Jin Rong Jie·2025-04-04 00:37Group 1: MediaTek - MediaTek is expected to successfully transition from a traditional smartphone application processor supplier to a participant in the AI sector, starting with edge AI devices and expanding into AI-specific integrated circuits and smart automotive solutions [1] - Revenue and earnings CAGR is projected to reach 16% and 17% respectively from 2024 to 2027, with operating profit margin increasing from 19% in 2025 to 22% in 2027, driven by market share gains and demand for generative AI [1] Group 2: China Resources Land - China Resources Land is positioned for a recovery ahead of the industry due to lower debt and financing pressures, with contract sales growth expected to accelerate and market share in the primary housing market projected to increase by 2 percentage points to 5% by 2027 [2][17] - The average free cash flow yield from 2025 to 2027 is estimated at 11%, with an attractive valuation indicated by a price-to-book ratio of 0.4 for its development business [2][18] Group 3: Weichai Power - Weichai Power is anticipated to undergo a valuation reassessment due to improved cyclical prospects for heavy trucks and a more profitable engine product mix, with a projected P/E ratio of 10 times and a dividend yield of 6% by 2025 [3][8] - The company is expected to achieve a 18% CAGR in earnings per share over the next two years, supported by strong cash flow generation and increasing dividend payments [3][8] Group 4: Krafton - Krafton's strong performance in the PUBG series is identified as a key driver for profitability in 2025, overshadowing the early mixed feedback for the new game in development, inZoi [4] - The stock is currently trading near historical lows, with a projected P/E ratio of 12 times for 2025, indicating potential for market reassessment of its annual outlook [4]