Investment Rating - The report maintains a BUY rating for the company with a target price (TP) revised down by 9% to HK$ 25.35, implying a 36.9% upside from the current price of HK$ 18.52 [1][3]. Core Insights - The company experienced mixed performance in FY24, with net sales remaining flat at US$ 3.6 billion, while net profit decreased by 13% YoY to US$ 346 million, primarily due to higher selling expenses and fewer impairment reversals [1][2]. - Major markets such as Asia and North America saw declines of 3.6% and 1.2% YoY, respectively, but growth in Europe and Latin America offset these declines with increases of 3.1% and 17.0% YoY [1]. - The management anticipates a decline in sales for 1Q25, projecting a fall by low single digits to mid single digits, influenced by weak US consumer sentiment despite a recovery in Asia [1][9]. - Organic sales and net profit are expected to grow by 1.5% and 1.8% YoY in FY25E, respectively, supported by ongoing share buybacks and progress in dual-listing [1][9]. Financial Summary - For FY24, the company reported revenue of US$ 3,589 million, a decrease of 2.5% YoY, with a projected revenue of US$ 3,731 million for FY25E, reflecting a growth of 4.0% [2][32]. - The net profit for FY24 was US$ 346 million, down 12.9% YoY, with an expected slight recovery to US$ 351.8 million in FY25E [2][32]. - The report indicates a decline in gross profit margin from 60.0% in FY24 to an expected 59.5% in FY25E, while the operating profit margin is projected to remain at 17.1% [29][32]. Market Performance - The company's stock has seen a decline of 14.1% over the past month and 14.3% over the past three months, indicating a challenging market environment [5]. - The current market capitalization stands at HK$ 26,729.4 million, with an average turnover of HK$ 128.1 million over the last three months [3]. Shareholding Structure - Major shareholders include Schroders PLC with 6.0% and Bank of New York Mellon Corporation with 5.4% [4]. E-commerce Performance - In the first two months of FY25, online sales on major platforms like TBTM and JD.com decreased by 7% and 18% YoY, while sales on Douyin surged by 200% YoY, indicating a shift in consumer preferences and effective marketing strategies [9][15].

Investment Rating - The report maintains a "BUY" rating for EHang Holdings with an unchanged target price of US$30, indicating a potential upside of 44.6% from the current price of US$20.75 [3][21]. Core Insights - EHang has obtained the first-ever Operator Certificate (OC) for commercial operations of its pilotless passenger-carrying eVTOL aircrafts, which positions the company to conduct aerial tourism and air taxi services in Guangzhou and Hefei [1]. - The earnings forecast for 2025E and 2026E remains unchanged, reflecting confidence in the company's growth trajectory despite current losses [1]. Financial Summary - Revenue is projected to grow significantly from RMB 117 million in FY23A to RMB 1,646 million in FY27E, with year-on-year growth rates of 165.0% in FY23A and 288.5% in FY24A [2]. - Adjusted net profit is expected to improve from a loss of RMB 301.7 million in FY23A to a profit of RMB 246.4 million in FY27E [2]. - The company’s P/S ratio is forecasted to decrease from 81.2x in FY23A to 5.8x in FY27E, indicating a more favorable valuation as revenue increases [2]. Share Performance - The market capitalization of EHang is approximately US$1.31 billion, with an average turnover of US$46 million over the past three months [3]. - The stock has shown a 1-month decline of 9.6% but a 6-month increase of 47.5%, indicating volatility in the short term but positive performance over a longer period [5]. Shareholding Structure - The largest shareholder is Huazhi Hu, holding 30.7% of the shares, which may influence company decisions and strategic direction [4]. Customer Orders - EHang has secured significant orders, with a total of 1,210 aircraft orders (195 delivered and 1,020 intent orders) from various customers, indicating strong demand for its eVTOL products [9].

