Investment Rating - The report maintains a "BUY" rating for Shengyi Tech with a target price adjusted to RMB34.50, reflecting a potential upside of 15.2% from the current price of RMB29.96 [1][3]. Core Insights - Shengyi Tech is expected to see a net profit increase of 46.0-54.6% year-on-year for FY24, with a midpoint estimate of RMB1.75 billion, which is lower than both Bloomberg consensus and the report's previous estimates [1]. - The company is well-positioned to benefit from the growing demand for AI-related products, particularly its ultra-low-loss CCL products, which are anticipated to be utilized in Nvidia's upcoming AI accelerators in 2025 [1][8]. - The report highlights a sector upcycle and the company's leading market position, being the second-largest player in the global CCL market with a 12% market share in 2023 [8]. Financial Summary - Revenue for FY24 is projected at RMB19.84 billion, representing a 19.6% year-on-year growth, with further growth expected in FY25 and FY26 [2][12]. - Net profit for FY24 is estimated at RMB1.81 billion, a significant increase of 55.4% year-on-year, with continued growth forecasted for the following years [2][12]. - The gross margin is expected to improve from 19.2% in FY23 to 22.1% in FY24, indicating better profitability [2][12]. Segment Performance - The preliminary results indicate that the CCL/Pregreg segment's net profit is estimated to be RMB1.42 billion, up 19.5% year-on-year, driven by higher production and sales volume [8]. - The PCB segment is expected to show a turnaround with an estimated net profit of RMB329 million, compared to a net loss of RMB25 million in 2023, driven by increasing demand for multilayer PCBs [8]. Market Position and Growth Potential - Shengyi Tech's products are increasingly adopted in the AI market, particularly its Ultra Low-loss and Extreme Low-loss CCL products [8]. - The company is expected to maintain a net profit growth forecast of 51% year-on-year for 2025, supported by the AI theme and sector upcycle [8].

Investment Rating - Maintain BUY rating for Tuhu Car (9690 HK) with a target price of HK$20 00, representing a 29 9% upside from the current price of HK$15 40 [1][4] Core Views - Tuhu Car's 2H24E adjusted net profit is expected to decline 9% YoY and 32% HoH to RMB243mn due to weaker-than-expected 3Q24 sales and delayed new store openings [1] - FY25E revenue growth is projected to accelerate to 13% YoY, driven by new stores opened in 4Q24 and increased support for existing stores [1] - Gross margin is expected to improve from 25 1% in FY24E to 25 7% in FY25E, supported by lower procurement costs and higher sales of high-margin exclusive and private-label products [10] - Adjusted net profit is forecasted to rise 27% YoY to RMB763mn in FY25E, with a net margin of 4 6% (+0 5ppts YoY) [10] Financial Performance - FY24E revenue is projected at RMB14 764mn (+8 5% YoY), with net profit of RMB445mn (-93 4% YoY) and adjusted net profit of RMB601mn (+25% YoY) [2][10] - FY25E revenue is estimated at RMB16 749mn (+13 4% YoY), with net profit of RMB640mn (+43 9% YoY) and adjusted net profit of RMB763mn (+27% YoY) [2][10] - FY26E revenue is forecasted at RMB18 153mn (+8 4% YoY), with net profit of RMB882mn (+37 9% YoY) and adjusted net profit of RMB994mn (+30 2% YoY) [2][10] Operational Highlights - Total store count is expected to exceed 6 900 by the end of FY24, up from over 900 stores in FY24 [10] - 2H24E gross margin is projected to decline 1 5ppts HoH and 0 7ppts YoY to 24 4% due to price cuts on tire products [10] - Selling expense ratio is estimated to rise 1 1ppts HoH to 13 8% in 2H24E to boost customer traffic [10] Valuation - The target price of HK$20 00 is based on 20x revised adjusted FY25E EPS, reflecting Tuhu Car's resilience compared to peers amid economic uncertainties [10] - Tuhu Car trades at a discount to US peers O'Reilly (ORLY US) and Advance Auto Parts (AAP US), which have valuation multiples of around 30x [10] Share Performance - Tuhu Car's share price has declined 21 1% over the past month, 24 1% over the past three months, and 16 8% over the past six months [6] Shareholding Structure - Tencent Holdings holds a 19 4% stake in Tuhu Car, while Mr Chen Min owns 10 1% [5]

