Investment Rating - The report maintains a BUY rating for FIT Hon Teng with a new target price of HK$3.48, reflecting a potential upside of 69.8% from the current price of HK$2.05 [3][17]. Core Insights - FIT Hon Teng's 1Q25 revenue grew by 14% year-over-year, but net profit declined by 38% year-over-year, primarily due to lower gross profit margin (GPM) and foreign exchange headwinds [1][9]. - The management has lowered the 2025 guidance for smartphone sales by 15% year-over-year and for system products by 5% to 5% year-over-year, citing macroeconomic uncertainties and the impact of US tariffs [1][9]. - Despite near-term challenges, the report remains optimistic about the demand for AI server products, the ramp-up of AirPods production in India, and progress in automotive mergers and acquisitions in 2025 [1][9]. Financial Performance Summary - For FY25E, revenue is projected at US$5,132 million, reflecting a 15.3% year-over-year growth, while net profit is expected to reach US$225.5 million, a 46.1% increase year-over-year [2][16]. - The report indicates a decrease in earnings per share (EPS) estimates for FY25-26E by 10-18% due to the 1Q25 results and revised guidance [1][17]. - The gross profit margin is expected to improve to 20.5% in FY25E, with operating profit margin projected at 7.8% [16][24]. Segment Performance - In 1Q25, smartphone and system product revenues declined by 6% and 4% year-over-year, respectively, while networking, computing, and automotive segments showed strong growth of 46%, 13%, and 89% year-over-year [9][14]. - The management anticipates a revenue decline of 15% year-over-year for smartphone/system products in 2Q25, while networking/mobility is expected to grow by 15% year-over-year [9][14]. Valuation Metrics - The stock is currently trading at a price-to-earnings (P/E) ratio of 8.3x for FY25E and 6.3x for FY26E, which is considered attractive compared to industry peers [3][18]. - The report highlights that the new target price of HK$3.48 is based on a P/E of 14.1x for FY25E, indicating a favorable valuation outlook [17][18].

Investment Rating - The report assigns an "Overweight" rating to the company with a target price of RMB 22.68, compared to the current price of RMB 19.40 [3]. Core Insights - The company is at an inflection point of cyclicality improvement in the domestic engineering machinery sector, with expectations of structural improvement in overseas markets. The company is anticipated to see valuation improvement due to its strong product capabilities and global competitiveness [5][12]. - The company's revenue for 2024 is reported at RMB 78.383 billion, reflecting a year-on-year increase of 5.90%, with a net profit attributable to shareholders (NPAtS) of RMB 5.975 billion, up 31.98% year-on-year [5][6]. - The operating cash flows reached a record high of RMB 14.814 billion, marking a significant increase of 159.53% year-on-year [5][6]. Earnings Forecast and Valuation - The earnings per share (EPS) estimates for 2025 and 2026 have been raised to RMB 0.99 and RMB 1.21, respectively, with a projected EPS of RMB 1.38 for 2027. The price-to-earnings (PE) ratio for 2025 is set at 23x, which is above the industry average of 16.83x [5][12]. - The company’s gross profit margin (GPM) for 2024 is reported at 26.43%, with a net profit margin (NPM) of 7.83%, an increase of 1.54 percentage points year-on-year [5][6]. Operational Performance - The company has maintained high-quality development with improved risk control and operational quality. It ranks first in domestic market share for key products such as excavating machinery and concrete machinery [7]. - The international market has shown strong growth, with overseas revenue reaching RMB 48.513 billion, a year-on-year increase of 12.15% [7]. Financial Summary - The balance sheet shows total assets of RMB 152.145 billion for 2024, with owners' equity at RMB 71.953 billion and a net debt ratio of -13.67% [4][8]. - The company’s revenue is projected to grow to RMB 101.877 billion by 2027, with NPAtS expected to reach RMB 11.671 billion [6][8].

