Investment Rating - The report maintains a "BUY" rating for the company, with a revised 12-month target price of HK$35.5, implying a 0.5x FY24E P/Group EV and 1.1x FY24E P/BV [1][4]. Core Insights - The company reported a significant increase in NPAT, up 65.5% YoY to RMB38.3 billion, with 3Q NPAT growing 173.6% YoY to RMB13.2 billion, driven by increased investment income and net fair value gains [1]. - Headline NBV rose 37.9% YoY to RMB14.2 billion in 9M24, with 3Q NBV on a like-for-like basis surging 75.3% YoY to RMB5.2 billion, attributed to margin expansions and a recovery in regular-paid new business sales [1][4]. - The company expects strong par sales momentum to continue into FY25, with participating policy sales gaining traction prior to a settlement rate cut [1][4]. Financial Performance - For FY24, the company anticipates a 37% YoY increase in headline NBV and NPAT/OPAT growth of 57%/3% YoY [1]. - EPS forecasts for FY24-26 have been revised up by 29%/6%/3% to RMB4.45/3.93/4.25, reflecting a more certain outlook for profitability and NBV growth [1][4]. - The NBV margin is expected to rise to 23.0% in 3Q24, up 5.9 percentage points YoY, driven by elevated sales of floating interest rate products and strengthened regular-paid new sales [1][4]. Investment Income - The company reported net fair value gains of RMB21.2 billion in 3Q24, a significant recovery from a net loss of RMB7.25 billion in 3Q23, benefiting from a rally in the equity market [1][4]. - The net investment yield landed at 3.9% in 9M24, with total investment yield at 6.3%, showing a positive trend driven by the equity market performance [1][4]. Valuation Metrics - The stock is currently trading at 0.4x FY24E P/EV and 0.9x FY24E P/BV, which is above the 3-year historical average [1][4]. - The report indicates a target valuation of RMB260.6 billion, with an implied P/EV of 0.55x and an implied P/BV of 1.12x [5].

Investment Rating - The report maintains a "BUY" rating for PICC P&C, with a revised target price of HK$14.00, representing a 15.9% upside from the current price of HK$12.08 [1][4]. Core Insights - The company's net profit after tax (NPAT) grew 38.0% year-on-year to RMB26.75 billion for the first nine months of 2024, with a record high NPAT of RMB8.26 billion in Q3 2024, driven by significant fair value gains of RMB7.4 billion [1]. - The combined ratio (CoR) for non-auto insurance deteriorated to 100.5% in the first nine months of 2024, with Q3 CoR reaching 105.3%, attributed to increased catastrophic losses from non-auto claims [1][3]. - Auto CoR improved to 96.8% in the first nine months of 2024, contributing to a 30.6% year-on-year growth in auto underwriting premium (UWP) to RMB71.2 billion [1][3]. Financial Performance - Total investment income surged 70.4% year-on-year to RMB27.5 billion in the first nine months of 2024, with a significant increase in Q3 investment income driven by fair value gains [1][6]. - The report forecasts EPS for FY24E at RMB1.44, with subsequent years projected at RMB1.51 for FY25E and RMB1.60 for FY26E, reflecting an upward revision of 8% for FY24E [2][3]. - The combined ratio is expected to be 97.7% for FY24E, slightly improving to 97.4% in FY25E and 97.2% in FY26E [3][9]. Valuation Metrics - The stock is currently trading at 1.0x FY24E P/B, which is above the historical average, indicating a premium valuation [1][5]. - The dividend yield is projected to increase to 5.2% in FY24E, with further growth expected in subsequent years [2][9]. - The report highlights a long-term ROE of 13.5% and a target valuation of RMB275.7 billion for FY24E [5][9].

Investment Rating - The report maintains a "BUY" rating for Mindray, indicating a potential return of over 15% over the next 12 months [9][21]. Core Insights - Mindray reported a revenue of RMB 29.5 billion for the first nine months of 2024, reflecting an 8.0% year-on-year growth, while the attributable net profit increased by 8.2% year-on-year to RMB 10.6 billion [2][5]. - The domestic market is under pressure, with a notable decline in revenue from public hospitals and IVD testing, particularly in lower-tier hospitals, leading to a 9.7% year-on-year drop in domestic revenue in Q3 2024 [2][5]. - The overseas business showed healthy growth, with a 18.6% year-on-year increase in overseas revenue in Q3 2024, driven by strong performances in Europe, APAC, and Latin America [5][9]. Financial Summary - Revenue projections for FY24E, FY25E, and FY26E are RMB 37.4 billion, RMB 43.6 billion, and RMB 49.7 billion respectively, with year-on-year growth rates of 7.1%, 16.5%, and 14.0% [3][17]. - Attributable net profit estimates for FY24E, FY25E, and FY26E are RMB 12.8 billion, RMB 14.7 billion, and RMB 16.8 billion, with corresponding growth rates of 10.7%, 14.8%, and 14.3% [3][17]. - The adjusted net profit for FY24E is projected at RMB 12.7 billion, with an adjusted EPS of RMB 10.58 [3][17]. Market Performance - The current market capitalization of Mindray is approximately RMB 336.7 billion, with a target price adjusted to RMB 328.81, indicating a 21.6% upside from the current price of RMB 270.50 [6][7]. - The stock has experienced a relative performance decline of 5.5% over the past month and 18.4% over the past six months [6]. Business Segments - The IVD segment saw domestic revenue growth of 17% year-on-year in 9M24, although the overall demand in lower-tier hospitals was negatively impacted by nationwide DRG implementation [5]. - The MIS segment reported over 10% year-on-year growth in domestic revenue in 9M24, driven by the strong uptake of the Resona A20 ultrasound system [5]. - Emerging businesses such as minimally invasive surgery and animal medical have shown significant growth, contributing over 10% to overseas revenue [5].

