M N 29 Apr 2024 CMB International Global Markets | Equity Research | Company Update SANY Heavy (600031 CH) 2023 net profit a miss; 1Q24 still weak; Stay on the sidelines Target Price RMB14.80 SANY Heavy (SANY)’s net profit in 2023 came in at RMB4.53bn (+6% YoY), (Previous TP RMB12.30) which is 12% below both our and consensus estimates. In addition, net profit in Up/Downside (7.7%) 1Q24 only grew 5% YoY to RMB1.58bn due to a lack of revenue growth (-1% Current Price RMB16.04 YoY). We are still concerned abo ...

M N 29 Apr 2024 CMB International Global Markets | Equity Research | Company Update Tigermed (300347 CH) Meaningful demand recovery in 1Q24 Target Price RMB66.82 Tigermed reported 1Q24 revenue of RMB1,660mn, down 8.0% YoY, and (Previous TP RMB68.57) attributable recurring net income of RMB303mn, down 20.5% YoY, which was Up/Downside 15.8% mainly due to the substantially reduced gains on fair value changes and Current Price RMB57.70 investment changes (RMB8mn in 1Q24 vs RMB198mn in 1Q23). 1Q24 revenue / attr ...

M N 2024 年 4 月 29 日 招银国际环球市场 | 睿智投资 | 公司更新 固生堂 (2273 HK) 1Q24 保持业务快速增长势头 目标价 71.96港元 固生堂更新了 1Q24 经营数据， 1Q24 就诊人次约为 107 万，同比增长约 (此前目标价 71.96港元) 42.1%，其中在23年4月1日至24年3月31日期间新成立的门店1Q24就诊 潜在升幅 58.2% 人次约为 7.4 万，贡献总就诊人次增长率中的 9.8%。管理层表示老店就诊人次 当前股价 45.50港元 增长达 32.2%。门诊人次的强劲增长部分得益于 23 年 1-2 月疫情导致的低基 中国医药 数，然而23年3月出现积压需求的集中爆发，造成一定的高基数，但24年3月 武 煜, CFA 门诊人次的增长仍超过 30%。同时，管理层表示 1Q24 客单价同比增长超过 (852) 3900 0842 2%。基于公司良好的现金流表现，管理层计划在未来 3-5 年将每年的分红、回 jillwu@cmbi.com.hk 购的比例提高至净利润的30-50%，以更好的回馈股东。 黄本晨, CFA  线下门店扩张提速。23 年固生堂共收 ...

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Meta reported 1Q24 results: total revenue grew by 27% YoY to US$36.5bn, in line with consensus estimate of US$36.2bn; net income was up 117% YoY to US$12.4bn, also in line with consensus estimate (US$12.2bn). For 2Q24, management guides total revenue to increase by 14-22% YoY to US$36.5- 39.0bn (vs. consensus estimate of US$38.3bn), with growth rate normalizing as the base effect wanes. Looking ahead, Meta expects to start a multi-year investment cycle to build full-scale AI capabilities and enhance monetiz ...

