Investment Rating - The report maintains an "Outperform" rating for Sino Biopharmaceutical [6][11][14]. Core Views - The innovative product portfolio is expected to drive double-digit revenue growth, with innovative product revenue reaching 6.13 billion RMB in 2024H1, a year-on-year increase of 14.8% [2][3][12]. - The company has launched six innovative products in 2023 and expects to maintain a launch rate of 3-5 new products annually in 2025-26, indicating a new life cycle for its product portfolio [3][13]. - The company’s revenue for 2024H1 was 15.87 billion RMB, reflecting an 11.1% increase, with a gross margin of 82.1% [2][12]. Summary by Sections Financial Performance - In 2024H1, the company reported revenue of 15.87 billion RMB (+11.1%), with innovative product revenue of 6.13 billion RMB (+14.8%), accounting for 38.6% of total revenue [2][12]. - The net profit attributable to the parent company was 3.02 billion RMB (+139.7%), while the adjusted net profit was 1.54 billion RMB (+14.1%) [2][12]. - As of June 30, 2024, the company had cash reserves exceeding 20 billion RMB [2][12]. Product and Pipeline Development - The company’s product portfolio is focused on four major areas, with significant growth in the anti-tumor and surgical/analgesic segments, while the liver disease segment saw a decline [4][13]. - The anti-tumor segment generated revenue of 5.36 billion RMB (+19.5%), representing 33.8% of total revenue, while the surgical/analgesic segment grew by 29.9% to 2.58 billion RMB [4][13]. Operational Efficiency - The company has improved operational efficiency through centralized procurement and optimized capacity utilization, resulting in a gross margin increase of 0.3 percentage points to 82.1% in 2024H1 [6][13]. - The sales expense ratio has decreased to 43.1% in 2024H1, reflecting improved productivity through digitalization and compliance management [6][13]. Earnings Forecast and Valuation - Revenue forecasts for 2024-25 have been adjusted to 29.5 billion RMB and 33.9 billion RMB, representing year-on-year growth of 13% and 15% respectively [7][14]. - The net profit attributable to the parent company is projected to be 2.9 billion RMB and 3.5 billion RMB for 2024-25, indicating growth of 26% and 16% respectively [7][14]. - The target price is set at 5.65 HKD per share, based on a PE ratio of 32x for 2024 [7][14].

[Table_Title] 研究报告 Research Report 14 Aug 2024 维斯塔斯风力 (VWS DC) 错过一次性调整；打造强劲的 2024 下半年 Scott Darling Axel Leven scott.darling@htisec.com axel.leven@htisec.com [Table_yemei1] 热点速评 Flash Analysis [（本报告为 Table_summary] 2024 年 8 月 14 日发布的英文报告的翻译版。） 事件 | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------| | | | | 我们 ...

研究报告 Research Report 14 Aug 2024 中国电子 China (A-share) Electronics 端侧芯片在 AIoT 硬件的应用，看好成为 AI to C 落地最佳场景 The Application of Edge-side Chips in AIoT Hardware, and Expected to Become the Best Scenario for AI to C Implementation [Table_yemei1] 观点聚焦 Investment Focus [Table_Info] HAI China (A-share) Electronics MSCI China 70 80 90 100 110 Aug-23 Nov-23 Feb-24 May-24 Aug-24 资料来源： Factset, HTI (Please see APPENDIX 1 for English summary) 全球&中国 AIoT 市场蓬勃发展，新硬件推动市场再进一步。目前， AIoT 市场正处于高速增长的阶段，未来数百亿的设备并发联网产生 的交互需求、数据处理需求将 ...

