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 ...

Investment Rating - The investment rating for Tencent Holdings is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 660.3 billion yuan in 2024, representing a year-on-year increase of 8%, and a net profit of 194.1 billion yuan, up 68% year-on-year [4] - The growth in revenue and profit is driven by strong performance in gaming and the commercialization of WeChat [4][5] - The company is expected to continue its growth trajectory with projected net profits of 216.9 billion yuan, 236.3 billion yuan, and 255.5 billion yuan for 2025, 2026, and 2027 respectively [4] Financial Summary and Valuation Metrics - Revenue for 2024 is reported at 660.3 billion yuan, with a year-on-year growth of 8.4% [7] - Net profit for 2024 is 194.1 billion yuan, showing a significant increase of 68.4% year-on-year [7] - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 23.6 yuan, 25.7 yuan, and 27.8 yuan respectively [4][7] - The current price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are 21.3, 19.5, and 18.0 respectively [4][7] - The company’s gross margin is expected to improve from 52.9% in 2024 to 55.1% by 2027 [7]

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 60.0 HKD corresponds to a PE ratio of 26.7/23.5/21.5 for 2025-2027, maintaining the "Outperform" rating [6][8]. Financial Summary and Valuation Indicators - The company reported a revenue of 311 billion CNY for Q4 2024, a year-on-year increase of 54.1%, slightly above Bloomberg consensus expectations. However, the non-GAAP net profit was 13.4 billion CNY, below expectations due to lower gross margins and higher expenses [7]. - The company has adjusted its non-GAAP net profit forecasts for 2025-2026 to 73.3 billion CNY and 83.3 billion CNY, respectively, down from previous estimates of 89.8 billion CNY and 103.7 billion CNY. A new forecast for 2027 is set at 91.4 billion CNY, with year-on-year growth rates of +1.5%/+13.6%/+9.7% [6][10]. - The company’s revenue projections for 2023A to 2027E are as follows: 77,777 million CNY, 93,457 million CNY, 104,460 million CNY, 116,695 million CNY, and 126,005 million CNY, with corresponding year-on-year growth rates of 28.2%, 20.2%, 11.8%, 11.7%, and 8.0% [10].

Investment Rating - The report assigns a "Buy" rating for Kingsoft Corporation (3888 HK) with a target price raised from HKD 33 to HKD 50, indicating a potential upside of 18.1% [2][11]. Core Insights - The report highlights that Kingsoft's Q4 profits exceeded expectations, with a projected 31% revenue growth in the gaming segment for 2024, driven by new game releases. The operating profit margin for the gaming business is expected to improve by 15 percentage points to 42% [2][6]. - The application of AI features in WPS is anticipated to continue driving rapid growth in WPS 365 and personal subscription services. The report adjusts profit forecasts based on a 10x/25x P/E ratio for gaming/WPS businesses and an increase in Kingsoft Cloud's market value [2][6]. - The report notes that WPS had a total of 41.7 million paid users by the end of 2024, a 17% year-on-year increase, with AI functionalities enhancing user engagement and conversion rates [6]. Financial Performance Summary - For 2025, the revenue forecast is set at RMB 11,495 million, reflecting a 4% increase from the previous estimate. The gaming segment is expected to generate RMB 5,475 million, a 6% increase, while WPS is projected to reach RMB 6,019 million, a 3% increase [5][13]. - The gross profit for 2025 is estimated at RMB 9,542 million, with a gross margin of 83%, up from 80% in the previous forecast [5][13]. - Adjusted operating profit is forecasted at RMB 4,079 million for 2025, with an adjusted operating margin of 35% [5][13]. Stock Performance - Kingsoft's stock has shown a year-to-date increase of 25.85%, with a 52-week high of HKD 46.90 and a low of HKD 20.10 [4][11].

