Investment Rating - The report maintains a BUY rating for Maxscend with an adjusted target price (TP) of RMB100, down from the previous TP of RMB174, indicating a potential upside of 50.7% from the current price of RMB66.35 [2][4]. Core Insights - Maxscend's revenue grew by 37% year-over-year (YoY) to RMB2.3 billion in 1H24, primarily driven by clients' restocking behavior, although gross profit margin (GPM) declined to 42.1%, down 6.9 percentage points from 1H23 due to an unfavorable revenue mix and intensified competition [2]. - The discrete products revenue increased by 15% YoY in 1H24, while module products surged by 81% YoY, with module revenue contribution rising from 29% in 2022 to 45% in 1H24 [2]. - Future growth is expected to be driven by the modulization trend in the RFFE sector, with projected module sales growth of 37% and 30% YoY for 2024 and 2025, respectively [2]. - Despite a challenging market environment, Maxscend is anticipated to benefit from the semiconductor localization trend in China, with its fabrication capabilities serving as a cornerstone for long-term development [2]. Financial Summary - Revenue projections for FY24E, FY25E, and FY26E are RMB5,002 million, RMB6,069 million, and RMB7,154 million, respectively, reflecting a decrease of 6% and 8% from previous estimates for FY25E and FY26E [5][6]. - Gross profit for FY24E is estimated at RMB2,094 million, with a gross margin of 41.9%, while net profit is projected at RMB818 million, translating to an EPS of RMB1.53 [5][6]. - The report indicates a significant reduction in earnings forecasts for 2024 and 2025, with cuts of 31% and 27% due to GPM pressures from a prolonged price war [2][5].

2 Sep 2024 CMB International Global Markets | Equity Research | Company Update Mindray (300760 CH) Robust performance in a challenging industry environment Mindray achieved a revenue of RMB20.5bn in 1H24, marking an 11.1% increase YoY, and reported an attributable net profit of RMB7.6bn, up 17.4% YoY. Despite the ongoing regulatory adjustments in the healthcare industry and the delay in medical equipment renewals projects, which have led to a cautious approach towards bidding and procurement activities in p ...

2 Sep 2024 CMB International Global Markets | Equity Research | Company Update Wingtech (600745 CH) 1H24 results review: Challenging 1H; looking for recovery in 2H Wingtech 1H24 sales were up 15% YoY to RMB33.6bn, driven by strong ODM sales (up 27% YoY), partially offset by weaker semiconductor sales (down 8% YoY). NP declined 89% YoY to RMB140mn, as GPM deteriorated to 9.5% in 1H24 (vs. 17.6%/14.7% in 1H23/2H23). Semi. GPM showed signs of recovery (up 7.7ppt in 2Q). We expect ODM GPM to improve in 2H24 to ...

Investment Rating - The report maintains a "BUY" rating for United Imaging, with a target price adjusted to RMB 125.83, indicating a potential upside of 19.0% from the current price of RMB 105.71 [2][3]. Core Insights - United Imaging demonstrated resilient performance in 1H24, with revenue of RMB 5,333 million, a year-on-year increase of 1.2%, and attributable net profit rising by 1.3% to RMB 950 million despite market challenges [2]. - The company's gross margin improved by 1.7 percentage points year-on-year to 50.4% in 1H24, driven by increased revenue from mid-to-high-end products and services [2]. - The interim dividend plan announced includes a total cash dividend of approximately RMB 98.2 million, representing a payout ratio of over 10% [2]. Revenue Performance - In 1H24, equipment revenue decreased by 1.8% year-on-year to RMB 4,540 million, primarily due to delays in procurement activities [2]. - The overseas business achieved revenue of RMB 933 million, up 29.9% year-on-year, accounting for 17.5% of total revenue, with significant growth in Asia-Pacific, North America, and emerging markets [2]. - Revenue from maintenance services increased by 23.8% year-on-year to RMB 617 million, contributing 11.6% to total revenue [2]. Market Share and Product Innovation - United Imaging expanded its market share in the domestic medical equipment market, with significant gains in high-end and ultra-high-end products [2]. - The market share of mid-to-high-end CT systems increased by 11 percentage points year-on-year, while ultra-high-end CT systems saw an 8 percentage point increase [2]. Financial Projections - Revenue projections for FY24E are set at RMB 11,501 million, with expected growth of 0.8% year-on-year, followed by a projected increase to RMB 14,337 million in FY25E [3][6]. - The adjusted net profit for FY24E is estimated at RMB 2,021 million, with a growth forecast of 2.4% year-on-year [3][6]. - The report anticipates a gradual recovery in hospital procurement starting from 4Q24 [2].