Investment Rating - The report maintains a BUY rating for Vesync with a target price of HK$ 6.79, based on a P/E of 11x for FY24E, reflecting a potential upside of 57% from the current price of HK$ 4.33 [2][5][15]. Core Insights - Despite slow sales growth in 1Q24, the end-demand remains healthy, supported by a strong sell-out growth and low inventory levels in the Amazon channel. The company expects orders growth to normalize in the upcoming quarters [2][8]. - The management has reiterated its FY24E guidance of over 20% sales growth and over 10% net profit margin, which aligns with the analyst's conservative positive outlook [2][8]. - The report highlights that Vesync's gross sales growth was only 1% in 1Q24, attributed to supply issues and reduced orders from Amazon, while non-Amazon channels saw a significant growth of 38% [2][8]. Financial Summary - Revenue is projected to grow from US$ 585 million in FY23 to US$ 675 million in FY24, representing a year-over-year growth of 15.3% [3][14]. - Net profit is expected to increase from US$ 77.4 million in FY23 to US$ 91.4 million in FY24, with a net profit margin improvement from 13.2% to 13.5% [3][14]. - The gross profit margin is anticipated to stabilize at 46.0% in FY24, slightly down from 46.9% in FY23, while the operating profit margin is expected to be around 15.3% [3][14]. Growth Outlook - The report projects a compound annual growth rate (CAGR) of 13% for sales and 16% for net profit from FY23 to FY26E, indicating robust growth potential [2][8]. - Specific brands under Vesync, such as Levoit and Cosori, are expected to achieve sales growth of 15% in FY24E, driven by new product launches and category expansions [8][10]. Valuation Metrics - The current valuation of Vesync at 7x FY24E P/E is considered attractive compared to its historical average of 12x, suggesting a favorable investment opportunity [2][5][15]. - The report notes that the average inventory days for major retailers have decreased, indicating improved channel inventory health, which bodes well for future sales [8][10].

M N 26 Apr 2024 CMB International Global Markets | Equity Research | Company Update Luxshare (002475 CH) FY23 in-line with better-than-feared 1H24 earnings guidance; Solid outlook ahead Target Price RMB46.61 Luxshare posted FY23 revenue/NP growth of 8%/20% YoY, largely in-line with (Previous TP RMB46.96) pre-announcement of 20-25% YoY, while 1H24E earnings guidance of 20-25% Up/Downside 63.3% YoY (implying 2Q24E 18%-27% YoY) is above market expectations. We believe Current Price RMB28.54 the strong 1H24 out ...

Investment Rating - The report maintains a "Buy" rating for iQIYI with a target price of $8.60, indicating a potential upside of 87.8% from the current price of $4.58 [4]. Core Insights - iQIYI is focusing on high-quality and diversified content while expanding into overseas markets and targeting the elderly and youth demographics. The management emphasizes a return to realism in content creation and the importance of AIGC (Artificial Intelligence Generated Content) in enhancing creator value [2][3]. - The company has announced over 300 new titles, including popular series and genres, which are expected to drive membership growth and improve profitability [2][3]. - The report anticipates a recovery in advertising revenue driven by innovative variety shows and operational improvements [2]. Financial Summary - Sales revenue is projected to grow from 31,873 million RMB in 2022 to 39,960 million RMB in 2026, reflecting a compound annual growth rate (CAGR) of approximately 6% [3][13]. - Adjusted net profit is expected to increase from 2,811.2 million RMB in 2023 to 4,543.2 million RMB in 2026, indicating a positive trend in profitability [3][13]. - The diluted earnings per share (EPS) is forecasted to rise from 4.28 RMB in 2023 to 4.66 RMB in 2026, showcasing an upward trajectory in earnings [3][13]. Content Pipeline - iQIYI has a robust pipeline with over 300 new titles across various genres, including dramas, variety shows, and films, set to launch in 2024. Notable upcoming series include "Cloud Rising" and "The Heart of the World" [2][8][12]. - The company is introducing new content units such as "Micro Dust Theater" and "Big Literature Theater" to cater to diverse audience preferences [2]. Market Position - iQIYI's market capitalization is approximately $4.395 billion, with a 52-week stock price range of $3.17 to $6.34, indicating volatility but also potential for growth [5]. - The average market estimate for EPS shows a significant increase from 0.37 RMB in 2021 to 3.37 RMB in 2026, reflecting positive market sentiment towards the company's growth prospects [3].

