Investment Rating - The investment rating for Baker Hughes is "Outperform" based on the expected performance relative to the market benchmark [3][23]. Core Insights - Baker Hughes reported an adjusted net EBITDA of $1.13 billion for Q2 2024, exceeding market expectations and guidance [1][33]. - The company raised its revenue guidance for FY 2024 to a midpoint increase of 5%, with previous revenue guidance set at $26.5-28.5 billion [1][33]. - The overall revenue for Q2 2024 was $7.14 billion, reflecting a 13% year-over-year increase, driven by strong performance across all segments, particularly in the Industrial and Energy Technology sector, which grew by 59% [1][33][34]. Summary by Sections Financial Performance - For Q2 2024, total revenue was $7.14 billion, up 13% year-over-year, with adjusted EBITDA at $1.13 billion, a 25% increase from the previous year [21][33]. - The EBITDA margin for Q2 2024 was reported at 15.8%, aligning with market expectations [1][33]. Segment Performance - The Oilfield Services and Equipment segment generated revenue of $4.01 billion, a 3% increase year-over-year, with an EBITDA margin of 17.9% [19][21]. - The Industrial and Energy Technology segment reported revenue of $3.13 billion, a 28% increase year-over-year, with an EBITDA margin of 15.9% [34]. Guidance and Expectations - The company has not provided specific tax rate guidance for FY 2024, which is expected to be in the range of 27-32% [1]. - The overall positive performance and raised guidance suggest a favorable outlook for Baker Hughes in the upcoming quarters [1][33].

Haitong International Coverage of A-Shares: Haitong International may cover and rate A-Shares that are subject to the Hong Kong Stock Connect scheme with Shanghai and Shenzhen. Haitong Securities (HS; 600837 CH), the ultimate parent company of HTISG based in Shanghai, covers and publishes research on these same A-Shares for distribution in mainland China. However, the rating 盟浪义利（FIN-ESG）数据通免责声明条款：在使用盟浪义利（FIN-ESG）数据之前，请务必仔细阅读本条款并同意本声明： 第四条 如本免责声明未约定，而盟浪网站平台载明的其他协议内容（如《盟浪网站用户注册协议》《盟浪网用户服务（含认证）协议》《盟浪网隐私政策》等）有 ...

研究模會 Research Report 31 Jul 2024 中国必需消费 China (Overseas) Staples HTI 中国消费品 7 月价格报告： 飞天栽价企稳四升，≪饮林析≫力度减小 Feitian Moutai prices rebounded, discounts on soft drinks and beer reduced 观点聚焦 Investment Focus | --- | --- | --- | --- | --- | |----------|-------|---------|--------|-------| | 良多名的 | 评览 | | 目标价 | | | 百款至大 | | Neutral | 14.00 | 13 | | 추河李海 | | | | 10 | | | | | | 11:11 | | | | | | | 中国飞动Outperform 6.4087 政治国民Outperform 21.6910n.a. it外民份Outperform 74.606630 观代处至Outperform 1.0064 视频论业Outperform 2.22S3 Outpe ...

Investment Rating - The report indicates a positive outlook for BP, with an expected adjusted net income of $2.756 billion for Q2 2024, aligning with market expectations [1] Core Insights - BP's strong performance in customer service and product business contributed to the adjusted net income, although weaker results in oil production and operations offset this growth [1] - The company announced a 10% increase in dividends to $8.00 per share, compared to $7.27 in Q1 2024, slightly above market expectations of $7.80 [1] - BP plans to repurchase $1.75 billion worth of shares in Q2 2024 and has committed to an additional $3.5 billion in buybacks for the second half of 2024, maintaining the same level as the first half [1] - The capital expenditure guidance for FY 2024 and FY 2025 remains at approximately $16 billion [1] Summary by Relevant Sections - **Financial Performance**: BP reported an adjusted net income of $2.756 billion for Q2 2024, up from $2.723 billion in Q1 2024 and $2.589 billion in Q2 2023, exceeding market expectations of $2.687 billion [1][60] - **Capital Expenditure**: The capital expenditure for Q2 2024 was $3.463 billion, with 45% of the total $16 billion guidance utilized in the first half of 2024 [1][60] - **Oil Production and Operations**: Adjusted operating income from oil production and operations was $3.094 billion, an 11% year-over-year increase but 7% below market expectations of $3.329 billion [1][62]

