Investment Rating - The report assigns a "Buy" rating for Zhongsheng Holdings (00881.HK) [4] Core Views - Zhongsheng Holdings is a leading automotive dealer in China, focusing on luxury and mid-to-high-end brands, with a strategic shift towards new energy vehicles [4][22] - The company is expected to see revenue growth from 2024 to 2026, with projected revenues of 1794.76 billion, 1841.02 billion, and 1807.36 billion CNY respectively, and net profits of 25.45 billion, 31.64 billion, and 49.40 billion CNY [4] - The current price-to-earnings (P/E) ratio is projected to be 11.0, 8.9, and 5.7 for the years 2024, 2025, and 2026, indicating a low valuation compared to peers [4] Summary by Sections Company Overview - Zhongsheng Holdings ranks first in the 2024 list of China's top automotive dealers, with a focus on brands like Mercedes-Benz and Lexus [4][22] - The company operates 419 4S outlets across 32 major cities, providing comprehensive automotive services [23] Financial Performance - In the first half of 2024, the company reported revenues of 824.21 billion CNY, with a year-on-year growth of 0.6% [31] - New car sales revenue was 608.12 billion CNY, down 5.8% year-on-year, primarily due to price competition [31] - The net profit for the first half of 2024 was 15.8 billion CNY, a decline of 47.5% compared to the previous year [33] Business Segments - The new car segment faced challenges with a gross margin of -3.3% in the first half of 2024, marking the first loss in this area [5][37] - The after-sales and used car segments showed resilience, with after-sales revenue growing by 9.3% and used car revenue increasing by 61.6% year-on-year [31][37] Market Position and Strategy - The company is transitioning towards new energy vehicle sales, having partnered with Seres to enhance its offerings [4][22] - Zhongsheng's centralized operations have improved efficiency, particularly in after-sales and used car businesses [6][31] Valuation Metrics - The projected P/E ratios for 2024, 2025, and 2026 are 11.0, 8.9, and 5.7 respectively, indicating a favorable valuation compared to industry averages [4][7]

Investment Rating - The report gives a "Buy" rating for Beike-W (2423.HK) [5] Core Views - Beike is a leading real estate transaction and service platform in China, having transitioned from a traditional real estate agency to a digital service platform [10][12] - The company has achieved profitability in 2023, with revenue growth from 46 billion RMB in 2019 to 77.8 billion RMB in 2023, reflecting a CAGR of approximately 14% [22][24] - Beike's platform has significant advantages, with over 48,000 stores and 476,000 agents, primarily serving high-tier cities [2][3] Summary by Sections Company Overview - Beike originated from the establishment of Lianjia in 2001 and officially launched Beike Zhaofang in 2018, becoming the first stock of residential services in China listed on the NYSE in 2020 and later on the Hong Kong Stock Exchange in 2022 [10] - The company has implemented a "one body, three wings" strategy to enhance its service offerings [10][12] Financial Analysis - Revenue has stabilized and increased, with a net profit of 5.9 billion RMB in 2023 and a Non-GAAP net profit of 9.8 billion RMB [22] - The company expects adjusted net profits of 8.7 billion RMB in 2024, 9.8 billion RMB in 2025, and 11.7 billion RMB in 2026, with corresponding P/E ratios of 17, 15, and 13 [4][3] Business Segments - The existing home business contributes significantly to revenue, with a gross profit margin of around 40%, while the new home business contributes about 25% [2] - The home decoration and rental services are rapidly growing, with the rental service contributing 15.6% of revenue as of Q3 2024 [24][30] Market Position - Beike holds a leading market share in the fragmented real estate brokerage industry, with a 9.7% market share based on transaction volume [54] - The platform's monthly active users reached 46.2 million, with a strong focus on high-tier city clients [3][55] Strategic Initiatives - The company is expanding its home decoration business and leveraging its platform to enhance service offerings, aiming for nationwide scalability [2][3] - Beike's cash position is robust, with a total of 81 billion RMB in cash and equivalents as of September 2024, allowing for effective shareholder returns through buybacks [38]