Investment Rating - The report maintains a "BUY" rating for the company with a target price (TP) revised to HK$98.00 from the previous HK$107.00, reflecting a 53% upside potential based on the current price of HK$64.05 [1][4][7]. Core Insights - The company reported 4Q24 revenue at the upper range of guidance, driven by strong Advanced Packaging (AP) growth, although weak margins in both Semiconductor (SEMI) and Surface Mount Technology (SMT) segments led to net income missing estimates. The report emphasizes a positive outlook on structural demand for TCB and other AP tools, particularly in AI applications, despite challenges in mainstream and non-AI sectors [4][10][11]. - The earnings forecasts for 2025 and 2026 have been cut by 28% and 16% respectively, reflecting adjustments in revenue and margin expectations due to competitive dynamics in the packaging business [4][7][27]. Revenue and Earnings Forecasts - Revenue projections for the years ending December are as follows: - 2025E: HK$14,934 million - 2026E: HK$17,908 million - 2027E: HK$20,458 million - Reported net profit estimates are: - 2025E: HK$1,286 million - 2026E: HK$1,771 million - 2027E: HK$2,265 million - Core EPS estimates are: - 2025E: HK$3.088 - 2026E: HK$4.253 - 2027E: HK$5.439 [8][31]. Financial Performance - The company reported a flat revenue of HK$3.4 billion in 4Q24, with gross profit margins decreasing to 37.2%, down from 42.3% in 4Q23. The operating profit margin fell significantly to 0.1% [10][20]. - The 4Q24 results showed a net income of HK$4 million, a drastic decline of 94% year-over-year, primarily due to weak demand in automotive and industrial sectors, along with a one-time restructuring cost of HK$95 million [10][20]. Market Position and Growth Potential - The report highlights that AP revenues are expected to exceed 30% of total revenues and contribute over 50% to net income from 2025 onwards, indicating a strong growth trajectory driven by AI demand [4][11]. - The company aims to capture 35-40% of the global TCB market share by 2027, with significant investments planned for R&D in AP tools [10][11]. Valuation Metrics - The report uses a valuation multiple of 23x the 2026E EPS to assess the company's value, reflecting a competitive landscape in the mainstream packaging business [7][26]. - Key financial metrics include: - Core P/E for 2025E: 20.7x - EV/EBITDA for 2025E: 14.1x - P/B ratio for 2025E: 1.7x [8][31].

Investment Rating - The report maintains a "BUY" rating for Coinbase, indicating a potential return of over 15% over the next 12 months [19]. Core Insights - Coinbase reported strong 4Q24 results with total revenue growing by 138% YoY and 88% QoQ to US$2.27 billion, exceeding Bloomberg consensus estimates by 21% [1]. - The favorable regulatory environment is expected to support long-term growth for Coinbase, leading to a revision of FY25-26 total revenue forecasts upward by 24-27% [1][7]. - The target price for Coinbase has been raised to US$352.00 from a previous US$250.00, reflecting a 28.3% upside from the current price of US$274.31 [3][9]. Financial Performance Summary - For FY24, Coinbase's revenue is projected at US$6.564 billion, with net profit expected to reach US$2.579 billion, resulting in an EPS of US$10.43 [2]. - The adjusted EBITDA for 4Q24 was reported at US$1.29 billion, a 298% increase YoY, driven by strong operating leverage [1]. - The transaction revenue in 4Q24 grew by 194% YoY to US$1.56 billion, while subscription and services revenue increased by 64% YoY to US$641 million [6]. Revenue and Profitability Forecast - Revenue forecasts for FY25E and FY26E have been revised to US$7.204 billion and US$7.602 billion, respectively, reflecting increases of 23.7% and 26.8% compared to previous estimates [7]. - The net profit for FY25E is estimated at US$1.529 billion, with an EPS of US$6.18, which is above the consensus estimate of US$5.96 [2][8]. - The adjusted EBITDA margin improved to 58.7% in 4Q24, up by 23 percentage points YoY, indicating strong operating leverage [6]. Strategic Initiatives - Coinbase plans to focus on three key initiatives in FY25E: driving core business revenue growth, enhancing utility for crypto payments, and engaging with regulators to shape crypto regulation in the US [6]. - The company aims to expand its asset offerings and improve user experience to capture more market share [6]. Valuation - The valuation of Coinbase is based on a sum-of-the-parts (SOTP) approach, with the transaction business valued at US$286.0 per share, accounting for 81% of the total valuation [9]. - The custodial and asset management business is valued at US$19.7 per share, while the interest and stablecoin business is valued at US$22.7 per share [9].