Investment Rating - The report maintains a BUY rating for the company, BYD, with a revised target price of HK$350, up from HK$262, reflecting improved investor sentiment [2][5]. Core Insights - The company's 3Q24 gross margin of 21.9% exceeded expectations, providing confidence for sales forecasts for 4Q24 and FY25, despite higher SG&A and R&D expenses [2]. - The sales volume forecast for FY24 has been increased by 4% to 4.02 million units, with FY25 projected to rise 13% YoY to 4.55 million units [2]. - The company prioritizes market share and global expansion over rapid earnings growth, which may complicate forecasts for SG&A and R&D expenses [2]. Financial Performance - 3Q24 net profit was RMB11.6 billion, 15% lower than previous forecasts, attributed to unexpected forex losses despite higher government grants and VAT refunds [2]. - Revenue growth from FY21 to FY26 shows a significant increase, with FY24E revenue projected at RMB725.7 billion, up from RMB602.3 billion in FY23 [9]. - The gross profit margin is expected to slightly decrease from 20.6% in FY24E to 20.3% in FY25E, while net profit is projected to rise from RMB36.0 billion in FY24E to RMB47.5 billion in FY25E [7][8]. Valuation Metrics - The company’s P/E ratio is projected to decrease from 21.9x in FY24E to 16.6x in FY25E, indicating a more attractive valuation as earnings grow [14]. - The return on equity (ROE) is expected to remain strong, projected at 25.5% for FY25E, down slightly from 24.0% in FY24E [13]. Market Position - BYD continues to have the best resources to withstand the ongoing price war in the automotive sector, which supports its competitive position [2]. - The company’s aggressive overseas expansion strategy is expected to drive revenue growth, with selling expenses projected to rise in line with revenue growth [2].

31 Oct 2024 Earnings Summary CMB International Global Markets | Equity Research | Company Update GAC Group (2238 HK) 3Q miss; new models, cost cut as key in FY25 GAC posted the largest quarterly net loss (RMB1.4bn) in 3Q24 since at least 2013, partly due to the FX loss and lower government grants. Management is determined to revive its homegrown brands with a plethora of new models in 2025. The market demand for GAC Toyota and GAC Honda has also recovered a bit recently aided by the peak season and stimulus ...

Investment Rating - The report maintains a "BUY" rating for RemeGen, indicating a potential return of over 15% over the next 12 months [12]. Core Insights - RemeGen achieved record product sales in Q3 2024, with revenue of RMB467 million, reflecting a 14% quarter-over-quarter and 35% year-over-year increase, driven by strong sales of RC18 and RC48 [1]. - The company narrowed its net loss to RMB291 million in Q3 2024 from RMB432 million in Q2 2024, indicating improved financial performance [1]. - The gross profit margin improved to 82.1% in Q3 2024, up from 78.3% in the first half of 2024, while the SG&A expense ratio decreased to 68.5% [1]. - RemeGen's total revenue for the first nine months of 2024 reached RMB1,209 million, representing a 57% year-over-year growth and aligning with expectations [1]. - The report anticipates continued strong sales momentum into Q4 2024 and beyond, supporting the company's FY24 sales target of over 50% year-over-year growth [1]. Financial Summary - Revenue projections for FY24 are estimated at RMB1,740 million, with a year-over-year growth of 61.7% [2]. - The net profit for FY24 is projected to be a loss of RMB1,268 million, improving to a loss of RMB967 million in FY25 and further narrowing to RMB275 million in FY26 [2]. - R&D expenses are expected to be RMB1,450 million for FY24, remaining stable in FY25, and slightly increasing to RMB1,502 million in FY26 [2]. - The gross profit margin is projected to be 80.31% for FY24, improving to 81.15% in FY25 and 80.81% in FY26 [7]. Valuation - The report revises the DCF-based target price from HK$19.59 to HK$21.09, reflecting a 28% upside from the current price of HK$16.48 [3][4]. - The DCF per share is calculated at HK$21.09, based on a WACC of 12.93% and a terminal growth rate of 2.0% [4][5]. - The market capitalization of RemeGen is approximately HK$8,970.6 million, with an average three-month turnover of HK$42.5 million [3].

