Investment Rating - The stock rating for Zhejiang Huayou Cobalt Co Ltd is Equal-weight [4] - The industry view is Attractive [4] Core Insights - The company reported a net profit of Rmb1.3 billion for 3Q24, which is an increase from Rmb1.1 billion in 2Q24 and Rmb928 million in 3Q23, exceeding expectations [1] - The 9M24 profit reached Rmb3 billion, reflecting a year-on-year increase of 0.2% [1] - The good performance is attributed to better-than-expected gross profit margin (GPM), lower tax expenses, and reduced minority interest [2] - The GPM for 3Q24 was 18.8%, only slightly down by 1.4 percentage points quarter-on-quarter [2] - The effective tax rate decreased to 3.7% in 3Q24 from 4.4% in 2Q24 and 12.1% in 3Q23 [2] - Minority interest accounted for 4.5% of profit after tax, significantly lower than 35.5% in 2Q24 [2] Capacity Expansion - Ongoing construction of the Huaneng 50kt ternary precursor project in Indonesia was completed on October 18, 2024 [2] - The Huaxiang 50kt sulfuric nickel project and the Hungary 25kt cathode material projects are currently under construction [2] Financial Metrics - The price target for the stock is set at Rmb27.00, indicating a downside of 7% from the current price of Rmb28.95 [4] - The market capitalization is Rmb49.507 billion, with an enterprise value of Rmb70.270 billion [4] - Projected EPS for fiscal years ending in 2023, 2024, 2025, and 2026 are Rmb2.05, Rmb1.34, Rmb1.42, and Rmb2.00 respectively [4] - Revenue projections for the same fiscal years are Rmb65.936 billion, Rmb63.642 billion, Rmb66.235 billion, and Rmb70.900 billion respectively [4] - The P/E ratio is projected to be 16.1 for 2023 and 21.5 for 2024 [4]

HK) October 20, 2024 07:47 PM GMT M Update COSCO SHIPPING Energy Transportation | Asia Pacific Parent to Increase Stake in CSEA with Own Funds and Special Loans What's new: On October 20, CSE announced its parent COSCO Shipping Group (45.2% stake in CSE) will increase its A-share holdings in the next 6 months for a total consideration of Rmb679mn-Rmb1,358mn, funded through own funds and special loans, echoing the launch of PBOC's relending program. Our take – positive: • On its latest market close, CSE's pa ...

M Update October 20, 2024 11:00 PM GMT | --- | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------- ...

Source: FactSet, Morgan Stanley Research Source: Company data, Morgan Stanley Research estimates October 17, 2024 01:19 AM GMT M Idea Healthcare REITs 3Q24 Earnings Preview | North America Bull Is the New Base: Expect Continued Outperformance in 25e, Raise PT for WELL to $135, VTR to $65 & AHR to $27 Expect solid 3Q results with upside risk to estimates driven by strong fundamentals and investment activity; expect healthcare to continue outperformance in '25e supported supply-demand tailwind. We mark to mar ...

M Update China Equity Strategy | Asia Pacific October 17, 2024 09:00 PM GMT Source: CEIC, Bloomberg, Wind, RIMES, Morgan Stanley Research. Data as of October 16, 2024. A-Share Sentiment Falls Sharply as Market Volume Recedes Sentiment dropped as trading volume declined amid weaker macro data and underwhelming policy follow-through. We expect market volatility to remain relatively high, and advise focusing on dividend yield plays and earnings certainty. A-share investor sentiment fell significantly vs. prior ...

Europe Equity Research 17 October 2024 J P M O R G A N Wind Snippet Germany announces a package of measures for the wind industry | --- | --- | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------| | | | | The German Economy and Energy ...

M Idea Microsoft | North America October 17, 2024 04:01 AM GMT 1Q25 Preview – Seeing the Forest Through the Trees Investor sentiment has turned more negative as a 'wall of worry' around Gross Margins, Capex, GenAI monetization and the OpenAI relationship builds. Given Microsoft's leading positioning in the nascent GenAI opportunity, these concerns likely prove transitory, providing an attractive entry point. Share underperformance and negative investor sentiment on Microsoft, create an attractive set up for ...

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The report discusses a modest quarter-on-quarter growth improvement for 2024/25, but sustainable reflation remains distant, indicating a long and drawn-out battle ahead [3] - A policy pivot has been triggered by various factors, including low job market confidence and the need for debt restructuring to facilitate economic recovery [5][6] - The report emphasizes the importance of a consumption-focused fiscal stimulus to drive economic rebalancing towards consumption [14] Section 1: Cyclical Outlook - The economic outlook for 2024/25 suggests a base case of quarter-on-quarter acceleration in Q4 2024 to Q1 2025 [3] - The report highlights lessons from Japan, noting the profound negative impact on wage growth amid persistent deflation, particularly affecting lower-income earners [6] - A significant one-time debt swap is estimated to resolve implicit local debt, with a size of approximately RMB 6 trillion over multiple years [9] - The "5R" growth strategy includes restructuring, rebalancing, reflation, reform, and rekindling, with expected progress by the end of 2025 [10] Section 2: Structural Outlook - The report indicates that China is better positioned than Japan after the bubble burst, with lower asset price inflation and room for further catch-up growth [24] - China's urbanization ratio is expected to continue rising, supported by upgrade demand and ongoing urbanization [22] - The report notes that China's inbound tourism revenue is projected to grow at an 11% CAGR from 2019 to 2033, indicating meaningful upside potential [35] Section 3: Regulatory Reset - The report outlines a shift from a "growth first" approach to balancing growth and sustainability, with new policy priorities focusing on social equality, data security, and tech self-sufficiency [40] - It highlights the need for a smarter, greener, and more market-oriented urbanization strategy, emphasizing the importance of infrastructure and labor mobility [48] Section 4: Global Emerging Trends - The report discusses the early innings of AI diffusion, predicting that 2024 will be a significant year for adopters of AI technology [53] - It highlights the potential for decarbonization, estimating that the energy transition to low carbon fuels will drive over USD 500 billion in cumulative cost savings through 2030 [65]

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M Update Largan Precision | Asia Pacific October 17, 2024 03:53 PM GMT 3Q24 Results In Line, but 4Q24 Outlook Lackluster with Order Cut Reaction to earnings In-line Financial results versus consensus Strengthens our investment thesis Impact to our investment thesis Source: Company data, Morgan Stanley Research | --- | --- | --- | |-------|-------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | Largely unchanged | | | | | | | | Impact to next 12-month | | | | | | | | | | Althou ...