Investment Rating - The report maintains a "Buy" rating for Ping An Good Doctor (1833 HK) with a target price of HK$10.30, representing a potential upside of 34% from the current price of HK$7.71 [1][18]. Core Insights - The company achieved its first full-year profitability in 2024, with total revenue of RMB 4.808 billion, a year-on-year increase of 2.9%, and a net profit of RMB 0.081 billion [6][11]. - The report highlights a significant upward revision of the target price from HK$5.56 to HK$10.30, reflecting improved revenue and profit forecasts [2][18]. - The company is expected to continue its growth trajectory, with projected revenues of RMB 5.321 billion, RMB 6.147 billion, and RMB 7.156 billion for 2025E, 2026E, and 2027E respectively [15][24]. Summary by Sections Financial Performance - In 2024, the company reported a total revenue of RMB 4.808 billion, with a gross profit margin of 31.7% [6][10]. - The healthcare services segment generated revenue of RMB 2.169 billion, while the health services segment saw a decline to RMB 2.356 billion [24]. - The elderly care services segment experienced significant growth, with revenue increasing to RMB 0.283 billion from RMB 0.055 billion in the previous year [8][24]. Earnings Forecast Adjustments - The report projects an increase in earnings per share (EPS) for 2025E to RMB 0.07, up from RMB 0.05, and for 2026E to RMB 0.10, up from RMB 0.07 [2][15]. - The net profit forecast for 2025E is adjusted to RMB 1.41 billion, down from previous estimates due to increased management and sales expenses [15][16]. Business Segments - The medical services revenue is expected to grow to RMB 2.316 billion in 2025E, while health services revenue is projected at RMB 2.439 billion [17][24]. - The elderly care services revenue is anticipated to rise significantly to RMB 0.566 billion in 2025E, reflecting a strategic focus on integrated elderly care solutions [8][17]. Valuation - The report employs a two-stage DCF valuation method, resulting in a target price of HK$10.30, which corresponds to a 2025 P/S ratio of 4.34x, higher than the industry average of 2.1x [18][19]. - The WACC is maintained at 9.2%, with a terminal growth rate of 3.0% [18][19].

Investment Rating - The report does not specify a clear investment rating for 康哲药业 (0867.HK) [1] Core Views - 康哲药业's 2024 annual report shows that the company's revenue was 74.7 billion HKD, a decrease of 6.8% year-on-year, with pharmaceutical sales revenue at 86.2 billion HKD, down 9% [7] - The annual profit was 16.1 billion HKD, down 32.3%, but the performance met expectations [7] - Over 50% of the revenue came from exclusive products and innovative products, with significant growth in the dermatology/aesthetic and ophthalmology lines [7] - The company has made breakthroughs in innovative research and development, marking the beginning of a new era for innovative products [7] - 康哲药业 aims to establish a foothold in the Southeast Asian market through its new entity 康联达健康 and has acquired a manufacturing facility in Singapore [7] Financial Summary - Revenue projections for 康哲药业 from 2025 to 2027 are estimated at 83.1 billion HKD, 105.2 billion HKD, and 121.6 billion HKD respectively, with growth rates of 10.9%, 25.8%, and 15.1% [9][10] - The net profit attributable to the parent company is projected to be 1.63 billion HKD in 2025, 2.24 billion HKD in 2026, and 2.72 billion HKD in 2027, with growth rates of 0.85%, 37.43%, and 20.98% respectively [2][10] - The earnings per share (EPS) is expected to increase from 0.67 HKD in 2025 to 1.11 HKD in 2027 [2][10] - The company's price-to-earnings (P/E) ratio is projected to decrease from 12.60 in 2025 to 7.58 in 2027, indicating potential undervaluation [2][10] Business Segments - The cardiovascular segment is expected to see a revenue decline to 27.7 billion HKD in 2025, while the digestive and autoimmune segment is projected to grow to 33.1 billion HKD [10] - The ophthalmology segment is anticipated to grow significantly, reaching 8.8 billion HKD in 2025, while the dermatology and aesthetic segment is expected to grow to 9.8 billion HKD [10] - Other products are projected to maintain stable revenue around 3.8 billion HKD [10]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved a total revenue of 93.46 billion yuan in 2024, representing a year-on-year growth of 20.2%. However, the adjusted net profit decreased by 26.4% to 7.21 billion yuan [7][8] - The company's gross transaction value (GTV) reached 3.35 trillion yuan, showing a positive growth of 6.6% year-on-year, which supported stable revenue growth [7] - The report highlights a decline in gross margin by 3.3 percentage points to 24.6%, primarily due to a decrease in the revenue