Investment Rating - The investment rating for Fuyao Glass Industry Group is "Equal-weight" with a price target of HK$40.00, indicating a potential downside of 29% from the current price of HK$56.60 as of October 18, 2024 [2][22]. Core Insights - Capacity utilization is expected to remain strong, with management anticipating an increase in utilization rate from approximately 85% in Q3 to higher levels in Q4 due to robust auto production in China and market share gains overseas [1][2]. - There is an upside risk to the gross margin target of 37-38%, with expectations that it could approach 40% in some quarters due to increased utilization, favorable product mix, and declining input costs, particularly soda ash prices [1][2]. - Fuyao aims to increase its market share in the US and Europe to 40% and 30% respectively, driven by new capacity additions and improved competitiveness against foreign players [2][3]. - The company is accelerating capacity construction to meet growing demand, with new capacity in the US expected to be completed by the end of the year and additional plants in Fujian and Anhui scheduled for completion by the end of 2025 [2][3]. Summary by Sections Financial Metrics - For the fiscal year ending December 2023, net revenue is projected at Rmb33,161 million, with EBITDA expected to be Rmb8,292 million [2]. - EPS is forecasted to increase from Rmb2.16 in 2023 to Rmb2.80 in 2024, and further to Rmb3.16 in 2025 [2]. - The company’s market capitalization is currently Rmb148,765 million, with an EV of Rmb150,245 million [2]. Market Position - Fuyao Glass Industry Group is positioned to gain significant market share in the automotive glass sector, with management highlighting the flexibility of production lines to increase output by adding shifts [1][2]. - The company has no immediate plans to establish production facilities in Europe, focusing instead on enhancing its existing operations in the US and China [2][3].

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies within it [34][35]. Core Insights - The penetration of new energy vehicles (NEVs) in the passenger vehicle market reached 53.9%, an increase of 4.1 percentage points from the previous week [6][27]. - Weekly insurance registrations for passenger vehicles were 499,000 units, reflecting a decrease of 16.1% week-over-week [6][27]. - Weekly insurance registrations for new energy vehicles were 269,000 units, down 9.1% from the previous week [6][27]. - The average dealer discount for NEVs was 7.28% as of October 22, compared to 7.17% on October 15 [22][23]. - The average discount for internal combustion engine (ICE) vehicles was 21.40% as of October 22, slightly down from 21.47% [23]. Summary by Sections Industry Overview - The NEV market is experiencing significant growth, with a 55% increase in volume for Tesla China, 23% for AITO, and 29% for Xiaomi week-over-week [8][9]. - BYD Group, Tesla China, and Li Auto are the top three brands in terms of market share, holding 35%, 5%, and 4% respectively [8][9]. Key Trends - The report highlights a total of 1.27 million applications for the trade-in subsidy program as of October 7, with an average of 4,000 new applications daily during the first week of October [11][12]. - The average daily orders for various NEV brands during the week of September 29 to October 6 were as follows: BYD (23,571 units), Li Auto (2,857 units), and others [17]. Pricing Dynamics - The average price cut for NEVs was 8% year-to-date, with 88 price cuts observed [19]. - The price of battery-grade lithium carbonate decreased by 3.0% week-over-week, currently at RMB 73,900 per ton [25]. Upcoming Events - Key events to watch include the official launch of ZEEKR Mix on October 23 and XPeng Tech Day on October 24 [15][16]. Market Share Changes - Tesla China, AITO, and Xiaomi gained market share by 2.0 percentage points, 0.8 percentage points, and 0.5 percentage points respectively, while BYD Group, Galaxy, and Nio lost market share [8][9].

