Investment Rating - The report indicates a positive outlook for the healthcare industry, particularly in the context of the DRG/DIP payment reform, which is expected to enhance cash flow for commercial circulation enterprises and support the clinical use of innovative drugs [1][2][3]. Core Insights - The National Healthcare Security Administration has implemented the DRG/DIP 2.0 version, which includes adjustments to groupings that better reflect clinical realities, with a total of 409 core groups and 634 detailed groups [1]. - The report highlights that over 90% of regions in the country have adopted DRG/DIP payment methods, with 26 provinces achieving full coverage within their jurisdictions [1]. - The new policy allows for exceptions in cases of long hospital stays, high medical costs, and the use of innovative drugs and technologies, which will create a more favorable payment environment for innovative drug costs [2]. - The overall settlement cycle for medical insurance funds is expected to shorten, benefiting commercial circulation and pharmaceutical manufacturing companies by accelerating payment collection [1][3]. Summary by Sections - **DRG/DIP Payment Reform**: The 2.0 version introduces 33 new core groups and 6 new detailed groups, with a focus on high-resource consumption areas. The core disease groups have been reduced from 11,553 to 9,520 [1]. - **Implementation Timeline**: By the end of 2024, all regions that have not yet adopted DRG/DIP payment methods are required to implement the 2.0 version, while existing regions must prepare for the transition by December 31, 2024 [1]. - **Impact on Innovative Drugs**: The report emphasizes that the healthcare fund will maintain a supportive payment environment for innovative drugs, allowing for project-based payments or weighted additions during the initial application phase [2].

Investment Rating - The report maintains a BUY rating for the company, with a target price raised to US$218.00, reflecting an 18.7% upside from the current price of US$183.60 [5][9]. Core Insights - The company reported 2Q24 total revenue of US$84.7 billion, a 14% year-over-year increase, and net income of US$23.6 billion, up 29% year-over-year, exceeding consensus estimates [3]. - The advertising business remains resilient, with Google Search and other revenue growing by 14% year-over-year to US$48.5 billion, driven by retail and financial services [3]. - Google Cloud revenue grew by 29% year-over-year to US$10.3 billion, supported by strong growth in the Google Cloud Platform and contributions from AI [3]. - Operating profit margin (OPM) improved to 32.4%, up 3.1 percentage points year-over-year, attributed to moderate expense growth and a decline in headcount [3]. - The company expects full-year OPM to improve in FY24 compared to FY23, despite anticipated increases in headcount and tech infrastructure expenses [3]. Financial Summary - For FY24E, total revenue is projected at US$344.9 billion, with net profit expected to reach US$92.0 billion, reflecting a 24.7% increase year-over-year [8][21]. - The gross margin is expected to be 57.1% in FY24E, with operating margin projected at 30.4% [8][21]. - The company’s capital expenditure increased by 91% year-over-year to US$13.2 billion in 2Q24, with expectations of maintaining quarterly Capex at or above US$12 billion throughout FY24 [3]. Valuation - The valuation is based on a target P/E multiple of 26x for FY25E, aligning with the sector average [9][10]. - The adjusted net profit for FY24E is estimated at US$116.2 billion, with an EPS of US$7.4 [8][21].

2024 年 7 月 25 日 CMB 国际全球市场 | 股票研究 | 公司更新 字母表 (GOOG US) 内联第二季度业绩 ； GenAI 获得牵引力 Alphabet 公布了第 2 季度的财务业绩 ： 总收入同比增长 14%，至 847 亿美元，符合彭博社 的普遍预期 ； 净收入同比增长 29%，至 236 亿美元，比普遍预期高出 3%，这主要是由于管 理层努力缓和费用增长并放慢招聘速度。展望第三季度，我们预计高基数将对收入增长率产生 影响。正如管理层指出的那样，我们还预计第三季度 OPM 将开始反映与技术基础设施投资相 关的折旧和费用的增加。管理层仍预计，鉴于 1H24 的稳定效率增长，FY24 全年 OPM 相对 于 FY23 有所改善。鉴于运营效率的持续改善，我们将 FY24 - 26 盈利预测上调 3 - 8% 。我 们将估值倍数上调，并将 TP 提高至 218.0 美元，为 FY25E 的 26 倍 PE （ 之前 ： 185.5 美 元，为 FY24E 的 27 倍 PE ） 。维持买入。 弹性广告业务。谷歌搜索和其他收入在第二季度同比增长 14%，达到 485 亿美元 （ 第 一季度 ： ...

