Investment Rating - The report does not provide a specific investment rating for the company [1] Core Insights - The company is implementing a multi-brand strategy to drive revenue growth and diversify dining experiences in response to changing consumer patterns in Hong Kong [2][4] - The current valuation reflects a 50% discount compared to peers, indicating that past earnings declines are already priced in [4] - The company has no bank loans and holds cash of HKD 1.35 billion, which is higher than its market capitalization of HKD 1.091 billion [4] Financial Performance - For the first half of the 2025 fiscal year, revenue increased by 1.2% year-on-year to HKD 1.4 billion, while same-store sales declined by approximately 4% [4] - The company reported a 55.8% year-on-year decrease in net profit attributable to shareholders, amounting to HKD 36.068 million [4] - The company’s restaurant network in Hong Kong increased by nine locations, totaling 198 self-operated restaurants [4] Business Operations - The company operates two flagship brands, "Tan Zai" and "San Ge," with a total of 235 restaurants across Hong Kong, mainland China, Singapore, and Japan [2][5] - The company is expanding its overseas operations through franchising to mitigate investment risks, with plans to open new locations in Australia and Malaysia [4] - The company aims to open four new restaurants under the "Marugame Seimen" and "Yam牛" brands in Hong Kong in the second half of the 2025 fiscal year [4] Valuation Metrics - The company’s price-to-earnings ratio for the 2024 fiscal year is projected at 9 times, with a dividend payout ratio target of 30% [4][5] - The dividend yield is currently at 11%, with a historical payout ratio of 100% over the past two fiscal years [4][5]

Investment Rating - The report maintains a "Buy" rating for Baidu Group-SW (09888.HK) [1] Core Insights - The report highlights a significant acceleration in Baidu's cloud business, projecting strong growth in AI-related services for 2025. The intelligent cloud revenue grew by 26% year-on-year in Q4 2024, up from 12% in Q1, 14% in Q2, and 11% in Q3 [3] - The report notes that Baidu's core operating profit margin declined by 4 percentage points year-on-year, primarily due to a one-time loss of RMB 1 billion, which included provisions for expected credit losses and inventory impairments [4] - The report anticipates gradual improvement in Baidu's advertising business in 2025, driven by economic policy changes and the long-term benefits of generative AI on search services [8] Financial Performance Summary - For 2023, Baidu's total revenue was RMB 134.6 billion, with a year-on-year growth of 8.83%. The net profit attributable to shareholders was RMB 20.3 billion, reflecting a significant increase of 168.75% [1] - The forecast for 2024 shows a slight decline in total revenue to RMB 133.1 billion, with a projected net profit of RMB 23.8 billion, a 16.96% increase [1] - Non-GAAP net profit is expected to decrease from RMB 27 billion in 2023 to RMB 25.4 billion in 2025, with a corresponding Non-GAAP PE of 9 times [9]

Investment Rating - The report assigns a "Strong Buy" rating for the company with a target price of HKD 0.330, compared to the current price of HKD 0.138 [1][5]. Core Insights - The company, Tongjing New Energy, is a leading provider of photovoltaic tracking and fixed support systems in China, with a strong focus on integrated solutions for photovoltaic power plants [5][6]. - The company has experienced significant revenue growth due to the declining prices of upstream photovoltaic products, enhancing the economic viability of photovoltaic projects [11][24]. - The global transition towards clean energy and the demand for photovoltaic systems are expected to continue growing, providing a stable development space for the photovoltaic support industry [24][25]. - The company is also exploring new energy storage technologies, including innovative compressed air storage solutions, which are anticipated to synergize with its existing photovoltaic business [37][43]. Financial Data and Valuation - The company’s revenue is projected to grow from HKD 1,029.6 million in 2025 to HKD 1,214.3 million in 2026, representing year-on-year growth of 34.4% and 17.9% respectively [3][45]. - The net profit attributable to the parent company is expected to reach HKD 79.5 million in 2025 and remain stable in 2026, with a significant increase of 142.2% in 2025 [3][45]. - The company’s earnings per share are forecasted to be HKD 0.073 in 2025 and HKD 0.065 in 2026 [3][45]. Market Performance - The company’s stock price has shown a significant increase of 55.1% over the past 12 months, despite a decline of 8.0% in the last month [4]. - The company’s market capitalization is approximately HKD 1.69 billion [1]. Industry Overview - The photovoltaic support industry is expected to maintain growth, with the global photovoltaic market projected to add over 500 GW of new installations in 2024, a year-on-year increase of about 30% [24][26]. - The domestic photovoltaic market is anticipated to see new installations between 240-260 GW in 2025, influenced by favorable policies and declining component prices [24][25]. - The market for photovoltaic supports is projected to reach RMB 862 billion in 2024 and RMB 877 billion in 2025, with year-on-year growth rates of 18.5% and 1.8% respectively [25][29].

