M Update China Equity Strategy | Asia Pacific October 10, 2024 09:00 PM GMT Source: CEIC, Bloomberg, Wind, RIMES, Morgan Stanley Research. Data as of October 9, 2024. A-Share Sentiment Hit Record High Amid Policy Expectation Swings Record-high trading volume and MS A-share sentiment reading reflected exuberant expectations for policy stimulus. However, near-term uncertainty remains; we focus on earnings visibility and dividend plays as we await further policy comments. A-share investor sentiment off the cha ...

Investment Rating - ANTA Sports Products is rated **Overweight** with a price target of HK$117.00, implying a 17% upside from the current price of HK$100.10 [5] Core Views - The market reaction to 3Q24 earnings is expected to be neutral to negative due to FILA's sales miss, partially offset by strong Golden Week sales [2] - ANTA brand's new initiatives are showing positive results, with Descente and Kolon continuing strong growth [2] - Management remains confident in achieving its 2024 profit target, contingent on 4Q sales performance [3] Financial Performance - ANTA brand saw mid-single-digit% retail sales growth in 3Q24, with ANTA Core and Kids both growing by mid-single-digit% [4] - FILA brand's 3Q retail sales declined by low-single-digit%, with FILA Classic flat but dragged down by FILA Kids and Fusion [8] - Outdoor brands (Descente and Kolon) grew 45-50%, with Descente up 35-40%+ and Kolon up 65-70% [8] Sales Channels and Inventory - ANTA's offline sales declined by low-single-digit%, while e-commerce grew over 20% [4] - FILA's online sales grew by high-single-digit%, but offline sales declined by mid-to-high-single-digit% [8] - Inventory levels for both ANTA and FILA were below 5 months [4][8] Golden Week Performance - Golden Week sales exceeded management's target, with ANTA and FILA both achieving above teens levels of growth [9] - ANTA's performance was driven by strong same-store sales growth and new store openings (~300 new stores before Golden Week) [9] Full-Year Guidance - Management sees uncertainties in achieving full-year sales targets (10% growth for ANTA and high-single-digit% for FILA) due to 3Q sales miss, but remains focused on inventory and business quality [9] 4Q Outlook and Growth Drivers - The company does not anticipate significant discounting pressure in 4Q due to healthy inventory levels [10] - ANTA Superstore is expected to be a new growth driver, with plans to open ~50 stores by year-end, targeting Rmb20mn+ annual store productivity [10] Valuation and Market Share - The base case valuation assumes a 25x target P/E multiple on 2024 EPS estimates, supported by market share gains through a diversified brand portfolio [12]

M Update S.F. Holding Co Ltd | Asia Pacific October 10, 2024 02:58 PM GMT Proposed Interim and Special Dividends What's new: On October 10, 2024, SF proposed: • Interim dividend: Rmb0.4/share, indicating 40% dividend payout in 1H24, vs. 35% in 2023 (MSe 2024: 40%). • Special dividend before HK listing: Rmb1/share. Total special dividend would be Rmb4.8bn, implying 2.4% yield on its latest close. • Both plans are pending shareholder approval on October 29, 2024. Our take - positive. We like SF's efforts to i ...

October 10, 2024 02:45 AM GMT M Update Zhejiang Huahai Pharmaceutical Co. Ltd. | Asia Pacific Preliminary 3Q2024 Beat - Reiterate as Top Pick Reaction to earnings Strengthens our investment thesis Modest upside Largely unchanged Impact to our investment thesis Financial results versus consensus Impact to next 12-month consensus EPS Huahai reported a net profit range of Rmb239mn to Rmb297mn (+57% to +95% YoY), which are -3% and 21% versus our estimate. API export and China formulation segments carried the da ...

Global Markets Strategy 10 October 2024 J P M O R G A N EM Equity ETF Flows Daily net subscriptions/redemptions of major EM Equity ETFs – 9 October 2024 Equity Macro Research Rajiv Batra AC (65) 6882-8151 rajiv.j.batra@jpmorgan.com Khoi Vu, CFA (65) 6882-8170 khoi.t.vu@jpmorgan.com J.P. Morgan Securities Singapore Private Limited • Total EM: Net redemptions of US$1mn. • EM Broad: Net redemptions of US$1mn. • Mexico: Net redemptions of US$17mn. • India: Net redemptions of US$46mn. • China: Strong subscriptio ...

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M Idea Sound Bites | Asia Pacific October 10, 2024 11:59 AM GMT Dong E E Jiao Co.: Research Tactical Idea DEEJ's preliminary earnings range for 3Q2024 was a strong beat. In our view, these results should dispel fears in the investment community since May that a weak consumption economy and a tight government insurance budget would hamper DEEJ's performance. Key Takeaways We think a 43% to 73% YoY net profit growth range will very likely lead consensus estimates for the full year to rise... …making short-ter ...

M Update PDD Holdings Inc | Asia Pacific October 10, 2024 04:00 AM GMT Temu Progress Check - Sep 2024 In September, Temu added four more countries for the fullyentrusted model and one more country for the semi-entrusted model. Temu's MAU/DAU continued on a growth trajectory, with monthly downloads trending slightly down MoM. Key Takeaways In Sep, Temu entered four countries with the fully-entrusted model (incl. Vietnam) and 1 country with the semi-entrusted model As of Sep, Temu's global accumulated downloa ...

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M Update ASML Holding NV | Europe October 10, 2024 05:00 AM GMT ADRASML.O Technology - European Semiconductors | Netherlands Some Autumn Sun before Winter Rain? We think investors are focused on the order intake for the quarter, signs of ongoing spend by TSMC, China DUV spend and any updates on the FY25 sales guide. ASML is set to release its 3Q24 results next week (17th October). We keep our Equalweight rating and €800 price target. Key Takeaways We expect the company to continue signalling FY25 sales at t ...