Investment Rating - The report initiates coverage with a "Buy" rating and a target price of HKD 7.25, representing a potential upside of 24.8% from the current price of HKD 5.81 [1][17][39]. Core Insights - The company, QatmPharm, leverages advanced quantum physics, AI, and robotic automation to accelerate the discovery of new drugs and materials, positioning itself as a global leader in innovative R&D platforms [1][18]. - QatmPharm's integrated technology platform combines high-performance cloud computing, AI, and standardized robotic automation to provide comprehensive drug and materials science R&D solutions [1][12][22]. - The company has established significant partnerships with major global biotech and pharmaceutical firms, including 16 of the top 20 companies by revenue in 2022, enhancing its credibility and market presence [1][14][37]. - Revenue projections indicate substantial growth, with expected total revenues of RMB 306 million, RMB 562 million, and RMB 911 million for FY24E, FY25E, and FY26E respectively, despite anticipated net losses [1][39]. Summary by Sections Drug Discovery Solutions - QatmPharm's drug discovery solutions encompass a modular approach covering the entire drug discovery and research process, including target validation, hit identification, lead generation, and optimization [1][71]. - As of May 13, 2024, the company has secured approximately 159 agreements related to its drug discovery solutions, with some entering the IND enabling stage [1][49]. Financial Analysis - The company is projected to incur net losses of RMB 660 million, RMB 2.81 billion, and RMB 230 million for FY24E, FY25E, and FY26E respectively, while revenues are expected to grow significantly [1][39]. - Historical revenue growth rates show a year-on-year increase of 76%, 112%, and 31% for FY21A, FY22A, and FY23A respectively [1][72]. Market Opportunities - The report highlights significant market opportunities in the AI-driven R&D services sector, with the global drug development outsourcing market expected to grow at a CAGR of 14.9% from USD 12.3 billion in 2023 to USD 32.5 billion by 2030 [1][38]. - The solid-state R&D services market is projected to grow at a CAGR of 27.7%, while the automated R&D laboratory market is expected to grow at a CAGR of 39.6% [1][38]. Strategic Collaborations - QatmPharm has formed strategic collaborations with leading companies such as Pfizer and Johnson & Johnson, which have significantly contributed to its growth and market recognition [1][21][70]. - The company maintains a strong investor base, attracting notable private equity and strategic investors, enhancing its operational capabilities and growth potential [1][14][70].

Investment Rating - Initiate at BUY with a target price of HK$7.25, representing an upside of 24.8% from the current price of HK$5.81 [1]. Core Insights - The report highlights QuantumPharm as a leading company leveraging quantum physics, AI, and robotics to accelerate drug and material discovery, with a focus on integrated technology platforms [4][9]. - The company has established significant collaborations, including a strategic partnership with Pfizer, to enhance its drug R&D capabilities [42][72]. - The report identifies substantial market opportunities in AI-powered R&D service industries, with projected growth rates across various sectors [7][24]. Summary by Sections Investment Thesis - QuantumPharm is positioned to capitalize on the growing demand for AI-powered R&D services, with a well-established integrated technology platform [3]. - The company has entered into approximately 159 agreements for drug discovery solutions, with a notable increase in collaboration programs from 18 in 2021 to 81 in 2023 [5]. Market Opportunities - The global drug R&D outsourcing service market is expected to grow at a CAGR of 14.9%, from US$12.3 billion in 2023 to US$32.5 billion in 2030 [7]. - The solid-state R&D service market is projected to increase at a CAGR of 27.7%, from US$3.8 billion in 2023 to US$20.9 billion in 2030 [7]. - The automated R&D lab market is anticipated to grow at a CAGR of 39.6%, from US$5.9 billion in 2023 to US$60.7 billion in 2030 [7]. - The material science R&D market is expected to expand at a CAGR of 12.8%, from US$76.3 billion in 2023 to US$177.9 billion in 2030 [7]. Business Model - QuantumPharm's business model integrates AI and robotic automation to enhance drug and material discovery processes, focusing on solid-state R&D and automated chemical synthesis [13][14]. - The company has developed a proprietary integrated technology platform that combines cloud supercomputing, quantum physics-based computation, and AI to optimize R&D efficiency [35][36]. Collaborations and Partnerships - The strategic collaboration with Pfizer aims to develop hybrid physics and AI-powered technologies to accelerate drug R&D [43][72]. - QuantumPharm has also partnered with CK Life Sciences to create an AI-powered tumor vaccine R&D platform [23][44]. Financial Analysis - The company's R&D expenditure has increased significantly, from RMB214.4 million in 2021 to RMB480.3 million in 2023, reflecting its commitment to growth [75]. - The customer base has expanded from 75 in 2021 to 187 in 2023, indicating strong demand for its services [77].

