Investment Rating - The report initiates coverage with a "Buy" rating for WuXi AppTec (02268.HK) [4][6] Core Viewpoints - The ADC (Antibody-Drug Conjugate) industry is experiencing rapid growth, driven by technological advancements and increased commercialization opportunities, indicating a robust future market potential [1][27] - The company is positioned as a leading global ADC CRDMO (Contract Research, Development, and Manufacturing Organization) service provider, offering comprehensive end-to-end services that enhance drug development efficiency [2][3] - The company's strategic focus on technology collaboration and customer engagement is expected to drive significant growth in client base and market share [3][4] Summary by Sections Company Overview - WuXi AppTec is recognized as a global leader in the ADC CRDMO sector, providing integrated services from drug discovery to production, with a significant market share increase from 1.8% in 2020 to 9.8% in 2022 [13][14] - The management team is experienced, with a diverse background in the biopharmaceutical industry, contributing to the company's growth and operational success [16][19] Market Dynamics - The ADC market has shown explosive growth, with a projected compound annual growth rate (CAGR) of 39.1% from 2018 to 2023, expected to reach $66.2 billion by 2030 [27][31] - The report highlights the increasing number of ADC candidates entering clinical trials, indicating a vibrant pipeline and strong future demand for ADC products [31][32] Financial Performance - The company has demonstrated strong financial growth, with revenues increasing from 0.96 billion in 2020 to 21.24 billion in 2023, reflecting a CAGR of 180.7% [18][20] - Profitability metrics are improving, with gross margins rising from 8.4% in 2020 to 36.5% in 2021, driven by strong customer demand and enhanced production efficiency [21][22] Future Outlook - The company is expected to benefit from the ongoing demand for bioconjugate drugs, with projections for net profits to reach 1.03 billion in 2024, growing to 1.91 billion by 2026 [4][5] - The strategic expansion of production facilities and service capabilities is anticipated to further enhance the company's competitive position in the global market [2][4]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][12] Core Views - The company's revenue for 2024 was HKD 22.374 billion, a year-on-year increase of 9.1%, and the net profit attributable to shareholders was HKD 13.050 billion, up 10.0% year-on-year. The EBITDA margin improved to 74%, an increase of 1 percentage point from 2023 [7][3] - The fourth quarter saw significant growth, with revenue reaching HKD 6.017 billion, a year-on-year increase of 33.2%, and a quarter-on-quarter increase of 24.0%. The net profit attributable to shareholders for Q4 was HKD 3.780 billion, up 45.6% year-on-year and 20.2% quarter-on-quarter [7][3] - The report attributes the performance improvement to heightened activity in the spot and derivatives markets, with the average daily trading volume (ADT) for the exchange's spot market reaching HKD 171.5 billion, a year-on-year increase of 113.3% [8][11] Summary by Sections Financial Performance - The company reported a total revenue of HKD 22.374 billion for 2024, with a net profit of HKD 13.050 billion. The EBITDA margin was 74%, and the dividend payout ratio remained at 90% [7][3] - For Q4, revenue was HKD 6.017 billion, with a net profit of HKD 3.780 billion, indicating strong performance driven by trading activity [7][3] Market Activity - The average daily trading volume in the Hong Kong stock market increased significantly, with the Hang Seng Index averaging HKD 226.6 billion from January to February 27, 2025, up 79.9% from the full year of 2024 [11][2] - The company's revenue structure is closely tied to market activity, with trading fees and system usage fees accounting for nearly 60% of total revenue [11][2] Earnings Forecast - The earnings forecast for 2025 and 2026 has been adjusted upwards by 6.0% and 7.4%, respectively, with projected net profits of HKD 16.335 billion and HKD 18.152 billion for those years [3][12] - The estimated price-to-earnings (PE) ratio for 2025 is 28.0x, reflecting the company's strong earnings growth potential [3][12]

