Company Overview - Current price: HKD 3 23 with a total market cap of HKD 29 323 38 million [2] - 52-week price range: HKD 2 73 - 6 82 [2] - 3-month average daily turnover: HKD 410 95 million [2] - Major shareholders: Li Xianyi and related parties (26 50%), Xinyi Glass (868 HK) (23 68%) [8] Financial Performance - Revenue for 2022: HKD 20 544 million, with a growth rate of 27 9% YoY [3] - Revenue for 2023: HKD 26 629 million, with a growth rate of 29 6% YoY [3] - Forecasted revenue for 2024: HKD 24 771 million, a decline of 7 0% YoY [3] - Forecasted revenue for 2025: HKD 27 534 million, with a growth rate of 11 2% YoY [3] - Forecasted revenue for 2026: HKD 30 583 million, with a growth rate of 11 1% YoY [3] - Net profit attributable to shareholders for 2022: HKD 3 820 million, with a decline of 22 4% YoY [3] - Net profit attributable to shareholders for 2023: HKD 4 187 million, with a growth rate of 9 6% YoY [3] - Forecasted net profit attributable to shareholders for 2024: HKD 2 977 million, a decline of 28 9% YoY [3] - Forecasted net profit attributable to shareholders for 2025: HKD 3 243 million, with a growth rate of 8 9% YoY [3] - Forecasted net profit attributable to shareholders for 2026: HKD 3 584 million, with a growth rate of 10 5% YoY [3] Operational Highlights - Cumulative cold repair of nine photovoltaic glass production lines by November, with a total daily capacity of 7 000 tons [4] - Six new photovoltaic glass production lines completed in 2024, with two 1 200-ton lines in Malaysia and two 1 000-ton lines in Wuhu, Anhui [4] - Expected daily capacity at the end of FY24: 23 200 tons, a 10 1% decline from FY23 [4] - Effective annual melting volume for FY24 expected to decrease by 3 1% to 7 6 million tons [4] - Effective annual melting volume for FY25 and FY26 expected to rebound by 15 5% and 3 0% respectively [4] Market and Pricing Trends - Photovoltaic glass (3 2mm coated) market average price as of December 11: RMB 19 25 per square meter, down 27 4% from the beginning of the year and 9 4% from the end of September [5] - Recent declines in raw material prices (soda ash and natural gas) have helped mitigate the impact of glass price reductions on profit margins [5] Analyst Ratings and Target Price - Current rating: Neutral [5] - Target price: HKD 3 22, representing a 0 5% downside from the current price [5] - FY25 target P/E ratio adjusted from 8 0x to 9 0x to reflect stabilizing macroeconomic risks [5] Historical Recommendations - On February 29, 2024: Buy rating maintained with a target price of HKD 7 22 [25] - On July 31, 2024: Downgraded to Neutral with a target price of HKD 3 98 [25] - On October 25, 2024: Neutral rating maintained with a target price of HKD 3 85 [25] - On December 11, 2024: Neutral rating maintained with a target price of HKD 3 22 [25]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company experienced a revenue decline of 2.6% year-on-year to HKD 35.11 billion in the first half of the 2024/25 fiscal year, while gross profit increased by 2.3% to HKD 5.86 billion. The attributable profit decreased by 3.8% to HKD 1.76 billion [3][6] - The company plans to distribute an interim dividend of HKD 0.15 per share, unchanged from the previous year, resulting in a dividend yield of 7.8% based on the closing price on December 6, 2024 [4][10] - Natural gas retail volume grew by 1.4% year-on-year, with a gross margin increase to HKD 0.59 per cubic meter. The full-year gross margin guidance remains at HKD 0.53 per cubic meter, while the retail gas growth forecast has been adjusted down to 2% [3][7] Summary by Sections Financial Performance - For the first half of the 2024/25 fiscal year, the company reported a revenue of HKD 35.11 billion, a decrease of 2.6% year-on-year, and a gross profit of HKD 5.86 billion, an increase of 2.3%. The attributable profit was HKD 1.76 billion, down 3.8% [3][6] - The natural gas sales segment saw a revenue decline of 9.6% to HKD 19.64 billion, while segment profit increased by 6.3% to HKD 1.66 billion [4][7] Business Segments - The LPG business segment reported a revenue increase of 13.5% to HKD 9.558 billion, but segment profit decreased to HKD 2.01 million. The value-added services segment's revenue rose by 1.0% to HKD 2.57 billion, with segment profit increasing by 11.0% to HKD 1.24 billion [4][10] - The company achieved 904,000 new residential connections in the first half of the fiscal year, with a full-year target of 1.2 to 1.4 million connections [8] Future Outlook - The company expects attributable net profits for the fiscal years 2024/25, 2025/26, and 2026/27 to reach HKD 3.763 billion, HKD 3.992 billion, and HKD 4.423 billion, representing year-on-year growth of 18.1%, 6.1%, and 10.8% respectively [4][10]