24 Feb 2025 CMB International Global Markets | Equity Research | Company Update AIA Group Ltd. (1299 HK) FY24 preview: OPAT back to growth trajectory; resilient VNB despite modest slowdown in 2H AIA's share price underperformed the market and CN insurers despite resilient VNB growth and a solid financial position underpinning attractive shareholder returns. The stock price fell 17.3% in FY24, lagging behind key benchmarks as HSI (+18%), CSI 300 (+15%) and FTSE APAC ex-Japan (+7%) (Fig.1). We attribute the m ...

Investment Rating - The report maintains a "Buy" rating for NetEase Cloud Music, with a target price set at HKD 202.5, based on a 21x P/E ratio for FY2025 [1][10]. Core Insights - NetEase Cloud Music reported a total revenue of RMB 7.95 billion for FY2024, reflecting a 1% year-over-year growth, in line with expectations. Adjusted net profit surged by 108% to RMB 1.7 billion, exceeding expectations by 20%, primarily due to improved profitability in the online music segment and effective cost control [1][2]. - The company aims to enhance user experience to unlock long-term growth opportunities, focusing on content library expansion, community development, user payment willingness, and operational efficiency [2][3]. Financial Performance Summary - For FY2024, the overall gross margin increased by 3.6 percentage points to 32.4%, driven by improved revenue monetization and prudent cost management. The gross margin is projected to further increase to 35.4% in FY2025 [3][4]. - The online music service revenue for the second half of FY2024 grew by 20% year-over-year, reaching RMB 2.8 billion, with subscription revenue increasing by 19% to RMB 2.3 billion [2][4]. - The adjusted net profit margin for FY2024 was 21.1%, up by 8.8 percentage points year-over-year [3][4]. Revenue and Profit Forecast - Revenue is expected to reach RMB 8.08 billion in FY2025, with a year-over-year growth rate of 1.6%, and projected to grow to RMB 9.28 billion by FY2027 [4][14]. - The adjusted net profit is forecasted to be RMB 1.88 billion in FY2025, reflecting a 10.7% year-over-year growth [4][14]. Valuation and Market Comparison - The target price of HKD 202.5 is based on a lower P/E ratio compared to global peers, reflecting the competitive landscape in China's online content sector [10][11]. - The report highlights that the stock has shown significant price performance, with a 51.5% increase over the past month and an 82.5% increase over the past six months [5].

Investment Rating - The report maintains a "Buy" rating for Lenovo Group (00992) with a target price based on the last closing price of HKD 13.60 [1][5]. Core Insights - Lenovo Group's performance slightly exceeded expectations, driven by strong growth in AI-related sectors and various business segments [5][7]. - The company reported a revenue of USD 52.093 billion for the first three quarters of FY24/25, representing a year-on-year increase of 21%, and a net profit of USD 1.338 billion, up 57% year-on-year [4][5]. - The gross margin for the first three quarters was 15.96%, a decrease of 1.18 percentage points compared to the same period last year, primarily due to rapid growth in the infrastructure solutions group, which has a lower margin [4][5]. Financial Performance Summary - **Revenue Growth**: The company expects revenue to grow by 18% in FY24/25, followed by 11% and 9% in the subsequent years [8]. - **Net Profit**: Projected net profit for FY24/25 is USD 1.506 billion, a 49% increase from the previous year, with further growth expected in the following years [8]. - **Earnings Per Share (EPS)**: EPS is forecasted to be USD 0.12 for FY24/25 and FY25/26, increasing to USD 0.14 by FY26/27 [8][11]. Business Segment Performance - **Intelligent Devices Group**: Achieved revenue of USD 38.720 billion, a 13% increase year-on-year, with an operating profit margin of 7.28% [7]. - **Infrastructure Solutions Group**: Revenue surged by 59% to USD 10.404 billion, marking the beginning of profitability driven by cloud demand [7]. - **Solutions and Services Group**: Generated revenue of USD 6.307 billion, an increase of 11.54% year-on-year, with an operating profit margin of 20.58% [7]. Future Outlook - The report highlights a positive outlook for Lenovo Group, particularly in the AI sector, with expectations of continued revenue and profit growth [5][8]. - The company is positioned to benefit from ongoing capital expenditures in the IT sector, which is anticipated to drive growth in the server industry [5].

