Investment Rating - Maintains a **Buy** rating with a target price of **HKD 294.91**, based on a **15x FY25E P/E** [1] - The stock is currently trading at **13x FY25E P/E**, indicating it is not overvalued [1] Core Views - Despite weak sales growth in Q2 2024, net profit saw a significant increase, driven by cost management initiatives [1] - The report remains cautious about revenue growth in 2H24E due to high base effects and a weak macroeconomic environment [1] - Confidence in a turnaround in 4Q24E is supported by initiatives like **Project Fresh Eye**, **Project Red Eye**, and the introduction of more profitable store formats such as **K-Coffee** and **Pizza Hut's WOW model** [1] - The report expects **Q3 and Q4 sales/OP/NP growth** to be around **2%/8%/7%** and **+1%/30%/13%**, respectively [1] Sales and Profitability - Q2 2024 sales grew by **1% YoY** to **USD 2.68 billion**, below expectations, but net profit increased by **8% YoY** to **USD 212 million**, exceeding estimates [5] - **KFC's SSSG** declined by **3%** in Q2 2024, while **Pizza Hut's SSSG** fell by **8%**, though Pizza Hut's profitability outperformed KFC [5] - **Delivery sales** grew by **11%**, while **dine-in sales** declined by **3%** in Q2 2024 [5] - **FY24E net store opening target** remains at **1,500 to 1,700**, with a capital expenditure target of **USD 700-850 million** [5] Cost Management and Efficiency - **Project Red Eye** aims to improve supply chain efficiency by simplifying SKUs and reducing unnecessary items [1] - **Project Fresh Eye** focuses on reducing operational complexity, allowing store managers to focus on other tasks [1] - Increased use of **AI and automation**, with over **80% of Pizza Hut stores** equipped with automated rice cookers and **50% with robotic servers** [1] - **Labor costs** are expected to remain low, around **LSD levels** in FY24E, and **G&A expenses** are targeted at **5% of sales**, down from **5.8% in FY23** [1] Store Expansion and Formats - **K-Coffee** targets **500-600 stores** by FY24E, with **300 stores** already opened by July 2024 [1] - **Pizza Hut's WOW model** aims for **200 stores** by FY24E, with **100+ stores** opened by July 2024 [1][9] - The **WOW model** features simpler operations, targeting solo diners and value-conscious consumers, with promising initial results [10] Financial Performance and Forecasts - **FY24E revenue** is expected to grow by **1.4% YoY** to **USD 11.13 billion**, with **net profit** increasing by **5.1% YoY** to **USD 869 million** [12] - **FY25E revenue** is forecasted to grow by **9.1% YoY** to **USD 12.14 billion**, with **net profit** rising by **8.5% YoY** to **USD 943 million** [12] - **FY26E revenue** is projected to grow by **8.7% YoY** to **USD 13.19 billion**, with **net profit** increasing by **14.4% YoY** to **USD 1.08 billion** [12] Valuation and Peer Comparison - The stock is trading at a **15.4x FY24E P/E**, compared to the industry average of **28.8x** [13] - **ROE** is expected to remain stable at **11.6%** in FY24E and FY25E, increasing slightly to **11.9%** in FY26E [12] - **Dividend yield** is forecasted to increase from **1.8% in FY24E** to **2.8% in FY26E** [12] Key Initiatives and Innovations - **Pizza Hut's entry-level priced pizzas** saw double-digit growth in Q2 2024, driven by expanded price ranges and innovative new products [1] - **Single-person meals** and new store formats like **K-Coffee** and **Pizza Hut's WOW model** are expected to drive incremental sales and profit [1][9]

