Investment Rating - The report maintains a "BUY" rating for Haier Smart Home and raises the target price to HK$ 36.41, reflecting a 22.2% upside from the current price of HK$ 29.80 [1][4]. Core Insights - Haier's 3Q24 results were in line with expectations, with a 1% YoY sales increase to RMB 67.3 billion and a 13% YoY net profit growth to RMB 4.7 billion. The company is expected to see a decent pickup in 4Q24 due to favorable macroeconomic conditions and internal efficiency improvements [1][6]. - The management has set a net profit growth target of 15% per annum, supported by various cost-saving initiatives and operational efficiency gains [1][6]. - The report highlights significant sales growth drivers, including improved sales trends in China, strong demand for the Casarte brand, and positive developments in the US and European markets [1][6]. Financial Summary - Revenue is projected to grow from RMB 271.8 billion in FY24E to RMB 304.8 billion in FY26E, with a CAGR of 5.4% [2][11]. - Net profit is expected to increase from RMB 19.8 billion in FY24E to RMB 24.5 billion in FY26E, reflecting a strong growth trajectory [2][11]. - The report revises FY24E/25E/26E net profit forecasts upward by 1%/3%/2% to account for efficiency gains and cost savings [1][7]. Operational Efficiency - Haier is implementing a series of reforms aimed at enhancing operational efficiency, including digitalization efforts and structural changes in procurement and R&D processes [1][6]. - The acquisition of Goodday, a logistics provider, is expected to yield significant synergies, including a 20-30% reduction in inventory levels and a 10% decrease in total logistics costs [1][6]. Market Position - Haier's stock is currently trading at 13x/11x FY24E/FY25E P/E, which is below its 5-year average of 15x, indicating potential undervaluation [1][4]. - The company is focusing on expanding its direct-to-consumer (DTC) business model and enhancing brand equity through value-added products and services [1][6].

Investment Rating - The report maintains a "BUY" rating for Jiangsu Hengli with a target price of RMB64, indicating a potential upside of 14.7% from the current price of RMB55.82 [2][4]. Core Insights - Jiangsu Hengli's EBIT in 3Q24 decreased by 6% YoY to RMB445 million, attributed to a gross margin contraction of 1.9 percentage points YoY, despite an 11% YoY revenue increase to RMB2.1 billion [2]. - The net profit for 3Q24 grew by 6% YoY to RMB504 million, supported by higher net finance income and other gains [2]. - The company is expected to benefit from increasing revenue contributions from non-excavator components and new growth drivers such as electric cylinders and ball screws in 2025 [2]. - The report highlights potential risks related to the upcoming U.S. elections and possible tariff increases under a potential Trump presidency, which could impact exports from Mexico to the U.S. [2]. Financial Summary - Revenue for FY24E is projected at RMB10,033 million, reflecting an 11.7% YoY growth, with further growth expected in FY25E and FY26E [3][13]. - Adjusted net profit for FY24E is estimated at RMB2,756.5 million, with an EPS of RMB2.06, representing a 10.3% YoY increase [3][13]. - The gross margin is expected to improve slightly to 41.9% in FY24E, with a long-term target of 43.0% by FY26E [10][16]. Production and Operational Insights - The production plan for October includes 42,000 units of hydraulic cylinders for excavators, a decrease of approximately 5% YoY, while production of non-standardized cylinders is expected to drop by about 10% YoY [2]. - Positive production trends are noted for small-size pumps and valves, with planned increases of approximately 40% and 90% YoY, respectively [2]. Market Position and Valuation - The company maintains a strong market capitalization of RMB74,844.6 million, with a P/E ratio projected to decrease from 31.1x in FY22A to 21.4x in FY26E [4][10]. - The report indicates a stable financial position with a net gearing ratio improving from (51.9%) in FY22A to (52.4%) in FY26E, suggesting a strong balance sheet [3][10].