Investment Rating - The report maintains a "Buy" rating for Yancoal Australia (3668 HK) with a target price adjusted to HKD 37.45, reflecting a potential upside of 30.5% based on an 8.5x FY25 target P/E ratio [4][6][22]. Core Insights - Yancoal Australia's FY24 performance slightly missed expectations, with a 33.2% year-on-year decline in net profit to AUD 122 million, primarily due to higher costs for materials, consumables, and purchased coal [1][4]. - The company's revenue for FY24 decreased by 11.8% to AUD 686 million, influenced by a 24.1% drop in average coal prices [1][4]. - The proportion of revenue from China increased significantly from 20.6% in FY23 to 29.2% in FY24, surpassing Japan as the largest single revenue source [2][4]. Summary by Sections Financial Performance - FY24 net profit was AUD 122 million, down 33.2% from the previous year, while revenue fell to AUD 686 million [1][4]. - The cash operating cost per ton of coal decreased from AUD 96 in FY23 to AUD 93 in FY24, aligning with company guidance [1][4]. - The dividend payout ratio improved from 50.5% to 56.3%, exceeding expectations [1][4]. Production and Cost Guidance - The company set FY25 operational guidance consistent with FY24, targeting coal production of 35-39 million tons and cash operating costs of AUD 89-97 per ton [3][4]. - Production is expected to grow slightly by 0.5% to 37.1 million tons in FY25, with cash operating costs projected to rise to AUD 96 per ton [3][4]. Market Outlook - The report anticipates continued weakness in coal prices, with thermal and metallurgical coal prices expected to decline by 7.1% and 3.7% respectively in FY25, with a rebound expected in FY26 [3][4]. - The sensitivity analysis indicates that a 1% change in average coal prices could lead to a 2.4% change in net profit for FY25 [4][16].

Investment Rating - The report assigns an "Accumulate" rating to the company with a target price adjusted to HKD 19.86, reflecting a potential upside of 10.9% based on a 13.0x 2025E PER [3][4]. Core Insights - The company's operations are expected to be impacted in the short term due to factors such as strict medical insurance cost control and weak consumer spending power among end patients, leading to a downward revision of revenue and net profit forecasts for 2024 by 6.5% and 7.5% respectively [1][2]. - The implementation of immediate medical insurance settlement is anticipated to alleviate financial pressure on medical institutions in the long run, but the actual benefits may take time to materialize due to varying local insurance fund conditions [2]. - The revenue forecasts for 2025-2026 have been revised downwards by 5.3% and 5.7%, with net profit forecasts adjusted down by 7.4% and 8.3% respectively, while the projected CAGR for net profit from 2023 to 2026 is estimated at 13.3% [2]. Financial Summary - Total revenue is projected to grow from RMB 3,196 million in 2022 to RMB 6,386 million by 2026, with a CAGR of 18.6% for 2024 and 20.3% for 2025 [3][7]. - Shareholder net profit is expected to increase from RMB 477 million in 2022 to RMB 994 million in 2026, with growth rates of 11.6% for 2024 and 17.9% for 2025 [3][7]. - The company’s earnings per share (EPS) is forecasted to rise from RMB 0.77 in 2022 to RMB 1.57 in 2026, with a corresponding decrease in the price-to-earnings (P/E) ratio from 21.6 in 2022 to 10.6 in 2026 [3][7].