Investment Rating - The report maintains a "BUY" rating for BOE Varitronix, with a target price of HK$9.9, indicating a potential upside of 121% from the current price of HK$4.47 [12][11][5]. Core Insights - The company is expected to report a 15% year-on-year revenue growth in 1H24, driven by high-end displays, overseas client orders, and the ramp-up of the Chengdu plant. However, net profit is projected to decline by 16% year-on-year [2][11]. - For 2H24, revenue and net profit are anticipated to improve due to order seasonality, a better product mix, and rising utilization rates [2][11]. - The report highlights BOE Varitronix's leadership in the global auto display market, with expectations for ASP and margin recovery in the second half of the year [2][11]. Financial Summary - Revenue is projected to grow from HK$10,760 million in 2023 to HK$12,873 million in 2024, and further to HK$15,561 million in 2025, reflecting a compound annual growth rate [14]. - Net profit is expected to recover from HK$401 million in 2024 to HK$519 million in 2025, and HK$623 million in 2026 [14]. - The operating margin is forecasted to improve slightly from 3.9% in 2024 to 4.0% in 2025 and 4.2% in 2026 [14]. Market Position and Strategy - BOE Varitronix remains the global number one auto display supplier in terms of total and medium- to large-size shipments as of 2Q24 [2]. - The company is focusing on expanding its overseas market presence, with a target for overseas sales to reach 50% by FY26E [2][11]. - The Chengdu plant is noted as the world's largest and most advanced auto display module facility, currently operating at full capacity, which is expected to enhance profitability in 2H24 [2][11].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 9.90, reflecting a potential upside of 121.6% from the current price of HKD 4.47 [2][9][10]. Core Insights - The company is expected to see a revenue increase of 15% year-on-year in 1H24, driven by high-end display orders and a surge in overseas customer demand, despite a projected net profit decline of 16% [2][3]. - For 2H24, improvements in revenue and net profit are anticipated due to seasonal orders, better product mix, and increased utilization rates [2][3]. - The automotive display market share is growing, with the company remaining the largest global supplier in this segment [2][3]. - The management has reiterated its guidance for overseas sales to reach 50% of total sales by FY26, emphasizing the importance of high-end automotive display products [2][3]. Financial Summary - Revenue is projected to grow from HKD 10,760 million in FY23 to HKD 12,873 million in FY24, representing a year-on-year growth rate of 19.6% [3][12]. - Net profit is expected to decline from HKD 475.3 million in FY23 to HKD 400.9 million in FY24, with a year-on-year decrease of 15.7% [3][12]. - The company’s earnings per share (EPS) is forecasted to decrease from HKD 0.60 in FY23 to HKD 0.51 in FY24 [3][12]. Valuation Metrics - The new target price is based on a price-to-earnings (P/E) ratio of 15x for FY25E, compared to the previous P/E of 15x for FY24E [2][9]. - The company is currently trading at P/E ratios of 8.8x for FY24E and 6.8x for FY25E, indicating attractive valuation levels [2][9]. - The price-to-book (P/B) ratio is projected to remain at 0.4 for FY24E and FY25E, suggesting a solid valuation relative to its book value [3][14].