Investment Rating - The report maintains an "Outperform" rating for the company [3][10]. Core Insights - In the first half of 2024, the company's recurring net profit increased by 11.30% year-on-year, with operating income reaching 7.070 billion yuan, a 32% increase compared to the previous year [2][6]. - The Alashan project has secured water rights of 10 million cubic meters per year, which supports its production needs [8][9]. Financial Performance - For 2024H1, the company reported a net profit of 1.209 billion yuan, up 14.90% year-on-year, and a recurring net profit of 1.208 billion yuan, reflecting an 11.30% increase [6][10]. - In Q2 2024, the company achieved operating income of 3.789 billion yuan, a quarter-on-quarter increase of 15.50% and a year-on-year growth of 32.86% [6][10]. Product Segmentation - The company's self-produced soda ash generated operating income of 3.924 billion yuan, a significant increase of 115.03%, with a production volume of 2,719,400 tonnes [7]. - The self-produced baking soda had an operating income of 919 million yuan, with a gross profit margin of 52.79%, and a production volume of 668,200 tonnes [7]. - The self-produced urea reported an operating income of 1.696 billion yuan, down 20.32% year-on-year, with a production volume of 840,200 tonnes [7]. Resource and Technical Advantages - The company possesses significant natural alkali resources, including proven reserves of 193.08 million tonnes at the Anpeng alkali mine and 105.867 million tonnes at the Tamusu natural alkali mine, which is the largest proven natural alkali mine in China [9][10]. - The company utilizes advanced hydrothermal solution mining processes, ensuring environmentally friendly production with no waste liquid emissions [9]. Earnings Forecast - The company is expected to achieve net profits of 2.670 billion yuan, 3.041 billion yuan, and 3.624 billion yuan for the years 2024, 2025, and 2026 respectively [10]. - The target price is set at 8.64 yuan, based on a price-to-earnings ratio of 12 times for 2024 [10].

Investment Rating - The report assigns a positive outlook on Standard Chartered PLC (2888 HK) based on its strong performance in Q2 2024, indicating an outperform rating [1]. Core Insights - Standard Chartered's Q2 2024 revenue and profit exceeded expectations, with underlying operating income growing by 5.5% year-on-year, surpassing the consensus forecast of 4.8% [2][5]. - Net interest income increased by 5.1% year-on-year, outperforming the consensus estimate of 3.5%, while other income grew by 6.0%, slightly below the expected 6.5% [2][5]. - The bank's asset quality showed improvement, with credit impairment losses down by 50% year-on-year, significantly better than the expected increase of 78.8% [2][5]. Summary by Sections Revenue and Profit Performance - Basic operating income rose by 5.5% year-on-year, exceeding the consensus forecast of 4.8% [2]. - Net interest income was reported at USD 2,560 million, a 5.1% increase year-on-year, higher than the consensus estimate of USD 2,520 million [4]. - Underlying profit before taxation increased by 14.3% year-on-year, significantly above the consensus forecast of 0.8% [2][4]. Asset Quality - Credit impairment losses were reported at USD 73 million, a decrease of 50% year-on-year, compared to the expected increase of USD 261 million [2][4]. - The non-performing loan (NPL) ratio improved, decreasing to 2.41%, better than the expected 2.73% [2][4]. Capital and Returns - The Common Equity Tier 1 (CET1) ratio increased to 14.6%, up 60 basis points year-on-year, surpassing the consensus estimate of 14.0% [2][4]. - Annualized Return on Equity (ROE) rose to 12.9%, an increase of 80 basis points year-on-year, exceeding the expected 7.38% [2][4].

Investment Rating - The report maintains an "Outperform" rating for Meihua Holdings Group [3][5]. Core Insights - In Q2 2024, the recurring net profit increased by 4.62% quarter-on-quarter, while the company reported a year-on-year decline in operating income of 6.96% for H1 2024 [2][11]. - The company continues to expand its operational scale with new projects under construction, focusing on products with cost advantages and growing market demand [4][13]. - Meihua Holdings is recognized as a global leader in synthetic biology for amino acid production, leveraging advanced fermentation technology and maintaining a competitive cost structure [14]. Financial Performance Summary - For H1 2024, the company achieved operating income of RMB 12.643 billion, with a net profit attributable to shareholders of RMB 1.474 billion, reflecting a 7.51% year-on-year increase [11]. - The revenue breakdown shows a decline in fresh taste agents by 12.72% and a growth in feed amino acids by 14.99% [12]. - The forecast for net profit attributable to shareholders for 2024-2026 is RMB 3.530 billion, RMB 3.884 billion, and RMB 4.286 billion respectively, with a target price of RMB 13 based on a PE ratio of 10.48 [5][15].

26 Jul 2024 杨斌 Bin Yang 余小龙 Bruce Yu [Table_yemei1] 热点速评 Flash Analysis [Table_summary] (Please see APPENDIX 1 for English summary) 中国：新能源产业链亏损严重，核电和传统能源景气度上行。据不完全统计，2024 年多晶硅产能接近 400 万吨，根据彭博预测，2024-2025 年全球光伏新增装机分别为 511GW 和 531GW，假设容配比为 1.2，硅耗为 2 万吨/GW，则 2024-2025 年硅料需求仅为 129 和 131 万吨，产能供应分别达 384 万吨和 600 万吨，供大于需 难以改变；价格方面，根据 PVinfoLink 数据，7 月 19 日多晶硅致密料价格为 39 元/kg，较 2022 年高点已经下 跌达 87%，头部企业亏损严重，通威股份 2024 年中报预计亏损 30-33 亿元，同比下降 123%-125%；光伏电池 片方面，182TOPCon 电池片均价为 0.30 元/W，经过我们测算，N 型 182 电池片毛利率约为-14%，单瓦净利约 为-0 ...

