PDD Holdings (PDD US) PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG: RESP CMBR OR http://www.cmbi.com.hk1 | --- | --- | --- | --- | --- | --- | |--------------------------------|----------|----------|----------|-----------|-----------| | (YE 31 Dec) | FY22A | FY23A | FY24E | FY25E | FY26E | | Revenue (RMB mn) | 130,558 | 247,639 | 389,619 | 492,359 | 540,111 | | Net profit (RMB mn) | 31,538.1 | 60,026.5 | 83,882.9 | 118,906.4 | 127,694.3 | | Adjust ...

M N 20 Mar 2024 CMB International Global Markets | Equity Research | Company Update WuXi AppTec (603259 CH) Best effort to ensure business continuity Target Price RMB67.53 WuXi AppTec reported revenue of RMB40.3bn in 2023, up 2.5% YoY, (Previous TP RMB116.01) attributable recurring net income of RMB9.7bn, up 16.8% YoY, and attributable Up/Downside 32.9% adjusted non-IFRS net income of RMB10.9bn, up 15.5% YoY. Revenue was in- Current Price RMB50.81 line with Bloomberg consensus while attributable adjusted no ...

M N 20 Mar 2024 CMB International Global Markets | Equity Research | Company Update Kingdee (268 HK) Steady rev growth with on-track loss reduction Target Price HK$15.50 Kingdee reported 2023 financial results: revenue was RMB5.7bn, up 17% YoY (Previous TP HK$15.10) (2022: 17% YoY), and net loss attributable to ordinary shareholders was Up/Downside 66.3% RMB210mn (2022: loss of RMB389mn), both in line with our estimate and Current Price HK$9.32 Bloomberg consensus. Kingdee’s loss reduction effort was on tra ...

Investment Rating - The report maintains a "BUY" rating for China Lilang with a target price raised to HK$5.75, reflecting a 29.2% upside from the current price of HK$4.45 [2][4]. Core Insights - China Lilang is expected to outperform in FY24E due to operational efficiency improvements and product quality upgrades, with a robust retail sales growth target of 15%, including 20% growth for e-commerce [2][6]. - The company reported FY23 results that slightly beat expectations, with sales and net profit increasing by 15% and 18% year-over-year, respectively [2][9]. - The report highlights a significant improvement in working capital, with inventory and receivable days reduced to 170 and 42 days, respectively [2][9]. Financial Performance - FY23 revenue was RMB 3,544 million, with a gross profit margin of 48.2% and a net profit of RMB 530 million, reflecting a year-over-year growth of 15% and 18% [3][9]. - For FY24E, revenue is projected to reach RMB 4,047 million, with a net profit of RMB 626 million, indicating a year-over-year growth of 14% [6][9]. - The company declared a dividend per share (DPS) of HK$0.36 for FY23, resulting in a payout ratio of 74% and an 8% yield based on the current market capitalization [2][4]. Segment Performance - Sales growth rates for key segments in FY23 were 10% for the core brand, 35% for smart casual, and 18% for e-commerce [2][9]. - The smart casual segment is expected to continue its rapid growth, with sales per store already exceeding that of the core brand [2][6]. Valuation Metrics - The report indicates a P/E ratio of 8x for FY24E, which is considered attractive compared to the target P/E of 10x [2][4]. - The projected sales and net profit CAGR for FY23-26E is 11% and 14%, respectively, supporting the valuation [2][6].

M N 20 Mar 2024 CMB International Global Markets | Equity Research | Company Update Akeso (9926 HK) Expect another fruitful year in 2024 In FY23, Akeso recorded RMB4.53bn in revenue, including RMB1.63bn from Target Price HK$59.61 product sales and RMB2.92bn from license income relevant to AK112 (PD- (Previous TP HK$51.23) 1/VEGF). Cadonilimab/AK104 (PD-1/CTLA-4) achieved RMB1.36bn in sales in Up/Downside 19.3% FY23, surpassing the Company’s initial guidance of RMB1.2-1.3bn. In 2H23, Current Price HK$49.95 A ...