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HK$ 32.80, up from a previous target of HK$ 19.90 [2]. Core Insights - The company has shown robust shipment growth and continuous improvement in gross margins, leading to a revaluation of its stock. The gross margin for the third quarter reached 17.5%, marking three consecutive quarters of increase, while the net profit margin significantly narrowed from -37.4% in the second quarter to -20.4% in the third quarter [2]. - The sales volume of LiDAR for Advanced Driver Assistance Systems (ADAS) is expected to grow predictably, with third-quarter sales reaching 131,400 units, representing a year-on-year increase of 87.1% [2]. - The company is making significant progress in the high-level autonomous driving sector, securing partnerships with leading L4+ autonomous driving companies, which is a crucial step for its autonomous driving business [2]. Summary by Sections Financial Performance - In Q3 2024, the company achieved total revenue of RMB 410 million, with RMB 380 million coming from LiDAR sales. The gross profit margin improved to 17.5%, and the net profit margin narrowed to -20.4% [2]. - The projected revenue for the upcoming years is as follows: RMB 1,120.1 million in 2024, RMB 1,706.6 million in 2025, RMB 2,591.2 million in 2026, and RMB 3,337.5 million in 2027, indicating a strong growth trajectory [8]. Market Position and Growth Potential - The company is targeting the RMB 150,000 to 200,000 automotive market, with established partnerships with seven automakers. The MX product line is expected to contribute significantly to future sales, potentially accounting for 30-40% of total sales by 2025 [2]. - The report highlights the strong demand for LiDAR in robotics, with sales reaching approximately 7,200 units in Q3, driven by the Helios and BPearl series [2]. Operational Efficiency - Continuous improvement in gross margins is attributed to scale effects and reduced procurement costs. The gross margins for ADAS and robotics applications reached 14.1% and 34.6%, respectively [2]. - The report anticipates that the company will continue to enhance its gross profit levels due to increased penetration of MX products and growth in autonomous driving business revenues [2].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 55.72 HKD per share, compared to the current price of 50.85 HKD [4]. Core Insights - The company has received priority approval for its injectable recombinant collagen filler, which is part of a key national R&D program in medical devices. This product specifically targets neck wrinkles [1]. - The company has a diverse pipeline in the medical aesthetics sector, with four products under development, including liquid and solid formulations of recombinant collagen for various skin concerns [1]. - The brand's performance on social media platforms like Douyin shows significant growth, with year-on-year increases of 57% and 615% for its key products in November [1]. - The company's current market capitalization corresponds to a PE ratio of 23x for 2024 and 18x for 2025, with expectations for steady growth in its cosmetics business and additional upside from its medical aesthetics segment [1]. Financial Summary - The company’s projected revenue for 2024 is 5,398 million RMB, with a growth rate of 53.2%. By 2026, revenue is expected to reach 8,348 million RMB, with a growth rate of 20.1% [2]. - The forecasted net profit attributable to shareholders for 2024 is 2,120 million RMB, with a growth rate of 46.0%, increasing to 3,174 million RMB by 2026 [2]. - The earnings per share (EPS) is projected to be 2.06 RMB in 2024, rising to 3.09 RMB by 2026 [2]. - The company maintains a strong return on equity (ROE) of 39.0% in 2024, slightly decreasing to 38.0% by 2026 [2].