30 Oct 2024 CMB International Global Markets | Equity Research | Company Update Naura Technology (002371 CH) Solid Q3 earnings signal intact growth trajectory Naura announced 3Q24 results. Q3 revenue was RMB8.0bn, up 30.1% YoY and 23.8% QoQ, driven by significant growth in semiconductor equipment sales (up 47.0% in 9M24). NP was RMB1.7bn, up 55.0% YoY and 1.7% QoQ. GPM was 42.3%, up 5.9ppts from 3Q23 but declined 5.1ppts sequentially, mainly due to 1) higher photovoltaic (PV) equipment sales that had a lowe ...

Investment Rating - The report maintains a HOLD rating on Shennan Circuit with a target price adjusted to RMB115, reflecting a 27x 2025E P/E, close to its 3-year average historical forward P/E [2][4]. Core Insights - Shennan Circuit reported a 37.9% year-over-year revenue growth in 3Q24, reaching RMB4.73 billion, which exceeded Bloomberg consensus by 19.7%. However, net profit increased by only 15.3% YoY but declined 17.6% QoQ [2]. - The gross profit margin (GPM) decreased to 25.4% in 3Q24 from 27.1% in 2Q24, attributed to higher sales from lower-margin PCBA business, ramp-up of the Guangzhou factory, and high copper prices [2]. - The company expects PCB revenue to grow by 11% in 2025E, while substrate revenue is projected to grow by 7% in the same year [2]. Financial Summary - Revenue for FY24E is estimated at RMB17,574 million, with a year-over-year growth of 29.9%. For FY25E, revenue is projected to be RMB18,765 million, reflecting a 6.8% growth [3][9]. - The net profit for FY24E is expected to be RMB1,878 million, with a YoY growth of 34.3%, and for FY25E, it is projected to reach RMB2,178 million, indicating a 16.0% growth [3][9]. - The earnings per share (EPS) for FY24E is estimated at RMB3.68, increasing to RMB4.27 in FY25E [3][9]. Market Segmentation - By end market, telecom remains the largest segment, contributing approximately 40% of PCB sales in 3Q24. Other segments include datacom (20%), auto (13%), industrial & medical (10%), and energy (5%) [2]. - The report highlights a strong utilization rate of around 90% for AI-related PCB production, while non-AI production utilization remains between 85-90% [2].

30 Oct 2024 CMB International Global Markets | Equity Research | Company Update WuXi AppTec (603259 CH) Earnings recovery underway WuXi AppTec reported 3Q24 revenue of RMB10.46bn, slightly down 2.0% YoY, and attributable adjusted non-IFRS net profit of RMB2.97bn, down 3.2% YoY. Total non-COVID revenue and non-COVID Chemistry revenue growth rebounded to 14.6% YoY and 26.4% YoY, respectively, in 3Q24. Despite the challenging geopolitical environment, mgmt. reiterated its revenue guidance of RMB38.3- 40.5bn fo ...

Investment Rating - Maintain BUY with an unchanged target price of RMB75, representing an upside of 54.6% from the current price of RMB48.50 [3]. Core Insights - Zhejiang Dingli's EBIT in 3Q24 grew 20% YoY to RMB672 million, driven by a 38% revenue growth YoY, despite a 4.8 percentage point decrease in gross margin due to a high base in 3Q23 [1]. - The company reported a net profit growth of 38% YoY to RMB636 million, supported by an increase in net finance income [1]. - Management emphasized a focus on the US market, which is expected to remain the most promising in 2025E [1]. - The US sales target for 2024E is maintained at US$500 million (~RMB3.5 billion), indicating potential sales of ~RMB600 million in 4Q24E [1]. - Dingli aims to deliver a total of 6,000 units of boom lifts overseas, with 2,000 units targeted for the US [1]. Financial Summary - Revenue is projected to grow from RMB6,312 million in FY23A to RMB7,569 million in FY24E, reflecting a YoY growth of 19.9% [2]. - Net profit is expected to increase from RMB1,867.2 million in FY23A to RMB2,104.9 million in FY24E, a growth of 12.7% [2]. - The P/E ratio is forecasted to decrease from 13.2x in FY23A to 11.7x in FY24E, indicating a more attractive valuation [2]. Product and Market Strategy - Dingli plans to differentiate its products to mitigate the impact of anti-dumping duties in the EU, aiming for stable sales in Europe [1]. - The company expects overseas revenue from boom lifts to exceed that from scissors lifts for the full year [1]. - The anticipated reduction in anti-dumping duties in the US is expected to alleviate some market pressures [1].