 2.82 billion, RMB 3.47 billion, and RMB 4.14 billion [6][10]. - The adjusted net profit for Q2 2024 was RMB 625 million, a 9% increase year-on-year, with an adjusted net profit margin of 15.5% [10]. - The company’s operating expenses ratio increased to 20.5%, up 5.8 percentage points year-on-year, while the general and administrative expense ratio was 5.6%, up 0.5 percentage points year-on-year [10]. Store Expansion and Market Dynamics - As of June 30, 2024, MINISO had 4,115 domestic stores, with a net increase of 81 stores in the quarter. The overseas store count reached 2,753, with a net increase of 157 stores [4][10]. - The company’s O2O (Online to Offline) business grew nearly 80% year-on-year, supporting same-store sales recovery to 98.3% of the previous year's levels [4][10]. - The report highlights that the direct sales market remains a key growth driver, with a 79% year-on-year increase in gross merchandise value (GMV) for direct sales [10].

Investment Rating - The report maintains an "OUTPERFORM" rating for China Hongqiao Group [3][4][10] Core Views - Rising prices of aluminum products and decreasing costs of major raw materials have significantly improved the company's profitability [8][9] - The company has a fully integrated industrial chain, which provides substantial cost advantages [9] - The global economic outlook is positive, with expectations for continued growth in aluminum demand driven by industries such as photovoltaics and new energy vehicles [9][10] Financial Performance Summary - For the first half of 2024, the company achieved operating income of RMB 73.59 billion, a year-on-year increase of 12.0% [7] - Gross profit reached RMB 17.80 billion, up 202.1% year-on-year, with a gross profit margin of 24.2%, an increase of 15.2 percentage points [7] - Net profit attributable to the parent company was RMB 9.155 billion, a year-on-year increase of 272.7% [7] - The company plans to distribute an interim dividend of HK$0.59 per share, a 73.5% increase year-on-year [7] Revenue and Profit Forecast - The forecast for operating income from 2024 to 2026 is RMB 1497.7 billion, RMB 1569.9 billion, and RMB 165.24 billion respectively [10] - Expected EPS for the same period is RMB 1.99, RMB 2.03, and RMB 2.20 per share [10] - The target price is set at HK$15.12, based on a valuation of 8x PER for 2024 [10] Segment Performance - Electrolytic aluminum segment reported revenue of RMB 49.31 billion, a 7.2% increase year-on-year, with a gross profit margin of 24.6% [8] - Alumina segment achieved revenue of RMB 16.20 billion, a 19.7% increase year-on-year, with a gross profit margin of 25.4% [8] - Aluminum processing segment saw revenue of RMB 7.58 billion, a 34.3% increase year-on-year, with a gross profit margin of 21.0% [8]