Investment Rating - The report maintains a "BUY" rating for Willsemi, with a target price (TP) of RMB130, indicating a potential upside of 21.9% from the current price of RMB106.65 [1][3]. Core Insights - Willsemi is expected to experience significant revenue growth of 20.9% to 22.8% year-over-year (YoY) for FY24, driven by increased penetration of CIS products in high-end smartphones and autonomous driving technologies [1]. - The net profit for FY24 is projected to be between RMB3.2 billion and RMB3.4 billion, representing a remarkable YoY increase of 468% to 504% [1]. - The company is anticipated to benefit from domestic consumer subsidy plans and the rapid expansion of key markets such as electric vehicles (EVs), edge AI, and robotics [1]. Financial Performance Summary - Revenue is expected to grow from RMB21.021 billion in FY23 to RMB26.295 billion in FY24, reflecting a YoY growth of 25.1% [2]. - The gross margin is projected to improve from 21.8% in FY23 to 29.8% in FY24 [2]. - Net profit is forecasted to increase significantly from RMB556 million in FY23 to RMB3.368 billion in FY24, marking a growth of 506.2% [2]. - Earnings per share (EPS) is expected to rise from RMB0.47 in FY23 to RMB2.83 in FY24, indicating a growth of 502.2% [2]. Market Dynamics - The report highlights that Willsemi's market share in the global CIS market reached 11% in 2023, with expectations for continued expansion [1]. - The company is positioned to benefit from the increasing number of cameras used in vehicles for safety, with projections indicating that vehicles may commonly utilize 10 or more cameras [1]. - The smartphone CIS segment is expected to grow significantly due to China's new consumer subsidy plan, which offers incentives for purchasing smartphones priced below RMB6,000 [1]. Valuation Metrics - The stock is currently trading at an estimated P/E ratio of 38x for FY24 and 26x for FY25, with a forecasted EPS growth exceeding 40% for 2025 [1][7]. - The target price of RMB130 corresponds to a P/E of 31.7x for FY25 [1].

Investment Rating - Maintain BUY rating with a revised target price of US$80 0 (previous US$87 0) [1] Core Views - New Oriental's 2QFY25 net revenue grew 19% YoY to US$1 039mn (+31% YoY excluding East Buy revenue) in line with estimates but non-GAAP net income declined 29% YoY to US$36mn below estimates due to East Buy adjustment and tourism business investments [1] - Management guided 3QFY25E net revenue (excluding East Buy) to grow 18-21% YoY to US$1 01-1 03bn below expectations due to macro uncertainty and intensifying competition [1] - FY25-27E total revenue forecasts trimmed by 2-3% due to softer-than-expected revenue guidance [1] Earnings Summary - FY25E revenue forecast at US$5 081mn with adjusted net profit of US$439 4mn and EPS of US$2 65 [2] - FY27E revenue forecast at US$6 725mn with adjusted net profit of US$829 8mn and EPS of US$5 01 [2] - P/E ratio expected to decline from 25 4x in FY25E to 13 8x in FY27E [2] Business Segments - Overseas test prep and study consulting revenue grew 21% and 31% YoY respectively in 2QFY25 accounting for 24% of total revenue [5] - Domestic test prep revenue grew 35% YoY accounting for 9% of total revenue in 2QFY25 [5] - New educational initiatives revenue grew 43% YoY in 2QFY25 driven by non-academic tutoring (student enrolment +26% YoY) and intelligent learning systems (active paid users +44% YoY) [5] - East Buy revenue declined 9% YoY with a net loss of US$13 5mn in 1HFY25 but would have recorded US$4 6mn net income excluding the impact of Time with Yuhui disposal [5] - Tourism business revenue grew 233% YoY in 2QFY25 [5] Financial Forecasts - FY25E revenue revised down 2 6% to US$5 080 9mn with gross profit revised down 3 8% to US$2 721 0mn [6] - FY25E non-GAAP net income revised down 15 0% to US$439 4mn with EPS revised down 15 0% to US$2 7 [6] - Gross margin expected to be 53 6% in FY25E down 0 7ppt from previous forecast [6] Valuation - Educational and consulting business valued at US$77 1 (96% of total valuation) based on 28x FY25E PE [8] - East Buy valued at US$1 6 (2% of total valuation) based on 8x FY25E PE [8] - Tourism and others business valued at US$1 3 (2% of total valuation) based on 10x FY25E PE [8] - Sum-of-the-parts valuation of US$14 773 7mn with a 10% holdco discount resulting in a total valuation of US$13 296 3mn [9] Peer Comparison - Education sector average PE of 28 4x for FY25E and 16 1x for FY26E [11] - E-commerce sector average PE of 8 0x for FY25E and 7 0x for FY26E [11]

