Investment Rating - The report maintains a Buy rating for JBS with a target price of R$38.7, indicating a positive outlook for the company [14][18]. - BRF is rated Neutral with a target price of R$19.5 for local shares and US$3.60 for ADRs [16][18]. Core Insights - JBS is expected to report solid earnings driven by strong global chicken market demand, with a forecasted EBITDA of R$9.0 billion, which is 10% above Bloomberg's consensus [3][8]. - BRF is also anticipated to have a solid quarter, but expectations may be overly optimistic, with a significant year-to-date revision to consensus EBITDA [4][10]. - The report highlights a positive asymmetry for JBS shares, noting that while other competitors have seen significant stock price increases, JBS has lagged, suggesting an attractive entry point [3][8]. Summary by Sections JBS Overview - JBS's earnings preview indicates a net revenue of R$104.1 billion, with a gross profit of R$14.8 billion and an EBITDA margin of 8.6% [8]. - The company is expected to benefit from a diversified business mix, with chicken accounting for 54% of its revenue [3][8]. BRF Overview - BRF's consolidated net revenue is projected at R$14.5 billion, with an adjusted EBITDA of R$2.4 billion and an EBITDA margin of 16.4% [10][17]. - The report notes that BRF's operational momentum is strong, but the market may have already priced in much of the expected growth [4][10]. Market Dynamics - The report discusses key market dynamics, including resilient demand in the US and a positive beef cycle in Brazil, which supports volume growth for companies like Minerva and Frigol [4][5]. - It also mentions potential challenges such as increased chicken supply in the domestic market and the impacts of Newcastle disease on earnings [5]. Valuation Metrics - JBS is valued at a forward EV/EBITDA of 6.0x, which is considered undemanding compared to its peers [3][12]. - BRF's valuation reflects a target EV/EBITDA of 5.7x, indicating a more cautious outlook given the recent performance [16][17].

11 August 2024 | 10:15PM EDT 2131d4eaf4cb4d50b1d51c8af07b64b4 B3 (B3SA3.SA): Key takeaways from 2Q24 call — diversification paying off Mitigating a challenging outlook in cash equities with other revenue streams Management discussed the main drivers of revenue growth in 2Q24. The good print in listed derivatives was supported by market volatility and price adjustments in prior periods, which can still benefit this line in coming quarters. Furthermore, BDRs, REITs and ETFs continue to gain traction (13% of t ...

12 August 2024 | 12:01AM EDT 2131d4eaf4cb4d50b1d51c8af07b64b4 Americas Retail: Specialty Hardlines: Updating our Beauty Trackers for 2Q24; Beauty read throughs In this note, we update our beauty trackers with the latest industry data and present analysis on the beauty/personal care category with additional third party data sources, including HundredX. Additionally, we discuss read throughs from earnings in the Beauty space (ELF, L'Oreal, LVMH, OLPX, and SBH), along with recent commentary from COST, CVS, and ...

Investment Rating - The report rates SMIC as a BUY with a target price of HK$23.00, up from a prior target price of HK$22.00, based on a price-to-book (P/B) ratio of 1.1x [2][6][10]. Core Insights - SMIC's 2Q24 revenue and gross profit margin (GPM) exceeded guidance, driven by strong demand from smartphone and consumer electronics, with a revenue increase of 22% year-over-year and 9% quarter-over-quarter to US$1.9 billion [6][12]. - The company anticipates a robust 3Q24, projecting revenue growth of 13-15% quarter-over-quarter and an improved GPM of 18-20% [6][13]. - The recovery is attributed to restocking demand, easing price competition, and improvements in average selling price (ASP) and yield, particularly in advanced nodes, which are expected to continue into 2025 [6][10]. Financial Forecasts - Revenue projections for the years ending December are as follows: - 2024E: US$7.975 billion - 2025E: US$9.662 billion - 2026E: US$10.991 billion [8][18]. - Core EPS estimates have been revised significantly, with increases of 106% for 2024E, 40% for 2025E, and 35% for 2026E [10][16]. Key Financial Metrics - 2Q24 financial highlights include: - Revenue: US$1.901 billion - GPM: 13.9% - Net income: US$165 million, reflecting a 129% increase quarter-over-quarter [12][19]. - The company’s monthly capacity for 8" equivalent wafers increased to 837k in 2Q24, with a utilization rate of 85.2% [12][17]. Management Outlook - Management expects 2024 revenue growth to align with or exceed industry averages, with a significant increase in 12" capacity planned for the second half of 2024 [14][10]. - The anticipated end of restocking demand in 4Q24 is noted, as channel inventory reaches desired levels, but long-term demand from domestic customers is expected to support ASP increases [14][10].

Investment Rating - The report maintains a forecast that the annual average growth of CPI is likely to be around 0.5% in 2024 and 1.5% in 2025 [2] Core Insights - The Consumer Price Index (CPI) increased from 0.2% in June to 0.5% in July, surpassing market expectations, while core CPI growth decreased from 0.6% to 0.4% [2] - The CPI growth was supported by a low base effect from the previous year, particularly in food prices, which saw a recovery due to rising pork prices [2] - The report anticipates a gradual recovery in CPI growth, projecting it to reach around 1.1% in 4Q24, driven by food price recovery and policies aimed at boosting durable goods consumption [2] Summary by Sections CPI Analysis - In the first seven months of 2024, the CPI index rose by 0.2%, and core CPI increased by 0.6% [2] - The food price index in July remained unchanged year-on-year, marking an end to a 12-month deflationary period [2] - Month-on-month, the CPI index grew by 0.5% in July, compared to an average of 0.2% from 2010 to 2019 [2] Factors Influencing CPI - The rainy season affected the supply of fresh vegetables and fruits, leading to a 9.3% month-on-month increase in fresh vegetable prices [2] - Travel prices surged by 9.4% month-on-month in July, indicating a recovery in travel consumption [2] - The downward pressure on CPI was attributed to declining auto prices and weak rent CPI, which fell by 0.3% in July [2] Producer Price Index (PPI) Insights - The Producer Price Index (PPI) growth declined by 0.8% year-on-year and 0.2% month-on-month in July [4] - The report notes that the recovery of PPI growth was milder than expected, with challenges stemming from weak property investment and industrial competition [4] - The PPI growth may face further declines in the coming months due to base effects [4]

