Investment Rating - The report initiates coverage on EDA Group with a "Buy" rating and sets a target price of HK$3.57, representing a 53.2% upside from the current price of HK$2.33 [1]. Core Insights - EDA Group is positioned to benefit from the rapid growth of the B2C export e-commerce market, with a projected revenue CAGR of 31.9% from 2023 to 2026 and an adjusted net profit CAGR of 34.3% [1][2]. - The company ranks seventh among B2C export e-commerce supply chain solution providers in mainland China, with a market share of approximately 0.4% as of 2022 [1][6]. - EDA's cloud platform is a key competitive advantage, enhancing operational efficiency and enabling seamless integration of logistics and supply chain services [1][7]. Summary by Sections Company Overview - EDA Group provides end-to-end supply chain solutions for e-commerce vendors, integrating cross-border logistics, overseas warehousing, and fulfillment services into its proprietary EDA Cloud platform [10][15]. Market Analysis - The B2C export e-commerce supply chain solutions market experienced a CAGR of 28.8% from 2017 to 2022, reaching a market size of RMB 402.4 billion in 2022, with expectations to grow to RMB 621.3 billion by 2027 [5][27]. - The market is characterized by a shift towards pre-sale inventory models, which are expected to grow at a CAGR of 14.5% from 2022 to 2027, driven by improved shopping experiences and faster delivery times [5][27]. Financial Forecast - Revenue projections for EDA indicate growth from RMB 709 million in FY22 to RMB 2,776 million by FY26, with a significant increase in adjusted net profit from RMB 36.8 million in FY22 to RMB 222.6 million by FY26 [2][4]. Competitive Advantages - EDA's cloud platform is highlighted as a critical asset, facilitating efficient connections between logistics providers and B2C e-commerce platforms, thus improving operational efficiency [7][20]. - The company maintains long-term strategic partnerships with major clients, enhancing its ability to deliver differentiated value and ensuring stable revenue streams [8][22]. Customer Base - EDA has served over 850 clients, with a growing number of core customers contributing significantly to its revenue, indicating a robust and expanding customer base [8][22].

Investment Rating - The report maintains a "BUY" rating for the company, with an adjusted target price (TP) of RMB186, reflecting a 19.1% upside from the current price of RMB156.16 [1][3]. Core Insights - The company reported a solid performance in Q3, with revenue increasing by 115.2% year-over-year (YoY) and 9.4% quarter-over-quarter (QoQ), while net profit rose by 104.4% YoY and 3.3% QoQ, aligning with expectations [1]. - Management indicated that the sequential revenue growth slowdown was due to supply chain bottlenecks and unfavorable USD/RMB exchange rate fluctuations, but double-digit growth was still achieved when excluding these impacts [1]. - Strong demand for high-speed optical products, particularly 400G and 800G, is expected to drive growth, with mass shipments of 1.6T products anticipated in the coming months [1]. - Price increases in the optical supply chain driven by AI demand may lead to higher raw material costs, but the company is well-positioned to pass these costs onto customers due to strong product demand [1]. Financial Performance Summary - Revenue is projected to grow from RMB24.27 billion in 2024E to RMB34.15 billion in 2025E, representing a 40.7% increase [7]. - Net profit is expected to rise from RMB5.28 billion in 2024E to RMB7.63 billion in 2025E, reflecting a 44.5% growth [7]. - Gross profit margin (GPM) is expected to remain stable around 33.3% in Q3 2024, while net profit margin (NPM) is projected at 21.4% [1]. Market Position and Shareholder Structure - The company has a significant shareholding structure, with Shandong Zhongji Investment Holdings Co. holding 11.3% and Wang Weixiu holding 6.2% [3]. - The stock is currently trading at 22.5x 2025E P/E, which is below its 5-year historical average of 26.9x [1][3].

