Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 66.15, representing a potential upside of 29.2% from the current price of HKD 51.20 [4][21]. Core Insights - The company has shown strong online sales growth during the Double Eleven shopping festival, with its two main brands, Kefu Mei and Keli Jin, achieving GMV growth rates of over 80% and over 150% respectively compared to the previous year [2]. - The report highlights the successful marketing strategies on platforms like Douyin, which have significantly boosted sales, particularly for Kefu Mei, which saw a GMV increase of 120% on Douyin [2]. - The introduction of new products has also contributed to growth, with Kefu Mei's collagen stick and Keli Jin's new cream series driving substantial sales increases [2]. Financial Performance - Sales revenue is projected to grow from RMB 5,099 million in FY24E to RMB 9,187 million in FY26E, reflecting a compound annual growth rate (CAGR) of approximately 33.6% [3][22]. - Adjusted net profit is expected to rise from RMB 1,971 million in FY24E to RMB 3,130 million in FY26E, indicating a strong profitability trajectory [3][22]. - The company maintains a healthy net debt ratio, with a forecasted net debt ratio of -75.3% by FY26E, indicating a strong balance sheet [3]. Sales Growth and Market Position - Kefu Mei ranked 12th in the Tmall fast-moving consumer goods sales ranking and 4th in the skincare brand ranking during the Double Eleven event, showcasing its competitive position in the market [2][8]. - Keli Jin's new product launches have resulted in a GMV increase of 109% year-on-year, with significant contributions from its new cream and eye cream products [2]. - The report notes that the overall skincare category in e-commerce is experiencing robust growth, with Kefu Mei and Keli Jin leading the charge [12][13]. Earnings Forecast Adjustments - The earnings forecasts for FY24-26 have been slightly adjusted upwards, with revenue and profit estimates reflecting the strong sales momentum and successful product launches [16][20]. - The report anticipates that the company's gross margin will remain stable, with a projected gross margin of 82.20% in FY24E [16][20]. Valuation Metrics - The target price of HKD 66.15 corresponds to a 25x adjusted P/E ratio for FY25E and a 20x adjusted P/E ratio for FY26E, indicating a favorable valuation compared to industry peers [4][18]. - The DCF analysis suggests a strong intrinsic value for the company, with a calculated equity value of HKD 68.02 million [18].

Investment Rating - The report maintains a BUY rating for Tencent with a target price of HK$525.0, representing a 30% upside from the current price of HK$403.80 [3][7]. Core Insights - Tencent's total revenue for 3Q24 increased by 8% YoY to RMB167.2 billion, aligning with consensus estimates. Non-IFRS operating profit grew by 19% YoY to RMB61.3 billion, also in line with expectations. The company anticipates continued earnings growth in 4Q24, driven by accelerating game revenue and resilient marketing performance [1][2]. - Game revenue growth accelerated in the second half of 2024, with a 13% YoY increase to RMB51.8 billion in 3Q24. Domestic game revenue rose by 14% YoY, primarily due to strong performance from DnF Mobile, while international game revenue grew by 9% YoY [1][2]. - Marketing services revenue showed solid momentum, increasing by 17% YoY to RMB30.0 billion in 3Q24, driven by strong demand for Video Accounts, Mini Programs, and Weixin Search [1][2]. - The Fintech and Business Services (FBS) segment experienced a 2% YoY revenue growth to RMB53.1 billion in 3Q24, reflecting a deceleration due to soft consumption sentiment [1][2]. Financial Summary - For FY24E, Tencent's revenue is projected to reach RMB655.999 billion, with an adjusted net profit of RMB224.394 billion and an adjusted EPS of RMB23.17 [2][4][17]. - Gross margin is expected to improve from 48.1% in FY23A to 53.2% in FY24E, with operating margin increasing from 32.0% to 32.8% [2][4][17]. - The adjusted net profit forecast for FY25E is RMB241.929 billion, with an adjusted EPS of RMB24.98 [2][4][17]. Valuation Breakdown - The SOTP-derived target price of HK$525.0 includes valuations for various segments: HK$202.9 for online games, HK$30.4 for SNS, HK$102.6 for marketing services, HK$84.5 for fintech, HK$22.6 for cloud, and HK$68.8 for strategic investments [7][8][9][10][11]. - The valuation reflects Tencent's strong market position and growth potential across its diverse business segments [7][8][9][10][11]. Peer Comparison - Tencent's valuation metrics are competitive within the online games and advertising sectors, with an average PE of 18x for online games and 19x for marketing services compared to its peers [13][14]. - The report highlights Tencent's leadership in the digital payment market and its potential for growth in fintech, supported by a premium valuation compared to industry averages [10][14].

