Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 45.28, reflecting an attractive valuation based on a P/E ratio of 18.3 times FY24E earnings [2][19][26]. Core Insights - The company is expected to see revenue and net profit growth of 32% and 26% respectively in 1H24, driven by increased iPad market share, recovery in Android, and stable sales in new energy vehicle (NEV) components [2][3]. - The report anticipates a positive outlook for the iPad/iPhone upgrade cycle and high-end Android orders, which will contribute to revenue growth in 2H24E and FY25E [2][4]. - Adjustments to FY24-26E earnings per share have been made, with a reduction of 6% primarily due to weakening gross profit margins (GPM) [2][5]. Revenue and Profit Forecast - FY23 revenue is reported at RMB 129,957 million, with a projected increase to RMB 171,957 million in FY24E, representing a 32% year-over-year growth [10][23]. - Net profit is expected to rise from RMB 4,041 million in FY23 to RMB 5,063 million in FY24E, indicating a 25% increase [10][23]. - The company’s gross profit margin is projected to stabilize around 32.3% for FY24E [10]. Segment Performance - The smartphone OEM/components business is estimated to grow by 39% in 1H24 and 36% in 2H24, supported by the iPad share increase and iPhone cycle [3]. - Automotive revenue is expected to grow by 38% in FY24E, driven by increased shipments and average selling price (ASP) growth [4]. - The AI server business is projected to contribute RMB 1 billion in FY24E, offsetting weaknesses in the home energy storage segment [5]. Valuation Metrics - The current P/E ratio is noted at 12.7x for FY24E and 9.3x for FY25E, suggesting an attractive valuation compared to peers [2][19]. - The report utilizes a sum-of-the-parts (SOTP) valuation approach, assigning different target P/E ratios to various business segments based on their growth profiles and visibility [19][22].

Investment Rating - The report assigns a "Buy" rating for the company, iQIYI, with a target price of $6.40, reflecting a potential upside of 104.5% from the current price of $3.13 [2][8]. Core Insights - iQIYI is expected to face short-term headwinds in Q2 2024, with total revenue projected to decline by 5% year-over-year to RMB 7.4 billion due to underperformance of certain shows and a decrease in the number of variety shows [2]. - Non-GAAP operating profit is anticipated to drop by 36% year-over-year to RMB 503 million, despite content costs and operating expenses remaining stable [2]. - The company is expected to gradually recover in the second half of 2024, driven by a strong pipeline of quality content [2]. - Membership revenue is projected to decline by 8% year-over-year to RMB 4.5 billion in Q2 2024, primarily due to the underperformance of certain shows and loss of market share to competitors [2]. - Advertising revenue is expected to decrease by 4% year-over-year to RMB 1.4 billion in Q2 2024, influenced by a reduction in variety shows compared to the previous year [2]. Financial Summary - For FY24E, total revenue is projected at RMB 31.0 billion, with a year-over-year growth rate of -2.6% [5][6]. - Non-GAAP net profit is forecasted at RMB 2.8 billion for FY24E, reflecting a slight decrease of 0.4% year-over-year [5][6]. - The gross profit margin is expected to improve to 28.2% in FY24E, while the non-GAAP operating profit margin is projected to be 10.4% [6][7]. Valuation - The target price of $6.40 is based on a 16x PE multiple for FY24E, which is lower than the industry average of 25x due to intense competition in the Chinese video streaming sector [8][10].

2024 年 7 月 26 日 招银国际环球市场 | 睿智投资 | 行业研究 装备制造 3,000 亿元资金支持设备更新和消费品以旧换新 国家发改委、财政部昨天（7 月 25 日）发布关于加大对设备更新和消费品以旧 换新支持措施的通知（《关于加力支持大规模设备更新和消费品以旧换新的若 干措施》）。《通知》提出统筹约 3,000 亿元人民币超长期特别国债资金以支 持设备更新和以旧换新。设备更新范围包括工业、环境基础设施、交通设备、 物流、教育、文旅和医疗，并延伸至能源、电力和老旧电梯。其中特别提及增 加对国三货车和农业机械的补贴。到 2024 年底没用完的已下达资金将收回中 央，因此我们认为替换周期会在今年下半年加快。在我们的覆盖个股当中，潍 柴动力（2338 HK，买入，目标价：22 港元 / 000338 CH，买入，目标价：人 民币 20.4 元）、中国重汽（3808 HK，买入，目标价：22.5 港元）和中联重科 （1157 HK，买入，目标价：7.50 港元 / 000157 CH，买入，目标价：人民币 11.6 元）将是主要受益者。 老旧船舶报废更新：《通知》鼓励加快高排放船舶更新换代，推动新能源 ...