Investment Rating - The report maintains a "Buy" rating for Mobvista (1860 HK) with a 6-month target price of HKD 12 8 [1][4] Core Views - Mobvista's Q3 2024 revenue reached $416 million, a 54 6% YoY increase, with adjusted net profit of $11 million, up 162 4% YoY [1] - The company's programmatic advertising platform, Mintegral, contributed $402 million in revenue, a 57 6% YoY increase, driven by its smart bidding capabilities and expansion into new verticals [2] - Mintegral's game category revenue grew 46 5% YoY to $295 million, accounting for 73 2% of its total revenue, while non-game categories surged 98 5% YoY to $108 million, with e-commerce being a key driver [2] - The company's gross margin improved by 0 5pp YoY to 21 1%, supported by a 0 9pp increase in ad tech gross margin to 20 6% [2] - Mobvista has achieved consecutive quarters of profitability since Q4 2022, demonstrating strong scale effects [2] Financial and Valuation Summary - Revenue is expected to grow from $894 4 million in 2024E to $2,084 9 million in 2026E, with a CAGR of 23 9% [3] - Adjusted net profit is projected to increase from $9 7 million in 2024E to $82 9 million in 2026E, with a CAGR of 71 4% [3] - EPS is forecasted to rise from $0 02 in 2024E to $0 05 in 2026E [3] - The company's P/E ratio is expected to decline from 49 3x in 2024E to 22 2x in 2026E, reflecting strong earnings growth [3] Business Performance and Strategy - Mintegral's smart bidding system has gained market validation, with ROAS (Return on Ad Spend) becoming a mainstream choice for developers [2] - The platform has expanded into mid-to-hardcore games and non-game verticals such as e-commerce and social, driving diversification [2] - Non-programmatic ad revenue declined slightly by 0 5% YoY to $9 94 million, while marketing tech revenue grew 1% YoY to $4 million, supported by overseas expansion and cost optimization [2] Financial Metrics - Gross margin for ad tech improved to 20 6%, while marketing tech gross margin declined by 13 5pp to 68 9% [2] - Sales expenses increased by 32 7% YoY due to rising bidding costs, and R&D expenses surged 59 7% YoY due to investments in the smart bidding system [2] - The company's ROE is expected to rise from 7 6% in 2024E to 13 0% in 2026E, reflecting improved profitability [10]

Investment Rating - The investment rating for the company is "Outperform the Market" [3][4][17]. Core Views - The company's net profit attributable to shareholders is expected to decline by 70% in the fiscal year 2024 due to goodwill impairment [3][6]. - The company achieved revenue of 6.579 billion yuan in fiscal year 2024, representing a year-on-year increase of 17.2%, closely aligning with the previous forecast of 6.604 billion yuan [3][6]. - Adjusted net profit for fiscal year 2024 is projected at 1.971 billion yuan, reflecting a 3.3% increase [3][6]. - The company plans to maintain a cash dividend payout ratio of approximately 40% for fiscal year 2024 [3][16]. Financial Forecasts and Key Indicators - Revenue projections for the company from 2019 to 2027 are as follows: - 2019: 5.616 billion yuan - 2024: 6.579 billion yuan (+17.1%) - 2025E: 7.283 billion yuan (+10.7%) - 2026E: 7.997 billion yuan (+9.8%) - 2027E: 8.692 billion yuan (+8.7%) [1][21]. - Net profit attributable to shareholders is forecasted as: - 2019: 1.380 billion yuan - 2024: 0.418 billion yuan (-69.7%) - 2025E: 2.161 billion yuan (+417.0%) - 2026E: 2.345 billion yuan (+8.5%) - 2027E: 2.515 billion yuan (+7.2%) [1][21]. - Earnings per share (EPS) are projected to be: - 2019: 0.51 yuan - 2024: 0.15 yuan - 2025E: 0.80 yuan - 2026E: 0.86 yuan - 2027E: 0.93 yuan [1][21]. - The company's price-to-earnings (P/E) ratio is expected to be: - 2025E: 4.3 - 2026E: 4.0 - 2027E: 3.7 [1][21]. - The company’s cash and cash equivalents are projected to increase to 10.789 billion yuan by 2025E, with a significant capital expenditure of 48.57 billion yuan in fiscal year 2024, marking an 84.2% increase [1][16][21].