Investment Rating - Maintain BUY with a target price of US$276.02, down from the previous target price of US$288.93, indicating a potential upside of 42.5% from the current price of US$193.64 [3][21]. Core Insights - BeiGene reported strong product sales of US$993 million in 3Q24, representing an 8% quarter-over-quarter increase and a 67% year-over-year increase. Total product sales for the first nine months of 2024 reached US$2.66 billion, accounting for 69% of the previous full-year estimate [1][2]. - The company achieved non-GAAP profitability with a gross profit margin of 82.8% in 3Q24, despite a decrease from 85.0% in 2Q24 due to accelerated depreciation expenses. The SG&A ratio improved to 46% from 48% in the previous quarter [1][2]. - BeiGene's zanubrutinib (Zanu) sales increased by 8% quarter-over-quarter and 93% year-over-year to US$690 million in 3Q24, capturing approximately 25% of the global BTK inhibitor market [1][2]. Summary by Sections Financial Performance - Revenue for FY24E is projected at US$3.835 billion, with a net profit expected to improve to US$52 million in FY25E, compared to a net loss of US$603 million in FY24E [14][15]. - Gross profit is estimated at US$3.207 billion for FY24E, with a gross margin of 83.63% [16][19]. Product Development - BeiGene is advancing multiple clinical trials, including a Phase 3 study of sonrotoclax combined with zanubrutinib for first-line CLL, with full enrollment expected by 1Q25 [1][2]. - The company is also expanding cohorts for BGB-16673 in R/R CLL and plans to initiate a Phase 3 study for BTK CDAC in R/R CLL in 1H25 [1][2]. Market Position - Zanu continues to outperform competitors, with significant market share gains in the BTK inhibitor market, supported by strong sales growth in both the US and EU [1][2]. - The company is positioned to break even in FY25E, driven by strong sales momentum and improving operating margins [1][2].

Investment Rating - The report maintains a **BUY** rating for FIT Hon Teng (6088 HK) with a new target price of **HK$4.38**, representing a **40% upside** from the current price of HK$3.14 [2][16] Core View - The report is optimistic about FIT Hon Teng's growth prospects, driven by strong **3-year guidance (2025-27)** with a **20% revenue CAGR** and **GPM/OPM targets of 22%/8% by FY27E** [2] - Key growth drivers include **AI server/networking** (GB200 ramp-up, product portfolio expansion), **Auto-Kabel Group integration**, and **AirPods production capacity expansion** in India [2] - The company's **3Q24 results** were in-line with expectations, showing **accelerated margin recovery** with **GPM at 21.7%** and **OPM at 8.2%**, despite weakness in the EV segment [3] Financial Performance - For **FY24E**, the report estimates **revenue growth of 9% YoY** and **net profit growth of 43% YoY**, driven by **high single-digit revenue growth** and **GPM of 20%+** [3] - The company's **FY25-27E guidance** includes a **20% revenue CAGR**, with **GPM/OPM targets of 22%/8%**, supported by growth in **AI server, mobility, and audio products** [4] - **FY25E revenue** is projected at **US$5,896 million**, with **net profit of US$308.1 million**, representing a **67.2% YoY growth** [6] Valuation - The stock is trading at **9.3x/7.1x FY25/26E P/E**, which is considered attractive given the **67%/31% EPS growth** projected for FY25/26E [5] - The new target price of **HK$4.38** is based on a **13x FY25E P/E**, reflecting confidence in the company's **"3+3 Strategy"** and **profitability recovery** [16] Growth Drivers - **AI Server/Networking**: FIT Hon Teng is expected to benefit from **GB200 AI server component orders**, with **power busbar and CDU liquid cooling connectors** starting delivery in **4Q24E** [4] - **Auto-Kabel Integration**: The integration of Auto-Kabel is expected to close soon, contributing **meaningful revenue in FY25E** [4] - **AirPods Production**: The first production line in India is on track for **mass production in early FY25E**, with a second line to begin construction in **1H25E** [4] Revenue Breakdown - **Networking revenue** is expected to grow **59% YoY in FY24E**, driven by **AI server and traditional server growth** [11] - **Mobility revenue** is projected to grow **56% YoY in FY24E**, supported by **EV business and Voltaira contributions** [11] - **AirPods revenue** is expected to reach **US$591.6 million in FY25E**, growing significantly from **US$233.75 million in FY24E** [11] Scenario Analysis - The report provides a **bull, base, and bear scenario** for FIT's **AI server revenue in 2025**, with **total NVDA AI server revenue** ranging from **US$238.3 million (bear)** to **US$962.6 million (bull)** [13][14][15]

