Investment Rating - The report assigns a "Buy" rating to the company, with a target price of HKD 44.00, indicating a potential upside of 79.2% from the current price of HKD 24.55 [1][4][14]. Core Insights - The company has successfully sold its stake in a non-core joint venture for USD 608 million, allowing it to focus on its core innovative R&D business. The transaction is expected to generate a pre-tax profit of USD 477 million, primarily reflected in the 2025 financial results [2][7]. - The company is advancing its proprietary ATTC platform, which is set to enter clinical validation soon. This platform aims to target cancer growth proteins effectively and overcome chemotherapy resistance, with the first candidate expected to enter clinical trials in the second half of 2025 [7]. - The report highlights significant milestones in the clinical pipeline, with key catalysts expected in 2025, including submissions for regulatory approvals and ongoing communication with regulatory bodies regarding additional drug applications [7]. Financial Overview - Revenue projections for the company show a significant increase from USD 426 million in 2022 to an estimated USD 717 million in 2025, with a notable growth rate of 96.5% in 2023 before a decline in 2024 [3][15]. - The net profit is expected to turn positive in 2025, with a forecasted net income of USD 392 million, a substantial recovery from a loss of USD 361 million in 2022 [3][15]. - The earnings per share (EPS) is projected to improve significantly, reaching USD 0.46 in 2025, compared to a loss of USD 0.43 in 2022 [3][15]. Valuation Model - The DCF valuation model estimates the equity value of the company at approximately USD 4.916 billion, translating to a per-share value of HKD 44.00 for 2025 [9]. - The model incorporates a perpetual growth rate of 3% and a weighted average cost of capital (WACC) of 9.9% [9]. Market Performance - The company's stock has shown a year-to-date increase of 8.87%, with a 52-week high of HKD 34.70 and a low of HKD 19.16 [6]. - The average daily trading volume is reported at 10.65 million shares, indicating active market participation [6].

Investment Rating - The report maintains a "Buy" rating for Tencent (700 HK) with a target price of HKD 500, implying a potential upside of +22% from the current price of HKD 409 4 [4][7] Core Views - The inclusion of Tencent in the US Department of Defense's 1260H list is seen as having limited fundamental impact on the company, as its core business is concentrated in China with low reliance on US technology and markets [7] - Short-term market sentiment may face pressure due to potential negative impacts on overseas cooperation and international business development, especially with rising geopolitical uncertainties [7] - Tencent is expected to actively address the situation, similar to its previous successful appeal against the WeChat ban in the US [7] - The company's leading position remains strong, with improving profitability, and the focus for 2025 will be on the progress of WeChat's e-commerce ecosystem as a new growth driver [7] Financial Analysis and Forecasts - Revenue is projected to grow from RMB 554 552 million in FY22 to RMB 758 304 million in FY26E, with a CAGR of 7 0% [3][8] - Adjusted net profit is expected to increase from RMB 115 649 million in FY22 to RMB 250 348 million in FY26E, with a CAGR of 17 0% [3][8] - The adjusted target P/E ratio is forecasted to decline from 20 1x in FY24E to 17 0x in FY26E [3][8] - Key profitability ratios such as gross margin, operating margin, and adjusted net margin are expected to improve steadily over the forecast period [8] Market Expectations and Scenarios - The report presents three scenarios for Tencent: - Base case target price: HKD 500 - Optimistic case target price: HKD 537 (20% probability) - Pessimistic case target price: HKD 320 (20% probability) [15][16] - The optimistic scenario assumes better-than-expected performance in gaming and advertising, while the pessimistic scenario assumes weaker gaming performance and video monetization [15][16] Industry Coverage - The report covers major internet companies in China and globally, including Alibaba, JD com, Pinduoduo, NetEase, Bilibili, Meituan, and Kuaishou, among others [18] - Most companies in the coverage universe have "Buy" ratings, reflecting the analyst's positive outlook on the internet sector [18]