Investment Rating - The report maintains a "BUY" rating for Innovent Biologics, indicating a potential return of over 15% over the next 12 months [16]. Core Insights - Innovent Biologics is entering a phase of sustainable profitability, having achieved a full-year non-IFRS net profit of RMB332 million in FY24, driven by strong product revenue growth and one-off license fee income [8]. - The target price has been revised upwards from HK$57.67 to HK$61.71, reflecting a 33.6% upside potential from the current price of HK$46.20 [3][8]. - The company is advancing its next-generation immuno-oncology (IO) therapies and antibody-drug conjugates (ADCs), with significant clinical programs underway [8]. Financial Summary - Revenue is projected to grow from RMB6,206 million in FY23 to RMB11,356 million in FY25, representing a year-on-year growth of 51.8% [2][13]. - Net profit is expected to turn positive in FY25, reaching RMB445.7 million, with EPS projected at RMB0.27 [2][11]. - R&D expenses are forecasted to remain stable, while gross profit margin is expected to expand to 84.9% in FY24 from 82.8% in FY23 [2][8]. Share Performance - The market capitalization of Innovent Biologics is approximately HK$75.68 billion, with a 52-week high of HK$51.15 and a low of HK$30.00 [3][4]. - The stock has shown strong performance, with a 1-month absolute return of 14.2% and a 3-month return of 29.8% [5]. Pipeline and Growth Potential - Innovent has a robust pipeline with over 10 ADC clinical programs and is focusing on combination trials with its next-generation IO therapy, IBI363 [8]. - The company aims to initiate multiple Phase 3 trials by 2030, targeting global markets with its innovative therapies [8].

Investment Rating - The report maintains a "BUY" rating for Xunfei Healthcare, indicating a potential return of over 15% over the next 12 months [13]. Core Insights - Xunfei Healthcare reported a strong revenue growth of 32.0% YoY in 2024, reaching RMB 734.0 million, with a notable acceleration in growth from 17.8% in 1H24 to 39.6% in 2H24, driven by robust demand for medical AI services [1][2]. - The company improved its cost structure significantly, with SG&A expense ratio declining by 10.3 percentage points and R&D expense ratio falling by 10.4 percentage points, leading to a substantial narrowing of the net loss margin [1]. - Adjusted net loss narrowed by 21.4% YoY to RMB 44.8 million, with total R&D spending at RMB 296.8 million, representing 40.4% of revenue [1]. - The revenue mix improved, with hospital service revenue increasing by 103% YoY and patient service revenue rising by 57% YoY, indicating a shift towards higher contributions from both To B and To C segments [6]. - The company is well-positioned to lead the healthcare AI market, serving over 500 secondary and tertiary hospitals, including 40 of China's Top 100 hospitals [6]. Financial Summary - Revenue is projected to grow from RMB 734 million in 2024 to RMB 1,855 million by 2027, reflecting a CAGR of 37.9% from 2024 to 2026 [2][10]. - The adjusted net profit is expected to improve significantly, reaching RMB 120 million by 2027, with a YoY growth of 456.7% [2][10]. - The company’s net loss margin is projected to narrow from -8.10% in 2025E to 3.80% in 2027E, indicating a path towards profitability [7][11]. Market Position and Growth Potential - Xunfei Healthcare's data flywheel effect enhances its technological leadership, serving over 70,000 primary healthcare institutions and generating millions of AI-assisted diagnosis suggestions daily [6]. - The company maintains a leading position in the To G healthcare AI market, with a significant recovery in revenue from primary healthcare services in 2H24, increasing by 40% YoY [6]. - The target price for Xunfei Healthcare is set at HK$166.69, reflecting a 33.3% upside from the current price of HK$125.00 [3].