Investment Rating - The report does not explicitly state the investment rating for Qifu Technology Inc (3660 HK) Core Insights - Qifu Technology reported a 6.3% year-on-year increase in revenue to RMB 4.16 billion and a 23.3% year-on-year increase in net profit to RMB 1.413 billion for Q2 2024 [2][6] - The return on equity (ROE) for Q2 2024 was 25.4%, up approximately 3 percentage points year-on-year [2][6] - The company has repurchased 10.7 million ADSs, achieving over 60% of its target repurchase amount of up to $350 million within 12 months, with an average repurchase price of $19.7 per ADS [2][6] Summary by Sections Financial Performance - Revenue for Q2 2024 was RMB 4.16 billion, a 6.3% increase year-on-year, while net profit reached RMB 1.413 billion, reflecting a 23.3% increase year-on-year [2][6] - The net take rate improved to 4.4%, up 0.9 percentage points quarter-on-quarter and 1.1 percentage points year-on-year [2][6] - The average internal rate of return (IRR) for Q2 2024 was 21.6%, a slight increase of 0.1 percentage points quarter-on-quarter [2][6] User and Loan Metrics - The cumulative number of users approved for credit lines increased by 1.3 million quarter-on-quarter to 53.6 million, marking a 13.1% year-on-year growth [3][6] - New loan originations in Q2 2024 totaled RMB 95.4 billion, down 23.2% year-on-year and 3.8% quarter-on-quarter, with platform services contributing 64.9% of the total [3][6] - The 90-day delinquency rate was 3.4%, while the 30-day recovery rate improved by 1.2 percentage points quarter-on-quarter to 86.3% [3][6] Outlook - The company expects net profit for Q3 2024 to be between RMB 15.5 billion and RMB 16.5 billion, representing a year-on-year increase of 31% to 40% [4][6] - Loan IRR is anticipated to fluctuate around 21.6% [4][6] - Asset quality indicators are expected to continue improving in Q3 2024, with potential for additional loan loss provisions [4][6]

研究报告 Research Report 14 Aug 2024 中国电子 China (A-share) Electronics 端侧芯片在 AIoT 硬件的应用，看好成为 AI to C 落地最佳场景 The Application of Edge-side Chips in AIoT Hardware, and Expected to Become the Best Scenario for AI to C Implementation [Table_yemei1] 观点聚焦 Investment Focus [Table_Info] HAI China (A-share) Electronics MSCI China 70 80 90 100 110 Aug-23 Nov-23 Feb-24 May-24 Aug-24 资料来源： Factset, HTI (Please see APPENDIX 1 for English summary) 全球&中国 AIoT 市场蓬勃发展，新硬件推动市场再进一步。目前， AIoT 市场正处于高速增长的阶段，未来数百亿的设备并发联网产生 的交互需求、数据处理需求将 ...

Investment Rating - The report maintains a neutral investment rating for Vestas Wind Systems (VWS DC) [1][2]. Core Insights - Vestas reported an adjusted net loss of €158 million for Q2 2024, significantly below the expected net income of €21.6 million, primarily due to a €300 million adjustment related to its service division [1][2]. - The company has revised its revenue guidance for FY 2024 to a range of €16.5 billion to €17.5 billion, down from €16 billion to €18 billion, while maintaining a stable investment level of €1.2 billion [2]. - Vestas received orders totaling 3.6 GW in Q2 2024, resulting in a record backlog of €6.3 billion, indicating strong demand despite the recent financial setbacks [1][2]. Summary by Sections Financial Performance - Q2 2024 revenue was reported at €3.296 billion, lower than the market expectation of €3.689 billion, with an EBITDA of €40 million, far below the anticipated €253.4 million [2][5]. - The adjusted net loss for Q2 2024 was €158 million, compared to an expected profit, reflecting a significant decline in profitability [5]. - The EBIT margin was reported at -5.6%, a decrease from previous quarters, indicating ongoing challenges in maintaining profitability [2][5]. Order and Market Dynamics - Total orders in Q2 2024 increased by 54% year-over-year, with a quarterly increase of 61%, showcasing a robust order intake [2][5]. - The company noted strong order momentum from the U.S. market, which continues to grow, alongside increasing overseas orders [2][5].

