Investment Rating - The report maintains a "BUY" rating for the company with a new target price of HK$52.00, implying a 57.6% upside from the current price of HK$33.00 [21][24]. Core Insights - The company reported a decline in OPAT by 19.7% to RMB 118.0 billion, primarily due to a net loss of RMB 20.7 billion from asset management. Despite this, the company sustained dividend per share (DPS) growth to RMB 2.43, reflecting a 37.3% payout on shareholders' OPAT [21][24]. - The life and health (L&H) value of new business (VNB) amounted to RMB 39.3 billion, representing a 36.2% year-on-year increase, driven by stable VNB margins [21][24]. - Economic assumptions were adjusted, lowering the long-term investment return from 5.0% to 4.5% and the risk discount rate from 11% to 9.5%, which resulted in a significant impact on the embedded value (EV) and VNB [21][24]. Financial Summary - For FY23, net profit attributable to shareholders was RMB 85.7 billion, down 22.8% from the previous year, with a reported EPS of RMB 4.84 [29][30]. - The company’s total assets are projected to grow from RMB 11,583.4 billion in FY23 to RMB 13,760.7 billion by FY26, indicating a steady increase in asset base [11]. - The return on equity (ROE) is expected to improve from 9.7% in FY23 to 14.3% by FY26, reflecting enhanced profitability [30]. Valuation Metrics - The stock is currently trading at 0.45x FY24E P/EV, with a target valuation of 1.0x FY24E P/EV and 0.9x FY24E P/B [24][28]. - The company’s dividend yield is projected to increase from 6.9% in FY23 to 8.7% by FY26, indicating a strong return to shareholders [3][30]. Embedded Value and Sensitivity Analysis - The Group's embedded value is estimated at RMB 1,390.1 billion for FY23, reflecting a decrease of 6.7% due to the revised economic assumptions [21][25]. - The sensitivity analysis indicates that a 50 basis point decrease in long-term investment return could lead to a 7.6% decline in Group EV [8][21].

28 Mar 2024 CMB International Global Markets | Equity Research | Company Updates DPC Dash (1405 HK) BUY (Maintain) Sales beats as new markets continue to succeed Target Price HK$73.05 (Previous TP HK$75.51) Up/Downside +25.2% While the FY23 results of DPC Dash (DPC) were roughly inline, we do find its GP Current Price HK$53.50 margin and sales per store growth very decent and should support a better outlook in FY24E. DPC remains our top pick in the catering sector, thanks to its China Catering Sector value ...

M N 27 Mar 2024 CMB International Global Markets | Equity Research | Company Update Weichai Power (000338 CH) Key takeaways from post-results call Target Price RMB20.40 During the post-results call yesterday, Weichai expected the industry HDT (Previous TP RMB20.40) demand in 2024E will be ~900k units (-2% YoY). Of this, China demand is Up/Downside 23.6% expected to fall by 10% YoY to 600k units while exports are expected to grow Current Price RMB16.51 20% YoY to 300k units. Weichai expects the LNG price to ...

M N 27 Mar 2024 CMB International Global Markets | Equity Research | Company Update Weichai Power (000338 CH) Key takeaways from post-results call Target Price RMB20.40 During the post-results call yesterday, Weichai expected the industry HDT (Previous TP RMB20.40) demand in 2024E will be ~900k units (-2% YoY). Of this, China demand is Up/Downside 23.6% expected to fall by 10% YoY to 600k units while exports are expected to grow Current Price RMB16.51 20% YoY to 300k units. Weichai expects the LNG price to ...

27 Mar 2024 CMB International Global Markets | Equity Research | Company Update Kelun-Biotech (6990 HK) Intense data release to further validate the global potential of SKB264 Kelun-Biotech recorded RMB1.54bn revenue in FY23, primarily from licensing and collaboration agreements with MSD. In Mar 2023, SKB received around RMB1.21bn upfront payment from MSD for out-licensing certain pre-clinical ADC assets, a portion of which was recognized in FY23. Additionally, Kelun-Biotech received RMB215mn milestone paym ...

M N 27 Mar 2024 CMB International Global Markets | Equity Research | Company Update Zhihu (ZH US) Prioritizing breakeven target Target Price US$1.8 Zhihu’s 4Q23 results were better-than-feared, with strong vocational training and (Previous TP US$2.0) narrowing loss. For FY24E, mgmt. emphasized more on margin improvement Up/Downside 153.5% with disciplined expenses, and restated its quarterly breakeven target by 4Q24E. Current Price US$0.71 With shrinking S&M investment, we expect prudent user trend and top ...

M N 26 Mar 2024 CMB International Global Markets | Equity Research | Company Update Weichai Power (000338 CH) 4Q23 net profit +58% YoY; Payout increased to 50%; Higher earnings forecast on margin Target Price RMB20.40 Weichai’s net profit in 2023 surged 84% YoY to RMB9bn, which is in line with (Previous TP RMB17.80) the profit range of RMB8.58-9.32bn announced in Jan. In 4Q23, net profit grew Up/Downside 25.4% 58% YoY to RMB2.5bn. It’s worth noting that Weichai has declared a final Current Price RMB16.27 di ...

M N 26 Mar 2024 CMB International Global Markets | Equity Research | Company Update Weichai Power (000338 CH) 4Q23 net profit +58% YoY; Payout increased to 50%; Higher earnings forecast on margin Target Price RMB20.40 Weichai’s net profit in 2023 surged 84% YoY to RMB9bn, which is in line with (Previous TP RMB17.80) the profit range of RMB8.58-9.32bn announced in Jan. In 4Q23, net profit grew Up/Downside 25.4% 58% YoY to RMB2.5bn. It’s worth noting that Weichai has declared a final Current Price RMB16.27 di ...

+M N 26 Mar 2024 CMB International Global Markets | Equity Research | Company Update Jiumaojiu (9922 HK) Resilient margin in 2H23 with positive outlook Target Price HK$8.39 Maintain BUY and raise TP to HK$8.39 (we now assume a gradual improvement in SSS recovery rate onwards as the group is rolling out more new initiatives (Previous TP HK$7.05) this year). We are still cautious about catering sector, but JMJ’s numbers have Up/Downside 49.9% stabilized lately. A rebound in share price is possible given undem ...

M N 26 Mar 2024 CMB International Global Markets | Equity Research | Company Update FIT Hon Teng (6088 HK) NDR takeaways: Opportunities in US$1.7bn server connector/cable market; Lift TP to HK$2.42 Target Price HK$2.42 Maintain BUY and raise TP to HK$2.42 to reflect stronger demand of next-gen high-speed connectivity in AI servers in FY24/25E, backed by MCIO connectors (Previous TP HK$2.21) /cables and high-speed I/O products, recent launch of 224G high-speed Up/Downside 19.3% products at DesignCon (link), ...