Investment Rating - The report assigns a "Buy" rating for the company, with a target price of 12.07 HKD based on a current price of 5.2 HKD [6]. Core Insights - The company, Heptagon Pharmaceuticals, established in 2016, focuses on innovative drug development and commercialization in the fields of immunology and oncology. It has shown significant revenue growth from 0.1 million RMB in 2018 to 634 million RMB in 2023, achieving profitability in 2023 [1][14]. - The proprietary Harbour Mice® antibody platform is highlighted as a unique asset, enabling the production of both conventional and heavy-chain human monoclonal antibodies, which positions the company as a leader in antibody innovation [2][25]. - The company has over 10 drug candidates in various stages of clinical development, with key products like Batoclimab (HBM9161) and HBM9378 showing promising progress [3][38]. Summary by Sections 1. Company Overview - Heptagon Pharmaceuticals specializes in the development of innovative drugs in immunology and oncology, leveraging a unique business model that combines self-research and collaboration [1][12]. - The company has transitioned from significant losses in previous years to profitability in 2023, with a net profit of 161 million RMB [14][17]. 2. Antibody Development Platform - The Harbour Mice® platform allows for the generation of both H2L2 and HCAb formats of human monoclonal antibodies, showcasing its broad application potential [2][25]. - The HCAb platform is noted for its ability to produce various forms of antibodies, including mRNA and bispecific antibodies, which enhances the company's development capabilities [2][31]. 3. Clinical Pipeline - The company has a robust pipeline with over 10 candidates focused on autoimmune and oncology diseases, with Batoclimab (HBM9161) and HBM9378 being the most advanced [3][38]. - Batoclimab has received acceptance for its BLA by NMPA, indicating its potential as a significant therapy for autoimmune diseases [41]. 4. Business Development - Heptagon has established numerous partnerships with leading pharmaceutical companies, enhancing its business development efforts and expanding its collaborative reach [4][40]. - The company has signed multiple licensing agreements, contributing to its revenue growth and positioning it favorably within the industry [17][40]. 5. Financial Projections - The report forecasts total revenues of 260 million RMB, 417 million RMB, and 566 million RMB for 2024, 2025, and 2026 respectively, based on the performance of key products [5][10].

Investment Rating - The report maintains a "Buy" rating for Budweiser APAC with a target price of HK$11.00, reflecting a potential upside of 27% from the current price of HK$8.66 [1][8]. Core Insights - The report indicates that Budweiser APAC's sales during the Chinese New Year were encouraging, with management stating that shipments to retailers matched last year's levels. The company is expected to achieve mid-single-digit volume growth in 2025, with a 3% increase in the Chinese market [6][13]. - A strategic shift has been announced, focusing on the "Core++" segment rather than ultra-premium products, aiming to enhance market share amidst a challenging macroeconomic environment [7][13]. - The company declared a dividend of $0.0566 per share, with a high payout ratio of 96%, which is expected to support long-term investor returns [7][8]. Financial Adjustments - The target price has been adjusted downwards from HK$11.60 to HK$11.00, while the earnings per share (EPS) estimates for 2025 and 2026 have been slightly increased by 0.7% and 1.9% respectively [2][8]. - Revenue forecasts for 2025 and 2026 have been raised by 2.0% and 3.2% respectively, reflecting better-than-expected recovery in beer sales in China [13][14]. - The normalized net profit for 2025 is projected at $887 million, with an adjusted net profit margin of 13.4% [10][14]. Market Performance - Budweiser APAC's stock has shown a 52-week range of HK$14.08 to HK$6.84, with a market capitalization of approximately $14.75 billion [1][8]. - The report highlights that the company's valuation is currently at a forward P/E of 21.1x for 2025, which is one standard deviation below the average of the past three years [15][17]. Strategic Focus - The management emphasizes that the strategic adjustment does not neglect high-end products but rather aims for a more comprehensive approach to current market conditions [7][8]. - The report suggests that the focus on the "Core++" segment will create significant synergies within Budweiser APAC's overall product portfolio [7][8].