Investment Rating - Maintain BUY rating with an adjusted target price of RMB28.75, reflecting a 25.5x 2025E P/E, close to its 3-year historical forward P/E [1][3] Core Views - Shengyi Tech's 3Q24 revenue was RMB5.1bn, up 14.5% YoY but down 1.7% QoQ, in-line with Bloomberg consensus [1] - Gross profit margin (GPM) improved to 22.9%, up 1.1ppts from 2Q24, driven by favorable product mix and lower material costs [1] - Net profit (NP) was RMB440mn, up 27.8% YoY but down 18.6% QoQ, missing Bloomberg consensus by 26% due to SBC cost of RMB150mn (~2.9% of revenue) [1] - Revenue growth is expected at 20%/16% YoY in 2024/25E, with improved margins at 22.1%/23.6% [1] PCB Segment - PCB revenue in 3Q24 was RMB1.2bn, up 49.3% YoY and 10.8% QoQ, driven by strong AI demand, particularly in server revenue (42.5% of PCB sales) [1] - Overseas market outperformed with a 32.1% YoY sales increase [1] - GPM recovered to 24.9% from 20.4%/14.2% in 3Q23/2Q24, and NPM rose to 7.5% vs. -3.4%/6.4% in 3Q23/2Q24 [1] - PCB sales projections raised by 5%/1% for 2024/25E, with expected growth of 35%/20% in 2024/25E [1] CCL Segment - CCL revenue increased YoY but declined QoQ (est. 5-6% lower) due to weaker-than-expected demand in non-AI markets, suppressing ASP recovery [1] - Margin slid sequentially as copper prices remained high (avg. price in 3Q24: ~US$9.9k/t), though Shengyi offset some material cost impacts through pre-procurement activities [1] - Inventory increased by 8% QoQ (RMB365mn) [1] - CCL sales forecasts cut by 8%/6% for 2024/25E, with expected growth of 14%/15% in 2024/25E [1] Financial Projections - Revenue is projected to grow at 19.6%/15.6% in 2024/25E, reaching RMB19.8bn/RMB22.9bn [2][9] - Gross margin is expected to improve to 22.1%/23.6% in 2024/25E [2][9] - Net profit is forecasted to grow at 55.4%/51.4% in 2024/25E, reaching RMB1.8bn/RMB2.7bn [2][9] - EPS is projected to grow at 48.9%/51.4% in 2024/25E, reaching RMB0.74/RMB1.13 [2][9] Valuation - Current P/E stands at 26.5x for 2024E, expected to decrease to 17.5x in 2025E [2][12] - Target price of RMB28.75 implies a 45.8% upside from the current price of RMB19.72 [3] Growth and Profitability - Revenue growth is expected to rebound to 19.6% in 2024E after declines in FY22 and FY23 [12] - Gross profit margin is projected to recover to 22.1% in 2024E, up from 19.2% in FY23 [12] - Return on equity (ROE) is expected to improve to 12.6% in 2024E, rising further to 17.9% in 2025E [12]

Investment Rating - The investment rating for Topsports has been downgraded to "Hold" with a target price of HK$2.82, based on a 12x P/E for FY2/25E [2][4]. Core Views - The performance in 1H25 aligns with profit warnings, but the underlying conditions are weaker than previously anticipated. The outlook for 2H25E is further deteriorating, and it may take Nike 1-2 years to turn around the situation [1][2]. - Topsports reported a sales decline of 8% year-on-year to RMB 13.1 billion and a net profit drop of 35% to RMB 874 million, consistent with prior profit warnings. The decline is attributed to reduced offline traffic, increased retail discounts, and a higher proportion of low-margin e-commerce sales [1][2]. - Despite a high dividend yield of 8% for FY2/25E, the negative outlook for the second half of the year and Nike's recovery timeline led to the downgrade [2][4]. Revenue Summary - Revenue for FY25E is projected at RMB 26.69 billion, reflecting a year-on-year decrease of 8%. The revenue estimates for FY26E and FY27E are RMB 27.67 billion and RMB 29.84 billion, respectively, indicating a recovery of 4% in FY26E [7][11]. - The gross profit margin is expected to decline to 39.1% in FY25E, with a slight recovery to 39.8% in FY26E and 39.9% in FY27E [7][11]. Profitability Metrics - Net profit for FY25E is estimated at RMB 1.31 billion, down 41% year-on-year, with projections of RMB 1.53 billion and RMB 1.84 billion for FY26E and FY27E, respectively [7][11]. - The diluted earnings per share for FY25E is projected at RMB 0.212, with further declines expected in FY26E and FY27E [7][11]. Market Position and Challenges - The company faces significant challenges due to its reliance on Nike, which is expected to take 1-2 years to recover. The industry is also experiencing inventory risks, with major brands planning increased promotions [1][2]. - The management has provided guidance indicating a full-year sales decline and a net profit drop of 35%-45% for FY25E, reflecting a challenging market environment [1][2].