Investment Rating - The investment rating for Geely Automobile is "Buy" and is maintained [9]. Core Views - The launch of the Galaxy Starship 7 EM-i on December 6, 2024, is based on the new GEA architecture, featuring the next-generation Thunder EM hybrid technology, achieving a comprehensive range of 1420 km and a fuel consumption of 3.75 L per 100 km in electric mode. The vehicle is priced between 99,800 to 132,800 CNY, with immediate delivery upon launch. This pricing is lower than expected, indicating potential for Geely to create a popular hybrid model [2][6][8]. - The new platform is expected to usher in a new era for Geely, with positive developments across its brands, including Zeekr, Lynk & Co, and Galaxy. The company is well-positioned for a new vehicle cycle, with a solid foundation in fuel vehicles and innovative overseas expansion strategies [8]. Summary by Sections Event Description - The Galaxy Starship 7 EM-i, an A-class plug-in hybrid SUV, was officially launched on December 6, 2024. It features the new Thunder EM hybrid technology, offering a comprehensive range of 1420 km and a fuel consumption of 3.75 L per 100 km. The vehicle is available in five versions, with a promotional price of 99,800 to 132,800 CNY, and is ready for immediate delivery [6][8]. Event Commentary - The pricing of the Galaxy Starship 7 has exceeded expectations, being 10,000 CNY lower than the pre-sale price. The official price ranges from 103,800 to 136,800 CNY, which is 6,000 CNY lower than the pre-sale price. Customers who place a deposit before January 31, 2025, can enjoy an additional discount of 4,000 CNY. The vehicle competes directly with BYD's models, with the Starship 7's promotional price being 16,000 CNY lower than the comparable BYD Song Pro model. The market response to the Starship 7 is comparable to the E5's launch, indicating strong product appeal and pricing strategy [6][8]. Product Features - The Galaxy Starship 7 EM-i is built on the GEA architecture, featuring a spacious design with a wheelbase of 2755 mm and a high space utilization rate of 84.3%. It incorporates advanced technology, including an 11-in-1 hybrid electric drive system and an AI energy management system. The vehicle offers two pure electric range options of 55 km and 120 km, with a maximum comprehensive range of 1420 km [7][8]. Financial Outlook - Geely's financial outlook remains positive, with expected net profits of 16 billion, 11.8 billion, and 15.7 billion CNY for 2024, 2025, and 2026, respectively. The corresponding P/E ratios are projected to be 8.5X, 11.7X, and 8.7X, indicating a favorable valuation position [8].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised to HKD 22.88, reflecting a potential upside of 24.2% from the current price of HKD 18.42 [3][21]. Core Insights - The report anticipates that the Biosecurity Act is likely to fail in legislation, which would benefit the company by providing a more stable operating environment for continued performance growth [1]. - The global biopharmaceutical financing is showing signs of recovery, which is expected to drive the company's valuation and performance recovery [1]. - The company is expanding its global production network to mitigate geopolitical risks and enhance its ability to meet diverse global client needs [1]. - The management aims to add 110 new projects in 2024, benefiting from the resurgence in financing and increased demand for early-stage clinical research [1]. - Milestone revenues are expected to significantly enhance the company's net profit, with projected milestone income reaching approximately RMB 500 million in the second half of 2024 [1]. Financial Summary - For FY24E, the company expects sales revenue of RMB 18,236 million, a year-on-year growth of 7.1% [2]. - Adjusted net profit for FY24E is projected at RMB 4,739 million, reflecting a slight increase of 0.8% year-on-year [2]. - The adjusted earnings per share for FY24E is estimated at RMB 1.15, with a non-IFRS P/E ratio of 14.8 times [2][18]. - The company anticipates revenue growth of 12.4% and 13.9% for FY25E and FY26E, respectively [2]. Market Context - The report highlights a 1.1% year-on-year increase in global healthcare financing for the first 11 months of 2024, indicating a recovery from a 21% decline in 2023 [1][9]. - The company has secured significant contracts, including four Phase 3 clinical and commercialization production contracts with a multinational pharmaceutical company [1]. - The expansion of production capacity in Germany and the upcoming factory in Singapore are part of the company's strategy to meet increasing overseas client demands [1].

