CMB International Global Markets | Equity Research | Company Update MN Shennan Circuit (002916 CH) Earnings Summary SCC released 1H24 results. Revenue went up by 38% YoY to RMB8.3bn, with double-digit growth across all segments (PCB/Substrate/PCBA: 25%/94%/42% YoY). NP increased by 108% YoY to RMB987mn, on higher GPM (26.2% in 1H24 vs. 22.9%/23.8% in 1H/2H23) and cost optimization. SCC delivered strong 1H24 results, driven by 1) strong AI demand, 2) Eagle Stream upgrades, 3) robust auto orders, 4) inventory ...

农夫山泉(9633 HK) 1H24 错过 ， 茶叶成为最大的利润贡献者 农夫的 1H24 收入 由于包装水部门市场份额下滑，公司未能达到其指引。我 们预计该部门的收入增长率将保持在低个位数，因为市场份额的恢复需要时间 。茶饮料部门的收入同比增长59%，其收入份额接近水类的38%，营业利润率 （OPM）比水类高10个百分点。茶饮料取代了包装水成为公司的主要利润驱 动因素。鉴于下半年不利的环境和管理层态度的软化，我们认为公司在2024财 年实现两位数收入增长的目标具有挑战性。基于2024财年市盈率40倍，我们 将目标价下调13%至50.38港元，以反映较低的盈利预测。维持买入评级。 水部门受到市场份额损失的伤害 2024年上半财年（1H24）收入同比增长8.4 %，低于预期，主要是由于包装水业务收入同比下降18%，原因是在2月因网 上谣言导致品牌受损后市场占有率下降。公司观察到7月和8月市场占有率有所 恢复，但要回到2月前的水平还需要时间。我们预计全年包装水业务收入将实 现个位数低增长，这反映了中大型水业务增长对小型水业务下滑的部分抵消作 用。包装水业务的营业利润率（OPM）较上年同期下降了4.2个百分点，这是 ...

盛益科技(600183 CH) 上半年收益稳健 ； 高铜价在短期内影响不大 圣益科技发布了其2024年上半财年的业绩。收入同比增长22.2%/环比增长10.6 %，达到人民币96亿，主要得益于AI服务器的强劲需求、汽车订单的增长和库 存回补。同时，毛利率提升至21.6%（对比2023年上半年的19.3%和下半年的1 9.2%），得益于利用率的改善及高利润产品占比增加。因此，净利润增长了68. 0%/环比增长53.1%，达到9.32亿。2024年上半财年的收入/净利润占我们全年 预测的47%/43%。从季度角度看，第二季度的收入/净利润分别同比增长26%/7 6%、环比增长18%/38%，而毛利率提升至21.8%（对比2024年第一季度的21.3 %和2023年第二季度的18.9%）。鉴于铜价预计保持高位，我们认为圣益的CC L业务将逐步恢复。目前股价较过去五年历史平均值低一个标准差。考虑到铜价 可能维持高位，我们预计圣益的CCL业务将逐渐复苏。 维持买入价在 26.41 元不变。 | --- | --- | |-------------------------------------------------- ...

Investment Rating - The report maintains a "Buy" rating for Intron Tech with a target price of HK$2.35, down from the previous target of HK$5.53, reflecting a significant potential upside from the current price of HK$1.2 [4][13]. Core Insights - Intron Tech reported revenue of RMB 2.84 billion for the first half of fiscal year 2024, representing an 8% year-on-year increase, but net profit decreased by 37% to RMB 977 million due to increased competition and pricing pressure from automotive OEMs, leading to a gross margin decline to 15.9% [1][2]. - The management expects a recovery in net profit margins in the second half of fiscal year 2024, driven by new orders in the new energy and ADAS sectors, as well as expansion into overseas markets [2][4]. - The report has adjusted earnings per share forecasts for fiscal years 2024 and 2025 down by 43%-49% due to the weak performance in the first half of 2024 and anticipated cost pressures [2][4]. Revenue Summary - Intron Tech's revenue is projected to grow by 9% year-on-year in fiscal year 2024, while net profit is expected to decline by 29% [2][12]. - The revenue breakdown shows strong growth in the new energy (16%), automation and connectivity (13%), and cloud server segments (25%), while body control, safety, and powertrain segments experienced weaker growth [1][11]. - The gross profit margin for the first half of 2024 was 15.9%, down from 20.6% in the same period last year, reflecting pressures in the automotive supply chain [1][12]. Financial Projections - For fiscal year 2024, revenue is estimated at RMB 6.32 billion, with a gross profit of RMB 1.02 billion and a net profit of RMB 225 million [9][10]. - The projected earnings per share for fiscal year 2024 is RMB 0.21, with a significant decrease from previous estimates [10][12]. - The report anticipates a gradual recovery in profit margins in fiscal year 2025, with net profit expected to rise to RMB 371 million [2][9]. Valuation Metrics - Intron Tech's current price-to-earnings ratios are 5.4x for fiscal year 2024 and 3.2x for fiscal year 2025, which are considered attractive compared to industry peers [2][13]. - The report highlights that Intron Tech is undervalued, especially given its high return on equity (ROE) levels [13].