Investment Rating - The report assigns a "Buy" rating to the company with a target price of 7.81 HKD, indicating a potential upside of 119% from the current price [4][6]. Core Insights - The company has established itself as a leading player in the pearl material industry, with a strong focus on R&D and innovation, and a robust global sales network [2][3]. - The pearl materials market is experiencing rapid growth, driven by increasing demand in various applications, particularly in cosmetics and automotive sectors [2][20]. - The company has demonstrated strong financial performance, with a revenue CAGR of 24.7% from 2019 to 2023, and a gross margin consistently around 50% [2][15]. Summary by Sections Company Overview - Established in 2011, the company specializes in R&D, production, and sales of pearl materials and synthetic mica, with over 2,000 products and a global sales network [2][8]. - The company has received multiple accolades, including "National Green Factory" and "Top 500 Most Valuable Brands in China" [8]. Market Dynamics - The pearl materials industry is rapidly expanding, with China's market size reaching 6.47 billion RMB, accounting for 28% of the global market [2][22]. - Synthetic mica-based pearl materials have seen a CAGR of 31.7% from 2016 to 2023, indicating strong demand growth [2][20]. R&D and Competitive Advantage - The company invests heavily in R&D, with a 40% increase in R&D spending in the first half of 2024, leading to the launch of over 100 new products annually [3][48]. - The company has built a strong technological moat in synthetic mica production, supported by patents and innovative processes [3][57]. Financial Performance - The company achieved a revenue of 1.056 billion RMB in 2023, with a projected revenue of 1.571 billion RMB in 2024, reflecting a growth rate of 48.74% [4][15]. - The net profit for 2023 was approximately 213 million RMB, with a projected net profit of 340 million RMB in 2024, indicating a growth rate of 59.21% [4][15]. Future Outlook - The company is expected to benefit from the ongoing expansion of the pearl materials market, particularly in high-end applications [2][20]. - The acquisition of CQV and the planned acquisition of Merck's surface solutions business are anticipated to enhance the company's market position and operational synergies [3][4].

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [5][3] - The target price is set at 496.8 HKD, representing a potential upside of 21.3% from the recent closing price of 409.4 HKD [5][3] Core Insights - Tencent was added to the U.S. Department of Defense's "Section 1260H List" on January 7, 2025, which targets companies with ties to the Chinese military [1][2] - Despite the listing, the report suggests that Tencent's core business will not be significantly impacted, and there is a strong possibility of being removed from the list in the future [2][3] - Tencent's business continues to progress well, with new product approvals and features being launched, indicating a positive outlook for shareholder returns in 2024 and 2025 [3] Summary by Sections Company Overview - Tencent was unexpectedly included in the "Section 1260H List," which is updated annually to identify companies linked to the Chinese military [9][10] - The inclusion has led to a significant drop in ADR prices, but Tencent has stated that this is a misunderstanding as they do not operate in the military sector [2][11] Financial Performance - Tencent's revenue is projected to grow from 660.4 billion RMB in 2024 to 802.1 billion RMB in 2025, with a gross margin improvement from 52.8% to 53.5% [15] - The net profit is expected to increase from 193.1 billion RMB in 2024 to 249.8 billion RMB in 2025, reflecting a strong growth trajectory [15] Shareholder Value - Tencent has completed a share buyback program amounting to 112 billion HKD, significantly reducing its total share count and enhancing shareholder value [12] - The company plans to evaluate further buyback opportunities based on market conditions after the completion of the current program [12]

Investment Rating - The report does not explicitly mention an investment rating for the company [1][2][3] Core Viewpoints - The company, Fan Yuan International (2516, HK), is a comprehensive cross-border e-commerce logistics solutions provider, focusing on integrating overseas supply chains and improving overall efficiency [4] - The company has a global logistics network and advanced technology platforms, offering services such as international express delivery, international dedicated lines, and overseas warehousing [4] - Fan Yuan International has strategically positioned itself in key regions like North America, Europe, and Southeast Asia, with multiple self-operated overseas warehouses and partnerships with local logistics providers [4] - The company has recently acquired a 30% stake in Advanced Logistics Solutions LLC (ALS) for USD 635,318.4 (approximately HKD 4,930,070.8), which is expected to enhance its efficiency in customs clearance, sorting, and cost control in the US [5] - The company leverages its self-developed logistics management system (WMS/TMS) to improve operational efficiency, reduce logistics costs, and enhance customer experience through real-time tracking and data-driven optimization [6] - Fan Yuan International's core customer base includes large sellers on platforms like Amazon, eBay, and AliExpress, as well as brand e-commerce companies with independent websites [7] - The company benefits from its partnership with Alibaba, which holds an 8.60% stake, providing logistics solutions for Alibaba's cross-border e-commerce platforms like AliExpress and Lazada [7][10] - The company has shown strong growth in 2024 H1, with revenue reaching RMB 1.428 billion, a 111.89% YoY increase, and net profit of RMB 38.06 million, a 235.86% YoY increase [13][14] Business Performance - In 2024 H1, the company's end-to-end cross-border delivery service revenue reached approximately RMB 649 million, a 9.97% YoY increase, driven by optimized delivery routes and improved supplier management [14] - Freight forwarding service revenue surged to RMB 315 million, a 678.40% YoY increase, primarily due to the growth in air freight services [14] - Other logistics services revenue reached RMB 464 million, a 966.51% YoY increase, mainly from customs clearance and delivery services [14] Industry and Policy Support - The cross-border e-commerce logistics market is experiencing strong demand due to the increasing global e-commerce penetration rate [11] - The Chinese government has introduced a series of policies to support the development of cross-border e-commerce, including infrastructure construction, technological innovation support, tax incentives, and customs facilitation [11][12] - These policies are expected to provide significant growth momentum for Fan Yuan International, helping it expand its market share in the cross-border e-commerce logistics sector [11] Shareholder Structure - The largest shareholder is Quan Wanq, holding 28.36% of the shares [10] - Alibaba.com Holding Limited holds an 8.60% stake, with a recent increase of 6,704,170 shares [10] - Other significant shareholders include Hangzhou Gongshu State-Owned Investment Group Co., Ltd (5.83%) and Gensis FAR Holdings Limited (5.38%) [10]