Investment Rating - The report maintains an "Outperform" rating for Zai Lab (9688 HK) with a target price of 65.76 HKD per share, adjusted from a previous value of 67.51 HKD per share [14][19]. Core Insights - Zai Lab's product revenue for Q2 2024 reached $100 million, a 45% increase year-over-year, with VYVGART contributing $23.2 million. The gross margin was 64.9%, and the net loss was $80.28 million, improved from $120 million in the same period last year [9][18]. - The company raised its full-year guidance for VYVGART sales to $80 million, up from $70 million, due to strong sales performance and increased hospital coverage [10][19]. - Zai Lab is expanding the indications for VYVGART, with submissions for new indications expected to enhance its commercialization potential [10][19]. - The company anticipates significant growth from potential blockbuster products, projecting a CAGR of approximately 50% in revenue from 2023 to 2028 [10][19]. Financial Performance - In Q2 2024, R&D expenses were $61.63 million, accounting for 61.6% of product revenue, while SG&A expenses were $79.71 million, representing 79.6% of product revenue [9][18]. - The company had $730 million in cash and equivalents as of June 30, 2024, indicating a strong liquidity position [9][18]. - Revenue forecasts for 2024 and 2025 have been adjusted to $387 million and $518 million, respectively, reflecting a year-over-year growth of 45% and 34% [14][19]. Pipeline and Future Growth - Zai Lab has obtained global rights for a new ADC, expanding its pipeline, and aims to submit at least one new drug application annually [10][19]. - The company is advancing multiple clinical trials, including studies for IL-17A and DLL3 ADC, with expected data releases in late 2024 to early 2025 [10][19]. - The anticipated peak sales potential for several products, including SUL-DUR and KarXT, is projected to exceed $1 billion each [10][19].

Investment Rating - The report maintains an "Outperform" rating for Genscript Biotech [3][8][17] Core Insights - In the first half of 2024, Genscript Biotech reported revenue of $561 million, representing a 43.5% increase year-over-year. The non-cell therapy segment contributed $281 million (-0.2%), while the cell therapy segment saw a significant increase to $280 million (+156.0%). The net loss was reduced to approximately $216 million from a loss of $246 million in the previous period [5][17] - CARVYKTI's commercialization is progressing well, with net sales of $343 million in the first half of 2024. The company has received label expansion approvals from regulatory bodies, enhancing its market position [6][17] - The non-cell therapy segment is expected to see further profitability improvements due to technological innovations and operational efficiencies [6][17] Revenue and Profit Forecast - Revenue projections for Genscript Biotech are as follows: $1.44 billion in 2024 (+72%), $2.38 billion in 2025 (+65%), and $3.53 billion in 2026 (+48%). Net profit is expected to improve significantly, reaching $259 million in 2025 and $666 million in 2026 [10][13][14] - The cell therapy segment is projected to generate $820 million in revenue in 2024, with a substantial increase in profitability anticipated in subsequent years [8][10] Segment Analysis - The life sciences segment is expected to achieve $470 million in revenue in 2024, with a year-over-year growth rate of 14% and an adjusted operating profit of $94 million (+20%) [8][17] - The CDMO segment is forecasted to generate $95 million in revenue in 2024, reflecting a decline of 13% due to reduced demand and increased competition [8][17] - BestJet is projected to achieve $57 million in revenue in 2024, with a growth rate of 32% driven by market recovery and demand growth [8][17] Valuation - The total equity valuation of Genscript Biotech is estimated at $6.99 billion, translating to a target price of HK$25.61 per share based on a total share capital of 2.128 billion shares [8][17]

