Investment Rating - The investment rating for Foxconn Industrial Internet is maintained as BUY with a target price of RMB30.00 [1][4][6] Core Insights - Foxconn Industrial Internet (FII) reported record high revenue and net profit for 1H24, driven by strong demand for AI servers, with revenue reaching RMB266,091 million and attributable net profit at RMB8,739 million, reflecting year-on-year increases of 28.7% and 22.0% respectively [1][2] - The company is positioned strategically in the digital economy and AI development, enhancing its presence in cloud computing and network communications through advanced technology and capacity expansion [1][2] - FII's AI server revenue has multiplied, indicating a rapid growth phase, and the company expects further earnings growth from new-generation servers due to deep cooperation with leading global clients [2][3] Financial Performance - For 1H24, FII's revenue from cloud computing and AI products showed robust growth, with significant contributions from its cloud service provider (CSP) segment [2] - The company maintains its EPS estimates for 2024, 2025, and 2026 at RMB1.25, RMB1.46, and RMB1.63 respectively, and values the stock at 24x 2024E PE, which is above the average of its peers [4][6] - FII's revenue projections for the upcoming years are RMB538,810 million for 2024E, RMB613,666 million for 2025E, and RMB665,779 million for 2026E, with net profit estimates of RMB24,809 million, RMB28,976 million, and RMB32,441 million respectively [5][6] Recent Developments - FII has demonstrated confidence in its sustainable development through a recent share buyback proposal and a capital increase of RMB214 million aimed at accelerating project construction [3] - The capital expenditures of major tech companies like Microsoft, Google, Amazon, and Meta have increased significantly, indicating sustained optimism for future investments in AI computing infrastructure, which benefits FII's cloud computing business [3]

Investment Rating - The investment rating for New Hope Liuhe is maintained at OVERWEIGHT with a target price of RMB10.55, indicating an expected outperformance compared to the benchmark [1][6][7]. Core Insights - The report highlights that the private placement plan, revised to raise RMB3.8 billion, aims to enhance biosecurity at pig farms and repay bank debts, which is expected to improve the company's debt-to-asset ratio and support high-quality growth [2][3]. - The company has seen a reduction in pig farming costs and improved profitability in its feed operations, leading to an upward revision of the profit forecast for 2024 to RMB1.14 billion [1][3]. - The anticipated recovery in the balance sheet is supported by strategic investments and divestments from non-core segments, contributing significantly to profits [2][3]. Summary by Sections Financial Performance - Revenue for 2024 is projected at RMB120.13 billion, reflecting a decrease of 15.22% from 2023, while net profit is expected to rise to RMB1.14 billion, a significant increase of 356.27% compared to 2023 [5][12]. - The earnings per share (EPS) is forecasted to be RMB0.25 for 2024, with a return on equity (ROE) of 4.49% [5][12]. Cost Management - The total breeding cost is estimated to decrease to RMB15.5 per kilo in 2Q24, down RMB1.9 per kilo quarter-on-quarter, driven by lower feed prices and improved farming performance [3][12]. - The domestic feed segment is expected to contribute RMB700-1,000 million in annual profit over the next two years, with overseas feed output projected to exceed 6 million tonnes [3][12]. Market Position - The company is strategically focusing on hog and feed segments, aiming for high-quality growth, which is expected to yield good profits in pig farming for the second half of 2024 [3][12]. - The stock is valued at 1.85 times the estimated book value for 2024, which is above the average of its peers at 1.22 times [1][6].

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The report highlights a mixed economic outlook for China, with higher Consumer Price Index (CPI) but weaker export growth and property sales [3][4][5] - The People's Bank of China (PBC) is expected to implement further monetary policy support to stimulate credit demand and economic activity [5][6] Economic Activity - New property sales in 30 major cities declined by 19% year-on-year in the first 10 days of August, indicating continued weakness in the real estate sector [2][9] - The full month of July saw auto retail sales decline narrow to 2% year-on-year, while steel production fell by 6.5% year-on-year [2][12] Inflation and Prices - CPI increased to 0.5% year-on-year in July, driven by food inflation, while Producer Price Index (PPI) remained unchanged at -0.8% year-on-year [3][15] - Food prices, particularly pork and vegetables, saw significant increases, contributing to the overall rise in CPI [3][15] Trade and Balance of Payments - Export growth slowed to 7% year-on-year in July, while import growth surged to 7.2% year-on-year, indicating a shift in trade dynamics [4][19] - The current account surplus expanded to $55 billion in Q2, with a notable increase in the goods surplus [4][19] Policy Developments - The PBC plans to enhance counter-cyclical policy measures and is likely to cut policy rates and reserve requirement ratios further [5][6] - The PBC is also focusing on improving the transmission of monetary policy to support economic recovery [5][6]

ab 12 August 2024 Global Research and Evidence Lab What's happening to Quant? Factor Performance and Valuations Factor Performance In this weekly publication, we show how factors have been performing at a regional level and globally. The purpose of this report is to provide an up-to-date snapshot of how factors have been performing on a short-term horizon based off our daily factor returns database, and to track what styles are and are not working during this turbulent period in markets. Styles We look at f ...