Investment Rating - The report maintains a "Neutral" rating for the company with a target price of HKD 3.22, indicating a potential upside of 2.4% based on the current price of HKD 3.14 [3][5]. Core Insights - The company has issued a profit warning, expecting a significant decline in net profit for FY24, projecting a drop of 70%-80% year-on-year, which translates to an estimated net profit of HKD 8.4 billion to HKD 12.6 billion [1][3]. - The decline in profitability is attributed to three main factors: an imbalance in supply and demand for photovoltaic glass leading to a substantial drop in glass prices, impairment provisions for suspended or under-maintenance glass production lines, and inventory write-downs due to falling glass prices [1][2]. - The photovoltaic industry is currently facing a surplus situation, with efforts from industry associations to self-regulate capacity and avoid blind expansion, although product prices have not yet shown significant improvement [2]. Financial Summary - For FY24, the company forecasts a revenue of HKD 24.77 billion, a decrease of 7% from FY23, with net profit expected to be HKD 2.98 billion, down 28.9% [4]. - The projected financials for FY25 and FY26 show a recovery trend, with revenues expected to rise to HKD 27.53 billion and HKD 30.58 billion, respectively, and net profits anticipated to increase to HKD 3.24 billion and HKD 3.58 billion [4][12]. - Key financial metrics include a projected earnings per share (EPS) of HKD 0.33 for FY24, improving to HKD 0.36 in FY25 and HKD 0.39 in FY26 [4][12].

Investment Rating - The report does not provide a specific investment rating for the company [5]. Core Insights - The company, Innovation Qizhi, is a leading provider of enterprise-level AI solutions in China, focusing on digital transformation and efficiency improvements across various industries [1][17]. - The company has developed two proprietary AI platforms: the MMOC platform, which emphasizes analytical AI, and the AInnoGC platform, which focuses on generative AI [2][30]. - In 2023, the company generated total revenue of 1.75 billion RMB, with manufacturing accounting for 67.2% of this revenue [1][3]. - The company has seen rapid revenue growth, with a compound annual growth rate (CAGR) of 83% in manufacturing revenue from 2020 to 2023 [43]. Company Background - Innovation Qizhi was established in 2018 and has become the largest provider of enterprise-level AI solutions in China, covering eight major industries [1][17]. - The company has a strong focus on the manufacturing and financial sectors, providing solutions that help clients reduce costs and improve production quality [1][3]. Products and Business - The MMOC platform includes components for data processing, model training, and application deployment, aimed at enhancing operational efficiency for manufacturing clients [2][22]. - The AInnoGC platform has evolved to include the AInno-75B version, supporting various applications such as data analysis and knowledge Q&A [30][33]. - The company has successfully implemented AI solutions in industries such as steel metallurgy, energy, automotive, and high-tech manufacturing [3][34]. Financial Performance and Valuation - The company reported a net loss of 1.9 billion RMB in 2023, with a stable gross margin of 33.6% [4][43]. - Revenue is projected to decline by 31.7% in 2024, with a corresponding price-to-sales ratio of 2.4 times [4][46]. - The company’s valuation is based on a price-to-sales ratio of 1.7 times for 2023, compared to peers in the AI sector [46].