Investment Rating - The report maintains a **Buy** rating for Innolight (300308 SZ) despite a 7% reduction in the 12-month target price to RMB 215 (from RMB 230) due to near-term supply constraints [1] Core Viewpoints - Innolight's 3Q24 net profit of RMB 1 39bn (+3% QoQ +104% YoY) missed Goldman Sachs estimates by 12% primarily due to FX losses of ~RMB 80mn and EML supply tightness which slowed shipment growth [1] - Demand for 800G and 1 6T transceivers remains strong with 3Q order growth outpacing shipment growth Management expects 800G demand to grow significantly into 2025 driven by cloud customers' AI inferencing on Ethernet networks while 400G demand is expected to phase out gradually in 2H25 [1][3][4] - 100G EML supply is expected to remain tight through 4Q24 but may improve in 1H25 due to supplier capacity expansion and Innolight's increased EML order placements [2] Financial Performance Summary - 3Q24 revenue was RMB 6 514bn (+115% YoY) with gross profit of RMB 2 191bn (+116% YoY) and gross margin of 33 6% (+0 1ppts YoY) [2] - Operating profit for 3Q24 was RMB 1 751bn (+143% YoY) while net income reached RMB 1 39bn (+104% YoY) [2] Estimate Revisions - Revenue estimates for 2024-26E were revised down by 4% due to FX changes and component constraints Net profit estimates were revised down by 6%-9% [6] - 2024E revenue is now projected at RMB 24 491bn (-4% vs previous estimate) with gross profit of RMB 8 221bn (-6 7%) and net income of RMB 5 222bn (-9%) [7] Industry and Competitive Position - Innolight is the largest optical transceiver supplier in China's datacom market with a leading position in global 800G/1 6T optical transceivers used in AI networking [8] - The company benefits from strong execution in capacity ramp and new product development maintaining tight supply relationships with global hyperscalers and networking/GPU vendors [8] Component Pricing and Margins - Potential price hikes from EML and DSP vendors are expected to have limited impact on Innolight's margins as pricing is still under negotiation and not all vendors are seeking price increases [5]

关注公众号: 永木纪要 25 October 2024 | 12:41AM HKT Proya Cosmetics (603605.ss) Earnings review: 3Q24 Sales/NI inline but lower OP on ROI pressure; Lower 4Q outlook reflecting disciplined Double 11 Mof 603605.SS 12m Price Target: Rmb107.50 Price: Rmb99.00 Upside: 8.6% Proya reported 3Q24 revenue/NI growth of 21%/21% yoy, in line, a with market consensus, but same as previous two quarters; OP came in 13% below with a 4.7ppt contraction in GPM-Selling expenses ratio due to elevated ROI pressure including increasing KOL ...

Investment Rating - The report maintains a "Buy" rating for Pien Tze Huang (600436.SS) with a 12-month price target of Rmb280, indicating an upside potential of 21.5% from the current price of Rmb230.54 [2][8][7]. Core Insights - Pien Tze Huang reported 3Q24 earnings of Rmb965 million, reflecting a year-on-year increase of 12.0% and a 6.3% beat against Goldman Sachs estimates, attributed to better gross profit margins and lower-than-expected expenses [1][2]. - The revenue for 3Q24 was Rmb2,800 million, marking a 9.6% increase year-on-year and a 2.9% increase compared to Goldman Sachs estimates, driven by strong sales growth in hepatic disease medication, which saw a 25.3% year-on-year increase [2][6]. - The report anticipates a healthy compound annual growth rate (CAGR) in sales and earnings per share (EPS) between FY23 and FY26, supported by ongoing production growth and pricing hikes amid increasing demand [6][7]. Financial Estimates - Earnings estimates for Pien Tze Huang have been revised upwards by 2.8% for 2024E, with net profit expected to reach Rmb3,068 million, a 2.8% increase from previous estimates [4][5]. - Revenue projections for 2024E have been adjusted to Rmb11,135 million, reflecting a 2.3% increase from prior estimates, with EBIT expected to be Rmb3,613 million, a 2.9% increase [4][5]. - The report highlights a stable gross profit margin (GPM) of 46.9% for 3Q24, slightly improved from 46.6% in previous estimates, despite pressures from rising cow bezoar costs [1][2].

ab 18 October 2024 Global Research Life Sciences & Diagnostic Tools China Pharma Mfg Returned to Double-digit Growth in Sept. | --- | --- | |------------|-------| | Equities | | | Americas | | | Healthcare | | Bottom Line We track China's monthly industrial output data as a key indicator for the China end market health in our Life Sciences Tools coverage. The September high-technology manufacturing output growth was +10.1% vs. +8.6% in August. Pharma manufacturing output returned to double-digit growth in S ...