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company achieved a revenue of 7.7 billion RMB in Q4 2024, slightly exceeding Bloomberg consensus by 1%, with a year-on-year growth of 22%. The adjusted net profit was 450 million RMB, surpassing Bloomberg consensus by 15%, resulting in a profit margin of 6% [7] - For the full year 2024, the company reported a revenue of 26.8 billion RMB, a 19% year-on-year increase, with an adjusted net loss of 22 million RMB compared to a loss of 3.4 billion RMB in 2023. The operating cash flow was 6 billion RMB, significantly improved from 270 million RMB in 2023 [7] - The company continues to see growth in high-engagement users, with a Q4 2024 Monthly Active Users (MAU) of 340 million, a 1% year-on-year increase, and Daily Active Users (DAU) of 103 million, a 3% increase. The average daily usage time per user increased by 4 minutes to 99 minutes [7] - The gaming segment showed strong growth, with Q4 2024 gaming revenue reaching 1.8 billion RMB, a 79% year-on-year increase, driven by the success of the game "Three Kingdoms: Strategizing the World" [7] - Advertising revenue also maintained rapid growth, with Q4 2024 advertising income of 2.4 billion RMB, a 24% year-on-year increase, indicating potential for further growth in this area [7] - The company has launched its self-developed large language model and a commercial AIGC platform, which are expected to enhance community engagement and operational efficiency [7] - The adjusted net profit forecast for 2025 has been slightly raised to 1.786 billion RMB, while the 2026 forecast has been lowered to 2.542 billion RMB, with a new forecast for 2027 set at 3.137 billion RMB [7] Financial Data and Profit Forecast - Revenue projections for the company are as follows: - 2023: 22.528 billion RMB - 2024: 26.832 billion RMB - 2025E: 30.213 billion RMB - 2026E: 33.176 billion RMB - 2027E: 35.836 billion RMB - Adjusted net profit forecasts are: - 2023: -3.425 billion RMB - 2024: -0.022 billion RMB - 2025E: 1.786 billion RMB - 2026E: 2.542 billion RMB - 2027E: 3.137 billion RMB [3][8]

Investment Rating - The report maintains a "Buy" rating for Alibaba [3][6]. Core Views - Alibaba's total revenue for Q3 2025 (ending December 2024) reached 280.15 billion, a year-on-year increase of 8%. Non-GAAP net profit attributable to shareholders was 51.33 billion, up 7% year-on-year [1]. - The company is focusing on AI infrastructure and has committed to significant capital expenditures, with plans to invest over 1 trillion RMB in cloud and AI facilities over the next three years [2][3]. - The report forecasts Alibaba's revenue for fiscal years 2025-2027 to be 997.7 billion, 1,084.25 billion, and 1,187.65 billion respectively, with non-GAAP net profits projected at 162.19 billion, 173.92 billion, and 192.62 billion [3][11]. Summary by Sections Financial Performance - For Q3 2025, revenue by business line was as follows: Taobao/Tmall: 136.1 billion (+5%), International Commerce: 37.8 billion (+32%), Alibaba Cloud: 31.7 billion (+13%), Local Services: 17 billion (+12%), Cainiao: 28.2 billion (-1%), and Digital Entertainment: 5.4 billion (+8%) [1]. - The adjusted EBITA profit margins for each segment were 45%, -13%, 10%, -4%, 1%, and -6% respectively [1]. AI Strategy - Alibaba has launched new AI models, Qwen2.5-VL and Qwen2.5-Max, achieving leading results in benchmark tests. The company aims to establish itself as a key player in AI infrastructure [2][3]. - The company has seen over 290,000 enterprises and developers accessing its Qwen API, indicating strong demand for its AI capabilities [2]. Future Projections - The report estimates Alibaba's reasonable market value to exceed 3 trillion RMB, with target prices set at 169 HKD for the Hong Kong stock and 174 USD for the US stock [3]. - The projected earnings per share (EPS) for the upcoming years are 8.4, 9.1, and 10.0 RMB for fiscal years 2025, 2026, and 2027 respectively [5][11].