share from the higher-margin existing home business [7] - The company expanded its market share in the new home sector, with a GTV decline of 3.3% but an increase in market share by 1.7 percentage points to 11.4% [7] - The home decoration and rental businesses experienced significant growth, with the home decoration GTV increasing by 27.3% to 16.9 billion yuan and the rental business expanding its managed properties from 210,000 to 430,000 units [7] Financial Summary - The company's total revenue forecast for 2024 is 93.46 billion yuan, with projected revenues of 109.63 billion yuan in 2025 and 127.49 billion yuan in 2026 [1][8] - The adjusted net profit is expected to be 6.59 billion yuan in 2025 and 8.50 billion yuan in 2026, with a forecasted EPS of 1.82 yuan and 2.35 yuan respectively [1][8] - The report projects a decrease in the adjusted net profit for 2025 and 2026 due to market fluctuations, with revised estimates of 9.70 billion yuan and 11.62 billion yuan respectively [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's 2024 performance met expectations, with a revenue of 13.577 billion yuan, down 5.36% year-on-year, primarily due to the divestment of a loss-making business. Excluding this factor, the revenue from continuing operations grew by 6.5% [8] - The net profit attributable to shareholders for 2024 was 1.238 billion yuan, an increase of 20.23% year-on-year, benefiting from the divestment of the loss-making business. Adjusting for one-time tax benefits, the net profit growth was 10% [8] - The main brand, Xtep, is focusing on direct-to-consumer (DTC) strategies, with e-commerce leading growth and offline channels being optimized. The company plans to convert 400-500 dealer stores to DTC by 2025 [8] - The subsidiary brand, Saucony, achieved over 1 billion yuan in revenue, with a year-on-year growth of 57.2%. The company plans to increase flagship stores in high-tier cities in 2025 [8] - Gross margin improved by 2.8 percentage points to 43.2% in 2024, while the expense ratio saw a slight increase due to higher costs associated with the acquisition of Saucony and increased e-commerce expenses [8] - The company adjusted its net profit forecasts for 2025 and 2026 slightly downward to 1.37 billion yuan and 1.57 billion yuan, respectively, while introducing a new forecast for 2027 at 1.77 billion yuan [8] Summary by Sections Financial Performance - Total revenue for 2023 was 14.346 billion yuan, with a projected decline to 13.577 billion yuan in 2024, followed by a recovery to 14.313 billion yuan in 2025 [1] - Net profit for 2023 was 1.03 billion yuan, expected to rise to 1.238 billion yuan in 2024 and continue increasing to 1.769 billion yuan by 2027 [1] Brand Strategy - The main brand Xtep's revenue in 2024 was 12.327 billion yuan, growing by 3.2% year-on-year, with a focus on the running segment and a strong presence in major marathon events [8] - Saucony's revenue reached 1.25 billion yuan in 2024, with significant growth across e-commerce, retail, and wholesale channels [8] Profitability and Cash Flow - The gross margin for 2024 was 43.2%, with the main brand's margin slightly declining to 41.8% while Saucony's margin improved significantly [8] - Operating cash flow for 2024 was 1.23 billion yuan, reflecting a slight decrease of 2% year-on-year, with net cash increasing by 5.6% to 988 million yuan [8]

Investment Rating - The report maintains a "Buy" rating for INT Medical, expecting a return exceeding 15% over the next 12 months [2][18]. Core Insights - INT Medical's revenue for 2024 is projected to grow by 13.2% year-on-year to RMB 852 million, slightly below the forecasted 13% due to pressures from value-based pricing (VBP) and intense competition in the CDMO sector [1][2]. - The company achieved a significant gross margin improvement of 5 percentage points, reaching 63.1% in 2024, driven by increased capacity utilization and automation [1]. - Overseas sales are optimistic, with total overseas revenue expected to grow by 24.2% year-on-year to RMB 253 million, accounting for 29.6% of total sales [2]. Financial Summary - Revenue is projected to increase from RMB 753 million in 2023 to RMB 1,025 million in 2025, reflecting a year-on-year growth rate of 20.4% [3]. - The attributable net profit is expected to rise from RMB 192 million in 2024 to RMB 206 million in 2025, with a year-on-year growth rate of 7.5% [3]. - The earnings per share (EPS) is forecasted to grow from RMB 1.10 in 2024 to RMB 1.17 in 2025, indicating a growth rate of 6.6% [3]. Valuation - The target price for INT Medical is set at HKD 33.68 based on a 9-year DCF model with a terminal growth rate of 2.0% and a weighted average cost of capital (WACC) of 10.73% [2][10].