Investment Rating - The report assigns a "BUY" rating for Datadog (DDOG US), indicating a potential return of over 15% over the next 12 months [1][16]. Core Insights - Datadog's total revenue for 4Q24 was US$737.7 million, reflecting a 25% year-over-year growth, which is 3% above Bloomberg consensus forecasts [1]. - The company is entering an investment phase aimed at driving long-term growth, with management planning to increase spending on sales and marketing (S&M) and research and development (R&D) in 2025 [1][5]. - The target price for Datadog is set at US$156.4, up from a previous target of US$154.3, based on a valuation of 16.6x 2025E EV/sales [1][2]. Financial Performance Summary - For FY24, total revenue reached US$2.68 billion, with a year-over-year growth of 26%, and non-GAAP net income increased by 41% to US$653.8 million [1][6]. - Key operating metrics include billings of US$908 million (up 26% YoY), and a net dollar-based retention rate in the high-110s percentage [5][6]. - The company had over 30,000 customers by the end of 2024, with significant growth in large customers contributing to the annual recurring revenue (ARR) [5]. Future Guidance - Management expects 1Q25 revenue to be between US$737-741 million, representing approximately 21% growth YoY, and non-GAAP net income per share to be between US$0.41-0.43 [5]. - For FY25, revenue is projected to be between US$3.175 billion and US$3.195 billion, indicating an 18-19% growth YoY [5][6]. - Operating expenses are expected to grow in the high-20s percentage YoY, which may impact near-term margins but is aimed at supporting long-term growth [1][5]. Shareholder Structure - Major shareholders include Vanguard Group Inc (9.2%) and Blackrock Inc. (6.8%) [3]. Market Performance - The current market capitalization of Datadog is approximately US$48.735 billion, with a 52-week high of US$168.65 and a low of US$104.97 [2][3]. - The stock has shown a 1-month performance of -2.3% and a 6-month performance of 19.0% [3].

Investment Rating - The report maintains a "BUY" rating for Meta, with a target price raised to US$835, reflecting a potential upside of 21.2% from the current price of US$689.18 [1][2][9]. Core Insights - Meta reported solid 4Q24 results, with total revenue increasing by 21% year-over-year to US$48.4 billion, exceeding Bloomberg consensus estimates by 3%. Net income rose by 49% year-over-year to US$20.8 billion, 18% above consensus, largely due to favorable legal accrual reductions and lower restructuring costs [1][2]. - For FY24, total revenue and net income grew by 22% and 59% year-over-year, reaching US$164.5 billion and US$62.4 billion, respectively. Management anticipates revenue growth of 8-15% year-over-year for 1Q25, with total revenue projected between US$39.5 billion and US$41.8 billion [1][2][11]. - The company is significantly increasing investments in AI, with total expenses expected to grow by 20-25% year-over-year to US$114-119 billion, and capital expenditures projected to rise by 53-66% year-over-year to US$60-65 billion [1][2][11]. Financial Performance - In 4Q24, the Family of Apps ad revenue grew by 21% year-over-year to US$47.3 billion, driven by a 6% increase in ad impressions and a 14% rise in average price per ad, aided by AI optimizations [6][11]. - The annual revenue run-rate for Advantage+ shopping campaigns surpassed US$20 billion in 4Q24, marking a 70% year-over-year increase, with over 4 million advertisers utilizing Meta's generative AI ad creative tools [6][11]. - The report outlines a forecast for FY25E total revenue of US$187.7 billion, with net profit expected to reach US$65.9 billion, reflecting a 2.1% increase from previous estimates [7][8][11]. Valuation Metrics - The target price of US$835 is based on a 32x FY25E P/E ratio, which is a premium to the sector average of 24x, indicating confidence in Meta's long-term growth potential [9][10]. - The report highlights that Meta's P/E ratio is projected to decrease from 28.0 in FY24 to 26.4 in FY25, suggesting a favorable valuation compared to peers [11].

