M N 18 Mar 2024 CMB International Global Markets | Equity Research | Company Update Mobvista Inc. (1860 HK) Focusing on margin enhancement FY23 results were largely in line, with rev +18% YoY and profit at US$19.1mn Target Price HK$6.00 (in line with our estimate but 9% above consensus). Mintegral rev remained (Previous TP HK$6.00) resilient at +19.5% YoY in 4Q23. For 2024E, we see high visibility for Mobvista Up/Downside 85.8% to enhance its profitability (forecasting bottom line at US$37mn, net margin at ...

Investment Rating - The investment rating for FIT Hon Teng is maintained as "Buy" with a target price (TP) set at HK$1.65 [3][7]. Core Insights - The FY23 results were in line with expectations, with operating revenue decreasing by 7.4% year-on-year to US$4,196 million and shareholders' net profit decreasing by 23.5% year-on-year to US$130 million [9][11]. - The company is implementing a "3+3" strategy focusing on the development of electric vehicles (EVs), 5G AIoT, and acoustics, which is expected to drive future growth [11][13]. - The revenue mix from EV Mobility, new Generation 5G AIoT, and Audio is projected to reach 30% in 2024 and 40% in 2025 [11][13]. Financial Performance - Forecasted EPS for FY24-FY26 is US$0.023, US$0.029, and US$0.035 respectively, with a 9.0x PER for 2024 [7][9]. - The gross profit margin increased by 2.3 percentage points year-on-year to 19.2% in FY23, while R&D expenses as a percentage of total revenue increased to 7.3% [9][22]. - The company expects revenue growth in the coming years, with total revenue projected to increase from US$4,196 million in FY23 to US$5,472 million by FY26 [22]. Business Strategy and Market Position - The acquisition of SWH, now FIT Voltaira, enhances the company's product offerings in the EV sector, positioning it to meet the growing demand for high-voltage connectors and wiring harnesses [13][11]. - The company aims to expand its customer base and production capabilities in the EV mobility sector, leveraging its global layout and partnerships through MIH [11][13]. - The audio business is also expected to benefit from the increasing demand for high-speed connections driven by AI server growth and data center construction [11][13].

M N 14 Mar 2024 CMB International Global Markets | Equity Research | Company Update FIT Hon Teng (6088 HK) FY23 in line; upbeat FY24E outlook on AI server/networking, EV and AirPods upside Target Price HK$2.21 FIT Hon Teng delivered in-line FY23 results and upbeat FY24E guidance. It (Previous TP HK$2.02) posted FY23 revenue of US$4,196mn (-7% YoY) and net profit of US$130mn (- Up/Downside 64.7% 24% YoY), largely in-line with guidance, mainly due to softer demand for Current Price HK$1.34 traditional servers ...

M N 14 Mar 2024 CMB International Global Markets | Equity Research | Company Update 361 Degrees (1361 HK) Resilient outlook backed by rising popularity Target Price HK$6.25 361 Degrees’s FY23 result was roughly inline but we are delighted to see its dividend payout ratio resumed to 40%. Going forward in FY24E, we are still (Previous TP HK$6.23) confident, thanks to: 1) its wholesale business nature (supported by 80%+ sell Up/Downside 36.6% through rate), 2) resilient retail sales growth (20%+ in Jan-Feb 202 ...

M N 13 Mar 2024 CMB International Global Markets | Equity Research | Company Update Horizon CD (9930 HK) 2023 earnings in line; 15% share price pullback BUY (Maintain) looks overdone Target Price HK$3.70 Horizon CD’s core net profit in 2023 grew 10% YoY to RMB1bn, in line with our (Previous TP HK$5.20) expectation. While the lack of dividend payout is disappointing given that Up/Downside 189.1% positive free cash flow is achieved, we believe the 15% share price pullback Current Price HK$1.28 yesterday was o ...

FY23E Preview: industry headwinds mostly priced in; Awaiting recovery in FY24E PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG: RESP CMBR OR http://www.cmbi.com.hk1 Source: Company data, CMBIGM estimates 28% 37% 15% -14% 59%52% 19% 20% 24% 0 2,000 4,000 6,000 8,000 10,000 12,000 2017 2018 2019 2020 2021 2022 2023E 2024E 2025E (RMB mn) Revenue YoY Source: Company data, CMBIGM estimates PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON ...

Investment Rating - The report initiates a BUY rating on 361 Degrees with a target price (TP) of HK$6.23, based on a 10x FY24E P/E ratio, indicating a potential upside of 43.5% from the current price of HK$4.34 [4]. Core Insights - The report highlights a turnaround driven by star products and sponsorships, forecasting a 16% sales CAGR and a 20% net profit CAGR from FY22 to FY25, compared to previous growth rates of 7% and 20% from FY19 to FY22 [2][27]. - 361 Degrees is positioned as the 4th-largest domestic sportswear brand in China, with a market share of 3.1% in 2022 and a robust store network of approximately 5,480 adult stores and 2,288 kids stores [2][19]. Summary by Sections Company Overview - 361 Degrees is recognized as the 4th-largest domestic sportswear company in China, established in 2003 and listed on the HKEX in 2008, with significant sales and net profit figures of RMB7.0 billion and RMB747 million in FY22 [19][23]. Key Positives and Growth Drivers - The brand's successful rebranding strategy initiated in 2019 has led to improved market share and financial performance, with retail sales growth accelerating since FY21 [27][28]. - Significant improvements in product offerings, particularly in running and basketball segments, have been noted, with a focus on R&D and innovative designs [41][53]. - The e-commerce segment has shown remarkable growth, with a sales CAGR of 23% from FY19 to FY22, and is expected to continue its upward trajectory [38][35]. Financial Forecast - Revenue is projected to grow from RMB6.96 billion in FY22 to RMB10.97 billion by FY25, with net profit expected to increase from RMB747 million to RMB1.27 billion over the same period [3][9]. - The report anticipates a P/E ratio decline from 9.0x in FY22 to 6.2x by FY25, indicating an attractive valuation compared to industry averages [3][4]. Market Position and Strategy - The company has effectively utilized sponsorships and endorsements to enhance its professional image and connect with younger consumers, which is crucial for market share expansion [59][60]. - The strategic focus on lower-tier cities has been beneficial, as these markets are expected to show resilience in consumer spending [20][22].

