Investment Rating - The report maintains a "Buy" rating for both Yue Yuen and Pou Sheng, with a 12-month target price of HK$17.2 for Yue Yuen and HK$1.00 for Pou Sheng [20][23]. Core Insights - Yue Yuen's OEM business has shown sequential order improvement, with management raising full-year order volume growth guidance to low double digits year-over-year, indicating better visibility on second-half orders [3][12]. - Pou Sheng's retail business faces challenges due to weak consumption power in China, but effective margin control and cost optimization strategies are expected to support stability [5][8]. Summary by Sections OEM Business Overview - Order Outlook: Full-year order volume growth guidance raised to low double digits year-over-year from mid-single to high-single digits, with improved visibility for second-half orders [3][12]. - Margin Expectations: Gross profit margin (GPM) in Q2 was 18%, below expectations, but management anticipates stability or a marginal increase in GPM for the second half [14]. - Capacity Expansion: Ongoing capacity expansion in Bangladesh, Indonesia, and Cambodia, with plans for a new production base in India [15][16]. Retail Business Overview (Pou Sheng) - Sales Performance: Sales declined by 11% year-over-year in July, with management expecting similar trends to continue in the second half [5][7]. - Margin Management: Despite sales pressure, Pou Sheng achieved a gross profit margin of 34.2% in Q2, with expectations for stabilization in the second half [8][10]. - Cost Control Initiatives: Continuous efforts in optimizing SG&A costs have led to savings, including adjustments in labor and rental costs [5][8]. Earnings Revisions - For Pou Sheng, net income estimates for 2024 have been revised up by 9%, while estimates for 2025-2026 have been increased by 0%-2% due to better gross profit margin improvement and operational efficiency [6][19]. - For Yue Yuen, slight adjustments to gross profit margin forecasts have been made, reflecting recent results and new factory ramp-up [6][17]. Strategic Initiatives - Pou Sheng is enhancing its digitalization efforts and multi-channel strategies to counteract offline sales softness, with a focus on improving operational efficiency in high-tier cities [9][10]. - New brand collaborations and outlet-formatted stores are being pursued to drive growth and improve sales performance [10][11].

14 August 2024 | 6:40AM HKT Tencent Music Entertainment Group (tme) Buy Earnings Review: 2024 in-line: Shifting gear to ARPPU over subs, expectation reset but still long runway of growth; Buy TMEUpside: 27.7%12m Price Target: $14.20Price: $11.12 1698.HK12m Price Target: HK$55.10Price: HK$53.50Upside: 3.0% TME delivered in-line 2Q24 results (see our note) yet produced a mixed outlook over 2H24-2025 including: 1) A shift in gear of growth drivers may raise concerns for some investors on multiple contraction, ...

Investment Rating - Maintain Buy rating on Wanhua Chemical Group (600309 SS) with a revised 12-month target price of Rmb106 0 per share, up from Rmb103 0 [2][5] Core Thesis - The polyurethane cycle is bottoming out, with volume recovery across major players and sequentially improved pricing, although spread recovery was delayed due to high raw material prices [3] - Wanhua Chemical is well-positioned for cyclical recovery, with a leading position in one of the most consolidated commodity chemical supply chains and long-term structural growth opportunities [8] - The company is expected to grow earnings at a +c 20% CAGR over 2023-26E, driven by new capacity projects for high-margin specialty chemicals and normalization of petrochemical earnings [6][8] Financial Estimates - 2024E-26E EPS estimates reduced by 5-9% to reflect weaker-than-expected margins in performance chemicals and new materials segment, higher opex, impairment losses, and finance expenses [2] - 2024E revenue estimate revised to Rmb198 310mn (from Rmb199 624mn), 2025E to Rmb228 460mn (from Rmb231 413mn), and 2026E to Rmb261 360mn (from Rmb262 856mn) [5] - 2024E net profit estimate revised to Rmb16 670mn (from Rmb18 227mn), 2025E to Rmb22 071mn (from Rmb24 199mn), and 2026E to Rmb26 748mn (from Rmb28 149mn) [5] Valuation and Catalysts - Target EV/EBITDA multiple slightly lowered to 10 5x (from 11 0x) to reflect reduced growth forecasts, but valuation base year rolled forward to average 2024E-25E [2] - Potential catalysts include US rate cuts and improving construction activities in Europe in early-mid 2025, which should support recovery in polyurethane demand and drive pricing/margin upside [2] - Strong pipeline of new capacity projects for high-margin specialty chemicals (e g , polyolefin elastomers and flavor and fragrance) scheduled to come on stream in 2H24 [3] Industry Position - Wanhua Chemical is the largest global producer of MDI (30% share of 2023 global capacity) and TDI (25% share of 2022 capacity) [6] - The company accounts for ~80% of global new polyurethane supply over 2023-25E, with continued volume share gains expected [6]