Investment Rating - The report maintains a "Buy" rating for Alibaba, Pinduoduo, and JD.com, indicating a potential upside of over 15% in stock prices over the next 12 months [10]. Core Insights - The overall GMV growth during the Double Eleven period (October 14 - November 11) was 11.4%, which is better than the previously expected low single-digit growth, suggesting that Q4 e-commerce GMV growth may exceed market expectations [1][2]. - The competition in live-streaming e-commerce continues to weaken, with platforms like Douyin and Pinduoduo still gaining market share, while JD.com is lagging behind [2]. - Taobao and Tmall's user-centric strategy has proven effective, with significant growth in 88VIP membership and brand performance during the Double Eleven period [3]. - JD.com has successfully tapped into the demand for home appliance upgrades, with a notable increase in user numbers and sales during the shopping festival [4]. - Pinduoduo continues to solidify its low-price strategy while expanding into higher-priced categories, showing strong performance in various product segments [4]. Summary by Sections E-commerce Performance - Major e-commerce platforms recorded varying GMV growth rates during the Double Eleven period, with Douyin at 18.8%, Pinduoduo at 15.8%, Tmall at 10.2%, and JD.com at 7.0%, indicating a trend towards industry average growth [2][6]. - The overall trend shows that live-streaming platforms are aligning more closely with the industry growth rate, reflecting a maturing market [2]. Taobao and Tmall - Taobao and Tmall have seen a significant increase in their core user base, with 88VIP membership orders growing over 50% year-on-year, and 589 brands achieving over 100 million yuan in sales during the Double Eleven period, a 46.5% increase [3]. JD.com - JD.com reported over 20% growth in shopping users and a 3.8 times increase in live-streaming sales orders, with over 90% of rural consumers participating in the appliance upgrade program [4]. Pinduoduo - Pinduoduo's strategy of enhancing low-price offerings while expanding into higher-value categories has resulted in a strong performance, particularly in fresh food and beauty products [4].

Investment Rating - The report maintains a **Buy** rating for FIT Hon Teng with a target price of **HK$4.25**, representing a **64.8% upside** from the current price of HK$2.58 [3][13] Core Views - FIT Hon Teng's **3Q24 revenue and net profit** grew by **1% and 24% YoY**, respectively, driven by improved product mix, cost control, and operational efficiency [1][2] - The company's **net profit margin (NPM)** recovered to **5.8% in 3Q24**, up from 1.1% and 2.0% in 1Q24 and 2Q24, respectively, supported by high-margin AI server products [1][2] - The **GB200 AI server products** are expected to start **small-volume shipments in 4Q24**, with mass production anticipated in **1Q25**, driving revenue growth in connectors, cooling, and power-related products [2][3] - The report forecasts **FY24E revenue and net profit growth** of **12% and 42% YoY**, respectively, with further improvements in operating efficiency and margins [2][13] Financial Performance - **FY24E revenue** is projected at **$4,677 million**, a **11.5% YoY increase**, while **FY25E revenue** is expected to grow **30.8% YoY** to **$6,117 million** [4][9] - **FY24E net profit** is estimated at **$183.5 million**, a **41.6% YoY increase**, with **FY25E net profit** expected to grow **62.8% YoY** to **$298.7 million** [4][9] - The **gross profit margin (GPM)** is expected to improve to **21% in FY24E**, up from **19% in FY23**, driven by better product mix and cost control [9][16] - **Operating profit margin (OPM)** is forecasted to increase to **7.0% in FY24E**, compared to **6.3% in FY23**, with further improvement to **7.7% in FY25E** [9][16] AI Server Opportunity - The **GB200/GB300 AI server revenue** is estimated to reach **$885.9 million** in a bull case scenario, with **$422.4 million** in a base case and **$191.3 million** in a bear case [11] - Key components contributing to AI server revenue include **connectors/cables**, **power/thermal solutions**, and **NVLink copper cables/connectors**, with FIT Hon Teng holding a **20% share** in connectors/cables and **5% in power/thermal solutions** [11] - The **HGX/MGX AI server revenue** is projected at **$76.7 million** in a bull case, with **$61.9 million** in a base case and **$47.0 million** in a bear case [12] Valuation - The target price of **HK$4.25** is based on a **13x FY25E P/E**, reflecting the company's growth potential and margin recovery [13] - The current share price implies a **12.9x FY24E P/E** and **7.9x FY25E P/E**, which is considered attractive given the company's growth