Investment Rating - The report initiates coverage with a "Buy" rating and sets a target price of HKD 5.60 [4][66]. Core Views - The company is expected to emerge from the shadow of centralized procurement, with significant growth anticipated in its drug packaging and orthopedic product segments starting in 2024 [2][4][39]. - The medical device sector is projected to recover post-procurement, with a gradual increase in demand for low-value consumables as hospital visits and bed occupancy rates rise [3][40]. Summary by Sections Company Overview - The company is a well-known medical consumables manufacturer, with a broad sales network covering over 5,000 hospitals and 400 blood stations by the end of 2023 [1][17]. - Its product range includes syringes, infusion devices, orthopedic products, interventional products, and blood management products [1][17]. Financial Projections - Revenue for 2024 is projected to increase by 0.4% to RMB 13.278 billion, with a compound annual growth rate (CAGR) of 3.9% expected from 2023 to 2026 [5][53]. - The net profit for 2024 is expected to be RMB 2.024 billion, reflecting a 1.1% increase [5][54]. Drug Packaging Business - The drug packaging segment is anticipated to grow at a CAGR of 10.3% from 2023 to 2026, driven by the increasing demand for pre-filled syringes and pre-filled flushing syringes [2][20][28]. - The pre-filled syringe sales are expected to see a CAGR of 12.6% during the same period, with a significant market share of over 70% in China [21][28]. Orthopedic Products - After experiencing revenue declines due to centralized procurement, the orthopedic segment is expected to recover starting in 2024, with a projected CAGR of 11.8% from 2023 to 2026 [2][29]. - Sales of spinal, trauma, and joint products have shown a rebound, indicating a growing end-user demand [2][33]. Interventional Products - The interventional product segment is projected to maintain steady growth, with a CAGR of 5.3% from 2023 to 2026, supported by the global recognition of the company's products [3][35]. Medical Device Sector - The medical device sector is expected to recover from the impacts of centralized procurement, with revenue anticipated to stabilize and grow from 2025 onwards [3][40]. - The demand for low-value consumables is expected to increase as hospital activity resumes, with sales of key products like infusion devices and syringes showing positive growth trends [3][40]. Blood Management Business - The blood management segment is expected to remain stable in the short term, with a projected revenue decline of 17.4% in 2024, but long-term stability is anticipated due to supportive government policies [51][52].

Investment Rating - The investment rating for the company is "Buy" and it is maintained [6]. Core Insights - In Q3 2024, the company achieved revenue of approximately 45.23 billion, representing a year-on-year growth of 19.3%. The adjusted net profit for the period was approximately 6.86 billion, reflecting a year-on-year increase of 6.9%, with an adjusted net profit margin of 15.2% [2][4]. Revenue Performance - Domestic growth met expectations, with the domestic business showing a year-on-year increase of 8.7%. The domestic Miniso brand grew by 5.7%, while TOP TOY experienced a significant growth of 50.4%. The overseas business saw a remarkable year-on-year growth of 39.8%, with overseas direct market revenue increasing by 55.4% and overseas agency market revenue growing by 26.5% [7]. Profitability Analysis - The gross margin improved to 44.9%, up by 3.1 percentage points year-on-year. The increase is attributed to a higher proportion of direct sales overseas, product mix optimization, and improved margins from TOP TOY. However, the adjusted net profit margin decreased from 16.9% in the same period last year to 15.2% this year due to increased operational costs associated with new store openings [7]. Strategic Initiatives - The company is focusing on enhancing product capabilities and innovating store formats, particularly in domestic markets. The "seven-layer store matrix strategy" is being implemented, targeting both IP scenario and category scenario innovations. The company plans to develop a series of themed stores around four major categories, aiming to cater to young consumers and emerging consumption trends [7]. Future Outlook - The investment highlights include: 1) refined operations through innovative store formats in the domestic market; 2) strong performance in overseas direct store openings and significant IP-driven growth; 3) a temporary contraction in profitability due to accelerated store openings, with expectations for recovery in profitability as new and recently opened stores mature and benefit from economies of scale [7]. - The projected adjusted net profits for 2024, 2025, and 2026 are estimated at 28 billion, 35 billion, and 43 billion respectively [7].

港股研究丨公司深度丨绿城中国（3900.HK） [Table_Title] 大浪淘沙始见金，综合优势渐兑现 ——绿城中国深度覆盖报告 %% %% %% %% %% %% research.95579.com %% %% research.95579.com 1 丨证券研究报告丨 报告要点 [Table_Summary] 扎根浙江、布局全国的混合所有制房企。1）拿地销售表现领先。收敛聚焦，近年对杭州、京沪 的投资占比提高，拿地强度行业领先，销售排名提升至第 6 位；投资兑现度高，高流速限价盘 可接受相对较低的利润，普通项目利润边际改善明显。2）保证质量的同时未牺牲效率。产品提 配升级实现降维打击，货值挖掘兑现超额利润；极致管控工期，2024H1 回正周期 9.5 个月。 要么卖得更贵，要么卖得更快。3）混合所有制的优越性。中交集团在土地获取、融资渠道、财 务成本等方面给予支持，创始人在产品、运营等方面提供意见，共赢机制完善，效能逐渐提升。 分析师及联系人 [Table_Author] 刘义 SAC：S0490520040001 SFC：BUV416 请阅读最后评级说明和重要声明 2 / 25 效率：开发效率第一 ...