Investment Rating - The investment rating for the industry is "Outperform" for most tracked companies, with a few rated as "Neutral" [2][3]. Core Insights - In August 2024, 5 out of 8 tracked industries maintained positive growth, while 3 experienced negative growth. The only industry achieving double-digit growth is high-end liquor, primarily driven by Kweichow Moutai. Industries with single-digit growth include food and beverage, frozen food, soft drinks, and condiments, while general liquor, dairy products, and beer saw negative growth. Compared to the previous month, 3 industries showed accelerated growth or narrowed declines, while 5 industries experienced a slowdown [3][23]. Summary by Category Liquor - **High-end and Above Liquor**: In August, revenue reached 22.9 billion yuan, a year-on-year increase of 10.1%. Cumulative revenue from January to August was 268.9 billion yuan, up 13.5% year-on-year. The industry is in a consumption off-season, focusing on maintaining channel relationships and product pricing [5][6]. - **General and Below Liquor**: Revenue in August was 17 billion yuan, down 9.1% year-on-year, with cumulative revenue from January to August at 151.2 billion yuan, a decrease of 2.8%. The market remains fragmented, with many small enterprises facing declines, while regional leaders gain market share [7]. Beer - The beer industry generated 17.5 billion yuan in August, a decline of 2.0% year-on-year, with cumulative revenue of 131.2 billion yuan, down 1.9%. The industry is expected to see a low single-digit decline in annual sales, with a shift towards premium products [8][9]. Condiments - Revenue for the condiment industry in August was 36.8 billion yuan, an increase of 3.1% year-on-year, with cumulative revenue of 294.2 billion yuan, up 4.1%. Demand remains limited post-summer peak, with increased competition in the market [10][11]. Dairy Products - The dairy industry reported revenue of 42.5 billion yuan in August, down 4.3% year-on-year, with cumulative revenue of 311.3 billion yuan, a decline of 7.6%. There are signs of improvement in channel stocking ahead of the Mid-Autumn Festival and National Day [12]. Frozen Food - August revenue for the frozen food industry was 8.4 billion yuan, up 5.0% year-on-year, with cumulative revenue of 74.2 billion yuan, an increase of 7.6%. The market is stable, with promotional activities boosting sales [15]. Soft Drinks - The soft drink industry generated 70.1 billion yuan in August, a year-on-year increase of 3.7%, with cumulative revenue of 484.6 billion yuan, up 4.6%. Demand is expected to decline as the summer season ends [17]. Dining - The dining sector's revenue totaled 17 billion yuan in August, a 7.0% year-on-year increase, with cumulative revenue of 120.5 billion yuan, up 5.4%. Increased promotional activities have led to a decrease in average spending per customer [19][20].

Investment Rating - The report maintains an "Outperform" rating for ANE (Cayman) (9956 HK) with a target price of HKD 11.55, up from the previous target of HKD 8.95 [4][7] Core Views - ANE Logistics demonstrated strong growth in 24Q2, with revenue increasing by 16.2% YoY to RMB 5.289 billion and adjusted net profit surging by 82.4% YoY to RMB 430 million [3][7] - The company's profitability improved significantly, with gross margin reaching 16.6% in 24Q2, a 4.5 percentage point increase from 12.1% in 23Q2 [3][7] - ANE Logistics is expected to achieve total revenue of RMB 12.35 billion in 2024, representing a 24.6% YoY growth, with an adjusted net profit margin of 6.8% and net profit of RMB 840 million [4][7] Financial Performance - In 24H1, ANE Logistics' total freight volume reached 6.42 million tons, up 20.5% YoY, with 24Q2 volume at 3.55 million tons, a 19.7% YoY increase [3] - The company optimized its freight structure, increasing the proportion of high-margin goods and reducing the average weight per ticket by 5.3% [3] - Unit operating costs decreased by 8.4% YoY in 24Q2, with trunk line transportation costs down 6.4% and sorting center costs down 23.4% [3] Network and Infrastructure - As of 24H1, ANE Logistics operated 83 self-owned sorting centers, optimizing its network by focusing on main hubs and eliminating inefficient small sorting centers [3] - The company's increased network density improved coverage and service quality [3] Valuation and Forecast - The report values ANE Logistics at 10X based on current market value, but suggests a fair valuation of 15X, corresponding to the target price of HKD 11.55 [4][7] - Gross margin is expected to improve further, reaching 14.0% in 2024E, 15.3% in 2025E, and 16.2% in 2026E [6] - Adjusted EBIT margin is projected to grow from 7.3% in 2023 to 11.5% in 2026E, while net margin (non-HKFRS) is expected to increase from 5.1% in 2023 to 8.6% in 2026E [6]

