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), ...

M N 25 Mar 2024 CMB International Global Markets | Equity Research | Company Update Zhejiang Dingli (603338 CH) New AWP capacity expansion plan to further enhance global competitiveness Target Price RMB70.00 Zhejiang Dingli (Dingli) announced over the weekend that it plans to spend (Previous TP RMB70.00) RMB1.7bn to build a new production base for 20k units of new energy aerial work Up/Downside 24.8% platform (AWP). We understand that the entire capacity will be for scissors lifts, Current Price RMB56.10 gi ...

Investment Rating - The report maintains a "BUY" rating for Intron (01760.HK) with a target price of HKD 2.85 per share, down from HKD 6.13 [2][10]. Core Insights - Intron reported a year-on-year revenue increase of 20.1% to RMB 5,802.3 million for FY 2023, but the gross margin fell by 2.9 percentage points to 18.7%, which was lower than estimates [3][4]. - The company experienced a significant decline in net profit, retreating by 23.0% year-on-year, attributed to increased R&D expenses and a competitive pricing environment [4][10]. - The revenue growth was driven primarily by NEV Solutions, but competition led to manufacturers opting for lower-cost solutions, impacting growth in advanced driver-assistance systems (ADAS) [4][10]. - A shift in pricing strategy was noted, with a gross margin of 17.1% in the second half of 2023, indicating adjustments to cope with market pressures [4][10]. - The report anticipates continued challenges in 2024, with profit margins expected to remain under pressure due to lower gross margins and high R&D expenses [4][10]. Financial Summary - Revenue projections for the next few years are as follows: RMB 6,840.5 million in 2024, RMB 7,524.0 million in 2025, and RMB 8,174.4 million in 2026, reflecting a year-on-year growth rate of 17.9%, 10.0%, and 8.6% respectively [15]. - The gross profit is projected to increase from RMB 1,083.6 million in 2023 to RMB 1,247.8 million in 2024, with gross margins expected to stabilize around 18.8% in 2026 [15][17]. - The net profit is forecasted to decline significantly in 2024, with estimates of RMB 219.4 million, before recovering to RMB 301.3 million in 2025 and RMB 398.7 million in 2026 [15]. Operational Outlook - The report indicates a cautious operational outlook, with estimates cut by 51% to 58% due to ongoing difficulties, including lower gross margins and increased financial expenses [4][10]. - The company is expected to face a tightening working capital situation due to a longer cash conversion cycle and high R&D expenses [13][17].

M N 25 Mar 2024 CMB International Global Markets | Equity Research | Company Update AAC Tech (2018 HK) Solid outlook for PSS merger & optics margin recovery; Maintain HOLD on fair valuation Target Price HK$22.44 AAC reported FY23 revenue of RMB20.4bn (-1.0% YoY) and net income of RMB740mn (-9.9% YoY), above consensus estimates mainly due to exchange (Previous TP HK$14.04) gains and other income. FY23 GPM came in at 16.9%, largely in line, and 2H23 Up/Downside (10.2%) GPM recovered to 19.2% (+1.4ppts YoY/+5. ...

M N 25 Mar 2024 CMB International Global Markets | Equity Research | Company Update Henlius Biotech (2696 HK) Anticipating sustained profitability  Profit turnaround driven by core business operations. Henliu’s FY23 revenue Target Price HK$18.67 increased 67.8% YoY to RMB5.40bn, driven by strong sales of HANQUYOU (Previous TP HK$18.67) (trastuzumab biosimilar) and serplulimab (PD-1). HANQUYOU recorded Up/Downside 31.8% RMB2.74bn revenue in FY23, +58% YoY. We think HANQUYOU may be free from Current Price HK ...