Investment Rating - Maintain BUY rating with a target price of HK$525 0, implying a 34 7% upside from the current price of HK$389 80 [1][3] Core Views - Tencent is expected to deliver solid earnings performance in 4Q24, driven by strong games revenue growth and resilient marketing business [1] - Total revenue is forecasted to grow by 8% YoY to RMB167 6bn, with non-IFRS net income growing by 29% YoY to RMB55 2bn in 4Q24 [1] - Long-term growth initiatives like Weixin e-commerce and AI are viewed positively, with management optimistic about Weixin's role in the e-commerce ecosystem and AI as a key growth driver for the marketing business [1][8] Earnings Summary - Revenue is expected to grow from RMB554 6bn in FY22 to RMB755 8bn in FY26, with adjusted net profit increasing from RMB115 6bn in FY22 to RMB257 6bn in FY26 [2] - Adjusted EPS is projected to rise from RMB12 13 in FY22 to RMB26 60 in FY26 [2] - P/E ratio is expected to decline from 55 2x in FY22 to 17 4x in FY26, reflecting improved earnings growth [2] Business Forecasts and Valuation - Revenue forecasts for FY24-26E are largely unchanged, with slight downward revisions of -0 1% to -0 3% [9] - Gross margin is expected to improve from 53 1% in FY24E to 54 4% in FY26E, driven by higher-margin games and marketing businesses [9] - Operating margin is projected to increase from 31 9% in FY24E to 33 7% in FY26E [9] - The SOTP-derived target price of HK$525 0 includes valuations for games (HK$199 9), SNS (HK$29 4), marketing (HK$110 3), fintech (HK$82 5), cloud (HK$22 0), strategic investments (HK$68 4), and net cash (HK$12 7) [10][11][12][13][14] Key Takeaways from NDR - Weixin e-commerce is positioned as a connector in the ecosystem, leveraging third-party services and technology to reduce transaction frictions [8] - AI remains a key growth driver for the marketing business, with Tencent maintaining leadership due to its large user base and use cases [8] - Tencent's inclusion in the US CMC list and removal from the USTR "Notorious Markets List" are seen as positive developments [8] Peer Comparison - Tencent's gaming business is valued at an 18x 2025E PE, in line with global peers like NetEase and Electronic Arts [16] - The marketing business is valued at a 20x 2025E PE, reflecting its resilient ad revenue growth supported by Weixin Video Account and Mini Program [16] - Fintech and cloud businesses are valued at premiums to peers, reflecting Tencent's strong market position and growth potential [16][17] Strategic Investments - Tencent's strategic investments are valued at HK$68 4 per share, with significant stakes in companies like PDD Holdings (14 1%), Sea Ltd (18 2%), and Spotify (8 4%) [19] - A 30% holding company discount is applied to the fair value of equity investments [19]

Investment Rating - Maintain BUY rating with a target price of RMB52, implying a 56.6% upside from the current price of RMB33.20 [1][3] Core View - Wingtech is transitioning to a semiconductor-focused company, positioning itself for long-term value creation despite short-term financial setbacks [1] - The company expects a net loss of RMB3.5-4.55bn in FY24, primarily due to one-off impairments related to the sale of its ODM business, write-down on deferred tax assets, and goodwill impairments [1] - The semiconductor business showed resilience in FY24, with sequential revenue growth in 2Q and 3Q, and single-digit YoY growth in 4Q despite seasonal softness [7] - Wingtech's ODM business improved in 4Q, turning profitable excluding impairments, but remains a low-margin segment [7] Financial Performance - Revenue is expected to grow 18.1% YoY in FY24 to RMB72.3bn, with further growth of 10.9% and 5.8% projected for FY25 and FY26, respectively [2] - Gross margin declined to 10.4% in FY24E from 16.1% in FY23A, but is expected to recover to 13.2% and 14.8% in FY25E and FY26E [2] - Net profit is forecasted to rebound strongly in FY25E, growing 186.4% YoY to RMB2.61bn, followed by 45.0% growth in FY26E to RMB3.78bn [2] - Operating profit is expected to increase 155.6% YoY in FY25E to RMB4.18bn, driven by the company's transformation and semiconductor focus [2] Business Segments - The ODM business accounted for 17% market share in 1H24, ranking third among top players in China, down 3ppts YoY [7] - Semiconductor revenue grew sequentially in FY24, with 2Q and 3Q showing 10% and 15% QoQ growth, respectively [7] - China contributed ~40% of total semiconductor revenue in FY24, offsetting overseas weakness due to inventory correction [7] - Auto revenue currently accounts for 60% of total semiconductor revenue, with overseas OEMs expected to resume restocking in 2025 [7] Valuation and Outlook - Wingtech's valuation is expected to benefit from increasing semiconductor revenue share, robust domestic auto demand, and a re-rating opportunity as it transforms into a semi-centric company [7] - The target price of RMB52 corresponds to 24.8x FY25E P/E, based on unchanged financial forecasts [7] - The company's market cap stands at RMB41.26bn, with an average 3-month turnover of RMB1.68bn [3]