Investment Rating - The investment rating for Tencent Holdings is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 660.3 billion CNY in 2024, representing a year-on-year growth of 8%, and a net profit of 194.1 billion CNY, which is a significant increase of 68% year-on-year [4] - The strong performance in 2024 Q4 includes a revenue of 172.4 billion CNY (up 10% year-on-year) and a net profit of 51.3 billion CNY (up 90% year-on-year) [4] - The growth in value-added services revenue reached 79 billion CNY (up 14% year-on-year), driven by strong performances in domestic and overseas gaming [4] - The company is expected to continue its growth trajectory, with projected net profits of 216.9 billion CNY, 236.3 billion CNY, and 255.5 billion CNY for 2025, 2026, and 2027 respectively [4] Financial Summary and Valuation Metrics - Revenue for 2024 is reported at 660.3 billion CNY, with a projected revenue of 707.1 billion CNY for 2025 [7] - The net profit for 2024 is 194.1 billion CNY, with projections of 216.9 billion CNY for 2025 [7] - The gross margin is expected to improve from 52.9% in 2024 to 55.1% by 2027 [7] - The earnings per share (EPS) are projected to be 23.6 CNY for 2025, with a price-to-earnings (P/E) ratio of 21.3 [7] Business Growth Drivers - The integration of AI technologies has significantly boosted user engagement, with daily active users of Tencent's products increasing over 20 times since the introduction of DeepSeek [5] - The number of evergreen games has increased from 12 in 2023 to 14 in 2024, with a strong pipeline of new games [6] - The advertising revenue from video accounts grew by 60% year-on-year in Q4 2024, indicating a robust monetization strategy [6]

Investment Rating - The report maintains a "Buy" rating for the company [4][5] Core Views - The company is expected to benefit from the recovery in downstream demand, equipment upgrades, and overseas exports, leading to continued performance improvement [2][3][4] - The company's revenue for 2024 is projected to be 16.13 billion RMB, a year-on-year increase of 23.4%, with a net profit of 3.08 billion RMB, also up 23.6% [1][4] - The company’s comprehensive gross margin for 2024 is 32.5%, an increase of 0.4 percentage points year-on-year, while the net profit margin remains stable at 19.1% [1] Summary by Sections Revenue and Profitability - The company achieved a revenue of 161.3 billion RMB in 2024, with a net profit of 30.8 billion RMB, reflecting strong growth driven by global supply chain restructuring and increased exports [1] - The operating cash flow for 2024 was 21.0 billion RMB, a 4.4% increase year-on-year [1] Sales Performance - Sales revenue from injection molding machines reached 154.1 billion RMB in 2024, up 23.8% year-on-year, while parts and services generated 7.2 billion RMB, a 16.2% increase [2] - The demand recovery in consumer goods, home appliances, and 3C products has significantly boosted sales of the company's Mars and electric series injection molding machines [2] Market Expansion - Domestic revenue grew by 27.7% to 101.1 billion RMB, while overseas revenue increased by 16.8% to 60.2 billion RMB, benefiting from structural adjustments in the global supply chain [3] - The company is advancing its "Five-Five" overseas strategy, with new factories in Japan and Serbia expected to release capacity in 2025 [3] Future Projections - The net profit forecasts for 2025 and 2026 have been raised by 9.3% and 11.0% to 3.5 billion RMB and 3.91 billion RMB, respectively, with an introduction of a 2027 net profit forecast of 4.27 billion RMB [4] - The expected earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 2.19 RMB, 2.45 RMB, and 2.67 RMB, respectively [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company has announced a conditional grant of 28.5068 million restricted stock units to its chairman and CEO, He Xiaopeng, as part of the 2025 equity incentive plan, which aims to align shareholder interests and reflects the company's confidence in its development [1][3]. - The company is expected to see accelerated sales growth due to its leading smart driving capabilities, a strong new vehicle cycle, channel transformation, and enhanced marketing systems [1][6]. - Financial performance is anticipated to improve continuously, driven by scale enhancement, cost reduction from platforms and technology, expansion of software revenue models, and ongoing growth in overseas markets [1][6]. Summary by Sections Event Description - On March 19, 2025, the company conditionally granted a total of 28.5068 million restricted stock units to He Xiaopeng as part of the 2025 equity incentive plan [3]. Stock Incentive Plan - The stock incentive plan includes three stages based on the average closing price over 30 trading days, with target prices set at HKD 250, 500, and 750, corresponding to market capitalizations of HKD 475.1 billion, 950.2 billion, and 1,425.3 billion respectively [6]. Sales and Revenue Projections - For Q1 2025, the expected delivery volume is between 91,000 and 93,000 units, representing a year-on-year growth of 317.0% to 326.2%, with projected revenue of HKD 15 billion to 15.7 billion, a year-on-year increase of 129.1% to 139.8% [6]. - The company has achieved record-breaking monthly deliveries, with the MONA M03 and P7+ models leading the new vehicle cycle [6]. International Expansion - The company is making significant strides in international markets, with plans for rapid deployment of its ultra-fast charging network in Southeast Asia and the launch of its first right-hand drive model in the UK [6].

