[Table_Title] 研究报告 Research Report 16 Aug 2024 中国能源 China (Overseas) Energy 国际能源与 ESG 周报 (8/05-8/11): 欧美天然气期货价格大幅上涨，美国电 网投资不断获得财政支持 Global Energy and ESG Updates: Natural gas futures prices in Europe and the United States have risen sharply, and United States grid investment continues to receive financial support 杨斌 Bin Yang 余小龙 Bruce Yu 毛琼佩 Olivia Mao bin.yang@htisec.com bruce.xl.yu@htisec.com olivia.qp.mao@htisec.com [Table_yemei1] 热点速评 Flash Analysis [Table_summary] (Please see APPENDIX 1 for English sum ...

Investment Rating - The report does not explicitly provide an overall investment rating for the industry, but it highlights the strengths and opportunities in various regions, including the US, Europe, and Japan [1][2][3] Core Views - The US investment banking industry has developed through the alternation of mixed and separate operations, with a mature and diversified market structure [1] - Europe remains the second-largest region for investment banking, with the UK, Germany, and Switzerland each having unique market characteristics and regulatory frameworks [2] - Japan's securities industry has transitioned from strict regulation to market liberalization, with a high concentration of institutional and foreign investors [3] US Market - The US securities market is the largest globally, with a total market capitalization 4.6 times that of China, and a multi-tiered system that fosters a survival-of-the-fittest mechanism [1] - The US has the world's largest derivatives market, with over 70% of global trading volume in futures and options occurring on North American exchanges in 2022 [1] - Financial innovation is vibrant, with diversified revenue sources expanding from traditional stocks to bonds, futures, forex, and more, catering to various client needs [1] European Market - The UK has transitioned from separate to mixed operations through two major financial "Big Bangs," leading to the establishment of the FSA and unified regulatory standards [2] - Germany's securities market is stable, with a universal banking model, but its transformation has been less pronounced compared to other developed nations [2] - Switzerland is the world's largest wealth management hub, with a universal banking model and a significant presence of foreign issuers [2] Japanese Market - Japan's securities market is dominated by institutional and foreign investors, with the latter accounting for about 30% and domestic institutions about 52% [3] - The Japanese securities industry has a high concentration of large integrated dealers, which dominate institutional and primary market services [3] - The industry has adapted to market changes, with a significant and stable share of proprietary trading revenue, particularly due to the preference of individual investors for fixed-price transactions [3]

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]