Investment Rating - The report indicates a positive outlook for the healthcare industry, particularly in the context of the DRG/DIP payment reform, which is expected to enhance cash flow for commercial circulation enterprises and support the clinical use of innovative drugs [1][2][3]. Core Insights - The National Healthcare Security Administration has implemented the DRG/DIP 2.0 version, which includes adjustments to groupings that better reflect clinical realities, with a total of 409 core groups and 634 detailed groups [1]. - The report highlights that over 90% of regions in the country have adopted DRG/DIP payment methods, with 26 provinces achieving full coverage within their jurisdictions [1]. - The new policy allows for exceptions in cases of long hospital stays, high medical costs, and the use of innovative drugs and technologies, which will create a more favorable payment environment for innovative drug costs [2]. - The overall settlement cycle for medical insurance funds is expected to shorten, benefiting commercial circulation and pharmaceutical manufacturing companies by accelerating payment collection [1][3]. Summary by Sections - **DRG/DIP Payment Reform**: The 2.0 version introduces 33 new core groups and 6 new detailed groups, with a focus on high-resource consumption areas. The core disease groups have been reduced from 11,553 to 9,520 [1]. - **Implementation Timeline**: By the end of 2024, all regions that have not yet adopted DRG/DIP payment methods are required to implement the 2.0 version, while existing regions must prepare for the transition by December 31, 2024 [1]. - **Impact on Innovative Drugs**: The report emphasizes that the healthcare fund will maintain a supportive payment environment for innovative drugs, allowing for project-based payments or weighted additions during the initial application phase [2].

Investment Rating - The report maintains a BUY rating for the company, with a target price raised to US$218.00, reflecting an 18.7% upside from the current price of US$183.60 [5][9]. Core Insights - The company reported 2Q24 total revenue of US$84.7 billion, a 14% year-over-year increase, and net income of US$23.6 billion, up 29% year-over-year, exceeding consensus estimates [3]. - The advertising business remains resilient, with Google Search and other revenue growing by 14% year-over-year to US$48.5 billion, driven by retail and financial services [3]. - Google Cloud revenue grew by 29% year-over-year to US$10.3 billion, supported by strong growth in the Google Cloud Platform and contributions from AI [3]. - Operating profit margin (OPM) improved to 32.4%, up 3.1 percentage points year-over-year, attributed to moderate expense growth and a decline in headcount [3]. - The company expects full-year OPM to improve in FY24 compared to FY23, despite anticipated increases in headcount and tech infrastructure expenses [3]. Financial Summary - For FY24E, total revenue is projected at US$344.9 billion, with net profit expected to reach US$92.0 billion, reflecting a 24.7% increase year-over-year [8][21]. - The gross margin is expected to be 57.1% in FY24E, with operating margin projected at 30.4% [8][21]. - The company’s capital expenditure increased by 91% year-over-year to US$13.2 billion in 2Q24, with expectations of maintaining quarterly Capex at or above US$12 billion throughout FY24 [3]. Valuation - The valuation is based on a target P/E multiple of 26x for FY25E, aligning with the sector average [9][10]. - The adjusted net profit for FY24E is estimated at US$116.2 billion, with an EPS of US$7.4 [8][21].

Investment Rating - The report maintains a "Buy" rating for Alphabet (GOOG US) with a target price of $218.00, up from a previous target of $185.50, indicating an upside potential of 18.7% from the current price of $183.60 [3][6]. Core Insights - Alphabet reported Q2 financial results with total revenue increasing by 14% year-over-year to $84.7 billion, aligning with Bloomberg's consensus expectations. Net income rose by 29% year-over-year to $23.6 billion, exceeding expectations by 3% due to management's efforts to control expense growth and slow hiring [1]. - The report anticipates that high comparatives will impact revenue growth rates in Q3, and operating profit margins (OPM) will reflect increased depreciation and expenses related to technology infrastructure investments [1]. - The report projects a 3-8% upward revision in earnings forecasts for FY24-26 due to ongoing operational efficiency improvements [1]. Revenue and Profitability - Google Search and other revenues grew by 14% year-over-year to $48.5 billion, driven by strong growth in retail and financial services sectors. YouTube ad revenue increased by 13% year-over-year to $8.7 billion, supported by growth in watch time and improved monetization of Shorts [1]. - Google Cloud revenue surged by 29% year-over-year to $10.3 billion, bolstered by strong growth in the Google Cloud Platform and contributions from AI [1]. - Overall OPM increased by 3.1 percentage points year-over-year to 32.4%, attributed to moderate expense growth and a decrease in headcount [1]. Financial Projections - Revenue projections for FY24E, FY25E, and FY26E are $344.9 billion, $383.5 billion, and $423.1 billion, respectively, with slight adjustments of 0.1%, 0.3%, and 0.5% from previous estimates [5]. - Net income projections for FY24E, FY25E, and FY26E are $92.0 billion, $104.1 billion, and $116.9 billion, reflecting increases of 7.9%, 5.6%, and 3.4% respectively [5]. - The report indicates a projected P/E ratio of 26x for FY25E, aligning with industry averages [6][7]. Market Performance - Alphabet's market capitalization is approximately $2.28 trillion, with a 52-week high of $192.66 and a low of $122.79 [3]. - The stock has shown a 1-month performance of +1.6% and a 6-month performance of +22.1% [3].