prospects [13][14] - The **ROE** is expected to improve to **10.8% in FY25E**, up from **7.3% in FY24E**, driven by higher profitability and operational efficiency [4][20] Catalysts - Key catalysts include the **mass production of GB200 server products**, progress in the **Auto Kabel acquisition**, updates on **AirPods production in Vietnam/India**, and further **margin improvements** [3][13]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of $16.00 based on discounted cash flow (DCF) valuation methods [11][19]. Core Insights - The company reported a total revenue of RMB 7.02 billion for Q3 2024, a year-on-year increase of 7%, aligning with consensus expectations. Non-IFRS net profit grew by 29% to RMB 1.81 billion, also meeting expectations [1][2]. - The SVIP subscription service has reached a milestone of 10 million users, which is expected to drive future growth in music ARPPU (average revenue per paying user) and overall revenue [1][4]. - Online music revenue increased by 20% year-on-year to RMB 5.48 billion, supported by robust growth in both subscription and non-subscription revenues [1][4]. Revenue Summary - Total revenue for FY24E is projected to be RMB 28.25 billion, with a forecasted growth of 6% for Q4 2024, reaching RMB 7.31 billion [4][10]. - The online music segment is expected to see a 15% increase in revenue for Q4 2024, while social entertainment revenue is anticipated to decline by 17% [4][10]. Profitability Metrics - The gross profit margin (GPM) for Q3 2024 was reported at 42.6%, a year-on-year increase of 6.9 percentage points, attributed to strong growth in music ARPPU and advertising revenue [2][10]. - The non-IFRS net profit margin for Q3 2024 expanded to 25.9%, up 4.4 percentage points year-on-year [2][10]. User Growth and Engagement - The number of paying users increased by 2 million quarter-on-quarter to 119 million, representing a 16% year-on-year growth [1][4]. - The monthly ARPPU for Q3 2024 was RMB 10.8, reflecting a 4% year-on-year increase [1][4]. Financial Forecasts - For FY25E, the company expects further expansion in profit margins, with GPM projected to reach 44.5% and non-IFRS net profit margin at 28.2% [10][12]. - The adjusted net profit for FY25E is forecasted to be RMB 8.79 billion, with a continued focus on balanced growth in music subscription users and ARPPU [10][12]. Market Performance - The company's market capitalization is approximately $17.8 billion, with a 52-week high of $15.49 and a low of $7.43 [5][6]. - The stock has underperformed in the short term, with a 1-month decline of 9.6% and a 6-month decline of 13.4% [6][6].

Investment Rating - The report maintains a "BUY" rating for the company with a target price of US$16.00, indicating a potential upside of 38.5% from the current price of US$11.55 [3][7]. Core Insights - The company reported inline 3Q24 results with total revenue increasing by 7% YoY to RMB7.02 billion and non-IFRS net income growing by 29% YoY to RMB1.81 billion, both in line with estimates [1]. - The number of SVIP subscribers reached 10 million in September 2024, expected to drive future growth in music ARPPU and revenue [1]. - For FY25E, management anticipates accelerated revenue growth and margin improvement, supported by balanced growth in music subscribers and ARPPU [1]. Revenue and Profitability - Total revenue for FY24E is projected at RMB28.254 billion, with a growth forecast of 10.4% for FY25E to RMB31.193 billion and 10.2% for FY26E to RMB34.364 billion [2][4]. - Gross margin is expected to improve from 42.3% in FY24E to 44.5% in FY25E and 45.5% in FY26E, reflecting strong operating leverage and optimized content costs [4][12]. - Non-IFRS net profit is forecasted to grow from RMB7.332 billion in FY24E to RMB8.785 billion in FY25E and RMB10.297 billion in FY26E [2][4]. Online Music Business Performance - Online music revenue increased by 20% YoY to RMB5.48 billion in 3Q24, driven by both subscription and non-subscription revenue growth [1]. - The number of paid users rose by 2 million QoQ to 119 million in 3Q24, with monthly ARPPU increasing by 4% YoY to RMB10.8 [1][6]. - Advertising revenue showed strong growth in 3Q24, supported by ad-supported models and interactive ads [1]. Future Outlook - For 4Q24E, total revenue is expected to rise by 6% YoY to RMB7.31 billion, with online music revenue projected to grow by 15% YoY [1]. - The company plans to control promotion discounts for music subscriptions and drive further SVIP adoption, which is anticipated to support balanced growth in subscribers and ARPPU in FY25E [1]. - Management expects further margin expansion in FY25E, with gross margin projected to reach 43.3% and non-IFRS net margin at 27.0% [1][4].