Investment Rating - The report maintains a "BUY" rating for New Oriental, with a target price of US$87.00, down from the previous target of US$95.00, indicating a potential upside of 29.6% from the current price of US$67.13 [4][2]. Core Insights - New Oriental reported a net revenue growth of 30.5% YoY to US$1,435 million in 1QFY25, aligning with estimates. Non-GAAP net income increased by 39.8% YoY to US$265 million, driven by improved operating margins in core educational services [2]. - The company anticipates a revenue growth of 25-28% YoY for 2QFY25, with expectations of reaccelerated growth in 3Q and 4Q, maintaining a full-year growth outlook of approximately 30% YoY for FY25 [2]. - The report highlights strong performance in core educational businesses, with overseas-related revenue up 19% YoY and new educational initiatives growing by 50% YoY in 1QFY25 [2]. - The tourism business showed significant growth, with a 221% YoY increase in revenue from study tours and research camps for K12 and university students [2]. Financial Summary - For FY25E, total revenue is projected at US$5,216 million, with adjusted net profit expected to reach US$516.9 million. The adjusted EPS is forecasted at US$3.12 [3][11]. - The report indicates a gross margin of 54.3% and an operating margin of 9.7% for FY25E, with expectations for gradual improvement in profitability metrics over the following years [6][14]. - The company’s total assets are projected to grow from US$7,532 million in FY24 to US$10,634 million by FY27, reflecting a strong balance sheet position [12]. Valuation Methodology - The valuation employs a sum-of-the-parts (SOTP) approach, attributing US$83.4 million to the educational and consulting business, US$1.0 million to East Buy, and US$2.6 million to tourism and other ventures [8][9]. - The educational and consulting segment is valued at a premium PE of 27x FY25E, reflecting New Oriental's leadership in the educational services market in China [8].

Investment Rating - The report maintains a "BUY" rating for iQIYI, indicating a potential return of over 15% over the next 12 months [1][6]. Core Views - iQIYI's 3Q24 results are expected to be largely in line with previous expectations, with total revenue forecasted to decline by 10% YoY and 3% QoQ to RMB7.2 billion, primarily due to macroeconomic uncertainties affecting advertising budgets and a lack of blockbuster content impacting membership revenue growth [1]. - Non-GAAP net income for 3Q24 is projected to decline by 32% YoY but increase by 68% QoQ to RMB426 million, driven by foreign exchange gains from CNY appreciation [1]. - The company is facing pressure in both membership and advertising businesses, with membership revenue expected to drop by 13% YoY and 3% QoQ to RMB4.4 billion, and online advertising revenue anticipated to decline by 21% YoY and 9% QoQ to RMB1.3 billion [1]. - iQIYI is implementing new initiatives to revitalize business growth, including launching Short Play Theatre and Mini Play Theatre for premium members, developing AI agent TaoDou 2.0, and introducing more Chinese content to overseas markets [1]. - The target price for iQIYI has been lowered by 4% to US$4.80, based on a 15.0x FY25E P/E, reflecting a discount to the sector average due to intense competition in the video streaming sector [6][7]. Financial Summary - For FY24E, total revenue is estimated at RMB30.2 billion, with a slight decrease of 0.1% from previous estimates for FY25E and FY26E [5]. - Gross profit for FY24E is projected at RMB7.5 billion, with a gross margin of 24.7% [5]. - Non-GAAP net profit for FY24E is expected to be RMB1.8 billion, with a non-GAAP EPS of RMB1.9 [5]. - The report indicates a decline in gross margin by 5.1 percentage points YoY to 22.0% in 3Q24, primarily due to operating deleverage [1].