Investment Rating - The report maintains a "BUY" rating for JD.com, with a target price of US$53.20, indicating a potential upside of 36.4% from the current price of US$39.00 [3][11]. Core Insights - JD.com is expected to report solid results for 4Q24, with total revenue projected at RMB334.6 billion, reflecting a 9.3% year-over-year growth, which is 3% above Bloomberg consensus. This growth is attributed to the nationwide home appliance trade-in program, JD's strong GMV exposure in the home appliance category, and robust supply chain capabilities [1][8]. - Non-GAAP net profit is anticipated to grow by 13.2% year-over-year, exceeding consensus estimates by 16%, driven by gross margin expansion and optimized sales and marketing costs [1][8]. - The report emphasizes that JD.com is well-positioned to benefit from the trade-in program in the short term, while long-term growth will depend on sustainable earnings and enhanced shareholder returns [1][8]. Financial Performance Summary - For FY24E, JD.com is projected to achieve revenue of RMB1,146.4 billion, a 5.7% increase from FY23A, with non-GAAP net profit expected to reach RMB46.1 billion [2][9]. - The adjusted net profit for FY24E is forecasted at RMB46.1 billion, with an adjusted EPS of RMB29.05 [2][9]. - Revenue growth is expected to continue into FY25E at RMB1,218.0 billion, representing a 6.2% increase, and further to RMB1,278.0 billion in FY26E, with a growth rate of 4.9% [2][9]. Segment Performance - The Electronics and Home Appliance (E&HA) segment is projected to see a 10% year-over-year revenue growth in 4Q24, supported by the trade-in program [7][8]. - JD Retail (JDR) is expected to report segment revenue of RMB294.0 billion in 4Q24, up 9.8% year-over-year, with operating profit anticipated to increase by 28% year-over-year [7][8]. Forecast Revisions - The revenue forecast for 2024-2026 has been revised upward by 1-2%, and non-GAAP net profit forecasts have been increased by 2-8%, primarily due to improved expectations for the E&HA segment and better gross margin forecasts [8][9]. - The gross margin for FY24E is projected at 15.9%, with non-GAAP net margin expected to be 4.0% [9][10]. Valuation Metrics - The report indicates a P/E ratio of 11.1x for FY24E, decreasing to 9.1x by FY26E, reflecting a favorable valuation compared to historical levels [2][9]. - The DCF-based target price of US$53.20 is based on a WACC of 11.8% and a terminal growth rate of 1.5% [11][12].

