CATL(300750) 宁德时代·2024-06-24 13:29Investment Rating - The report maintains a "Buy" rating for CATL, Miniso, Hitachi Construction Machinery, and TBO Tek, indicating a positive outlook for these companies [4][6][7]. Core Insights - Listed Chinese corporates returned over Rmb2 trillion to shareholders in the past three years through dividends and buybacks, supported by strong policy initiatives and low payout ratios [2][8]. - CATL is positioned to benefit from the global electrification trend due to its upgraded battery product mix and resilient market share, despite facing cost inflation in Europe [4][6]. - Miniso's management is focused on consistent entrepreneurship and long-term growth, with a year-to-date same-store sales growth tracking around 100% [6][7]. - TBO Tek is expected to achieve a 21% CAGR in revenues from FY24 to FY30, driven by a large and fragmented total addressable market (TAM) [6][7]. Summary by Sections China Shareholder Returns - The report emphasizes the strong position of Chinese companies to return cash to shareholders, with a focus on improving payout ratios and fiscal revenue [2][8]. - The construction of a China Shareholder Returns Portfolio includes three equity cohorts: Stable Cash Cows, Dividend/Buyback Surprise Candidates, and Select Central/Local SOEs [2]. CATL Insights - CATL's efficient production lines and supply-chain advantages are expected to sustain its cost competitiveness in the European market [4][6]. - The company has a 12-month target price of Rmb304, reflecting its growth potential in the battery sector [4]. Miniso Insights - Miniso's store upgrades are driving sales growth, with management optimistic about performance despite challenging consumption conditions [6][7]. - The 12-month target price for Miniso is set at US61 [6]. Hitachi Construction Machinery Insights - Hitachi Construction Machinery is expected to see growth in mid-sized and large construction machinery, particularly in the Americas [6][7]. - The company has a 12-month target price of ¥5,250, indicating a bullish outlook [6]. TBO Tek Insights - TBO Tek's business model is characterized by strong execution, asset-light balance sheet, and low competition risks, positioning it as a steady earnings compounder [6][7]. - The 12-month target price for TBO Tek is Rs1,970, reflecting its growth potential in the travel distribution sector [6].