Investment Rating - The report maintains a "BUY" rating for Ping An, with a revised target price of HK$65.1, representing a 35.2% upside from the current price of HK$48.15 [2][5]. Core Insights - Ping An reported robust earnings growth in Q3, with Group net profit and Life & Health (L&H) New Business Value (NBV) more than doubling year-on-year. The Group's Operating Profit After Tax (OPAT) attributable to shareholders grew 5.5% YoY to RMB 113.8 billion, indicating a steady recovery trajectory [1][10]. - The L&H NBV rose 34.1% YoY to RMB 35.2 billion in the first nine months of 2024, with Q3 showing a remarkable growth of 110.2% YoY to RMB 12.8 billion, driven by margin expansion and a stable agency force [1][11]. - The Property & Casualty (P&C) segment saw OPAT surge 455% YoY to RMB 4.0 billion in Q3, supported by improved underwriting and a better combined ratio [1][12]. Summary by Sections Earnings Performance - Group NPAT rose 36.1% YoY in the first nine months of 2024, with a significant surge of 1.51x YoY in Q3. The L&H segment's OPAT grew 3.0% YoY, while P&C's OPAT saw a dramatic increase [1][10][15]. - The report revises FY24-26 EPS forecasts upward by 14%/7%/3% to RMB 7.44/7.57/7.90, reflecting a clearer outlook for profitability [5][6]. New Business Value (NBV) - The L&H NBV margin increased to 25.4%, with expectations to rise to ~26% by the end of FY24. The agency force stabilized at 362,000 agents, contributing significantly to the NBV growth [1][11][7]. - Bancassurance NBV surged 68.5% YoY, driven by a favorable product mix and margin expansions [1]. Investment Performance - The comprehensive investment yield (CIY) reached 5%, up 1.2 percentage points YoY, indicating a positive investment experience variance that could enhance the Group's embedded value [6][14]. - The report anticipates better-than-expected earnings in the second half of 2024, supported by rebounding investment income and a low base from Q4 2023 [1][5]. Valuation Metrics - The stock is currently trading at 0.54x FY24 P/EV and 0.81x FY24 P/B, which is above the historical average for H-share listed Chinese insurers. The report suggests limited downside risk due to the turnaround in fundamentals [1][5][9]. - The sum-of-the-parts valuation assigns target multiples of 1.19x for L&H, 0.72x for P&C, and 0.90x for banking, leading to a target valuation of RMB 1,059 billion for the Group [8][9].

Investment Rating - The report maintains a "BUY" rating for Yancoal Australia with a target price of HK$42, indicating a potential upside of 36.1% from the current price of HK$30.85 [1][11][18]. Core Insights - Yancoal's sales volume in Q3 2024 increased by 21% year-on-year, with total attributable sales volume reaching 10.4 million tonnes, which is 73% of the full-year estimate of 37.3 million tonnes [1][2]. - The average selling price (ASP) for blended coal dropped by 14% year-on-year in Q3 2024, with metallurgical coal ASP decreasing by 28% year-on-year [1][2]. - The company reported a revenue of approximately A$1.78 billion in Q3 2024, reflecting a 5% year-on-year increase [1][2]. - Yancoal's financial position remains solid, with a gross cash balance of A$1.98 billion as of the end of September 2024 [1][2]. Sales Volume and Production - In Q3 2024, metallurgical coal sales volume increased by 17% year-on-year to 9 million tonnes, while thermal coal sales volume rose by 19% year-on-year to 27.3 million tonnes [1][2]. - The total marketable coal production for Yancoal in Q3 2024 was 12.4 million tonnes, a 2% increase year-on-year [2][3]. Financial Performance - For FY 2024, Yancoal is expected to generate revenue of A$7.138 billion, down from A$7.778 billion in FY 2023, reflecting a year-on-year decline of 8.2% [1][13]. - The net profit for FY 2024 is projected to be A$1.389 billion, a decrease of 23.7% compared to FY 2023 [1][13]. - The earnings per share (EPS) for FY 2024 is estimated at A$1.05, down from A$1.38 in FY 2023 [1][13]. Valuation and Assumptions - The valuation is based on net present value (NPV) calculated from future cash flows, with long-term thermal and metallurgical coal prices assumed at A$130/tonne and A$200/tonne respectively starting in 2027 [11][12]. - The report uses a weighted average cost of capital (WACC) of 6.7% for its valuation [11][12].