Investment Rating - The report assigns a "BUY" rating to the company, indicating a potential return exceeding 15% over the next 12 months [15]. Core Insights - The company reported strong growth in innovative drug sales, with a revenue of 6.51 billion RMB in the first half of the fiscal year 2024, including a 185 million USD upfront payment from GSK related to the licensing of HS-20093 [1]. - The innovative drug sales accounted for 77% of total revenue, with a year-on-year growth of 31.6% when excluding collaboration revenue [1]. - The company plans to distribute approximately 40% of its net profit of 2.73 billion RMB as dividends [1]. - The target price for the company's stock has been raised to HK$24.11 from HK$22.06, reflecting a 17% upside from the current price of HK$20.60 [1]. Financial Performance - For FY24E, the company expects total revenue to grow by 21% to 12.23 billion RMB, with organic revenue growth projected at 14.3% and 14.1% for FY24E and FY25E, respectively [3][4]. - The net profit is expected to increase by 33.3% to 4.37 billion RMB in FY24E, followed by a decrease of 25.1% in FY25E [4][12]. - The company has improved cost efficiency, with sales expense ratio decreasing to 33.7% from 37.5% in FY23 [1]. Product Pipeline and Growth Drivers - The company is expanding the indications for aumolertinib, with new drug applications accepted for postoperative adjuvant therapy and maintenance treatment for locally advanced unresectable non-small cell lung cancer [1]. - Aumolertinib's sales are expected to grow by 22% by the end of FY24, reaching 438 million RMB, with a target of 600 million RMB by 2026 [1]. - The company is also advancing its ADC pipeline, with HS-20093 showing promising early signals in clinical trials for small cell lung cancer [3]. Market Position and Competitive Landscape - As an early entrant in the third-generation EGFR-TKI market in China, the company is well-positioned to capture market share with its innovative products [1]. - The company is expected to submit another NDA for aumolertinib in combination with chemotherapy in Q4 2024, differentiating itself from domestic competitors [1]. Valuation Metrics - The report provides a DCF valuation with a target price of HK$24.11, based on a weighted average cost of capital of 8.52% and a terminal growth rate of 3.5% [5][7]. - The company's P/E ratio is projected to be 25.6x for FY24E, reflecting a strong growth outlook [12].

Investment Rating - The report maintains a "BUY" rating for BYDE with a target price of HK$45.28, indicating a potential upside of 53% from the current price of HK$29.50 [4][14][20]. Core Insights - BYDE reported a strong revenue growth of 40% year-on-year for 1H24, driven by increased market share in the Apple segment, recovery in the Android market, integration with Jabil, and robust performance in the New Energy Vehicle (NEV) sector [2][3]. - Despite the strong revenue growth, net profit only increased by 0.1% year-on-year, falling short of expectations due to a 1 percentage point decline in gross profit margin and a significant increase in sales expenses by 211% [2][3]. - The outlook for 2H24 remains positive, with expectations of strong revenue growth driven by the iPhone/iPad upgrade cycle, solid Android demand, and contributions from AI server products [3][14]. Financial Summary - For FY24E, revenue is projected to reach RMB 171.96 billion, with a year-on-year growth of 32.3%. Net profit is expected to be RMB 5.06 billion, reflecting a growth of 25.3% [6][16]. - The report highlights a decrease in gross profit margin to 6.8% in 1H24, down from the previous year, while sales expenses surged to RMB 902 million [3][6]. - The company is expected to see a recovery in gross profit margin in 2H24, with interest expenses projected to decrease significantly as BYDE transitions from USD loans to RMB loans [3][14]. Revenue Breakdown - Revenue from assembly, components, and new smart products showed significant year-on-year growth, with assembly and components growing by 36% and 206% respectively, while new smart products experienced a decline of 16% [6][16]. - The NEV segment is anticipated to continue driving growth, supported by new product launches and increasing market demand [3][14]. Valuation Metrics - The report assigns a P/E ratio of 18.3x for the target price calculation, with assembly and components businesses valued at 15x, reflecting their recovery potential and market positioning [14][20]. - The report also notes a projected P/B ratio of 2.5x for FY24E, indicating a favorable valuation relative to peers [14][20].