22 Jul 2024 CMB International Global Markets | Equity Research | Company Update Jiumaojiu (9922 HK) We see risks in 2H24E after the miss in 2Q24 HOLD (Down) Jiumaojiu issued a profit warning for 1H24, which is still awful compared to our already negative outlook. With risks to linger in the near future (SSSG drop may sustain and store expansion may also slow down, etc.), plus the fairly high valuation (23x FY24E P/E), we now cut our FY24E-26E net profit forecasts by 69%-57% and downgrade the stock to HOLD. ...

Investment Rating - The report downgrades the stock rating to "Hold" from "Buy" due to a challenging outlook for the second half of 2024 and high valuation concerns [2]. Core Views - The company has issued a profit warning for the first half of 2024, with expected net profit of approximately 67 million RMB, a 70% decline year-on-year [2]. - The same-store sales growth (SSSG) for the second quarter of 2024 has worsened, with declines of 18% for Tai Er, 37% for Song, and 13% for JMJ, compared to previous quarter declines [2]. - The report anticipates continued risks in the near future, including potential slowdowns in store expansion and ongoing declines in same-store sales [2]. Summary by Sections Financial Performance - Revenue for FY24E is projected at 7,128 million RMB, with a year-on-year growth of 19.1% [3]. - Net profit for FY24E is expected to be 209.9 million RMB, reflecting a significant decline of 56.9% compared to FY23A [3]. - The report revises net profit estimates for FY24E to FY26E down by 69% to 57% [2][4]. Revenue Adjustments - The revenue forecast for FY24E has been adjusted down by 13.5% compared to previous estimates, with a new projection of 7,128 million RMB [4]. - The gross profit margin for FY24E is expected to be 63.3%, slightly lower than previous estimates [4]. Market Valuation - The target price is set at 3.59 HKD, down from a previous target of 8.39 HKD, reflecting a 5.3% potential upside from the current price of 3.41 HKD [2]. - The stock is currently trading at a P/E ratio of 23 times FY24E earnings, which is considered high given the expected sales growth of 6% and a significant decline in net profit [2][6]. Operational Insights - The company plans to implement new business models, including franchising and satellite stores, to improve performance [2]. - Management is focusing on menu improvements, pricing strategies, and employee incentive programs to enhance operational efficiency [2].

Investment Rating - The report maintains a "Buy" rating for the company, despite facing strong headwinds from dealers [2][3]. Core Views - The company is expected to remain profitable in the first half of 2024, with a projected net profit of RMB 43 million, despite a forecasted 8% decline in new car sales year-on-year [2][3]. - The report anticipates a slight recovery in margins in FY25 due to the elimination of convertible bond burdens and the introduction of new electric vehicle models by BMW [2][3]. - The target price has been adjusted from HKD 4.00 to HKD 3.00, based on a revised earnings multiple of 10 times the estimated FY25 earnings per share [2][3]. Financial Summary - For 1H24, new car sales are expected to decline to 29,200 units, with a significant drop in average selling prices by 13% [2][3]. - The company’s revenue is projected to decrease by 15% year-on-year, while gross profit is expected to decline by 11% [2][3]. - The net profit for FY25 is estimated at RMB 360 million, reflecting a 52.9% decrease from previous estimates [7][8]. Sales and Profitability - The report indicates that the gross margin for new cars is expected to drop to -3.7% in 1H24, marking a historical low [2][3]. - Despite a decrease in service volume, after-sales service revenue is projected to grow by 12% year-on-year, with Porsche contributing a larger share [2][3]. Market Position - The market share of the company in Porsche sales in China is expected to increase from 16% in 2H23 to 17% in 1H24, despite a 39% decline in Porsche's overall sales [2][3]. - The company is expected to benefit from a potential reduction in sales targets by foreign automakers, which may lead to improved margins in FY25 [2][3].