Investment Rating - The report assigns a **Buy** rating to the company with a target price of **HKD 77.7**, representing a **19% upside** from the current price of HKD 65.2 [5] Core Views - The company's R&D pipeline demonstrates **world-class potential**, particularly with its key products **AK104 (PD-1/CTLA-4)** and **AK112 (PD-1/VEGF)**, which have shown significant clinical progress and market potential [2][3] - The company's revenue in H1 2024 increased by **24% YoY to RMB 940 million**, driven by strong sales of **AK104 (RMB 710 million, +16.5% YoY)** and **AK105 (RMB 130 million)** [2] - Despite a net loss of **RMB 240 million** in H1 2024, the company maintains a strong cash position of **RMB 2.4 billion**, supported by two successful placements in 2024 raising **HKD 1.17 billion** and **HKD 1.92 billion** respectively [2] Product Pipeline Summary AK104 (PD-1/CTLA-4) - Achieved **PFS (12.7 vs 8.1 months, HR 0.62)** and **OS (not reached vs 22.8 months, HR 0.64)** endpoints in **first-line cervical cancer**, with significant efficacy across all populations, including **PD-L1 low/negative expression** (CPS <1, 23% reduction in death risk) [3] - Approved for **first-line gastric cancer** in October 2024, showing **OS benefit (15 vs 10.8 months, HR 0.62)**, addressing the unmet need in **PD-L1 low/negative gastric cancer** (mOS 17.6 months vs 11 months for PD-1) [3] - Multiple **Phase III trials** ongoing for **gastric cancer post-PD-(L)1 progression**, **hepatocellular carcinoma**, and **non-small cell lung cancer (NSCLC)** [3] AK112 (PD-1/VEGF) - Approved in May 2024 for **EGFR-mutated NSCLC post-treatment progression**, with **Summit global Phase III** trial completed and **FDA Fast Track** designation [3] - Achieved **PFS endpoint (11.14 vs 5.82 months, HR 0.51)** in **first-line PD-L1-positive NSCLC** vs **Pembrolizumab**, with **NDA submitted** in July 2024 [3] - Expanded **Summit Phase III** trial to include **non-squamous NSCLC** with a sample size of **1,080 patients**, alongside ongoing trials for **biliary tract cancer**, **pancreatic cancer**, and **head and neck squamous cell carcinoma** [3] Other Key Products - **AK105 (PD-1)**: Under review for **first-line nasopharyngeal carcinoma** and submitted for **first-line hepatocellular carcinoma** [3] - **AK102 (PCSK9)**: Approved in October 2024 [3] - **AK101 (IL-12/IL-23)**: Submitted for **moderate-to-severe plaque psoriasis** in August 2023 [3] - **AK111 (IL-17)**: Completed Phase III enrollment for **psoriasis** and ongoing for **ankylosing spondylitis** [3] - **AK117 (CD47)**: Global first **Phase III** trial for **solid tumors** [3] Financial Summary - Revenue for 2024E is projected at **RMB 2.5 billion**, with a **32.6% YoY growth** expected in 2025E to **RMB 3.3 billion** [4] - Gross margin remains strong at **91.3%** in H1 2024, with **R&D expenses** increasing by **3% to RMB 590 million** [2] - Net loss for 2024E is estimated at **RMB 184 million**, with a turnaround to **RMB 775 million net profit** expected in 2026E [4] Valuation - The target price of **HKD 77.7** is derived using a **DCF model** with a **WACC of 10.0%** and **perpetual growth rate of 3.0%**, incorporating **AK112's overseas potential** (USD 6 billion sales, 60% success probability) [3]

Investment Rating - Buy (Maintained) [8] Core Views - The company proposes a share consolidation and change in trading unit to enhance attractiveness, with the total issued share capital reducing from RMB 1760.08 billion to RMB 176.01 billion, and the trading unit changing from 2000 existing H shares to 500 consolidated and reduced H shares, expected to take effect on February 20, 2025 [3] - The company is leveraging its resource advantages to tap into the low-altitude economy, which is expected to grow significantly, with the low-altitude economy scale in China reaching RMB 5060 billion in 2023, a 33.8% YoY increase, and projected to exceed RMB 1 trillion by 2026 [4] - The company's "One Body, Two Wings" strategy is driving steady growth, with the depreciation of tower assets acquired in 2015 expected to reach an inflection point in 2026, significantly reducing depreciation and amortization expenses and contributing to profit growth [5] - The company is expected to achieve revenues of RMB 983 billion, RMB 1025 billion, and RMB 1068 billion in 2024-2026, with YoY growth rates of 4.5%, 4.3%, and 4.3%, respectively, and net profits attributable to the parent company of RMB 108 billion, RMB 125 billion, and RMB 195 billion, with YoY growth rates of 11.1%, 15.7%, and 55.6%, respectively [6] Financial Forecasts - Revenue is projected to grow from RMB 94,009 million in 2023 to RMB 106,843 million in 2026, with a CAGR of 4.3% [10] - Net profit attributable to the parent company is expected to increase from RMB 9,750 million in 2023 to RMB 19,501 million in 2026, with a CAGR of 26.1% [10] - EPS is forecasted to rise from RMB 0.06 in 2023 to RMB 0.11 in 2026 [10] - The company's P/E ratio is expected to decrease from 15.93x in 2024 to 8.85x in 2026, indicating improving valuation attractiveness [10] Strategic Initiatives - The company is focusing on the low-altitude economy, leveraging its extensive tower resources, with 2.081 million tower sites as of September 2024, and building a comprehensive low-altitude service network, including flight facility networks, low-altitude intelligent networks, and low-altitude service networks [4] - The "One Body, Two Wings" strategy continues to drive growth, with the company expanding its operator business, smart connectivity business, and energy business, particularly in areas like digital governance and energy solutions [5] Industry Outlook - The low-altitude economy is poised for significant growth, driven by policy and technological advancements, with the industry expected to exceed RMB 1 trillion by 2026, encompassing low-altitude infrastructure, manufacturing, operations, and flight support [4]