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].

Investment Rating - The report maintains a "Buy" rating for Alphabet (GOOG US) with a target price of $218.00, up from a previous target of $185.50, indicating an upside potential of 18.7% from the current price of $183.60 [3][6]. Core Insights - Alphabet reported Q2 financial results with total revenue increasing by 14% year-over-year to $84.7 billion, aligning with Bloomberg's consensus expectations. Net income rose by 29% year-over-year to $23.6 billion, exceeding expectations by 3% due to management's efforts to control expense growth and slow hiring [1]. - The report anticipates that high comparatives will impact revenue growth rates in Q3, and operating profit margins (OPM) will reflect increased depreciation and expenses related to technology infrastructure investments [1]. - The report projects a 3-8% upward revision in earnings forecasts for FY24-26 due to ongoing operational efficiency improvements [1]. Revenue and Profitability - Google Search and other revenues grew by 14% year-over-year to $48.5 billion, driven by strong growth in retail and financial services sectors. YouTube ad revenue increased by 13% year-over-year to $8.7 billion, supported by growth in watch time and improved monetization of Shorts [1]. - Google Cloud revenue surged by 29% year-over-year to $10.3 billion, bolstered by strong growth in the Google Cloud Platform and contributions from AI [1]. - Overall OPM increased by 3.1 percentage points year-over-year to 32.4%, attributed to moderate expense growth and a decrease in headcount [1]. Financial Projections - Revenue projections for FY24E, FY25E, and FY26E are $344.9 billion, $383.5 billion, and $423.1 billion, respectively, with slight adjustments of 0.1%, 0.3%, and 0.5% from previous estimates [5]. - Net income projections for FY24E, FY25E, and FY26E are $92.0 billion, $104.1 billion, and $116.9 billion, reflecting increases of 7.9%, 5.6%, and 3.4% respectively [5]. - The report indicates a projected P/E ratio of 26x for FY25E, aligning with industry averages [6][7]. Market Performance - Alphabet's market capitalization is approximately $2.28 trillion, with a 52-week high of $192.66 and a low of $122.79 [3]. - The stock has shown a 1-month performance of +1.6% and a 6-month performance of +22.1% [3].

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].

Investment Rating - The report upgrades the investment rating of Sunny Optical to "Buy" with a target price of HK$67.88, reflecting a significant potential upside from the current price [2][8]. Core Insights - The report highlights a positive profit warning for 1H24, projecting a year-on-year profit increase of 140-150%, driven by a recovery in gross profit margin (GPM), increased iPhone market share, and the adoption of hybrid/periscope camera technologies [2]. - Adjustments to FY24 and FY25 earnings per share (EPS) estimates have been made, increasing by 46-82% due to stronger GPM and market share growth [2][5]. - The anticipated launch of AI smartphones is expected to accelerate the upgrade cycle in the second half of 2024 [2]. Financial Summary - Revenue projections for FY24E, FY25E, and FY26E are set at RMB 39,816 million, RMB 44,259 million, and RMB 48,555 million, respectively, indicating a year-on-year growth of 25.7%, 11.2%, and 9.7% [5][11]. - Net profit estimates for FY24E, FY25E, and FY26E are RMB 2,458 million, RMB 2,709 million, and RMB 3,315 million, reflecting year-on-year growth rates of 123.6%, 10.2%, and 22.4% [5][11]. - The report indicates a recovery in GPM, with projections of 16.4% for FY24E, 16.8% for FY25E, and 17.6% for FY26E [7][11]. Market Position and Growth Drivers - Sunny Optical is expected to capture increased demand from iPhone and Android customers, with iPhone market share projected to grow to 18% in 2024 and 25% in 2025 [2]. - The report anticipates significant growth in the automotive lens segment, with a compound annual growth rate (CAGR) of 25% from FY22 to FY24E [8]. - The company is positioned to benefit from the recovery in the smartphone market and the introduction of augmented reality (AR) and virtual reality (VR) products [2][8]. Valuation Metrics - The report assigns a price-to-earnings (P/E) ratio of 25.2x for FY25E, reflecting the company's diversified growth across multiple business segments [8][9]. - The valuation is based on a sum-of-the-parts (SOTP) approach, with different P/E ratios assigned to various business units, including 18x for camera modules and 35x for automotive lenses [8][9].