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HK$19.58, reflecting a potential upside of 23.3% from the current price of HK$15.88 [3][6][18]. Core Insights - The company has reiterated its FY24E targets, but the report expresses caution due to weak demand and inventory buildup. However, gradual improvement is anticipated for FY25E [1][6]. - Retail sales in Q3 2024 showed a slight improvement compared to expectations, with e-commerce growth outpacing offline channels. The report highlights the importance of the upcoming Double 11 shopping festival for sales performance [1][6]. - The management's focus on cost-saving measures and efficiency improvements is noted, but concerns remain regarding operating profit margins due to increased retail discounts and fixed operational costs [1][6]. Summary by Sections Revenue Overview - The company reported revenues of RMB 28,162 million for FY24E, with a projected growth of 2% [2][7]. - Revenue growth is expected to improve to 7.2% in FY25E and 8.4% in FY26E [11][14]. Profitability Metrics - The net profit for FY24E is projected at RMB 3,103 million, with a net profit margin of 11% [7][12]. - The report anticipates a gradual increase in net profit to RMB 3,466 million in FY25E and RMB 3,895 million in FY26E [7][12]. Valuation Metrics - The company is currently trading at a P/E ratio of 11x for FY25E, which is considered attractive compared to the target P/E of 13x [6][16]. - The expected dividend yield for FY25E is 4% [6][16]. Inventory and Sales Dynamics - The inventory turnover ratio is approximately 5 months, indicating a slight increase from the previous quarter [1][6]. - Retail discounts have widened in offline channels, while e-commerce discounts have shown improvement [1][6]. Market Position and Strategy - The company has formed a joint venture to expand its brand presence in the Belt and Road regions, with significant investments planned [6][11]. - The management remains committed to achieving sales growth targets despite current market challenges [1][6].

Investment Rating - The report maintains a "BUY" rating for Wingtech with a target price adjusted to RMB52, reflecting a potential upside of 43.8% from the current price of RMB36.17 [1][3]. Core Insights - Wingtech's Q3 2024 revenue reached RMB19.6 billion, marking a record quarterly revenue since 2020, with a year-over-year growth of 28.7% and a quarter-over-quarter growth of 12.9%, surpassing Bloomberg consensus by 16% [1]. - The gross profit margin (GPM) improved to 11% in Q3 2024, up from 9.2% in Q1 and 9.7% in Q2 2024, exceeding the consensus estimate of 10.5% [1]. - Net profit turned positive at RMB274 million in Q3 2024, recovering from a loss of RMB3 million in Q2 2024 [1]. - Both the ODM and semiconductor segments showed sequential growth in sales and GPM, indicating a gradual recovery from the cyclical trough [1]. Financial Summary - Revenue for FY24E is projected at RMB72.3 billion, with an 18.1% year-over-year growth, followed by RMB80.2 billion in FY25E and RMB84.8 billion in FY26E [2][8]. - Gross margin is expected to improve from 10.4% in FY24E to 14.8% in FY26E, while net profit is forecasted to recover from RMB911 million in FY24E to RMB3.8 billion in FY26E [2][8]. - The report revises EPS forecasts for FY25E and FY26E upwards by 22% and 15% respectively, reflecting further margin improvement [1]. Segment Performance - Semiconductor sales in Q3 2024 were RMB3.8 billion, accounting for 20% of total revenue, with a GPM returning to 40% [1]. - ODM sales reached RMB15.7 billion in Q3 2024, up 46% year-over-year and 15% quarter-over-quarter, with a GPM increase to 3.8% [1]. - The smartphone/tablet segment within ODM began to generate profit this quarter, while home appliances have been profitable for two consecutive quarters [1]. Valuation Metrics - The adjusted target price of RMB52 is based on a 25x P/E ratio for 2025E, which is 0.5 standard deviations below the one-year historical forward P/E [1][3]. - The report indicates that the worst has passed for both segments, with a turning point anticipated in the near future [1].