Investment Rating - The report maintains a "BUY" rating for WuXi Biologics, with a target price raised from HK$22.88 to HK$24.24, indicating a potential upside of 36.6% from the current price of HK$17.74 [3][8]. Core Insights - WuXi Biologics added 151 new projects in 2024, the highest in its history, with over half from the US, showcasing strong global competitiveness and client trust [1][8]. - The company is set to receive US$140 million in near-term payments from enabling discovery services for 7 global projects in 2024, highlighting lucrative milestone income [1][8]. - The Ireland site is on track to achieve breakeven in 2025, and the company plans to expand its drug substance capacity significantly, with a focus on establishing a comprehensive global production network [1][8]. Financial Summary - Revenue is projected to grow from RMB 17,034 million in FY23A to RMB 20,687 million in FY25E, reflecting a year-on-year growth of 13.4% [2][18]. - Adjusted net profit is expected to increase from RMB 4,739 million in FY24E to RMB 5,358 million in FY25E, representing a growth of 13.0% [2][18]. - The adjusted EPS is forecasted to rise from RMB 1.15 in FY24E to RMB 1.30 in FY25E, with a P/E ratio decreasing from 14.3x in FY24E to 12.7x in FY25E [2][18]. Project Pipeline and Growth - The company’s project pipeline now includes 817 projects, with a significant increase in process performance qualification (PPQ) projects expected to grow by 31% YoY to 101 in 2025 [1][8]. - WuXi Biologics completed 77 PPQ projects in 2024, marking a 26% increase year-on-year, indicating strong momentum for future growth in CMO revenue [1][8]. Overseas Operations - The Ireland biologics facility has shown strong client demand trends, successfully completing multiple 16k-liter PPQ batch productions, supporting profitability targets for 2025 [1][8]. - WuXi Biologics is constructing a new 36k-liter drug substance capacity facility in the US, aiming to expand total drug substance capacity to 491k liters, with approximately 49% located overseas [1][8].

Investment Rating - The report maintains a "Buy" rating for WuXi Biologics, reflecting a positive outlook based on demand recovery and growth potential [4][28]. Core Insights - WuXi Biologics achieved a record addition of 151 new projects in 2024, with over half coming from the United States, indicating strong global competitiveness and client trust [2][3]. - The company expects revenue and adjusted profit (excluding minority interests) to grow by 5%-10% in 2024, with accelerated growth anticipated in 2025 [1][4]. - The unique CRDMO business model continues to drive significant milestone revenue, with $140 million in recent payments expected from seven global projects [3][4]. - The company is expanding its global manufacturing network, with a focus on achieving breakeven at its Ireland site in 2025 and increasing drug substance capacity in the U.S. [3][4]. Financial Summary - Revenue is projected to grow from RMB 18,236 million in FY24E to RMB 20,687 million in FY25E, representing a 13.4% increase [5][12]. - Adjusted net profit is expected to rise from RMB 4,739 million in FY24E to RMB 5,358 million in FY25E, reflecting a 13.0% growth [5][12]. - The adjusted earnings per share (EPS) is forecasted to increase from RMB 1.15 in FY24E to RMB 1.30 in FY25E [5][12]. Target Price Adjustment - The target price has been raised from HKD 22.88 to HKD 24.24 based on a discounted cash flow (DCF) model, with a weighted average cost of capital (WACC) of 9.64% and a terminal growth rate of 2.0% [4][6].

Investment Rating - The report maintains a "Buy" rating for iQIYI, with a target price adjusted to $3.00 based on a 12x P/E ratio for FY2025 [1][2][13]. Core Insights - iQIYI's total revenue for Q4 2024 is expected to decline by 14% year-on-year to RMB 6.6 billion, primarily due to reduced content offerings and a decrease in transaction offset revenue [1]. - The company anticipates a 7% quarter-on-quarter increase in non-GAAP operating profit for Q4 2024, reaching RMB 395 million, attributed to stringent content cost control [1]. - The competitive landscape in the online video market is expected to remain intense, leading to a cautious outlook on revenue and profit recovery for 2025 [1]. Revenue Breakdown - Membership revenue is projected to decline by 15% year-on-year and 6% quarter-on-quarter to RMB 4.1 billion in Q4 2024 [1]. - Online advertising revenue is expected to decrease by 13% year-on-year but increase by 7% quarter-on-quarter to RMB 1.4 billion, driven by brand advertising growth [1]. - Content distribution revenue is forecasted to drop by 20% year-on-year to RMB 404 million, mainly due to a decline in transaction exchange revenue [1]. Financial Projections - Revenue estimates for FY2024 have been revised down by 7%-10%, with total revenue projected at RMB 29.2 billion for FY2024 and RMB 30.0 billion for FY2025 [11]. - The adjusted net profit for FY2024 is expected to be RMB 1.49 billion, with a projected increase to RMB 1.80 billion in FY2025 [3][11]. - The report indicates a projected operating profit margin of 6.0% for Q4 2024, reflecting a 0.9 percentage point increase quarter-on-quarter [2]. Valuation Metrics - iQIYI's current P/E ratio is estimated at 8x based on FY2025 earnings, significantly lower than the industry average of 23x, indicating substantial downside protection [2][13]. - The target price of $3.00 represents a potential upside of 61.3% from the current price of $1.86 [3].