2 Sep 2024 CMB International Global Markets | Equity Research | Company Update Atour Lifestyle (ATAT US) Guidance raised again plus massive dividends The hotel sector continues to be under pressure in 3Q24E and we are still cautious about a potential improvement in 4Q24E. However, Atour's retail sales business and better-than-expected sales of hotel supplies can still more than offset the drags from its hotel segment. Moreover, the new dividend payout policy is a big positive surprise and could raise its FY ...

Investment Rating - The report maintains a "BUY" rating for China Life with a revised 12-month target price of HK$15.5, implying a 31.1% upside from the current price of HK$11.82 [4][6]. Core Insights - China Life reported strong first-half results with a year-on-year increase in new business value (NBV) of 18.6% to RMB32.3 billion and a 11.4% growth in embedded value (EV) to RMB1.4 trillion [2][11]. - Investment income surged 140.3% year-on-year to RMB56.7 billion, significantly contributing to a 27.6% increase in pre-tax profit to RMB47.9 billion in 1H24 [2][10]. - The bancassurance segment showed remarkable margin expansion, with NBV margin increasing by 13.4 percentage points to over 17% [2][11]. Financial Performance - Total investment assets reached a record high of RMB6.1 trillion, with a notable increase in fair value through other comprehensive income (FVOCI) stocks, which rose 131% from the beginning of the year to RMB34.1 billion [2][15]. - The company achieved a net investment yield of 3.33% and a total investment yield of 3.59% in 1H24, reflecting a positive investment variance in EV of RMB6.7 billion [10][15]. - The first-year regular premiums (FYRP) grew by 9.4% year-on-year to RMB42.6 billion, accounting for 43.8% of total FYRP in 1H24 [2][12]. Valuation Metrics - The stock is currently trading at 0.2x P/EV and 0.6x P/B for FY24E, indicating potential for a stock re-rating based on resilient financial results [6][8]. - The report highlights a target price of HK$15.5 based on a P/EV versus return on embedded value (ROEV) approach, reflecting improved underwriting and investment outcomes [6][8]. Business Segments - The agency channel remains the primary contributor to NBV, accounting for 90.8% of total NBV in 1H24, with a margin increase to 30.6% [11][12]. - The bancassurance channel experienced a significant decline in single-paid premiums, down 78.2% year-on-year, indicating a strategic shift towards higher-margin products [2][11]. Future Outlook - The company anticipates a rebound in investment income in the second half of 2024, supported by a low comparative base from the previous year [2][6]. - Management expects a diversification in product mix with a higher proportion of participating policies following recent interest rate cuts [2][11].

30 Aug 2024 CMB International Global Markets | Equity Research | Company Update Akeso (9926 HK) Eyes on the detailed head-to-head data of AK112 at WCLC in Sep In 1H24, Akeso recorded RMB1.03bn in revenue, including RMB939mn from product sales. Cadonilimab/AK104 (PD-1/CTLA-4) recorded RMB706mn in sales in 1H24, +16% YoY or -6% HoH, accounting for 39% of our previous full-year estimate. We attribute the weaker-than-expected sales performance to the preparation for NRDL inclusion. Recall that Akeso reduced the ...

2 Sep 2024 CMB International Global Markets | Equity Research | Company Update SANY Heavy (600031 CH) Expect a better 2H24E but consensus remains high; Maintain HOLD During the post-results call, SANY Heavy (SANY) remained positive on the overseas outlook despite the recent weakness of excavators in Europe and the US. SANY expects the sales in the US to see potential stabilisation in 2025E, while the growth in emerging countries will continue to be strong. For 2H24E, SANY expects China's sales to stabilize ...

30 Aug 2024 CMB International Global Markets | Equity Research | Company Update Salesforce (CRM US) cRPO growth reaccelerates; eyes on new AI product launch Salesforce reported 2QFY25 financial results: total revenue grew by 8% YoY to US$9.33bn, in line with consensus estimate; non-GAAP operating income was up by 16% YoY to US$3.14bn, 6% ahead of consensus estimate thanks to the disciplined expense control. cRPO growth reaccelerated to +11% YoY on a constant currency basis in 2QFY25 (1QFY25: +10% YoY), prim ...

Baozun (BZUN US) 2Q loss reduction trend better than expectation Baozun delivered better-than-feared 2Q24 results: total revenue was RMB2.4bn, up 3% YoY, driven by a 9% YoY increase in services revenue, and was 2% better than consensus; non-GAAP net loss attributable to ordinary shareholders of Baozun came in at RMB3.9mn, narrowed from RMB4.4mn in 2Q23, and was better than consensus of RMB16.6mn in loss. Baozun E-commerce's (BEC) top line growth has turned around to YoY positive growth after 10 consecutive ...