Investment Rating - The investment rating for Baidu Group-SW is "Buy" (maintained) [1] Core Insights - Baidu's AI advancements are impressive, with the AI features of Baidu Wenku surpassing 90 million MAU in January, showing a year-on-year growth of 230% in DAU. The paid user base has exceeded 40 million, with a year-on-year growth rate of 60% [3] - The company's revenue for Q4 2024 is expected to be 33.2 billion yuan, a year-on-year decline of 5%, with core revenue projected at 26.8 billion yuan, down 3% year-on-year. Adjusted net profit is anticipated to reach 3.87 billion yuan [10] - The cloud business is expected to maintain rapid growth, driven by increasing demand for AI applications and the gradual recovery of the advertising business in 2025 [10][11] Financial Forecasts - Total revenue for Baidu Group is projected to be 132.2 billion yuan in 2024, with a slight decline of 1.78% year-on-year, and is expected to grow by 3.57% to 139.9 billion yuan by 2026 [1][14] - The adjusted net profit is forecasted to be 24.1 billion yuan in 2025, reflecting a growth of 1.82% from 2024 [1][14] - The Non-GAAP net profit for 2025 is expected to be 25.9 billion yuan, with a corresponding PE ratio of 8.2 times [11][14]

Investment Rating - The investment rating for the company is Neutral, with a target price adjusted to HKD 2.56, reflecting a potential downside of 2.3% from the current price of HKD 2.62 [1][2][7]. Core Insights - The company's performance continues to be under pressure, with same-store sales declining significantly across its brands in the fourth quarter. The Taier brand saw a 24.6% year-on-year decline, while the Jiumaojiu brand experienced an 18.5% drop. The company is actively adjusting its strategies, which are expected to be implemented by the end of March [7]. - The company is closing underperforming stores, with a net reduction of 20 Taier stores in the fourth quarter, primarily in mainland China. As of the end of 2024, the company will have 593 Taier direct-operated stores in mainland China [7]. - The company is shifting from a clear expansion strategy to a more cautious dynamic adjustment strategy, reflecting a cautious outlook on the industry environment. Despite this, the overseas business is developing steadily, contributing to long-term competitive advantages [7]. Financial Overview - Revenue is projected to grow from RMB 4,006 million in 2022 to RMB 6,958 million in 2025, with a compound annual growth rate (CAGR) of approximately 11.3% from 2024 to 2026 [6][12]. - Net profit is expected to increase from RMB 49 million in 2022 to RMB 659 million in 2026, with significant fluctuations in growth rates, including a projected 114.5% increase in 2025 [6][12]. - The company’s earnings per share (EPS) is forecasted to rise from RMB 0.03 in 2022 to RMB 0.45 in 2026, indicating a recovery trend after a significant drop in 2024 [6][12]. Market Performance - The stock has seen a significant decline of 23.62% year-to-date, with a 52-week high of HKD 6.13 and a low of HKD 2.19 [4][6]. - The average daily trading volume is approximately 10.26 million shares, indicating active trading interest [4].

Investment Rating - The investment rating for the company is Neutral, with a target price adjusted to HKD 2.56, indicating a potential downside of 2.3% from the current price of HKD 2.62 [2][10][11]. Core Insights - The company has been facing continuous pressure on its performance, with same-store sales declining significantly across its brands in the fourth quarter. The Taier brand saw a 24.6% year-on-year decline, while the Jiumaojiu brand experienced an 18.5% drop. The company is actively adjusting its strategies, which are expected to be implemented by the end of March [7][8]. - The company plans to close underperforming stores and has already reduced the number of Taier stores by 20 in the fourth quarter. The focus will be on stabilizing the average transaction value and enhancing product innovation to maintain market leadership [7][8]. - Financial forecasts have been adjusted downwards to reflect a cautious outlook, with expected revenues of RMB 6,958 million in 2025, representing a 7.0% growth from 2024 [6][12]. Financial Overview - Revenue projections for the company are as follows: RMB 4,006 million in 2022, RMB 5,986 million in 2023, RMB 6,499 million in 2024E, RMB 6,958 million in 2025E, and RMB 7,744 million in 2026E, with corresponding year-on-year growth rates of -4.2%, 49.4%, 8.6%, 7.0%, and 11.3% respectively [6][12]. - Net profit is expected to fluctuate, with estimates of RMB 49 million in 2022, RMB 453 million in 2023, RMB 201 million in 2024E, RMB 430 million in 2025E, and RMB 659 million in 2026E, showing a significant increase in 2023 followed by a decline in 2024 [6][12]. - The company’s earnings per share (EPS) are projected to be RMB 0.03 in 2022, RMB 0.31 in 2023, RMB 0.14 in 2024E, RMB 0.30 in 2025E, and RMB 0.45 in 2026E, indicating a volatile earnings trajectory [6][12]. Market Performance - The stock has seen a significant decline of 23.62% year-to-date, with a 52-week high of HKD 6.13 and a low of HKD 2.19. The current market capitalization stands at approximately HKD 3,616.54 million [4][6].