13 August 2024 | 9:39AM EDT USA: Core Producer Prices Soft on Net in July; Lowering July Core PCE Tracking to +0.14% BOTTOM LINE: The producer price index (PPI) increased by somewhat less than expected in July. Relative to expectations, core producer price inflation was soft on net, with the PPI excluding food and energy remaining unchanged (vs. consensus) +0.2%) and the PPI excluding food, energy, and trade services increasing 0.3% (vs. consensus +0.2%). Based on details in the PPI report, we now estimate ...

Investment Rating - The report maintains a Neutral rating on UroGen Pharma (URGN) with a 12-month price target of $22, indicating a potential upside of 51.6% from the current price of $14.51 [42][43]. Core Insights - UroGen Pharma's Jelmyto sales remained flat year-over-year at $21.8 million, slightly below estimates, with challenges related to Medicaid/Medicare discounting impacting revenue guidance for FY24 [2][42]. - The company is focused on completing the rolling NDA submission for UGN-102, with expectations for priority review and potential commercialization in early 2025 [2][42]. - Management expressed confidence in the company's capitalization to reach profitability as it launches UGN-102 and advances its pipeline, despite caution regarding UGN-102's ability to replace TURBT surgery in the near term [2][42]. Financial Summary - UroGen Pharma reported total operating expenses of $184.9 million for 2Q24, slightly above expectations, driven by pre-commercial manufacturing costs for UGN-102 and increased R&D expenses for UGN-103 [2][42]. - The gross margin improved to 90.1%, while R&D expenses increased by 7.1% year-over-year [15][42]. - The company anticipates revenue growth, with projections of $95 million to $102 million for FY24, contingent on the uptake of Jelmyto and the successful launch of UGN-102 [2][42]. Model Adjustments - The report updates its model to reflect actuals from 2Q24 and adjusts near-term operating expense assumptions based on recent trends [2][42].

13 August 2024 | 9:16PM SGT UOL Group (UTOS.SI): 1H24 slightly below: Executing on divestment and asset enhancement initiatives despite weaker resi; Buy UOL reported 1H24 core Patmi of S$143m, +8% YoY and slightly below at 39%/43% of GSe/IBES consensus. Revenue was -7% YoY with lower residential sales partially offset by higher investment and hotel revenue, and EBITDA +3% on higher contribution from commercial/hotel segments. While residential sales and contribution remain weak, commercial portfolio saw str ...

13 August 2024 | 4:56PM CEST eutra Thyssenkrupp Nucera (NCH2.DE) A quarter of strong delivery, but lack of visibility on new green hydrogen orders weighs on forecasts NCH2.DE 12m Price Target: €10.50 Price: €8.48 Upside: 23.9% Thyssenkrupp Nucera reported 3Q24 results this morning (August 13th), with total revenue of €235.7mn, in line with the preliminary results, its highest quarterly revenue recorded thanks to the ongoing implementation of the CA and AWE projects, and positive operating income of €0.8mn t ...