Investment Rating - The report assigns an "Accumulate" rating for China Resources Beer [1][11]. Core Views - The company's performance met expectations, with operational data for January and February exceeding forecasts. The management emphasizes entering the "Three Precision" era, aiming for quality improvement and efficiency enhancement, which is expected to lead to sustained profit margin improvements. The current stock price corresponds to a PE of 16X for 2025 [3][11]. Financial Summary - In 2024, the company achieved revenue of 38.635 billion yuan, a year-on-year decrease of 0.76%. The net profit attributable to shareholders was 4.739 billion yuan, down 8.03% year-on-year. EBITDA increased by 2.9% [11]. - The projected net profits for 2025, 2026, and 2027 are 5.190 billion yuan, 5.483 billion yuan, and 5.814 billion yuan, respectively [11]. - The company plans to increase its dividend payout, with a projected dividend of 0.387 yuan per share for 2024, resulting in a payout ratio of 52.1% [11]. Operational Performance - The company reported a beer sales volume of 10.874 million kiloliters in 2024, a decrease of 2.5% year-on-year, while the unit price increased by 1.5% to 3,355 yuan per kiloliter. The gross profit margin improved by 0.9 percentage points to 41.1% [11]. - The management has set a short-term sales target of 1 million kiloliters for Heineken and aims to double this figure in the second five-year plan starting from 2024 [11].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's 2024 performance met expectations, with total revenue of 13.577 billion yuan, a year-over-year decrease of 5.36%. Excluding the impact of divesting the loss-making business, the revenue from continuing operations increased by 6.5% [8] - The net profit attributable to shareholders for 2024 was 1.238 billion yuan, reflecting a year-over-year increase of 20.23%, driven by the divestment of the loss-making business [8] - The main brand, Xtep, is focusing on direct-to-consumer (DTC) strategies, with e-commerce leading growth and offline channels being optimized. The company plans to convert 400-500 distributor stores to DTC by 2025 [8] - The subsidiary brand, Saucony, achieved revenue exceeding 1 billion yuan in 2024, with a year-over-year growth of 57.2%. The company plans to expand its flagship stores in high-tier cities [8] - The gross margin improved by 2.8 percentage points to 43.2% in 2024, with a healthy cash position reflected in a net cash of 985 million yuan, a year-over-year increase of 5.6% [8] - The profit forecasts for 2025 and 2026 have been slightly adjusted downwards to 1.37 billion yuan and 1.57 billion yuan, respectively, while a new forecast for 2027 is set at 1.77 billion yuan [8] Financial Summary - Total revenue projections for 2024, 2025, 2026, and 2027 are 13.577 billion yuan, 14.313 billion yuan, 15.471 billion yuan, and 16.708 billion yuan, respectively [1] - The net profit attributable to shareholders is projected to be 1.369 billion yuan in 2025, 1.566 billion yuan in 2026, and 1.768 billion yuan in 2027 [1] - The earnings per share (EPS) are expected to be 0.49 yuan in 2025, 0.56 yuan in 2026, and 0.64 yuan in 2027 [1]