Investment Rating - The investment rating for Tencent Holdings is "Buy" and is maintained [7] Core Insights - Tencent achieved revenue of 172.4 billion yuan in Q4 2024, representing a year-on-year increase of 11% and a quarter-on-quarter increase of 3%. Operating profit reached 51.5 billion yuan, up 24% year-on-year, while Non-IFRS net profit attributable to shareholders was 55.3 billion yuan, reflecting a 30% year-on-year growth [2][4] Revenue Performance - The strong performance in the gaming sector, particularly from evergreen games and new game launches, drove Q4 revenue growth in both domestic and overseas markets. Domestic game revenue increased by 23% to 33.2 billion yuan, while overseas game revenue rose by 15% to 16 billion yuan [8] - The advertising segment continued to show robust growth, with marketing services revenue increasing by 17% to 35 billion yuan, supported by strong demand from advertisers [8] Profitability - Tencent's profit growth has consistently outpaced revenue growth for 10 consecutive quarters, with a Q4 gross margin of 52.6%, up 2.6 percentage points year-on-year. The gross margins for value-added services, marketing services, and financial technology & enterprise services also saw improvements [8] Capital Expenditure and Shareholder Returns - Capital expenditure in Q4 surged by 386.15% year-on-year to 36.578 billion yuan, with a significant portion allocated to AI projects. The company plans to repurchase over 80 billion Hong Kong dollars and increase the annual dividend by 32% to 4.50 Hong Kong dollars per share [8]

Investment Rating - The investment rating for the company is "Buy" [5] Core Views - The company achieved excellent performance in 2024 with a revenue growth of 13.6% to 70.826 billion yuan and a net profit growth of 52.4% to 15.596 billion yuan, excluding one-time gains [1] - The company is expected to maintain a long-term high-quality growth trajectory, with a projected revenue growth of 10.5% in 2025 [10] Summary by Sections Company Performance - In 2024, the company's revenue reached 70.826 billion yuan, with a gross margin of 62.2%, slightly down by 0.4 percentage points [1] - The operating profit increased by 8% to 16.595 billion yuan, while the net profit attributable to shareholders grew by 52.4% to 15.596 billion yuan, excluding one-time gains [1] - The company’s market share in the Chinese sports footwear and apparel market increased to 23%, maintaining its leading position [1] Brand Analysis - Anta brand revenue grew by 10.6% to 33.522 billion yuan in 2024, with direct-to-consumer (DTC) and e-commerce channels showing strong growth [2] - The number of Anta adult and children stores increased to 7,135 and 2,784 respectively, indicating a strategic focus on differentiated store formats [2] - Fila brand revenue increased by 6.1% to 26.626 billion yuan, with a focus on high-end sports fashion and an expected better performance in e-commerce compared to offline sales [4] Profitability - The gross margin for Anta brand decreased to 54.5%, and the operating margin fell to 21% due to increased marketing expenses related to the Olympics [3] - Fila brand's gross margin decreased to 67.8%, and the operating margin fell to 25.3%, attributed to a shift towards e-commerce and increased product variety [9] Future Outlook - The company expects revenue growth of 10.5% in 2025, with net profit projected at 13.475 billion yuan, reflecting a 13% increase from 2024 [10] - The outdoor brand segment is anticipated to grow by over 30% in 2025, driven by an increase in store numbers and improved store efficiency [9]