Investment Rating - The report maintains an **OUTPERFORM** rating for Ballard Power Systems (BLDP US) with a target price of $6.50 [42] Core Views - The market is expected to react slightly negatively to Ballard's Q2 2024 results due to a net loss of $31.5 million, higher than market expectations, driven by low revenue and fixed cost pressures [2] - Ballard reaffirmed its 2024 operating expense guidance of $145-165 million but reduced its capital expenditure guidance from $50-70 million to $25-40 million [2] - The company expects revenue to be weighted towards the second half of 2024, with corresponding gross margin expansion [2] - Ballard did not reiterate its expectation of achieving breakeven by FY2025, with EBITDA profitability projected for 2027-2028 and gross margins in the low 20% range [2] - Q2 2024 revenue was $16 million, below the consensus estimate of $18.7 million, with a gross margin of -32%, worse than the expected -15% [2] - Backlog decreased from $180.5 million in Q1 2024 to $169.5 million in Q2 2024, with 12-month orders dropping from $79.7 million to $75.5 million [2] Financial Performance - Q2 2024 revenue grew 11% quarter-over-quarter and 5% year-over-year, driven by the Power Products division [2] - Gross loss improved slightly to -$5.1 million in Q2 2024 from -$5.4 million in Q1 2024, due to increased revenue and cost reduction initiatives [2] - EBITDA loss was $37.5 million, slightly worse than the consensus estimate of $36.4 million [4] - Net loss for Q2 2024 was $31.5 million, a 24% improvement from Q1 2024 but 5% worse year-over-year [4] Strategic Outlook - Ballard's future capital expenditure guidance over the next five years is $300 million [2] - No updates were provided on the $130 million MEA factory in Shanghai, which is still under review [3]

Investment Rating - The report does not explicitly provide an investment rating for the companies discussed [1][2][3] Core Viewpoints - TCE (T-cell engager) bispecific antibodies are emerging as a promising class of immunotherapy, particularly in hematologic malignancies and solid tumors [1][2][3] - The TCE bispecific antibody market is expected to grow significantly, with projections of reaching nearly $3 billion by 2027 [5] - Key players in the TCE bispecific antibody space include Johnson & Johnson, Pfizer, Roche, and AbbVie, with several drugs already approved and many in clinical development [9][12][15] Hematologic Malignancies - TCE bispecific antibodies have shown significant clinical benefits in hematologic malignancies, particularly in multiple myeloma (MM) and diffuse large B-cell lymphoma (DLBCL) [9][12][17] - BCMA/CD3 bispecific antibodies like Teclistamab and Elranatamab have demonstrated high overall response rates (ORR) and complete response (CR) rates in relapsed/refractory MM (RRMM) patients, with ORR ranging from 61-63% and CR rates of 35-39% [9][17] - CD20/CD3 bispecific antibodies such as Glofitamab and Epcoritamab have shown efficacy in DLBCL, with ORR rates of 52-63% and CR rates of 39-40% [30][37] Solid Tumors - TCE bispecific antibodies are beginning to show promise in solid tumors, with Amgen's DLL3/CD3 bispecific antibody Tarlatamab being the first to target solid tumors, specifically small cell lung cancer (SCLC) [2][9] - Other targets like PSMA and DLL3 are being explored in solid tumors, with early data suggesting potential in prostate cancer and SCLC [2][9] Autoimmune Diseases - TCE bispecific antibodies are also being investigated for autoimmune diseases, with Roche's CD20/CD3 bispecific antibody Mosunetuzumab showing potential in systemic lupus erythematosus (SLE) and other autoimmune conditions [2][3] Market and Competitive Landscape - The TCE bispecific antibody market is highly competitive, with multiple companies developing drugs targeting BCMA, CD20, and other antigens [15][37] - Companies like Johnson & Johnson, Pfizer, and Roche are leading the development of TCE bispecific antibodies, with several drugs already approved and many in late-stage clinical trials [9][12][15] - The market is expected to grow significantly, with projections of reaching nearly $3 billion by 2027, driven by the success of drugs like Teclistamab, Elranatamab, and Glofitamab [5][12][37] Future Directions - Future development of TCE bispecific antibodies will focus on optimizing CD3 and tumor antigen affinity, expanding the therapeutic window, and overcoming the immunosuppressive tumor microenvironment [3][26] - Combination therapies, including TCE bispecific antibodies with other immunotherapies or chemotherapy, are being explored to enhance efficacy and address unmet clinical needs [21][30][35] Key Companies to Watch - Companies like Innovent Biologics, Zai Lab, and Akeso Biopharma are emerging as key players in the TCE bispecific antibody space, with several drugs in clinical development [3][15][26]