Investment Rating - The report maintains a "BUY" rating for FIT Hon Teng with a target price of HK$4.25, indicating a potential upside of 64.8% from the current price of HK$2.58 [3][10][11]. Core Insights - FIT Hon Teng reported a 3Q24 revenue growth of 1% and net profit growth of 24% year-over-year, aligning with prior guidance. The company achieved a net profit margin recovery to 5.8% in 3Q24, significantly improved from 1.1% in 1Q24 and 2.0% in 2Q24, driven by higher-margin AI server products and better expense control [1][5]. - The outlook for 4Q24E is positive, with expectations for the GB200 AI server products to begin small volume shipments and mass production starting in 1Q25E. The report anticipates a revenue rebound of 12% and net profit growth of 42% year-over-year for FY24E [1][10]. Financial Performance Summary - For 3Q24, revenue was reported at US$1,174 million, with a net profit of US$68 million, reflecting a year-over-year growth of 0.8% and 23.9% respectively. For the first nine months of 2024, revenue and net profit grew by 9.9% and 118.8% year-over-year [5][13]. - The forecast for FY24E includes revenue of US$4,677 million and net profit of US$183 million, with respective year-over-year growth rates of 11.5% and 41.8% [6][13]. Earnings Forecasts - The report projects revenue growth for FY25E to reach US$6,117 million, representing a 30.8% increase year-over-year, and net profit is expected to grow to US$298 million, a 62.8% increase [6][13]. - The company is expected to maintain a gross profit margin of 20.6% and an operating margin of 7.0% for FY24E, with improvements anticipated in subsequent years [15]. Market Position and Strategy - FIT Hon Teng is positioned to benefit from the rollout of GB200 server products and ongoing mergers and acquisitions in the mobility sector. The report highlights the importance of product qualifications and updates on various projects, including AirPods production in Vietnam and India [1][10]. - The company's strategy includes a focus on high-margin AI server products, which are expected to drive significant revenue growth in the coming quarters [1][8].

Macro Economic Overview - Recent policy shift in China towards strong monetary easing has led to a significant rebound in economic activity, with high-frequency economic activity index rising from 0.87 in September to 1.02 in October, and GDP growth rate expected to increase from 4.8% in the first three quarters to 5% in the fourth quarter [7][11] - The manufacturing and services PMI have returned to expansion, indicating improved business activity and demand, while deflationary pressures have slightly eased [7][9] Technology Sector - The technology sector has seen a mild rebound, driven by new AI terminal products and increased capital expenditure from cloud service providers, with recommendations to focus on supply chains related to smartphones, AI PCs, and MR terminals [1][6] - Notable companies recommended for investment include Xiaomi Group (1810 HK), BYD Electronics (285 HK), and AAC Technologies (2018 HK) [1][6] Semiconductor Industry - The semiconductor sector remains cautiously optimistic, with strong demand related to AI continuing, while non-AI demand is in a slow recovery phase [1][6] - Recommendations include Zhongji Xuchuang (300308 CH) and Northern Huachuang (002371 CH), with a focus on companies benefiting from AI capital expenditure growth [1][6] Healthcare Sector - The healthcare sector is expected to outperform the market due to macroeconomic improvements and supportive policies for innovative drugs and medical equipment [2][6] - Recommended companies include WuXi AppTec (2359 HK), BeiGene (BGNE US), and Innovent Biologics (1801 HK) [2][6] Consumer Goods Sector - The consumer goods sector is anticipated to recover gradually, supported by new product launches and market share growth, with recommendations for companies like China Resources Beer (291 HK) and Proya Cosmetics (603605 CH) [2][6] - The food and beverage sector shows signs of recovery, with beer production experiencing positive growth for the first time since early 2023 [2][6] Automotive Industry - The automotive sector is experiencing a positive seasonal trend, with increased foot traffic and orders, and expectations for continued sales growth leading up to the Lunar New Year [4][6] - Recommended companies include Geely Automobile (175 HK) and Li Auto (LI US) [4][6] Real Estate Sector - The real estate sector shows optimism with a significant increase in contract sales among key developers, with a 72% month-on-month increase in October [4][6] - Recommended companies include China Resources Land (1109 HK) and Greentown Service (2869 HK) [4][6] Insurance Sector - The insurance sector is expected to see continued growth in net profits and new business value, with a focus on life insurance companies benefiting from policy expectations [5][6] - Recommended companies include China Life (2628 HK) and Ping An Insurance (2318 HK) [5][6] Capital Goods Sector - The capital goods sector is viewed positively, with engineering machinery companies maintaining a positive outlook for exports and capacity expansion [5][6] - Recommended company is Zoomlion Heavy Industry (1157 HK) [5][6]