BYDE (285 HK) 1H24 first take: strong revenue growth dragged by GPM and selling expenses BYDE reported 1H24 revenue growth of 40% YoY, largely in-line with estimates, driven by Apple share gains, Android recovery, Jabil consolidation and strong NEV segment. Net profit growth of 0.1% YoY is below our/consensus estimate by 21%/15% YoY, mainly dragged by weaker GPM (-1ppt YoY) and higher selling expenses (+211% YoY). Mgmt. will host an analyst briefing at 9:30am HKT today (29 Aug), and we will look for details ...

Nongfu Spring (9633 HK) 1H24 missed, tea became top profit contributor Nongfu's 1H24 revenue missed company's guidance given its market share loss in the packaged water segment. We expect low single digit revenue growth for the segment since market share recovery takes time. Tea beverage revenue grew 59% YoY and delivered revenue share close to water of 38%, with a 10ppt higher in OPM than water segment. The tea beverage replaced the packaged water and became the company's top profit driver. We think that i ...

Investment Rating - The report maintains a "BUY" rating for Intron Tech [15][16]. Core Insights - Intron Tech reported 1H24 revenue of RMB 2.84 billion, an 8% year-over-year increase, but net profit fell to RMB 97.7 million, a 37% decline year-over-year, primarily due to a gross profit margin (GPM) decline to 15.9% [1][19]. - The company expects a recovery in net profit margin in 2H24E driven by new order wins in new energy and ADAS, as well as expansion into overseas markets [1][15]. - The target price has been adjusted to HK$ 2.35, based on a lowered 10x FY24E P/E, reflecting near-term industry headwinds [1][15]. Financial Performance - 1H24 revenue growth was driven by strong performance in the new energy segment, which grew 16% year-over-year, while other segments like body control and powertrain saw declines [1][12]. - The GPM for 1H24 was 15.9%, down from 20.6% in 1H23, indicating pricing pressures along the auto supply chain [1][19]. - The report projects FY24E revenue to be RMB 6.32 billion, with a net profit of RMB 225 million, reflecting a 29% decline year-over-year [10][19]. Segment Analysis - The new energy segment is expected to continue its growth trajectory, with revenue projected to reach RMB 3.26 billion in FY24E, reflecting a year-over-year growth of 17.1% [12][19]. - The body control segment is projected to grow modestly, with revenue expected to reach RMB 951 million in FY25E, reflecting a 5% year-over-year increase [12][19]. - The powertrain segment is anticipated to face challenges, with a projected revenue decline of 23.1% in FY24E [12][19]. Valuation Metrics - Intron Tech is currently trading at 5.4x FY24E P/E and 3.2x FY25E P/E, which is considered attractive compared to peers in the automobile components sector [15][16]. - The report highlights that Intron's high return on equity (ROE) levels further support its undervaluation [15][16]. Upcoming Catalysts - Key catalysts for future growth include increased penetration of ADAS technologies and gaining market share among new energy vehicle clients [1][15].

Hansoh Pharma (3692 HK) Strong sales growth of innovative drugs Strong sales growth of innovative drugs in 1H24. Hansoh reported RMB6.51bn revenue in 1H24, including US$185mn upfront payment from GSK regarding the out-licensing of HS-20093 (B7-H3 ADC). In 1H24, Hansoh recorded RMB5.10bn (+13.8% YoY) revenue from product sales, representing 48% of our previous FY24 estimate, in line with our expectations. In 1H24, 77% of the total revenue came from innovative drugs. Excluding collaboration revenue, the sales ...