12 August 2024 | 12:01AM EDT 2131d4eaf4cb4d50b1d51c8af07b64b4 Americas Retail: Specialty Hardlines: Takeaways from IR/Management; DG vs. Family Dollar pricing; Home furnishings In this note, we discuss key takeaways from meetings with the IR/management team of COST, DRVN, EYE, MODG, TCS, and VVV. We also detail findings from our visit to DG and Family Dollar on 8/2/24 to compare prices. Additionally, we provide read-throughs to our coverage from home furnishings earnings (ARHS, ETD, and W). Takeaways from I ...

11 August 2024 | 11:06PM BRT 2131d4eaf4cb4d50b1d51c8af07b64b4 Brazil Protein: 2Q24 earnings season warm-up; Buy JBS We expect JBS and BRF to report solid earnings, as both of them leverage their exposure to buoyant global chicken markets. We reiterate our Buy-rating and relative preference for JBS, as we see higher upside risks to consensus expectations, a cheaper valuation, more limited short-term risks, and a more diversified business mix. n We see a positive asymmetry on JBS shares ahead of earnings. Our ...

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 ...

Target Price Change 12 August 2024 BUY 39% side Target price: HK$23.00 Prior TP: HK$22.00 981 HK Price: HK$16.58 TP basis: PB Sector rating: NEUTRAL Trading Summary Forecast Revisions (%) | --- | --- | --- | --- | |-------------------|-------|-------|-------| | Year ended 31 Dec | 24E | 25E | 26E | | Revenue | 15.6 | 30.2 | 27.6 | | Core EPS | 106.2 | 40.2 | 35.1 | Source: BOCI Research estimates HK$ Turnover (HK$ m) 09/08/23 09/09/23 09/10/23 09/11/23 09/12/23 09/01/2409/02/2409/03/2409/04/2409/05/2409/06/ ...

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 ...

8 August 2024 | 10:41PM HKT _ Kuaishou Technology (1024.HK) Lowering growth estimates but still favorable risk-reward; 2Q preview Buy 024.HK 1 HK$70.00 HK$43.85 59.6% Maintain Buy with revised TP of HK$70. Risk-reward continues to look favorable for Kuaishou after 30% drawdown from the May peak (vs. KWEB -16%, underperformed all other e-Com names: BABA/PDD/JD/VIPS), on multiples contraction following downward revision of annual GMV consensus despite consistent profit delivery. With this note, we revise our ...