Investment Rating - The report initiates coverage on Walt Disney Co with a BUY rating and a target price of US$142, implying a 28.7% upside from the current price of US$110.3 [4][5]. Core Insights - The report highlights that Disney is expected to benefit from streaming and sports industry tailwinds, alongside cost control initiatives. The company has shown significant improvement in streaming losses and operational efficiency, with management guiding for an EPS of US$4.6 (+22% YoY) and free cash flow of US$8 billion in FY24E. Streaming profitability is anticipated by 4QFY24E, with projected revenue and earnings CAGR of 5% and 16% respectively from FY24-26E [2][3][28]. Company Overview - Established in 1923, Disney is a global entertainment and media conglomerate with a diversified portfolio that includes film production, theme parks, and streaming services. The company is currently prioritizing its streaming and ESPN segments, supported by cash flow from its Experiences business [12][17]. Streaming and Sports Growth - Disney+ has reached 150 million paid subscribers as of 1QFY24, with expectations for continued growth driven by strong content, AVOD initiatives, and paid-sharing strategies. The report forecasts a 4% CAGR in Disney+ subscribers from FY24-26E, with net adds of 5.5-6 million expected in 2QFY24E [2][20][38]. Parks and Experiences - The Parks segment is projected to be a significant cash generator, contributing approximately two-thirds of the Group's operating income in FY24E, with an expected 10% CAGR in operating income from FY24-26E. Revenue from US parks is anticipated to accelerate in the second half of FY24E [2][3][9]. Financial Performance - For FY24E, Disney's revenue is expected to reach US$91.8 billion, with a YoY growth of 3.3%. Adjusted net profit is projected at US$8.5 billion, reflecting a 23.9% increase YoY. The diluted EPS is forecasted to be US$4.62, a 23.4% increase YoY [3][4]. Valuation Metrics - The report sets a target price based on a sum-of-the-parts (SOTP) valuation, implying a P/E ratio of 30.7x for FY24E, which is 14% below Netflix's valuation but slightly above the industry average [2][4]. Key Catalysts - The report identifies several key catalysts for Disney's growth, including the upcoming breakeven on streaming, strong net subscriber additions, resilient performance in parks, and progress in the sports segment [2][3][4].

Investment Rating - The report maintains a "BUY" rating for JD.com with a target price of US$52.00, indicating a potential upside of 142.5% from the current price of US$21.44 [1][6][23]. Core Insights - JD.com reported better-than-expected results for 4Q23, with revenue of RMB306.1 billion, up 3.6% year-over-year, and non-GAAP net income of RMB8.4 billion, surpassing estimates [6]. - The company aims to enhance user experience and market share in 2024, with a focus on reinvesting profits to drive user acquisition amid intensified market competition [6]. - JD's net product revenue for 4Q23 was RMB246.5 billion, reflecting a 3.7% year-over-year increase, with electronics and home appliance revenue growing by 6.1% [6][27]. - The new share repurchase program and increased dividends are expected to support valuation and drive a rerating of the stock [6][23]. Financial Performance Summary - For FY23, total revenue reached RMB1.1 trillion, up 3.7% year-over-year, with non-GAAP net income of RMB35.2 billion, a 25% increase [6][7]. - The forecast for FY24 estimates total revenue of RMB1,160.3 billion, with a gross profit of RMB173.6 billion and a non-GAAP net profit of RMB36.1 billion [5][22]. - JD's gross margin is projected to be 15.0% in FY24, with a non-GAAP net margin of 3.1% [5][22]. Revenue Breakdown - JD Retail generated RMB267.6 billion in revenue for 4Q23, up 3.4% year-over-year, driven by better-than-expected growth in electronics and home appliances [6]. - Net services revenue for 4Q23 was RMB59.6 billion, up 3.0% year-over-year, although marketplace and advertising revenues declined by 4% [6][27]. Future Outlook - The management's focus for 2024 includes enhancing merchant support and user acquisition strategies, with expectations for commission revenue to return to growth by 3Q24 [6]. - The company anticipates an 8% year-over-year growth in JD Retail's revenue and a 4% increase in non-GAAP operating profit for FY24 [6].

M N 8 Mar 2024 CMB International Global Markets | Equity Research | Company Update Bilibili (BILI US) Steady progress towards a sustainable business model Target Price US$20.50 Bilibili announced its 4Q23 results on 7 Mar: total revenue grew by 3% YoY to (Previous TP US$24.00) RMB6.35bn, in line with our/consensus estimate; adjusted net loss narrowed by Up/Downside 89.6% 58% YoY to RMB556mn, beating our/consensus estimate of RMB677/633mn, Current Price US$10.81 mainly attributable to the better-than-expecte ...