M N 20 Mar 2024 CMB International Global Markets | Equity Research | Company Update Xiaomi (1810 HK) Raise TP and estimates on 4Q23 beat; All eyes on EV official launch on 28 March Target Price HK$20.25 Xiaomi’s 4Q23 revenue/net profit of 11%/236% YoY growth beat our/consensus (Previous TP HK$19.54) estimates, driven by stronger margins, improving mix and investment gains. Up/Downside 36.3% Looking ahead, mgmt. is positive on smartphone recovery, premiumization Current Price HK$14.86 strategy and EV busines ...

Investment Rating - The report maintains a "BUY" rating for CSPC Pharmaceutical, with a target price revised to HK$7.76 from HK$8.16, indicating a potential upside of 21.1% from the current price of HK$6.41 [2][4]. Core Insights - CSPC reported FY23 revenue of RMB31.45 billion, reflecting a 1.7% year-over-year growth, and an attributable net profit of RMB5.87 billion, down 3.6% year-over-year. The adjusted net profit increased by 2.8% year-over-year to RMB6.28 billion [2]. - The company expects new products to significantly contribute to revenue in 2024, forecasting an additional RMB3.5-3.6 billion from these products [2]. - CSPC's R&D expenses rose by 21.2% year-over-year to RMB4.83 billion, indicating a strong commitment to innovation [2]. Financial Performance Summary - **Revenue**: FY23 revenue was RMB31.45 billion, with projections of RMB34.80 billion for FY24E, representing a 10.6% growth [3][9]. - **Net Profit**: FY23 attributable net profit was RMB5.87 billion, with expectations of RMB6.68 billion in FY24E, a 13.7% increase [3][9]. - **Gross Profit Margin**: The gross profit margin decreased to 70.5% in FY23 from 71.9% in FY22, with expectations of 70.3% in FY24E [3][10]. Sales Performance - **Finished Drugs**: Sales of finished drugs increased by 4.6% year-over-year to RMB25.64 billion, although there was a slight decline in the second half of FY23 due to anticorruption measures in China [2]. - **CNS Products**: CNS products saw a 12.1% year-over-year growth, primarily driven by strong sales of NBP [2]. - **Oncology Products**: Sales of oncology products fell by 16.4% year-over-year, largely due to a significant price cut for Keaili [2]. New Product Pipeline - CSPC has several new products expected to drive sales growth, including Mingfule, Yiluoda, and Anfulike, with management forecasting substantial revenue contributions from these products in 2024 [2][3]. - The company has had four drugs added to the National Reimbursement Drug List (NRDL) since early 2024, enhancing market access [2]. Valuation Metrics - The report provides a DCF valuation of RMB7.76 per share, with a WACC of 11.78% and a terminal growth rate of 2.0% [4][10]. - The P/E ratio is projected to decrease from 13.0x in FY23 to 10.5x in FY24E, indicating potential undervaluation [3][10].

M N 21 Mar 2024 CMB International Global Markets | Equity Research | Company Update Geely Automobile (175 HK) Most businesses are trending up Target Price HK$14.00 Maintain BUY. We are of the view that Geely’s FY23 earnings quality was better (Previous TP HK$14.00) than FY21-22. We believe most of its businesses are poised to enjoy higher Up/Downside 58.6% profits in FY24E. Some investors may overlook Geely’s recent assets disposal Current Price HK$8.83 to ease its lingering D&A burden by leveraging its par ...

M N 21 Mar 2024 CMB International Global Markets | Equity Research | Company Update Li Ning (2331 HK) Expectations reset with positive initiatives Target Price HK$24.86 We do find Li Ning’s FY23 results and FY24E guidance are inline, even though the views from the market are quite mixed. Anyhow, we do appreciate (Previous TP HK$32.93) management’s efforts to fix the bugsell and the branding power issues, as well Up/Downside 15.9% as resetting investors’ expectation with a prudent guidance. With all the prog ...

M N 19 Mar 2024 CMB International Global Markets | Equity Research | Company Update Xtep (1368 HK) Stay prudent as channel health is the priority Target Price HK$6.31 Xtep’s FY23 results were dragged by weak e-commerce sales but inline with market consensus. Due to the macro uncertainty and high base, Xtep’s (Previous TP HK$7.07) management has put aside its 5-year growth target and introduced a rather Up/Downside 39.0% conservative target in FY24E. This is inline with our view that Xtep may not be Current ...