Investment Rating - The report maintains a "Buy" rating for the company and adjusts the target price to RMB 52, based on a P/E ratio of 25 times the estimated earnings for FY2025, which is 0.5 standard deviations below the historical average [1][2]. Core Insights - The company reported a record quarterly revenue of RMB 19.6 billion for Q3 2024, representing a year-on-year growth of 28.7% and a quarter-on-quarter growth of 12.9%, exceeding Bloomberg consensus estimates by 16% [1]. - The gross margin improved to 11%, up from 9.2% and 9.7% in the first and second quarters of 2024, respectively, and net profit turned positive at RMB 274 million after a loss in the previous quarter [1]. - Both the ODM and semiconductor segments showed sequential sales growth, indicating a recovery from cyclical lows [1]. Revenue and Profitability Forecast - Revenue is projected to grow from RMB 61.2 billion in FY2023 to RMB 72.3 billion in FY2024, reflecting an 18.1% year-on-year increase [3]. - The gross margin is expected to decline to 10.4% in FY2024 but is projected to recover to 14.8% by FY2026 [3]. - Net profit is forecasted to decrease to RMB 911 million in FY2024 but is expected to rebound significantly to RMB 2.6 billion in FY2025 [3]. Segment Performance - The ODM segment achieved sales of RMB 15.7 billion in Q3 2024, a 46% year-on-year increase, with smartphones and tablets contributing approximately 50% of the revenue [2]. - The semiconductor sales reached RMB 3.8 billion, accounting for 20% of total revenue, with a gross margin of 40% [1]. - The automotive sector contributed about 60% to semiconductor sales, driven by strong domestic demand [1]. Market Outlook - The report suggests that the worst periods for both business segments are over, indicating an impending turning point [1]. - Seasonal factors are expected to lead to a slight decline in semiconductor sales in Q4 2024, with a stable gross margin forecasted at 40.5% [1].

Investment Rating - The report downgrades Topsports' rating to HOLD, with a target price of HK$ 2.82, based on a 12x FY2/25E P/E [2]. Core Views - Topsports' 1H25 results were in line with the profit warning, showing a YoY sales drop of 8% to RMB 13.1 billion and a net profit decline of 35% YoY to RMB 874 million [2]. - The outlook for 2H25E is grim, with management expecting sales to drop by high single digits YoY and net profit to plunge by 35% to 45% YoY [2]. - The decline in gross profit margin to 41.1% (down 3.6 percentage points) was larger than expected, but was mitigated by stronger cost control [2]. - The company is experiencing significant challenges due to a drop in offline traffic and increased retail discounts, alongside a higher share of lower-margin e-commerce sales [2]. Financial Summary - Revenue for FY25E is projected at RMB 26.693 billion, reflecting an 8% decline YoY, while FY26E revenue is expected to recover slightly to RMB 27.665 billion [10]. - The net profit for FY25E is estimated at RMB 1.314 billion, a decrease of 41% from FY24, with a diluted EPS of RMB 0.212 [10]. - The gross margin is expected to be 39.1% for FY25E, down from 41.8% in FY24, indicating ongoing margin pressure [10]. - The company declared a dividend per share (DPS) of RMB 16.0, implying a payout ratio close to 100% [2]. Earnings Revision - Adjustments to net profit estimates for FY25E, FY26E, and FY27E are -11%, -13%, and -11% respectively, reflecting weaker-than-expected sales and increased retail discounts [6]. - The report highlights a significant drop in operating profit for FY25E, projected at RMB 1.710 billion, down 39% YoY [10]. Market Context - The report notes that Topsports is heavily reliant on the Nike brand, which is undergoing reforms that may take 1 to 2 years to yield positive results [2]. - The industry is facing destocking risks, with major brands like Nike and Li Ning increasing promotions during peak sales periods [2].