Investment Rating - The report maintains a BUY rating for Li Ning with a new target price of HK$ 19.81, reflecting an upside of 15.4% from the current price of HK$ 17.16 [3][17]. Core Insights - Li Ning's FY24 results were in line with market expectations, with a slight improvement in 4Q24 operating numbers. The company has provided conservative guidance for FY25E, targeting flat sales growth and a high single-digit net profit margin [1][14]. - The management anticipates stable growth in average selling price (ASP) and volume for FY25E, with a focus on improving the lifestyle segment while maintaining growth in running and basketball categories [1][12]. - The report indicates that the worst may be over for Li Ning, as early trends in 1Q25E show improvement, despite the high current valuation [1][14]. Financial Summary - FY24 revenue reached RMB 28.7 billion, a 4% year-on-year increase, while net profit fell by 5% to RMB 3.0 billion, resulting in a net profit margin of 10.5% [2][14]. - For FY25E, revenue is expected to remain flat at RMB 28.7 billion, with a projected net profit of RMB 2.67 billion, reflecting a decline of 11.3% year-on-year [2][12]. - The report revises down net profit forecasts for FY25E and FY26E by 23% and 20%, respectively, due to slower retail sales growth and increased advertising and promotion expenses [1][12]. Earnings Revision - The report shows a significant downward revision in earnings estimates, with FY25E revenue revised down by 5% to RMB 28.68 billion and net profit adjusted down by 22.9% to RMB 2.67 billion [12][13]. - Gross profit margin is expected to improve slightly to 49.6% in FY25E, while operating profit margin is projected to decline to 11.6% due to increased A&P expenses [12][16]. Market Position and Performance - Li Ning's market capitalization is approximately HK$ 44.9 billion, with a P/E ratio of 16x for FY25, which is considered relatively high [5][17]. - The company has a shareholding structure with significant stakes held by Viva China Holdings (10.4%) and GIC Pte Ltd. (5.0%) [6]. Sales Growth and Channel Performance - The report highlights that retail sales growth rebounded to high single digits in 4Q24, improving from a mid-single-digit decline in 3Q24 [14]. - Management expects improvements in retail discounts and a better channel mix, particularly with online sales, which typically yield higher operating margins [1][12]. Segment Performance - For FY25E, management projects a decline in clothing sales by 3% while expecting growth in shoe sales by 1.7% and equipment sales by 5% [16]. - The report indicates that the company is focusing on enhancing its lifestyle segment while maintaining its core categories of running and basketball [1][16].

Investment Rating - The report maintains a BUY rating for CR MixC Lifestyle with a target price of HK$45.3, reflecting a 29% upside from the current price of HK$35.10 [3][8]. Core Insights - CR MixC's FY24 revenue increased by 15% YoY to RMB 17 billion, slightly missing guidance by 3%, primarily due to a decline in value-added services (VAS) [8]. - Net profit rose 24% YoY to RMB 3.6 billion, exceeding guidance by 4%, driven by strong performance in shopping mall operations and effective cost control [8][9]. - The company aims for double-digit net profit growth in FY25, with an estimated 21%+ core net profit growth required to meet the 14th Five-Year Plan targets [8][10]. Financial Performance - FY24 revenue: RMB 17,043 million, with a YoY growth of 15.4% [2]. - FY24 net profit: RMB 3,629 million, with a YoY growth of 23.9% [2]. - The gross profit margin improved to 32.9% in FY24, up from 31.8% in FY23 [9][14]. - The company declared a 100% dividend payout based on core net profit, increasing the basic payout ratio to 60% from 55% in FY23 [8][10]. Revenue Breakdown - Shopping mall revenue surged by 30% YoY, contributing significantly to overall revenue growth [8]. - Urban space revenue increased by 36% YoY, supported by a 20% rise in managed gross floor area (GFA) and improved collection rates [8][9]. - Non-owner VAS revenue declined by 12% YoY, while owner VAS saw a 6% increase [8]. Future Projections - FY25E revenue is projected to reach RMB 19,821 million, reflecting a 16.3% YoY growth [2]. - FY25E net profit is estimated at RMB 4,321 million, indicating a 19.1% YoY growth [2]. - The company expects to maintain a strong growth trajectory, with a focus on expanding its shopping mall operations and enhancing third-party services [8][10].

Investment Rating - The report maintains a "BUY" rating for Carote Ltd, with a target price of HK$6.44, reflecting a potential upside of 16% from the current price of HK$5.55 [3][10]. Core Insights - Carote Ltd's FY24 net profit was in line with expectations, but sales faced pressure, leading to a cautious outlook for FY25E with a forecasted 7% net profit drop [1][10]. - Despite macroeconomic headwinds, management remains optimistic about achieving a sales growth target of over 30% for FY25E, particularly in the US and Western Europe markets [9][10]. - The company is expected to experience a decline in gross profit margins due to import tariffs and other macro uncertainties, with projections of 35.2% and 33.6% for FY25E and FY26E, respectively [10][11]. Financial Summary - Revenue for FY24 was reported at RMB 2,073 million, representing a 31% year-over-year growth, while net profit surged by 50% to RMB 356 million [2][10]. - For FY25E, revenue is forecasted to be RMB 2,560 million, with a year-over-year growth rate of 23.5% [2][11]. - The company's gross profit margin for FY24 was 40.3%, exceeding estimates, but is expected to decline in the following years [10][11]. Market Performance - Carote Ltd's market capitalization is approximately HK$3,080.3 million, with an average turnover of HK$6.3 million over the past three months [4]. - The share performance over the last month showed an increase of 4.7%, while the three-month performance was up by 11% [6]. Shareholding Structure - The major shareholders include Yili Investment & Carote CM, holding 72.4%, and cornerstone investors holding 9.8% [5].