Investment Rating - The report initiates coverage with an "Outperform" rating for Shanghai Pharmaceuticals [4][66]. Core Views - Shanghai Pharmaceuticals is a leading pharmaceutical distributor in China, with strong capabilities in both pharmaceutical distribution and manufacturing. The company achieved sales of RMB 260.3 billion in 2023, representing a year-on-year growth of 12.2% [63][64]. - The pharmaceutical distribution segment is expected to benefit from innovative services and increasing industry concentration, with a projected revenue CAGR of 9.0%-13.7% for leading companies, significantly outpacing the industry average of 6.6% [64][66]. - The pharmaceutical manufacturing segment is anticipated to experience growth driven by traditional Chinese medicine (TCM) rebranding and innovative drugs, with a stable cash flow from generic drugs [65][66]. Summary by Sections 1. Chinese Pharmaceutical Distribution Market - The market size reached RMB 27,516 billion in 2022, with a CAGR of 6.6% from 2017 to 2022. The market is characterized by strong consumer demand and a trend towards consolidation among leading companies [7][8]. - The concentration ratio of the top four companies in the market increased from 37.6% in 2017 to 45.5% in 2022, indicating a strong trend of "the rich getting richer" [11][12]. 2. Shanghai Pharmaceuticals Overview - Shanghai Pharmaceuticals operates in two main segments: pharmaceutical distribution and manufacturing. In 2023, the distribution revenue was RMB 233.8 billion, accounting for 89.8% of total revenue [18][20]. - The company has a robust distribution network covering over 31 provinces and municipalities in China, serving more than 32,000 medical institutions [20]. 3. Pharmaceutical Distribution - The distribution segment is expected to maintain high growth due to innovative services, including a significant partnership with Sanofi worth over RMB 5 billion [21][64]. - The company aims to enhance its market share through both organic growth and acquisitions, leveraging its strong logistics network [24][28]. 4. Pharmaceutical Manufacturing - The manufacturing segment is set to benefit from the launch of innovative drugs, with three innovative drugs already on the market and 68 projects in clinical stages as of 2023 [65][66]. - The TCM segment is implementing a "Big Brand + Big Product" strategy, which is expected to drive revenue growth through rebranding and multi-channel sales [37][65]. 5. Financial Forecast and Valuation - Revenue projections for FY24-26 are RMB 284.8 billion, RMB 311.6 billion, and RMB 340.4 billion, respectively, indicating a three-year CAGR of 9.4% [66]. - The target price for the stock is set at HKD 14.54, based on a DCF model with a WACC of 6.2% and a perpetual growth rate of 3% [66].

Investment Rating - Initiation coverage with an "Outperform" rating and a target price of HKD 14.54 [4] Core Investment Thesis - Shanghai Pharmaceuticals (SH Pharma) is a leading pharmaceutical distributor in China, with dual engines of pharmaceutical distribution and drug manufacturing [2] - The company achieved RMB 260.3 billion in revenue in 2023, a 12.2% YoY growth, with distribution and industrial revenues of RMB 233.8 billion and RMB 26.3 billion respectively [2] - The pharmaceutical distribution business is expected to benefit from innovative services in the short term and industry consolidation in the long term, with the top 4 players holding a 45.5% market share in 2022 [2] - The pharmaceutical manufacturing business is entering a harvest period, driven by traditional Chinese medicine (TCM) brand revitalization and innovative drug pipelines [3] Pharmaceutical Distribution Business - Short-term growth is driven by innovative services, including a RMB 5 billion+ collaboration with Sanofi and comprehensive lifecycle management services for innovative drugs [2] - Long-term growth is supported by market share gains through organic growth and M&A, with the top 4 players' market share increasing from 37.6% in 2017 to 45.5% in 2022 [2] - The CSO business is expected to see explosive growth in 2024, with Q1 2024 revenue surging 128% YoY to RMB 1.7 billion [24] - The company has a strong logistics network covering 31 provinces and serves over 32,000 medical institutions [23] Pharmaceutical Manufacturing Business - The TCM segment is a key growth driver, with a "big brand + big product" strategy driving a 10.3% YoY revenue growth to RMB 9.82 billion in 2023 [43] - The innovative drug pipeline includes 68 clinical projects, with 3 drugs already launched and 3 more expected to be approved by 2025 [39] - The generic drug segment is expected to face short-term pressure in 2024 but will provide stable cash flow from 2025 onwards [46] Financial Performance and Valuation - Revenue is expected to grow at a 9.4% CAGR from FY24 to FY26, reaching RMB 340.4 billion in FY26 [4] - Net profit attributable to shareholders is forecasted to be RMB 5.17 billion, RMB 5.67 billion, and RMB 6.28 billion in FY24-26 respectively [4] - The current valuation implies a FY24/FY25 P/E of 7.7x/7.0x [4] Industry Overview - China's pharmaceutical distribution market reached RMB 27.5 trillion in 2022, with a 6.6% CAGR from 2017 to 2022 [6] - The market is characterized by increasing concentration, with the top 4 players' market share rising from 37.6% in 2017 to 45.5% in 2022 [12] - The industry is expected to continue its steady growth, driven by China's aging population and increasing healthcare expenditure [10]