M Update Zijin Mining Group | Asia Pacific October 20, 2024 05:43 PM GMT 3Q24 results: Another record quarter | --- | --- | --- | |---------------------------------------------------------------------|----------------------------------------------|----------------------------------------------------------| | Reaction to earnings | | | | Strengthens our investment thesis Impact to our investment thesis | In-line Financial results versus consensus | Largely unchanged Impact to next 12-month consensus EPS | Up ...

Investment Rating - The stock rating for Zhejiang Huayou Cobalt Co Ltd is Equal-weight [4] - The industry view is Attractive [4] Core Insights - The company reported a net profit of Rmb1.3 billion for 3Q24, which is an increase from Rmb1.1 billion in 2Q24 and Rmb928 million in 3Q23, exceeding expectations [1] - The 9M24 profit reached Rmb3 billion, reflecting a year-on-year increase of 0.2% [1] - The good performance is attributed to better-than-expected gross profit margin (GPM), lower tax expenses, and reduced minority interest [2] - The GPM for 3Q24 was 18.8%, only slightly down by 1.4 percentage points quarter-on-quarter [2] - The effective tax rate decreased to 3.7% in 3Q24 from 4.4% in 2Q24 and 12.1% in 3Q23 [2] - Minority interest accounted for 4.5% of profit after tax, significantly lower than 35.5% in 2Q24 [2] Capacity Expansion - Ongoing construction of the Huaneng 50kt ternary precursor project in Indonesia was completed on October 18, 2024 [2] - The Huaxiang 50kt sulfuric nickel project and the Hungary 25kt cathode material projects are currently under construction [2] Financial Metrics - The price target for the stock is set at Rmb27.00, indicating a downside of 7% from the current price of Rmb28.95 [4] - The market capitalization is Rmb49.507 billion, with an enterprise value of Rmb70.270 billion [4] - Projected EPS for fiscal years ending in 2023, 2024, 2025, and 2026 are Rmb2.05, Rmb1.34, Rmb1.42, and Rmb2.00 respectively [4] - Revenue projections for the same fiscal years are Rmb65.936 billion, Rmb63.642 billion, Rmb66.235 billion, and Rmb70.900 billion respectively [4] - The P/E ratio is projected to be 16.1 for 2023 and 21.5 for 2024 [4]

October 20, 2024 03:15 PM GMT M Update Shenzhen Inovance Technology | Asia Pacific 3Q24 Prelims – Revenue In-line; Core Earnings Miss Reaction to earnings Weakens our investment thesis Modest shortfall Modest revision lower Impact to our investment thesis Financial results versus consensus Impact to next 12-month consensus EPS Key Takeaways 3Q revenue was up 15%-25% y-y, midpoint of Rmb9.2bn (+20% y-y) was in-line with MSe and consensus, as NEV powertrain business was the key growth driver... Automation and ...

M Idea Shanghai Fudan Microelectronics | Asia Pacific October 20, 2024 11:20 PM GMT Research Tactical Idea We believe the share price will fall relative to the country index over the next 30 days. This is because of an earnings release. The company announced preliminary 3Q24 earnings will be around Rmb77mn, down 59% QoQ and 62% YoY. This would represent only 18% of our 2H24 estimate of Rmb423mn, well below normal seasonality. The company has lowered some product pricing in the face of intense competition, a ...