Investment Rating - The report initiates coverage with a "Buy" rating and a target price of HKD 7.25, representing a potential upside of 24.8% from the current price of HKD 5.81 [1][17][39]. Core Insights - The company, QatmPharm, leverages advanced quantum physics, AI, and robotic automation to accelerate the discovery of new drugs and materials, positioning itself as a global leader in innovative R&D platforms [1][18]. - QatmPharm's integrated technology platform combines high-performance cloud computing, AI, and standardized robotic automation to provide comprehensive drug and materials science R&D solutions [1][12][22]. - The company has established significant partnerships with major global biotech and pharmaceutical firms, including 16 of the top 20 companies by revenue in 2022, enhancing its credibility and market presence [1][14][37]. - Revenue projections indicate substantial growth, with expected total revenues of RMB 306 million, RMB 562 million, and RMB 911 million for FY24E, FY25E, and FY26E respectively, despite anticipated net losses [1][39]. Summary by Sections Drug Discovery Solutions - QatmPharm's drug discovery solutions encompass a modular approach covering the entire drug discovery and research process, including target validation, hit identification, lead generation, and optimization [1][71]. - As of May 13, 2024, the company has secured approximately 159 agreements related to its drug discovery solutions, with some entering the IND enabling stage [1][49]. Financial Analysis - The company is projected to incur net losses of RMB 660 million, RMB 2.81 billion, and RMB 230 million for FY24E, FY25E, and FY26E respectively, while revenues are expected to grow significantly [1][39]. - Historical revenue growth rates show a year-on-year increase of 76%, 112%, and 31% for FY21A, FY22A, and FY23A respectively [1][72]. Market Opportunities - The report highlights significant market opportunities in the AI-driven R&D services sector, with the global drug development outsourcing market expected to grow at a CAGR of 14.9% from USD 12.3 billion in 2023 to USD 32.5 billion by 2030 [1][38]. - The solid-state R&D services market is projected to grow at a CAGR of 27.7%, while the automated R&D laboratory market is expected to grow at a CAGR of 39.6% [1][38]. Strategic Collaborations - QatmPharm has formed strategic collaborations with leading companies such as Pfizer and Johnson & Johnson, which have significantly contributed to its growth and market recognition [1][21][70]. - The company maintains a strong investor base, attracting notable private equity and strategic investors, enhancing its operational capabilities and growth potential [1][14][70].