ab 12 August 2024 Global Research and Evidence Lab First Read Aurizon UBS Snapshot: FY24 results ONE LINER EBITDA in line but EPS miss; outlook suggests risk of low s.d. EBITDA downgrades in FY25. But addition of $150m buyback brings effective payout ratio above 100% next year. Figure 1: Aurizon FY24 key numbers (A$m) | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------|------------|----------------|----------|-------|-------|-------|-------| | | FY23 (PCP) | FY24E (Actual) | % growth ...

ab 12 August 2024 Global Research and Evidence Lab First Read Beach Energy Limited UBS SnapShot: 2H24 Results ONE LINER 2HFY24 earnings beat consensus by 7% however a further reserve downgrade to the new Enterprise gas field in VIC Otways adds further pressure to reserve replacement risk. KEY NUMBERS 1) Underlying 2H24 NPAT $169m vs consensus ($158m) & UBSe ($154m). 2) Underlying 2H24 EBITDA $462m vs consensus ($435m) & UBSe ($452m). 3) Final DPS 2.0cps fully franked vs consensus (2.3cps ) & UBSe (0.8cps), ...

ab 12 August 2024 Global Research and Evidence Lab First Read JB Hi-Fi UBS SnapShot: FY24 Result ONE LINER FY24 result above mkt & UBSe led by JB Aust & TGG (strong CODB mgmt.); JB NZ weak KEY NUMBERS (1) Sales: A$9.59bn, -0.4% (2H +1.9%), UBSe (A$9.52bn), mkt (A$9.53bn) (2) NPAT: A $439m, -16.4% (2H -10.4%), UBSe (A$409m), mkt (A$423m). (3) DPS: A261cps (ex A80cps special dividend), UBSe (A244cps), mkt (A254cps). RESULT HIGHLIGHTS (1) JB Australia: Sales of A$6.61bn, +1.0% (2H +1.3%). FY24 LFL +0.6% (2H24 ...

ab 11 August 2024 Global Research and Evidence Lab US Economics Presentation Slowdown underway Economics Americas Jonathan Pingle Economist jonathan.pingle@ubs.com +1-212-713 2225 Pierre Lafourcade Economist pierre.lafourcade@ubs.com +1-212-713 4543 Alan Detmeister Economist alan.detmeister@ubs.com +1-212-713 1222 Abigail Watt Economist abigail.watt@ubs.com +44-20-7567 1062 Amanda Wilcox Economist amanda.wilcox@ubs.com +1-212-713-2000 This report has been prepared by UBS Securities LLC. ANALYST CERTIFICATIO ...

Investment Rating - The report assigns a 12-month rating of "Buy" for Centre Testing International (CTI) with a price target of Rmb16.60, while the current price is Rmb11.60 [5][17]. Core Insights - Centre Testing International reported a revenue increase of 9% year-over-year (YoY) to Rmb2.79 billion and a recurring net profit (NP) increase of 5% YoY to Rmb0.4 billion in H124, aligning with market expectations [2][4]. - The gross profit margin (GPM) improved by 1.6 percentage points YoY to 52.7% in Q224, attributed to a low base in Q124 and improvements in specific segments [2][3]. - The life science segment contributed 45% to H1 revenue, growing 22% YoY, driven by the third soil census, while the industrial product testing segment grew 14% YoY, contributing 20% to H1 revenue [3]. - The company did not provide new guidance, and investor reaction is expected to be neutral [4]. Financial Performance - H1 revenue contributions by segment include: - Life Science: 45% with a 22% YoY increase - Industrial Product Testing: 20% with a 14% YoY increase - Trade Assurance: 13% with a 9% YoY increase - Consumer Goods Testing: 17% with a 4% YoY decline - Pharma and Clinical Services: 5% with a 34% YoY decline [3]. - Forecasted revenues are projected to grow from Rmb5.571 billion in 2023 to Rmb6.319 billion in 2024, with net earnings expected to rise from Rmb787 million in 2023 to Rmb908 million in 2024 [6]. Valuation Metrics - The report indicates a forecast price appreciation of 43.1% and a forecast dividend yield of 0.9%, leading to a total forecast stock return of 44.0% [7]. - The company's market capitalization is Rmb19.5 billion (approximately US$2.72 billion) with an average daily trading volume of 16,783,000 shares [5][6]. Company Overview - Established in 2003 and headquartered in Shenzhen, China, Centre Testing International is a leader in third-party testing, inspection, and certification (TIC) services, operating over 150 labs in more than 90 cities worldwide [8].

First Read Carsales.com.au UBS SnapShot: 2H24 Result ONE LINER Execution continues. Outlook for FY25e looks good and in line 2H24 KEY NUMBERS Rev $568m (UBSe $565m, cons $568m); Adj EBITDA $304m (UBSe: $304m, cons $306m); Rep NPAT $133m (UBSe $138m, cons $160m), Capex $52m (UBSe $48m, cons $52m), DPS 38.5cps (UBSe 37c, cons 38c). 2H24 RESULT HIGHLIGHTS 1. Dealer revs +12% to $122m (UBSe $120m, cons $120m); Private +9% to $50m (UBSe $50m, cons $50m); Media +19% to $39m (UBSe $39m, cons $37m); 2. Domestic cor ...