Investment Rating - Maintain BUY rating with a target price of HK$52.00, implying a 51.2% upside from the current price of HK$34.40 [2][3]. Core Insights - The first-quarter results for Ping An show resilience in core lines, with Life VNB increasing by 20.7% YoY to RMB12.9 billion, surpassing market consensus and previous estimates [2]. - The growth in VNB is attributed to a significant rise in VNB margin, which increased by 6.5 percentage points YoY to 22.8%, despite sluggish sales in the 2024 jumpstart period [2]. - Group OPAT decreased by 3.0% YoY to RMB38.7 billion, but this is a significant improvement from a decline of 19.7% YoY by the end of 2023 [2]. - Life & Health OPAT turned positive with a growth of 2.2% YoY to RMB27.3 billion, contributing to a 0.3% YoY OPAT growth across the three core segments: Ping An Life & Health, P&C, and PAB [2]. - Asset management returned to profitability with a net profit of RMB910 million in 1Q24, compared to a loss of RMB20.7 billion by the end of 2023 [2]. Summary by Sections Life Insurance - Life VNB rose by 20.7% YoY to RMB12.9 billion in 1Q24, driven by a VNB margin increase to 22.8% [2][16]. - The number of life insurance agents decreased by 4.0% YoY to 0.33 million, but the productivity per agent increased by 56.4% YoY [2][16]. Property & Casualty (P&C) Insurance - P&C insurance revenue grew by 5.7% YoY to RMB80.6 billion, with a combined ratio (CoR) of 99.6%, reflecting a 0.9 percentage point increase [2][16]. - Underwriting profit in P&C declined by 67.5% YoY to RMB323 million, attributed to increased claims from catastrophes [2][16]. Asset Management - The asset management segment reported a net profit of RMB910 million in 1Q24, a recovery from a significant loss in the previous year [2][16]. Financial Projections - FY24-26E EPS revised down to RMB6.42, RMB7.05, and RMB7.61, respectively, from previous estimates of RMB6.94, RMB7.87, and RMB8.62 [2][3]. - The stock is currently trading at FY24 0.47x P/EV and 0.71x P/B, with potential upside driven by improved market sentiment and rising investment yields [2][3].

Investment Rating - The report maintains a BUY rating for New Oriental with a target price of US$102.50, revised from the previous target of US$104.50, indicating a potential upside of 33.0% from the current price of US$77.08 [2][3]. Core Insights - New Oriental's total net revenue for 3QFY24 increased by 60.1% year-over-year (YoY) to US$1,207 million, surpassing the consensus estimate of US$1,098 million by 10% [2]. - Non-GAAP net income rose by 9.8% YoY to US$105 million, although it fell short of the consensus estimate of US$132 million due to investments in East Buy and rapid capacity expansion affecting margin growth [2]. - The company expects total revenue for 4QFY24 to grow by 28-31% YoY, projecting revenue between US$1,102 million and US$1,127 million, compared to the consensus estimate of US$1,096 million [2]. Financial Performance Summary - For FY24E, total revenue is forecasted at US$4,293 million, with adjusted net profit expected to reach US$456.1 million [6]. - The revenue growth forecast for FY25E and FY26E has been increased by 8-10%, while earnings forecasts for the same periods have been trimmed by 3-6% due to the impact of capacity expansion on margins [2][6]. - The educational business segment showed strong momentum, with overseas test prep and study consulting revenue growing by 52.6% and 25.7% YoY, respectively, contributing approximately 21% to total revenue [2]. Capacity Expansion and Strategic Initiatives - New Oriental's capacity expansion accelerated, with the number of schools and learning centers increasing by 28% YoY to 911 as of the end of 3QFY24 [2]. - The company has raised its capacity expansion plan for FY24, now expecting a 30% YoY increase, up from the previous estimate of 20% [2]. - Investments in East Buy are aimed at enhancing private label product development and supply chain management, which is expected to drive customer base expansion and user engagement [2]. Valuation Methodology - The report employs a sum-of-the-parts (SOTP) valuation, attributing US$91.6 million to the educational and consulting business, US$6.8 million to East Buy, and US$4.2 million to the tourism business, reflecting their respective growth prospects and market positions [7][8].