Investment Rating - Maintain BUY rating with a target price of HK$4 25 based on 13x FY25E P/E [1][30] Core View - FIT Hon Teng is identified as the GB200 server winner in the H-share tech space, benefiting from the GB200 server ramp in 2025 [1] - AI server revenue is estimated to reach US$484mn/823mn, accounting for 11%/16% of FIT's earnings in 2025/26E [1] - In the bull case, revenue could reach US$886mn in FY25E [1] - FIT is expected to benefit from GB200 server rack ramp with share gains over the next few years [1] Earnings Summary - Revenue is forecasted to grow from US$4 531mn in FY22 to US$7 347mn in FY26E, with a YoY growth of 30 8% in FY25E [2][26] - Net profit is expected to increase from US$170 1mn in FY22 to US$384 9mn in FY26E, with a YoY growth of 62 8% in FY25E [2][26] - EPS is projected to rise from US$2 42 cents in FY22 to US$5 42 cents in FY26E [2][26] AI Server Opportunity - FIT is a key component supplier for GB200 NVL72/36, including compute tray connectors/cables, NVLink copper cables, power busbar, liquid cooling components, and GPU sockets [1] - GB200 server revenue is estimated to reach US$422mn/886mn (base/bull) in FY25E [1] - Compute tray connector/cables and NVLink copper cables are expected to deliver US$115mn/291mn in FY25E [1] - Liquid cooling components and GPU sockets are forecasted to generate US$0 6mn/4 6mn in FY25E [1] Latest Developments - FIT is developing CPO solutions and launched the conceptual design of FITConn 800G high-speed connector module for AI connectivity [1] - Hon Hai showcased GB200 NVL72 racks and liquid cooling components at HHTD 2024 [1] - FIT is under qualification for server UQDs and is developing UDQs for use inside the server and on the CDM [19] Valuation - Trading at 9 5x FY25 P/E, valuation remains attractive compared to 42%/63% EPS growth in FY24/25E [1] - Upcoming catalysts include GB200 updates and 3Q24 results in November [1] Financial Summary - Revenue is expected to grow from US$4 531mn in FY22 to US$7 347mn in FY26E, with a YoY growth of 30 8% in FY25E [26] - Net profit is forecasted to increase from US$170 1mn in FY22 to US$384 9mn in FY26E, with a YoY growth of 62 8% in FY25E [26] - EPS is projected to rise from US$2 42 cents in FY22 to US$5 42 cents in FY26E [26]

Investment Rating - The report maintains a HOLD rating for NIO Inc. with a target price reduced from US$5.60 to US$5.10, indicating a potential upside of 5.2% from the current price of US$4.85 [2][3]. Core Insights - NIO's 2Q24 earnings were mixed, with a quarter-over-quarter rise in gross profit offset by increased R&D and SG&A expenses, leading to a net loss of RMB5.1 billion [2]. - The company is projected to see significant sales volume growth in FY25/26, with estimates of 324,000 and 400,000 units respectively, driven by new brands Onvo and Firefly [2]. - Despite the anticipated sales growth, the report expresses skepticism about NIO's ability to achieve breakeven due to high ongoing expenses related to R&D and SG&A, particularly with the introduction of new brands [2]. Financial Summary - Revenue projections for FY24E are set at RMB66,730 million, with a year-over-year growth of 20.0%, and for FY25E at RMB89,501 million, reflecting a 34.1% increase [3][7]. - Gross margin is expected to improve from 5.5% in FY23A to 9.7% in FY24E and further to 11.1% in FY25E [3][7]. - The net profit forecast for FY24E is a loss of RMB18,693 million, improving to a loss of RMB16,734 million in FY25E [3][7]. Earnings Revision - The report revises FY24E revenue upwards by 7.6% and FY25E revenue by 12.1% compared to previous estimates [6]. - Gross profit estimates for FY24E and FY25E have been increased significantly, reflecting a 38.6% and 30.8% rise respectively [6]. - Operating and net profit forecasts remain negative, with operating losses projected at RMB19,909 million for FY24E and RMB17,991 million for FY25E [6]. Sales Volume and Margins - NIO's sales volume for 2Q24 was reported at 57,373 units, a 143.9% increase year-over-year, although the average selling price (ASP) decreased by 18.5% [6]. - The gross profit for 2Q24 was RMB1.689 billion, marking a significant year-over-year increase of 1842.0% [6]. - The report anticipates that even with a projected sales volume of 400,000 units annually, NIO may still struggle to achieve profitability due to high costs [2][6].