Investment Rating - The report maintains a HOLD rating for Sinotruk (Hong Kong) with a target price of HK$20.50, down from the previous target price of HK$21.40, indicating an 8.5% downside from the current price of HK$22.40 [1][3]. Core Views - Sinotruk's 2024 net profit is projected at RMB5.86 billion, reflecting a 10% year-over-year increase, which is slightly above the report's estimate but below Bloomberg's consensus [1]. - The management anticipates a decline in export sales for 2025, aligning with the report's view that exports will face pressure due to a high base in the Russian market [1]. - The report revises down the earnings forecast for 2025 and 2026 by 2% and 3% respectively, primarily due to lower export volume assumptions and low engine margins [1]. Financial Summary - Revenue is expected to grow from RMB85.04 billion in FY23 to RMB95.06 billion in FY24, with a projected growth rate of 11.8% [2]. - Net profit is forecasted to increase from RMB5.32 billion in FY23 to RMB5.86 billion in FY24, representing a 10.2% growth [2]. - The earnings per share (EPS) is projected to be RMB2.14 for FY24, with a year-over-year growth of 10.9% [2]. - The price-to-earnings (P/E) ratio is expected to decrease from 10.9 in FY23 to 9.8 in FY24, indicating a more attractive valuation [2]. Segment Performance - Heavy-duty truck (HDT) sales are projected to grow by 3% in 2025, driven by a 12% increase in China, but offset by a 5% decline in exports [8]. - Light-duty truck (LDT) sales are expected to grow by 5% in 2025, with the segment potentially turning profitable [8]. - Engine sales volume is anticipated to grow by 5% in 2025, with stable segment margins around 14% [8]. Shareholding Structure - The major shareholders of Sinotruk include CNHTC with a 51% stake and MAN SE with a 25% stake [4]. Market Performance - The stock has shown a 1-month absolute performance of 8.5% and a 3-month relative performance of -1.1% [5].

31 Mar 2025 CMB International Global Markets | Equity Research | Company Update Great Wall Motor (2333 HK/601633 CH) Wey could be key to FY25 earnings growth Maintain BUY. Great Wall's 4Q24 earnings were a mixed bag, in our view, as revenue missed but GPM and SG&A expenses beat our prior estimates. We believe a stronger model cycle in FY25E than FY24 could be a positive catalyst for its share price. In particular, new Wey-brand models could be key to Great Wall's sales volume and profit growth in FY25E. We ...

Company Insights - Weichai Power (2338 HK/000338 CH) is expected to see a strong expansion in engine profit margins in 2024, with a projected net profit growth of 27% year-on-year to RMB 11.4 billion, aligning with expectations [2] - The company plans to distribute a final dividend of RMB 0.347 per share, resulting in a historical high payout ratio of 55%, up from 50% in 2023 [6] - The target prices for Weichai Power have been adjusted to RMB 18.7 and HKD 18.0, reflecting an increase from previous estimates [6] Market Performance - The Hang Seng Index closed at 23,579, up 0.41% for the day and 38.31% year-to-date [3] - The Hang Seng Tech Index rose by 0.29%, with a year-to-date increase of 48.48% [3] - The Shanghai Composite Index saw a slight increase of 0.15%, with a year-to-date growth of 13.41% [3] Sector Analysis - The healthcare, consumer staples, and energy sectors led gains in the Hong Kong market, while materials, information technology, and real estate sectors faced declines [5] - In the U.S. market, defensive sectors such as consumer staples and healthcare outperformed, while energy and information technology sectors experienced declines [5] - European markets saw declines in information technology, materials, and healthcare, with defensive sectors like utilities and consumer staples performing better [5] Future Outlook - Haidilao (6862 HK) is expected to accelerate store openings in FY2025, with a projected net increase of approximately 40 stores, reflecting a 3% year-on-year growth [7][9] - The company anticipates an improvement in profit margins, driven by a stable gross margin and operational efficiency enhancements [8] - Atour (ATAT US) plans to open around 500 new hotels in FY2025, aiming for a 30% year-on-year growth in hotel numbers, while closing about 60 underperforming locations [12]