Investment Rating - The report maintains an "Outperform" rating for the computer industry and a "Buy" rating for HUARUI PRECISION [12][24]. Core Insights - The domestic AI product traffic has surged, particularly in AI search products, while ChatGPT's monthly traffic has declined year-over-year. The market for AI products is still in an exploratory phase [11][13]. - The new procurement rules from the State-owned Assets Supervision and Administration Commission (SASAC) are expected to boost technological localization and innovation within central state-owned enterprises [11][13]. - In the real estate sector, Shenzhen Public Housing Group's initiative to purchase unsold homes for affordable housing is seen as a model that may influence other major cities like Beijing and Shanghai [18][20]. - The machine tool industry, represented by HUARUI PRECISION, has shown significant earnings recovery, with a projected net profit growth of 23.99% to 33.32% from 2024 to 2026 [33]. Computer Industry Summary - In July, domestic AI product traffic surged, with significant growth in AI search products, while the overall market remains exploratory [11][13]. - The SASAC's new procurement rules are expected to promote technological innovation and localization among central SOEs [11][13]. - Recommended stocks in the AI sector include DAMENG, NINESTAR, and KINGSOFT OFFICE, focusing on technology security and policy-driven sectors [13][15]. Real Estate Industry Summary - Shenzhen's city-wide purchase of unsold market-rate housing is a significant development, with potential replication in other major cities [18][20]. - The recent land auction in Shanghai set a new record for land prices, indicating strong demand from high-quality real estate companies [18][20]. - The CITIC Real Estate Index rose 2.65%, outperforming the broader market, suggesting a stabilization in the real estate sector [20]. Machine Tool Industry Summary - HUARUI PRECISION reported a revenue increase of 14.93% year-over-year, with significant improvements in profitability due to better margins and reduced costs [26][29]. - The company is expanding its mid-to-high-end product offerings and overseas distribution channels, which are expected to drive future growth [30][33]. - The projected net profit for HUARUI PRECISION is expected to reach RMB196 million, RMB250 million, and RMB334 million from 2024 to 2026, indicating strong growth potential [33].

12 Aug 2024 CMB International Global Markets | Equity Research | Initiation Rimag Group (2522 HK) A leading medical imaging service provider in China Rimag leads in the third-party medical imaging services market in China. According to Frost & Sullivan (F&S), the Company was the largest medical group specialized in medical imaging in China in 2023 in terms of medical imaging centers, equipment units, registrations by practicing radiologists who registered the Company as their primary workplace, average dail ...

9 August 2024 | 1:44AM HKT _ Hua Hong (1347.HK): 12'' new capacity to release in 1Q25; near-term recovery remains gradual Despite near-term margin challenges due to depressed pricing trend and rising depreciation, we maintain our long-term positive view on Hua Hong given local customers' rising demand on its specialty technology in a wide application across consumer electronics, computing, EV, new energy, and industrial. In recent quarters, management see solid demand for consumer electronics products (CIS ...

Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology (1024.HK) with a revised target price of HK$70, down from HK$80 [2][4]. Core Insights - Kuaishou's growth estimates have been lowered, with 2024E GMV growth revised to 20% year-on-year from 25%, and revenue growth to 10% year-on-year [1][4]. - The company is expected to deliver above-consensus earnings and in-line revenue for 2Q24, driven by strong advertising growth and margin expansion [1][3]. - The report highlights a moderation in advertising revenue growth to 17% year-on-year, down from 22% in 2Q, attributed to softer GMV growth amid a challenging macro environment [3][4]. Summary by Sections Revenue and Profitability - Total revenue for 2024E is projected at RMB 125,348 million, reflecting a 2% decrease from previous estimates [7]. - Non-GAAP net profit for 2Q24 is expected to be RMB 4.2 billion, with a net margin of 14.1% [3][4]. Market Position and Growth - Kuaishou's GMV growth is anticipated to be 20% in 2024, with a significant focus on improving traffic monetization efforts [6][7]. - The company has consistently beaten consensus estimates on net profit by approximately RMB 500 million to 1 billion over the past ten quarters [3][5]. Advertising and E-commerce - Advertising revenue is projected to grow by 22% year-on-year, while e-commerce commission revenue is expected to see a growth of 21% year-on-year [3][4]. - The report notes a shift in the advertising mix, moving away from live streaming, which is expected to enhance margins [1][3]. Valuation Metrics - The report provides various valuation metrics, including a P/E ratio of 22.5 and an EV/EBITDA ratio of 14.3 for Kuaishou [2][4]. - The company's CROCI is noted at 45.9%, indicating strong returns on capital employed [2][4].

8 August 2024 | 5:49PM CEST _ Big Oils Assessing Big Oils cash returns in a lower oil price environment; Screening for resilience Brent spot oil prices are down 5% over the past week, and the 2025 Brent futures curve has fallen below the $75 floor of this year's trading range and our commodity analysts' $75-90 range. While we still believe our $80/bbl oil price forecast for 2025 will withstand macro headwinds, given the consistent OPEC+ support of this oil price level over the past two years, we have attemp ...