Investment Rating - The report maintains a "BUY" rating for FIT Hon Teng with a new target price of HK$ 4.25, indicating an upside potential of 88.1% from the current price of HK$ 2.26 [4][12]. Core Insights - FIT Hon Teng reported strong 2Q24 results, with revenue of US$ 1,102 million, reflecting a 20% year-over-year increase, and a net profit of US$ 22.3 million, a significant improvement from US$ 0.35 million in 2Q23 [2][6]. - The company has raised its FY24E guidance for networking business revenue to high double-digit year-over-year growth, up from a previous estimate of 5-15% [2][12]. - The earnings growth is driven by the networking business and the EV segment, which saw a remarkable 231% year-over-year increase due to the Voltaira merger [2][6]. Financial Summary - Revenue projections for FY24E are set at US$ 4,677 million, with expected growth of 11.5% year-over-year, and net profit is projected to reach US$ 183.5 million, reflecting a 41.6% increase [3][10]. - The gross profit margin (GPM) is expected to improve to 20.6% in FY24E, with operating profit margin (OPM) targeted at 7.0% [8][10]. - The company anticipates a rebound in revenue and net profit for FY24E, with expectations of 12% and 42% year-over-year growth, respectively [2][12]. Segment Performance - The EV segment's revenue surged by 231% year-over-year, while the networking segment grew by 29% year-over-year, driven by strong AI demand [2][6]. - The smartphone segment also performed better than expected, benefiting from key customer shipment improvements [2][6]. Earnings Revision - The report indicates that FY25-26E EPS estimates are 13-23% above consensus, reflecting confidence in the company's growth trajectory [2][10]. - Adjustments to FY24-26E EPS have been made to account for higher gross profit margins, offset by increased operating expenses for new products [2][10]. Valuation - The stock is currently trading at 11.2x FY24E P/E and 6.9x FY25E P/E, which is considered attractive given the projected 42% and 63% year-over-year EPS growth for FY24 and FY25, respectively [2][12].

Investment Rating - Maintain BUY rating with a target price of US$565.0 based on 27x FY24 PE [1][3] Core Views - Meta's 2Q24 earnings beat consensus estimates with total revenue increasing by 22% YoY to US$39.1bn and net income growing by 73% YoY to US$13.5bn [1] - Management expects 3Q24 revenue to grow by 13-20% YoY to US$38.5-41.0bn, in line with consensus estimates [1] - FY24 full-year total expenses guidance remains unchanged at US$96-99bn, easing investor concerns on margin expansion [1] - Meta's ad business maintained solid growth with Family of Apps' ad revenue increasing by 22% YoY to US$38.3bn in 2Q24 [1] - Meta AI is on track to become the most used AI assistant by end-FY24, with billions of queries since its launch [1] - Operating profit margin (OPM) expanded by 9ppt YoY to 38.0% in 2Q24, driven by efficiency gains [1] Financial Performance - FY24E revenue is forecasted at US$159.7bn, with a net profit of US$53.1bn [2][11] - FY24E EPS is projected at US$20.93, representing a 4.6% increase from previous estimates [11] - Gross margin is expected to remain stable at 81.0% for FY24E, while operating margin is forecasted to expand to 38.6% [11] - Net income CAGR is projected at 21% over FY24-26E [1] Ad Business - Total number of ad impressions and average price per ad both grew by 10% YoY in 2Q24, driven by enhanced user engagement and improved ad performance [1] - Meta launched a full-screen video player and unified video recommendation systems, increasing engagement on Reels and creating opportunities for ad inventory growth [1] - US advertisers saw a 22% higher ROI after adopting Advantage+ Shopping campaigns [1] AI Initiatives - Meta AI has received billions of queries since its launch and is expected to become the most used AI assistant by end-FY24 [1] - Meta launched AI Studio, enabling millions of creators to create their own AI agents, which is expected to improve user experience and create monetization opportunities [1] Capex and Margin Outlook - FY24 capex guidance has been raised to US$37-40bn, representing a 36-47% YoY increase [1] - Significant capex growth is expected in FY25 to support AI development [1] - OPM expansion is expected to slow down meaningfully from FY25 onward [1] Valuation - Meta is valued at US$565.0 per share based on 27x FY24E P/E, reflecting its strong leadership in the global social media space [3] - The current valuation of 20x FY25E PE remains attractive [1]