Investment Rating - Initiate at BUY with a target price of HK$7.25, representing an upside of 24.8% from the current price of HK$5.81 [1]. Core Insights - The report highlights QuantumPharm as a leading company leveraging quantum physics, AI, and robotics to accelerate drug and material discovery, with a focus on integrated technology platforms [4][9]. - The company has established significant collaborations, including a strategic partnership with Pfizer, to enhance its drug R&D capabilities [42][72]. - The report identifies substantial market opportunities in AI-powered R&D service industries, with projected growth rates across various sectors [7][24]. Summary by Sections Investment Thesis - QuantumPharm is positioned to capitalize on the growing demand for AI-powered R&D services, with a well-established integrated technology platform [3]. - The company has entered into approximately 159 agreements for drug discovery solutions, with a notable increase in collaboration programs from 18 in 2021 to 81 in 2023 [5]. Market Opportunities - The global drug R&D outsourcing service market is expected to grow at a CAGR of 14.9%, from US$12.3 billion in 2023 to US$32.5 billion in 2030 [7]. - The solid-state R&D service market is projected to increase at a CAGR of 27.7%, from US$3.8 billion in 2023 to US$20.9 billion in 2030 [7]. - The automated R&D lab market is anticipated to grow at a CAGR of 39.6%, from US$5.9 billion in 2023 to US$60.7 billion in 2030 [7]. - The material science R&D market is expected to expand at a CAGR of 12.8%, from US$76.3 billion in 2023 to US$177.9 billion in 2030 [7]. Business Model - QuantumPharm's business model integrates AI and robotic automation to enhance drug and material discovery processes, focusing on solid-state R&D and automated chemical synthesis [13][14]. - The company has developed a proprietary integrated technology platform that combines cloud supercomputing, quantum physics-based computation, and AI to optimize R&D efficiency [35][36]. Collaborations and Partnerships - The strategic collaboration with Pfizer aims to develop hybrid physics and AI-powered technologies to accelerate drug R&D [43][72]. - QuantumPharm has also partnered with CK Life Sciences to create an AI-powered tumor vaccine R&D platform [23][44]. Financial Analysis - The company's R&D expenditure has increased significantly, from RMB214.4 million in 2021 to RMB480.3 million in 2023, reflecting its commitment to growth [75]. - The customer base has expanded from 75 in 2021 to 187 in 2023, indicating strong demand for its services [77].

Investment Rating - The report maintains a "BUY" rating for BOE Varitronix, with a target price of HK$9.9, indicating a potential upside of 121% from the current price of HK$4.47 [12][11][5]. Core Insights - The company is expected to report a 15% year-on-year revenue growth in 1H24, driven by high-end displays, overseas client orders, and the ramp-up of the Chengdu plant. However, net profit is projected to decline by 16% year-on-year [2][11]. - For 2H24, revenue and net profit are anticipated to improve due to order seasonality, a better product mix, and rising utilization rates [2][11]. - The report highlights BOE Varitronix's leadership in the global auto display market, with expectations for ASP and margin recovery in the second half of the year [2][11]. Financial Summary - Revenue is projected to grow from HK$10,760 million in 2023 to HK$12,873 million in 2024, and further to HK$15,561 million in 2025, reflecting a compound annual growth rate [14]. - Net profit is expected to recover from HK$401 million in 2024 to HK$519 million in 2025, and HK$623 million in 2026 [14]. - The operating margin is forecasted to improve slightly from 3.9% in 2024 to 4.0% in 2025 and 4.2% in 2026 [14]. Market Position and Strategy - BOE Varitronix remains the global number one auto display supplier in terms of total and medium- to large-size shipments as of 2Q24 [2]. - The company is focusing on expanding its overseas market presence, with a target for overseas sales to reach 50% by FY26E [2][11]. - The Chengdu plant is noted as the world's largest and most advanced auto display module facility, currently operating at full capacity, which is expected to enhance profitability in 2H24 [2][11].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 9.90, reflecting a potential upside of 121.6% from the current price of HKD 4.47 [2][9][10]. Core Insights - The company is expected to see a revenue increase of 15% year-on-year in 1H24, driven by high-end display orders and a surge in overseas customer demand, despite a projected net profit decline of 16% [2][3]. - For 2H24, improvements in revenue and net profit are anticipated due to seasonal orders, better product mix, and increased utilization rates [2][3]. - The automotive display market share is growing, with the company remaining the largest global supplier in this segment [2][3]. - The management has reiterated its guidance for overseas sales to reach 50% of total sales by FY26, emphasizing the importance of high-end automotive display products [2][3]. Financial Summary - Revenue is projected to grow from HKD 10,760 million in FY23 to HKD 12,873 million in FY24, representing a year-on-year growth rate of 19.6% [3][12]. - Net profit is expected to decline from HKD 475.3 million in FY23 to HKD 400.9 million in FY24, with a year-on-year decrease of 15.7% [3][12]. - The company’s earnings per share (EPS) is forecasted to decrease from HKD 0.60 in FY23 to HKD 0.51 in FY24 [3][12]. Valuation Metrics - The new target price is based on a price-to-earnings (P/E) ratio of 15x for FY25E, compared to the previous P/E of 15x for FY24E [2][9]. - The company is currently trading at P/E ratios of 8.8x for FY24E and 6.8x for FY25E, indicating attractive valuation levels [2][9]. - The price-to-book (P/B) ratio is projected to remain at 0.4 for FY24E and FY25E, suggesting a solid valuation relative to its book value [3][14].