Investment Rating - The report maintains a "Buy" rating for the company with a target price yet to be specified [7]. Core Insights - The company reported a total revenue of 2.187 billion RMB for FY25H1, a year-on-year decrease of 21.79%, and a net profit attributable to shareholders of -0.097 billion RMB, down from 0.249 billion RMB in the same period last year. Excluding the financial impact of the sale of "Yuhui Tongxing," the net profit from continuing operations was 0.033 billion RMB [1]. - The company's net revenue from continuing operations (self-operated products and live e-commerce) for FY25H1 was 2.2 billion RMB, a decrease of 9.3% year-on-year, with a GMV of 4.8 billion RMB, down 16.2% year-on-year [2]. - The company has launched 600 SKUs of self-operated products in FY25H1, expanding its product line beyond fresh food and snacks to include health products, pet food, and new-style clothing, with self-operated products accounting for approximately 37% of total GMV [4]. Summary by Sections Financial Performance - FY25H1 total revenue was 2.187 billion RMB, a decrease of 21.79% year-on-year; net profit attributable to shareholders was -0.097 billion RMB, compared to 0.249 billion RMB in the previous year [1]. - The net revenue from continuing operations was 2.2 billion RMB, down 9.3% year-on-year, with a GMV of 4.8 billion RMB, a decline of 16.2% [2]. Product Strategy - The company has developed 600 SKUs of self-operated products, expanding its offerings significantly [4]. - Self-operated products accounted for about 37% of total GMV in FY25H1 [4]. Marketing and Brand Development - The company is implementing a multi-platform strategy to enhance brand awareness, with significant contributions from Douyin and other platforms [2]. - The average contribution per user is steadily increasing, indicating high user loyalty and engagement [3]. Organizational Development - The company has built a comprehensive organizational structure to support rapid business growth, with a total of 1,733 employees in the self-operated products and live e-commerce team [5]. Future Outlook - The company plans to focus on product quality and explore new live streaming formats to tap into untapped markets, particularly in essential household goods [6][11].

Investment Rating - The report assigns a "Buy" rating for MINISO (09896.HK) as a first coverage [1]. Core Views - MINISO is positioned as a global leader in the trendy lifestyle retail sector, focusing on high-quality, cost-effective products for young consumers. The company has successfully expanded its presence with 7,186 stores across 111 countries as of September 30, 2024 [11][12]. - The report highlights the company's robust financial performance, with a compound annual growth rate (CAGR) of 22.35% in revenue from 2020 to 2023, and a significant recovery post-pandemic, achieving a revenue growth of 39.43% in 2023 [15][16]. - MINISO's strategic focus on IP (intellectual property) upgrades and global expansion is expected to drive future growth, with plans to increase store count significantly in high-consumption markets like North America and Europe [47][63]. Summary by Sections 1. Company Overview - MINISO is the largest private label retailer globally, established in 2009, targeting young consumers with a focus on trendy, affordable products. The company has developed two main brands: MINISO and TOPTOY [11][12]. - The company has a concentrated ownership structure, with the founders holding 62.5% of the shares, ensuring stable governance [21][23]. 2. Historical Success Factors - The company has successfully navigated the competitive retail landscape by focusing on essential consumer goods and maintaining a self-operated sales model, which enhances brand recognition [27][28]. - MINISO's product strategy emphasizes frequent new product launches and competitive pricing, supported by a strong supply chain [30][32]. 3. Future Growth Prospects - The company aims to enhance its IP strategy, with a target of over 50% of sales coming from IP-related products by 2028. Currently, IP products account for over 30% of total sales [48][49]. - MINISO plans to expand its global footprint, targeting an annual increase of 900-1,100 stores worldwide from 2024 to 2028, with a focus on high-value markets [72][63]. 4. Financial Forecast - The report forecasts MINISO's revenue to reach CNY 171.67 billion, CNY 207.55 billion, and CNY 241.04 billion for the years 2024, 2025, and 2026, respectively, with corresponding net profits of CNY 26.9 billion, CNY 33.5 billion, and CNY 40.8 billion [78]. - The company's valuation is projected to improve as it transitions from a channel retailer to a brand retailer, with a current price-to-earnings (P/E) ratio of 20.5, 16.5, and 13.5 for the years 2024, 2025, and 2026 [78][79].