Group 1: Economic Indicators - The July Services PMI rebounded significantly from 48.8 to 51.4, indicating a return to expansion, surpassing market expectations of 51[3] - The Services sector, which accounts for nearly half of the US GDP, shows signs of resilience, with business activity, new orders, and employment indices all returning to expansion territory[2] - The Manufacturing PMI fell sharply from 48.5 to 46.8, marking the largest contraction in nearly a year, with significant declines in key indices[3] Group 2: Future Projections - US GDP growth is projected to decline from 2.5% last year to 2.2% this year and further to 1.8% next year[2] - The Federal Reserve is expected to begin cutting interest rates in September, with a total reduction of 50 basis points this year and an additional 100 basis points next year[2] - Long-term US Treasury yields are anticipated to decrease to 4% by the end of this year and 3.9% by the end of next year[2] Group 3: Inflation and Employment - Inflation is expected to cool as it declines faster than nominal interest rates, leading to higher real interest rates and further tightening of policies[2] - The unemployment rate is rising primarily due to an influx of immigrants increasing the labor force, raising concerns about potential acceleration in job losses[2] - The Services PMI's return to expansion is crucial for maintaining overall economic resilience amid manufacturing sector weaknesses[3]

7 Aug 2024 CMB International Global Markets | Equity Research | Company Update Yum China (9987 HK) The best-in-class costs management in 2Q24 Sales growth was indeed a miss in 2Q24, but the net profit was a significant beat. For 2H24E, we are still very cautious about the demand and so as the level of competition. However, thanks to various efforts like Project Fresh Eye, Project Red Eye, rationalizing number of SKUs, more direct sourcing, and ramp up of more profitable store formats (e.g. K-coffee and Pizz ...

2024 年 8 月 7 日 CMB 国际全球市场 | 股票研究 | 公司更新 越秀运输 （ 1052 香港 ） 上半年收益同比下降 27% ， 低于我们的预期 ； 预计下半年业绩会更好 越秀运输上半年的净利润同比下降 27%，至 3.14 亿元人民币，比我们的预期低 14% 。此次 错过是由于 （ 1 ） 毛利率低于预期 ； （ 2 ） 自 2024 年 3 月起北环路特许经营权到期，保 险损失份额 （ 2000 万元人民币 ） 。越秀运输建议中期股息为 0.12 港元 / 股，意味着 58.5% 的股息支付率 （ 1H23 ： 53.8% ） 。该公司预计 2H24E 的流量将有所改善，并预计可以维 持 50 - 60% 的支付率目标。我们对越秀运输仍持积极态度，预计今年母公司资产注入将成为 催化剂。维护。购买基于 DCF 的 TP 保持不变 ， 为 5.9 港元。 1H24 业绩突出。收入同比下降 6%，至 18.2 亿元人民币 （ 比我们的预期低 1% ） 。由 于经营去杠杆化，毛利率同比收窄 6.5 个百分点至 50.1% （ 而我们的估计为 54.6% ） 。由于北环路特许经营权于 2024 年 ...

7 Aug 2024 CMB International Global Markets | Equity Research | Company Update Yuexiu Transport (1052 HK) 1H24 earnings down 27% YoY below our expectation; expect a better 2H24E Yuexiu Transport's net profit in 1H24 dropped 27% YoY to RMB314mn, 14% below our estimate. The miss was due to (1) lower-than-expected gross margin and (2) share of loss insured (RMB20mn) due to the expiration of concession right of Northern Ring Road starting from Mar 2024. Yuexiu Transport proposed interim dividend of HK$0.12/shar ...

6 Aug 2024 Earnings Summary CMB International Global Markets | Equity Research | Company Update Tongda (698 HK) 1H24E preview: eyes on Android recovery and smart tech growth Tongda will report 1H24 results on 28 Aug. We estimate 1H24 revenue/net profit of HK$ 2.6bn/35mn (-10%/+82% YoY) mainly driven by Android smartphone recovery, inventory restocking from overseas household & sports goods customers, network communications router demand pick-up on Wifi-7 upgrade and stabilized GPM for each segment. Looking ...

2024 年 8 月 6 日 CMB 国际全球市场 | 股票研究 | 公司更新 通达 （ 698 香港 ） 1H24E 预览 ： 关注 Android 恢复和智能技术增长 目标价 0.13 港元 （ 先前 TP 为 0.14 港元 ） 涨 / 跌 73.6% 现价 0.08 港元中国科技 亚历克斯 NG (852) 3900 0881 李汉青 通达将于 8 月 28 日公布 1H24 业绩我们估计 2016 年上半年的收入 / 净利润为 26 亿港元 / 3500 万 港元 （ 同比 - 10% / + 82% ），主要受 Adroid 智能手机复苏、海外家用和体育用品客户的库存恢 复、网络通信路由器对 Wifi - 7 升级的需求回升以及每个细分市场的 GPM 稳定的推动。展望 2H24 / FY25E，我们预计手机复苏，ASP 稳定，家用和体育用品订单获胜。我们对马来西亚工厂的扩建 也持积极态度，以满足非手机客户的需求。我们将 FY24 - 25E 每股收益下调了 23 - 32%，以反映 苹果业务处置和 Adroid 市场竞争。维持买入，新 TP 为 0.13 港元，基于 2012 财年的 6.0 倍市 ...