13 August 2024 | 5:50PM BRT eutra TOTVS SA (TOTS3.SA) Updating Estimates Post-2024 TOTS3.SA 12m Price Target: R$34.00 Price: R$29.50 Upside: 15.3% We update our estimates to factor in the mostly-in-line 2Q24 results as well as updated macroeconomic assumptions. All in, we raise our 12-month price target to BRL34.00/share (up from BRL33.00) mainly on lower cost of capital, and maintain our Neutral rating. Overall, the solid ARR trends in 2Q corroborate the constructive view on revenue-growth drivers we prese ...

Investment Rating - The report maintains a "Buy" rating for Ulvac (6728.T) with a 12-month price target of ¥12,000, indicating an upside potential of 45.5% from the current price of ¥8,249 [1][6][9]. Core Insights - The earnings review for Ulvac shows that 4Q results exceeded expectations, with operating profits of ¥9.4 billion, significantly above estimates and guidance [1][6]. - Management has indicated that despite a mixed business environment, the medium-term targets remain achievable, with a forecasted 5% year-over-year increase in orders for FY6/25 to ¥270 billion [1][5]. - The company expects improvements in gross margins driven by sales growth and product mix enhancements, with management anticipating that 90% of the gross margin improvement will come from these factors [6][8]. Financial Summary - For FY6/24, total revenue is projected at ¥261.1 billion, with operating profits expected to reach ¥29.8 billion [2]. - The forecast for FY6/25 includes total revenue of ¥279.9 billion and operating profits of ¥35.4 billion, reflecting a positive growth trajectory [2][6]. - EPS estimates for FY6/25 are set at ¥517.5, increasing to ¥651.5 by FY6/26 [2][6]. Business Environment - The report highlights a mixed business environment, particularly in the semiconductor sector, with some delays in investment timing for growth areas, but overall, management remains optimistic about future growth [5][8]. - The company is focusing on market share gains in logic, memory chip, and power semiconductor equipment applications, which are expected to drive top-line growth [8][9]. Valuation and Risks - The valuation methodology suggests a target price based on FY6/26 earnings estimates and an EV/EBITDA multiple of 20X, reflecting the global SPE sector average [9]. - Key risks include slower-than-expected margin improvements and potential downturns in capital expenditures for flat panel displays [9].

Investment Rating - The report maintains a "Buy" rating for Tencent Music Entertainment Group (TME) with a 12-month price target of US$16.00 per ADS and HK$62.30 for 1698.HK, indicating an upside potential of 21.9% [7][10]. Core Insights - Tencent Music reported 2Q24 revenue largely in line with expectations, showing a slight year-over-year decline of 2% but a significant increase in non-GAAP operating profit by 39% year-over-year [2][4]. - The company achieved a record high gross profit margin (GPM) of 42%, reflecting an 8 percentage point increase year-over-year, driven by operating leverage from online music services and subscriber growth [4][8]. - The number of paying subscribers increased by 3.5 million quarter-over-quarter, with an average revenue per paying user (ARPPU) of RMB 10.7, marking a 10% year-over-year improvement [4][8]. Financial Performance Summary - **Net Revenues**: RMB 7,160 million, down 2% year-over-year, and slightly below Goldman Sachs estimates [4]. - **Online Music Revenues**: RMB 5,424 million, up 28% year-over-year, indicating strong growth in this segment [4]. - **Adjusted Net Income**: RMB 1,873 million, a 22% increase year-over-year, slightly above estimates [4]. - **Gross Margin**: Increased to 42%, surpassing expectations, with a target of 45% in the medium term [4][8]. - **Operating Expenses**: Remained disciplined, with total OPEX largely flat quarter-over-quarter, reflecting a focus on cost management [4][8]. Subscriber and Revenue Metrics - **Total Subscribers**: 117 million, with a year-over-year growth of 18% [4]. - **ARPPU**: RMB 10.7, showing a 10% increase year-over-year [4]. - **Quarterly Subscriber Growth**: Sustained momentum with 3.5 million net adds [4][8]. Market Outlook - The management's outlook for 3Q growth in subscribers and ARPU, along with profitability expansion, will be critical to watch [2][4].