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 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 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 ...

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 ...

M N 19 Mar 2024 CMB International Global Markets | Equity Research | Company Update GigaCloud (GCT US) Riding on stepping-up of expansion Target Price US$43.0 GigaCloud (GCT) 4Q23 results beat already-high expectation, with revenue (Previous TP US$30.0) /earnings +95%/185% YoY (beating 9%/43%). Coupled with robust 1Q24E Up/Downside 25.7% guidance, we see high visibility for its strong performance in next few quarters, Current Price US$34.2 backed by continuous share gain and SKU& Sellers expansion. Leveragi ...

CMB International Global Markets | Equity Research | Company Update PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG: RESP CMBR OR http://www.cmbi.com.hk1 Error! Reference source not found. Rerating rationale Total value = Embedded Value + Value of New Business * New Business Multiplier Long-term RoEV from 14% to 11%: Aside from the operating RoEV, we also include other metrics, i.e. investment experience variances, effect of changes in economic assum ...

M N 15 Mar 2024 CMB International Global Markets | Equity Research | Company Update Weibo (WB US) Weathering a challenging FY24 Target Price US$18.80 Weibo reported 4Q23 results on 14 Mar: total revenue grew by 3% YoY (or +5% (Previous TP US$23.50) YoY on a constant currency basis) to US$464mn, vs consensus/our estimate of Up/Downside 93.8% US$454/458mn. Non-GAAP operating income declined by 4% YoY to Current Price US$9.70 US$146mn in 4Q23, 7% ahead of consensus, mainly thanks to the stringent control in pr ...

M N 18 Mar 2024 CMB International Global Markets | Equity Research | Company Update Tuhu Car (9690 HK) Solid FY23 with better profitability Target Price HK$35.3 Tuhu Car (Tuhu) achieved decent profit for the first time in FY23, with revenue (Previous TP HK$50.10) +18% YoY (in line) and adj. NP at RMB481mn (27% above consensus). Looking Up/Downside 195.2% into FY24E, we are positive on its resilient growth (forecasting revenue + 16% Current Price HK$11.96 YoY), backed by workshop expansion, richer offerings, ...

M N 18 Mar 2024 CMB International Global Markets | Equity Research | Company Update Shennan Circuit (002916 CH) FY23 results beat helped by better 4Q Q Shennan Circuit released its FY23 earnings, with revenue down 3.3% YoY to Target Price RMB79.00 RMB13.5bn (5%/2% higher than our forecast/consensus) and net profit down (Previous TP RMB72.00) 14.8% YoY to RMB1.4bn (11%/5% higher than our forecast/consensus). The Up/Downside -11.2% Company beat estimates thanks to a stronger-than-expected 4Q. The Current Pric ...