Investment Rating - Maintained "Buy" rating for Baidu Group-SW (09888 HK) [1] Core Views - Baidu's AI progress is impressive, with Baidu Wenku and Baidu Netdisk showing significant growth in AI-related metrics [3] - Baidu Wenku's AI MAU reached 90 million in January 2024, with AI DAU growing 230% YoY [3] - Baidu Netdisk's AI DAU increased 90% YoY in January 2024, with AI-driven revenue growing 120% YoY [3] - Baidu's cloud business is expected to maintain rapid growth in 2025, driven by increasing demand for AI agent development and applications [10] - The company's advertising business is expected to improve quarter by quarter in 2025, supported by economic policies and AI product commercialization [10] Financial Forecasts - 2024Q4 revenue is expected to be 33 2 billion yuan, down 5% YoY [10] - 2024Q4 adjusted operating profit is forecasted at 4 5 billion yuan, with a 15 5% margin for Baidu Core [10] - 2024Q4 adjusted net profit is projected at 3 87 billion yuan [10] - 2024-2026 Non-GAAP net profit forecasts have been revised downward to 24 2/26 0/28 3 billion yuan [11] - 2025 Non-GAAP PE is estimated at 8 2x [11] AI Progress - Baidu Wenku has launched over 100 AI features, including intelligent PPT creation, AI writing assistant, and AI search [3] - Baidu Netdisk has integrated AI features such as scanning, doodling, voice transcription, and meeting minutes [3] - The "Free Canvas" feature, jointly developed by Baidu Wenku and Baidu Netdisk, is in public testing and expected to boost user engagement and monetization [3] Financial Metrics - 2024E revenue is projected at 132 2 billion yuan, with a 1 78% YoY decline [1] - 2025E revenue is forecasted at 135 1 billion yuan, with a 2 19% YoY growth [1] - 2024E net profit attributable to shareholders is expected to be 23 67 billion yuan, up 16 5% YoY [1] - 2025E net profit attributable to shareholders is projected at 24 1 billion yuan, with a 1 82% YoY increase [1]

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of HKD 6.35, corresponding to a 10x PE for 2025 [2][12]. Core Insights - The company has shown strong turnover growth across all categories, particularly in children's wear and e-commerce, with e-commerce turnover growing 30-35% YoY in 24Q4 [8][9]. - E-commerce has been the fastest-growing channel since 2023, with expectations for improved profitability due to cost control and exclusive online products [9][10]. - The company is enhancing store efficiency and has opened its first direct store in Southeast Asia, indicating a strategic expansion [10][11]. - Continuous product innovation is expected to drive turnover, with several new product launches planned for 24Q4 [10][11]. - Brand popularity is being enhanced through events and collaborations, which are expected to increase consumer engagement [11]. Financial Data and Forecast - Revenue is projected to grow from RMB 8,423 million in 2023 to RMB 13,000 million by 2026, with a CAGR of approximately 13.9% [2][6]. - Net profit attributable to shareholders is expected to increase from RMB 961 million in 2024 to RMB 1,475 million in 2026, reflecting a strong growth trajectory [2][6]. - The gross margin is forecasted to improve gradually from 41.1% in 2023 to 42% in 2026, indicating effective cost management [2][6].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 75.2 HKD, indicating a potential upside of 32.4% from the current price of 56.8 HKD [4][7][21]. Core Insights - The company benefits from a strong order flow due to the recovery in market demand, particularly in sportswear and leisure apparel, which is expected to continue into 2025 [4][5][18]. - The textile manufacturing industry is experiencing a recovery, with stable performance from downstream brands, which supports the company's growth prospects [5][18]. - The company's internationalization strategy is progressing well, with an increasing proportion of overseas production capacity, which is expected to enhance operational efficiency and profitability [6][19]. Financial Performance - For the first half of 2024, the company reported a revenue of 129.75 billion RMB, a year-on-year increase of 12.2%, with a gross profit of 37.61 billion RMB, reflecting a 45.0% increase [10][18]. - The gross margin for the first half of 2024 was 29.0%, up 6.6 percentage points year-on-year, while the net profit margin was 22.6%, an increase of 4.2 percentage points [10][18]. - Revenue by business type showed double-digit growth in leisure and underwear segments, while sportswear recorded a high single-digit growth [11]. Market Dynamics - The company is positioned to benefit from the ongoing demand for sports health and the trend of brands increasing their procurement from key suppliers due to supply chain risks [4][18]. - The recovery in the textile manufacturing sector is reflected in the performance of peer companies, indicating a positive industry trend [5][16]. - The company has a strong customer base, with major clients contributing significantly to its revenue, and it is expected to continue securing orders from high-growth brands [20]. Future Projections - The company is projected to achieve revenues of 276.1 billion RMB, 307.1 billion RMB, and 335.3 billion RMB for FY24E, FY25E, and FY26E, respectively, with year-on-year growth rates of 10.6%, 11.2%, and 9.2% [7][21]. - Net profits are expected to reach 57.6 billion RMB, 65.1 billion RMB, and 73.5 billion RMB for the same periods, with growth rates of 26.3%, 13.1%, and 12.8% [7][21].