Investment Rating - Maintain BUY rating with a target price of HK$4 25 based on 13x FY25E P/E [1][30] Core View - FIT Hon Teng is identified as the GB200 server winner in the H-share tech space, benefiting from the GB200 server ramp in 2025 [1] - AI server revenue is estimated to reach US$484mn/823mn, accounting for 11%/16% of FIT's earnings in 2025/26E [1] - In the bull case, revenue could reach US$886mn in FY25E [1] - FIT is expected to benefit from GB200 server rack ramp with share gains over the next few years [1] Earnings Summary - Revenue is forecasted to grow from US$4 531mn in FY22 to US$7 347mn in FY26E, with a YoY growth of 30 8% in FY25E [2][26] - Net profit is expected to increase from US$170 1mn in FY22 to US$384 9mn in FY26E, with a YoY growth of 62 8% in FY25E [2][26] - EPS is projected to rise from US$2 42 cents in FY22 to US$5 42 cents in FY26E [2][26] AI Server Opportunity - FIT is a key component supplier for GB200 NVL72/36, including compute tray connectors/cables, NVLink copper cables, power busbar, liquid cooling components, and GPU sockets [1] - GB200 server revenue is estimated to reach US$422mn/886mn (base/bull) in FY25E [1] - Compute tray connector/cables and NVLink copper cables are expected to deliver US$115mn/291mn in FY25E [1] - Liquid cooling components and GPU sockets are forecasted to generate US$0 6mn/4 6mn in FY25E [1] Latest Developments - FIT is developing CPO solutions and launched the conceptual design of FITConn 800G high-speed connector module for AI connectivity [1] - Hon Hai showcased GB200 NVL72 racks and liquid cooling components at HHTD 2024 [1] - FIT is under qualification for server UQDs and is developing UDQs for use inside the server and on the CDM [19] Valuation - Trading at 9 5x FY25 P/E, valuation remains attractive compared to 42%/63% EPS growth in FY24/25E [1] - Upcoming catalysts include GB200 updates and 3Q24 results in November [1] Financial Summary - Revenue is expected to grow from US$4 531mn in FY22 to US$7 347mn in FY26E, with a YoY growth of 30 8% in FY25E [26] - Net profit is forecasted to increase from US$170 1mn in FY22 to US$384 9mn in FY26E, with a YoY growth of 62 8% in FY25E [26] - EPS is projected to rise from US$2 42 cents in FY22 to US$5 42 cents in FY26E [26]

23 Oct 2024 CMB International Global Markets | Equity Research | Company Update Baidu (BIDU US) Awaiting recovery of ads revenue growth We expect Baidu Core business to deliver broadly inline-with-consensus revenue, and slightly better-than-consensus non-GAAP operating profit for 3Q24E. Although proactive business adjustments to embed more GenAI-related results in search results weigh on short-term monetization, we view the adjustments as vital for Baidu's long-term business development and monetization imp ...

18 Oct 2024 Earnings Summary CMB International Global Markets | Equity Research | Company Update DPC Dash (1405 HK) Our view on placement by Domino's Pizza What is new? Sales of shares by the 2nd largest shareholder of DPC Dash (1405 HK). Domino's Pizza (DPZ US), the 2nd largest shareholder of DPC Dash (1405 HK), has sold 10mn shares (about 7.66% of total shares issued), at the price of HK$ 65.0 per share, with a 12.8% discount to last closing price of HK$ 74.55. After this trade, Domino's Pizza's ownership ...

Investment Rating - The report maintains a "Buy" rating for WuXi AppTec (药明康德) and raises the target price to 67.72 RMB, reflecting reduced uncertainty from the biosecurity bill and growth in backlog orders [2][4][11]. Core Insights - The impact of the biosecurity bill is expected to be limited, with the company's U.S. operations likely to remain stable despite potential legislative changes [2][13]. - WuXi AppTec has a significant capacity advantage over its peers in India and the U.S. in the chemical drug CDMO sector, making it unlikely for foreign competitors to take over market share in the near term [2][10]. - The company's business is poised for recovery, driven by strong growth in its peptide business and an increase in backlog orders, which grew by 22.4% compared to the end of 2023 [2][12][21]. Financial Performance - The projected revenue growth for WuXi AppTec is -4.4% in 2024E, followed by +10.9% in 2025E and +13.2% in 2026E [2][3]. - Adjusted non-IFRS net profit is expected to decline by 8.4% in 2024E, then increase by 11.5% in 2025E and 14.4% in 2026E [2][3]. Market Position - WuXi AppTec's revenue for its chemical segment in 2023 was 4.14 billion USD, significantly higher than the combined revenue of 10 comparable Indian companies, which totaled 3.15 billion USD [21][22]. - The company has a robust R&D and capital expenditure strategy, with its R&D spending far exceeding that of its Indian counterparts, indicating a strong commitment to innovation and capacity expansion [21][22][24]. Growth Drivers - The peptide business has emerged as a key growth engine, with increasing demand for innovative drugs in metabolic disease areas [2][12]. - The anticipated decline in interest rates by the Federal Reserve is expected to boost global early-stage pharmaceutical financing, further enhancing WuXi AppTec's growth prospects [2][12].