Investment Rating - The report maintains a BUY rating for the company, indicating a potential return of over 15% over the next 12 months [2][6][17]. Core Views - The company has slightly exceeded retail sales growth expectations in 3Q24, but there are concerns regarding weak demand and inventory levels for FY24E. A gradual improvement into FY25E is anticipated [2][6]. - The management has reiterated a low-single-digit sales growth and low-teen net profit margin for FY24E, but the report adopts a more conservative stance, projecting only 2% sales growth and an 11% net profit margin [2][6]. - The company is focused on cost savings and efficiency improvements, including reductions in advertising and promotional expenses and store closures, but there are concerns about operating profit margins due to increased retail discounts and fixed operating expenses [2][6]. Financial Summary - Revenue is projected to grow from RMB 28,162 million in FY24E to RMB 30,195 million in FY25E, reflecting a growth rate of 7.2% [3][11]. - Net profit is expected to increase from RMB 3,103 million in FY24E to RMB 3,466 million in FY25E, with a net profit margin of 11.5% [3][11]. - The company’s earnings per share (EPS) is forecasted to rise from RMB 1.19 in FY24E to RMB 1.33 in FY25E [3][11]. Valuation Metrics - The target price for the company has been raised to HK$19.58, based on a 13x FY25E P/E ratio, while the current trading P/E is 11x [4][6]. - The report highlights a dividend yield of 4% for FY25E, which is considered attractive [2][6]. Market Performance - The company’s stock has shown a 23.3% upside potential from the current price of HK$15.88 to the target price [4]. - Recent retail sales trends indicate a mixed performance, with e-commerce growth being more resilient compared to offline sales [2][6].

Investment Rating - The report maintains a "Buy" rating for Great Wall Motors [1][2] Core Views - Great Wall Motors' Q3 2024 core earnings align with estimates, and overseas sales growth is expected to support profitability in FY25 [1] - The company plans to launch seven new models in FY25, which may positively impact sales in the Chinese market [1] - The report anticipates a 29% year-on-year increase in overseas sales, targeting 580,000 units in FY25 [1][2] - The net profit for Q3 2024 was RMB 3.4 billion, which was 5.7 billion lower than expected due to unexpected foreign exchange losses and delays in VAT refunds [1][2] Financial Summary - Revenue projections for FY25 have been raised from 1.3 million units to 1.36 million units, with a 3% growth expected in China due to new model launches [2] - The net profit forecast for FY25 has been increased by 7% to RMB 14 billion, while the FY24 net profit estimate has been reduced by 5% [2] - The target price has been adjusted from HKD 14.00 to HKD 17.00, reflecting improved market sentiment [2][4] Performance Metrics - Revenue (in million RMB) is projected to grow from 204,470 in FY24 to 236,000 in FY25, and further to 258,850 in FY26 [3][10] - Net profit is expected to increase from 12,768 in FY24 to 14,023 in FY25, and then to 13,887 in FY26 [3][10] - The gross margin is projected to be 20.0% in FY24, improving to 20.3% in FY25, before slightly declining to 19.7% in FY26 [8][10] Market Position - Great Wall Motors aims to enhance its overseas market presence through local assembly plants and expects stable profit margins in overseas markets despite increasing competition by FY26 [1][2] - The company is focusing on launching new models in the electric vehicle segment, which is seen as crucial for maintaining competitiveness in the evolving automotive landscape [1][2]