Investment Rating - The investment rating for the company is "Outperform" (Maintain) [1] Core Views - The company's market share is expected to continue increasing, with significant expansion in new business segments. Despite uncertainties in the real estate transaction market, the company's platform advantages and store expansion are driving market share growth. The home decoration and rental businesses are expected to drive secondary growth. The current stock price of HKD 60.0 corresponds to a PE ratio of 26.7/23.5/21.5 for 2025-2027, maintaining the "Outperform" rating [6][8]. Financial Performance Summary - In Q4 2024, the company's revenue was HKD 31.1 billion, a year-on-year increase of 54.1%, slightly above Bloomberg consensus expectations of HKD 28.8 billion. This was driven by better-than-expected property transaction volumes and new home fee rates. However, the non-GAAP net profit was HKD 1.34 billion, below expectations of HKD 1.77 billion due to lower gross margins and higher-than-expected expenses [7]. - The company's GTV for existing homes in Q4 2024 grew by 59.1% year-on-year, with revenue increasing by 47.5%. The GTV for new homes increased by 49.3%, with revenue rising by 72.7%. The new business segments, including home decoration and rental services, saw revenue growth of 12.8% and 109%, respectively [7][8]. Financial Projections - The company has revised its non-GAAP net profit forecasts for 2025-2026 to HKD 7.33 billion and HKD 8.33 billion, down from previous estimates of HKD 8.98 billion and HKD 10.37 billion. A new forecast for 2027 projects a net profit of HKD 9.14 billion, with year-on-year growth rates of +1.5%/+13.6%/+9.7% for 2025/2026/2027, respectively. The diluted EPS is projected at HKD 2.1/2.4/2.6 for the same years [6][10].

Investment Rating - The investment rating for the company is "Buy" [2] Core Insights - The company's performance in Q4 2024 met expectations, with revenue of HKD 11.8 billion, a year-on-year increase of 6%, and a net profit of HKD 1.3 billion, a year-on-year decrease of 21% [9] - The decline in net profit is attributed to a 1.3 percentage point drop in gross margin due to changes in product mix and a 3.1 percentage point increase in sales expense ratio due to increased marketing investments in proprietary brands [9] - The company is focusing on long-term strategies, continuous R&D investments, and strengthening its technological moat while binding with international leading clients [9] Financial Summary - Revenue and profit figures for the company from 2021 to 2027 are as follows: - Revenue: HKD 13,755 million (2021), HKD 12,157 million (2022), HKD 11,177 million (2023), HKD 11,799 million (2024), projected HKD 12,423.9 million (2025E), HKD 14,311 million (2026E), HKD 16,699 million (2027E) [7] - Net Profit: HKD 5,287 million (2021), HKD 2,510 million (2022), HKD 1,645 million (2023), HKD 1,303 million (2024), projected HKD 1,300 million (2025E), HKD 1,653 million (2026E), HKD 2,178 million (2027E) [7] - The company’s PE ratio is projected to be 58.0 (2024E), 46.0 (2025E), and 34.7 (2026E) [7] Business Segments - The company's OEM business showed positive growth in H2 2024, with revenue increasing by 11% year-on-year, particularly in the U.S. market, which saw a 5% increase [9] - The proprietary brand segment continued to grow, with an 11% year-on-year increase in revenue in H2 2024, driven by product line expansion and enhanced brand recognition in the U.S. and U.K. markets [9]

20 Mar 2025 CMB International Global Markets | Equity Research | Company Update INT Medical (1501 HK) Solid growth with margin improvement INT Medical's 2024 revenue grew by 13.2% YoY to RMB852mn, 13% below our estimate, mainly due to the pressure on its CDMO business from VBP and intensified competition. The expanding provincial VBP coverage in interventional medical devices drove manufacturers to integrate upstream operations to manage costs. Thanks to the improved gross margin, the Company's attributable ...