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 15.16, reflecting a significant adjustment from the previous target of RMB 97.07 after a stock split [5]. Core Insights - The company reported a revenue of RMB 2.96 billion for H1 2024, a decrease of 3.61% year-on-year, while the net profit attributable to shareholders was RMB 192 million, down 22.70% year-on-year. However, Q2 showed a recovery with a net profit of RMB 186 million, up 44.66% year-on-year, driven by effective cost control measures [2][12]. - The digital cost business demonstrated resilience with a revenue of RMB 2.46 billion, an increase of 4.23% year-on-year, attributed to enhanced product value and increased renewal rates. Conversely, the digital construction business faced a decline of 37.46% year-on-year, prompting a strategic shift towards quality over scale [3][12]. - The company launched an AI platform, AecGPT, aimed at transforming the construction industry through automation and decision-making capabilities across various sectors [3][12]. Summary by Sections Financial Performance - H1 2024 revenue was RMB 2.96 billion, down 3.61% YoY; net profit was RMB 192 million, down 22.70% YoY; Q2 revenue was RMB 1.66 billion, down 5.61% YoY, but net profit increased to RMB 186 million, up 44.66% YoY [2][12]. - The company expects revenue growth for 2024-2026 to be RMB 6.81 billion, RMB 7.25 billion, and RMB 7.79 billion, respectively, with net profits projected at RMB 614 million, RMB 860 million, and RMB 1.09 billion [5][12]. Business Segments - Digital cost business revenue was RMB 2.46 billion, up 4.23% YoY, while digital construction revenue was RMB 288 million, down 37.46% YoY. The digital design segment saw a revenue of RMB 35 million, down 22.03% YoY, and overseas business revenue was RMB 106 million, up 11.29% YoY [3][12]. - The company is focusing on enhancing its product structure and increasing the share of self-developed software and hardware in its construction business [3][12]. Future Outlook - The report anticipates a significant recovery in net profit for 2024, projecting a growth of 429.6% year-on-year, followed by 40.2% and 26.7% in the subsequent years [5][12]. - The introduction of AI-driven solutions is expected to enhance operational efficiency and market competitiveness, positioning the company favorably for future growth [3][12].

Investment Rating - The report maintains an "Outperform" rating for Yongan Futures, indicating expected growth above the market benchmark over the next 12-18 months [18]. Core Insights - Yongan Futures reported a significant improvement in Q2 net profit, with a revenue of RMB 12.11 billion for H1 2024, a year-on-year increase of 1.2%, and a net profit attributable to shareholders of RMB 0.31 billion, down 25.4% year-on-year [15][18]. - The company experienced a notable recovery in Q2, with revenue reaching RMB 7.77 billion, up 17.7% year-on-year, and net profit of RMB 0.23 billion, up 12.7% compared to a drastic decline of 62.6% in Q1 [15][18]. - Investment income showed a significant increase, with total investment profit and fair value changes amounting to RMB 0.43 billion, a 70% increase year-on-year [15][18]. Financial Performance Summary - For H1 2024, the company's revenue from futures brokerage was RMB 0.49 billion, down 21% year-on-year, while net transaction fee income was RMB 0.20 billion, down 36% [16]. - The risk management business saw a revenue of RMB 11.3 billion, reflecting a 1.5% year-on-year increase, with significant growth in OTC derivatives and market-making activities [16][17]. - The overseas business reported a revenue of RMB 0.3 billion, a substantial increase of 68% year-on-year, driven by a 75% rise in overseas futures brokerage trading volume [17]. Business Segment Analysis - The asset management segment rebounded with revenue of RMB 0.11 billion, up 74% year-on-year, while fund sales revenue decreased by 24% to RMB 0.24 billion [17]. - The futures brokerage segment faced challenges with a trading volume decline of 13.5% year-on-year, leading to a decrease in client equity by 24.7% from the beginning of the year [16][18]. - The report highlights the company's strong position in the domestic futures industry, projecting EPS for 2024 and 2025 at RMB 0.46 and RMB 0.49 respectively, with a target price of RMB 13.42 based on a 29x PE ratio for 2024 [18].

研究报告 Research Report 29 Aug 2024 川恒股份 Guizhou Chanhen Chemical (002895 CH) 2024H1 扣非后净利润同比增长 28%，公司拟收购黔进矿业 58.5%股权 Recurring Net Profit up 28% in 2024H1, the Company Intends to Acquire 58.5% Stake in Qianjin Mining Industry | --- | --- | --- | --- | --- | |-------------------------------------------------------------|---------------------|---------------|--------------------------------|-----------------------| | [Table_Info] 维持优于大市 \n评级 | | | Maintain OUTPERFORM \n优于大市 | OUTPERFORM | | 现价 | | | | Rmb16.83 ...