Investment Rating - The report on ImmuneOnco is classified as NOT RATED [2][10]. Core Insights - ImmuneOnco has successfully established an overseas licensing partnership with SynBioTx for its PD-L1xVEGF bispecific molecule IMM2510 and anti-CTLA-4 antibody IMM27M, which could yield up to US$50 million in near-term payments and over US$2.1 billion in potential milestone payments, along with royalties on global ex-China net sales [2]. - The Phase 1 clinical trial data for IMM2510 indicates promising antitumor activity, particularly in treating relapsed/refractory non-small cell lung cancer (R/R NSCLC) and thymus adeno-squamous carcinoma, with three patients achieving confirmed partial responses (PR) and seven achieving stable disease (SD) [3]. - Early pre-clinical studies of IMM27M show it has significantly stronger anti-tumor activity compared to ipilimumab, with two patients achieving confirmed PR in a Phase 1 trial for HR+ breast cancer [4]. - The company’s key asset, timdarpacept (IMM01), is advancing through clinical trials with favorable efficacy and safety profiles demonstrated in Phase 2 studies for higher risk myelodysplastic syndromes (MDS) and relapsed/refractory classical Hodgkin lymphoma (cHL) [5]. Financial Summary - For the fiscal year ending December 31, 2023, ImmuneOnco reported revenues of RMB 0 million, R&D expenses of RMB -292 million, administrative expenses of RMB -80 million, and a net loss of RMB -379 million [6]. - The year-end cash balance for 2023 was RMB 609 million [6]. Stock Data - The current market capitalization of ImmuneOnco is HK$ 4,714 million, with a current stock price of HK$ 12.60 [7]. - The stock has shown a 1-month performance increase of 17.7% and a 3-month increase of 6.1%, but a decline of 33.1% over the past 6 months [7].

2024 年 8 月 5 日 招银国际环球市场 | 宏观研究 | 宏观视角 美国经济 就业加速放缓 美国 7月新增非农就业大幅低于市场预期,过去两个月数值延续下修,新增就业 更加集中在医疗服务、酒店休闲和政府部门,服务业新增就业降至疫情以来低 位。薪资增速延续回落至 3.6%，已接近 2%通胀目标隐含的合宜薪资增速 3.5% （假设劳动生产率增速为 1.5%），预示核心服务通胀将延续下降。失业率大幅 上升并触发萨姆法则,但这并不意味衰退必然到来,因为本轮失业率上升主要原 因是移民流入增加劳动力供给,而就业人数仍在稳定增长,企业裁员水平尚未显, 著上升。展望下半年,实际利率将居于高位,政策紧缩效应将进一步显现,经济 和通胀将延续放缓,美联储的注意力从抗通胀为主转向对稳定物价和最大化就业 双重目标的平衡。我们认为美联储可能在 9 月开始降息,12 月再次降息,全年 降息 50 个基点，明年进一步降息 100 个基点。美国 GDP 增速可能从去年的 2.5%降至今年的 2.2%和明年的 1.8%。 ■ 新增非农就业大幅降温,且主要集中在少教行业。7 月新增非农就业 11.4 万人,大幅低于市场预期的 17.5万人。 ...

5 Aug 2024 Amazon (AMZN US) Amazon released (2 Aug HKT) 2Q24 results: revenue was US$148.0bn, up 10% YoY, and was largely inline with Bloomberg consensus, and total operating profit was US$14.7bn, up 70% YoY, 7% better than consensus, driven by OPM margin beat for AWS aided by efficient cost control. In view of this, customers are more careful with their spending. Management also turns more cautious, and guided for revenue of US$154.0bn-158.5bn for 3Q24E, the mid-point of which is 1% lower than consensus. A ...