Investment Rating - The report maintains a "Buy" rating for the company [9][13]. Core Views - The company achieved a revenue of 2.44 billion RMB in 2024, a year-on-year increase of 7.0%, while net profit decreased by 12.0% to 791 million RMB [2]. - The proportion of grid parity projects increased to 61.6%, with a total power station capacity of 4.5 GW, enhancing cash flow stability [3]. - The company expects financing rates to continue declining, with the actual interest rate dropping to 3.5%, a decrease of 1.2 percentage points year-on-year [4]. Summary by Sections Performance Overview - Revenue for 2024 was 2.44 billion RMB, up 7.0% year-on-year, while net profit was 791 million RMB, down 12.0% [2]. - The company declared a final dividend of 0.027 HKD per share [2]. Operational Analysis - The share of grid parity projects rose by 8.8 percentage points year-on-year to 61.6%, with a stable cash flow from the acquisition of 860 MW solar power stations from its parent company [3]. - Total power generation increased by 17.0% year-on-year to 4.472 billion kWh, although gross margin decreased by 2.35 percentage points to 65.55% due to increased market transactions affecting settlement prices [3]. Financial Projections - Adjusted net profit forecasts for 2025 and 2026 are 854 million RMB and 937 million RMB, respectively, with an expected net profit of 1.024 billion RMB in 2027 [5]. - The projected dividend per share for 2025 is approximately 0.051 HKD, with current price-to-earnings (P/E), price-to-book (P/B), and dividend yield ratios of 7.9x, 0.5x, and 6.4%, respectively [5]. Market Conditions - The "new and old separation" policy is expected to stabilize the revenue from existing power stations, allowing them to continue receiving guaranteed pricing until June 1, 2025 [4]. - The company has a cash and cash equivalents balance of 364 million RMB and a net debt of 5.58 billion RMB, significantly lower than the industry average [4].

Investment Rating - The report assigns a "Buy" rating for the company with a target price of $125.00, indicating a potential upside of 23.44% for the US stock and 21.64% for the HK stock [1]. Core Insights - The company's revenue growth is driven by Blizzard games, with a notable increase in PC game revenue, while mobile game revenue is anticipated to improve with new product launches [2][3]. - The forecasted revenue CAGR for the company from 2025 to 2027 is 11.4%, with Non-GAAP net profit CAGR expected at 10.5% [2]. Financial Performance Summary - Total revenue for the fiscal year ending December 31 is projected to grow from $14,232 million in 2023 to $17,966 million by 2027, reflecting a compound annual growth rate (CAGR) of 6.2% [2]. - Non-GAAP net profit is expected to increase from $4,485 million in 2023 to $5,633 million in 2027, with Non-GAAP earnings per ADS rising from $6.9 to $8.5 over the same period [2]. - The company achieved a GAAP net profit of 87.7 billion RMB in Q4 2024, a year-on-year increase of 33.2%, exceeding Bloomberg consensus estimates [2]. Game Segment Performance - The revenue from games and related value-added services grew by 1.5% year-on-year to 212.4 billion RMB, with PC game revenue increasing by 56.6% to 71.3 billion RMB, driven by titles like "World of Warcraft" and "Hearthstone" [2]. - Mobile game revenue, however, declined by 10.5% to 134 billion RMB due to a lack of new product releases, but upcoming titles are expected to boost this segment [2]. Other Business Segments - Youdao is projected to achieve its first profitable year in 2024, with revenue expected to grow by 4.4% to 56.3 billion RMB, driven by AI subscription services [2]. - Cloud Music's revenue for 2024 is forecasted to reach 79.5 billion RMB, with a year-on-year growth of 1.1%, supported by increased subscription revenue and cost control measures [2].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a net income of 12.7 billion RMB in Q4 2024, representing a year-on-year growth of 23%, with adjusted EBITDA of 3 billion RMB and an adjusted net profit of 3 billion RMB, up 14% year-on-year, exceeding Bloomberg's expectations [8] - The international business is expected to continue strong growth in 2025, driven by simplified visa processes and increased international flight availability, with outbound hotel and flight bookings recovering to over 120% of 2019 levels [8] - Domestic tourism demand remains resilient, with inbound tourism contributing to growth, and the company is enhancing user experience through AI tools, leading to significant increases in user engagement [8] - The report anticipates a decline in gross margin due to the increasing contribution of lower-margin international business, but long-term profitability is expected to improve as the company expands its global market presence [8] - Adjusted net profit forecasts for 2025 and 2026 have been slightly lowered, but a new forecast for 2027 has been added, indicating continued confidence in the company's international growth potential [8] Financial Summary - Total revenue is projected to grow from 53.3 billion RMB in 2024 to 78.5 billion RMB in 2027, with a compound annual growth rate (CAGR) of approximately 12.49% [1] - The adjusted net profit is expected to increase from 17.1 billion RMB in 2024 to 22 billion RMB in 2027, reflecting a strong growth trajectory [1] - The company's P/E ratio is projected to decrease from 16.44 in 2024 to 14.19 in 2027, indicating improving valuation metrics over time [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Insights - The recent launch of the SU7 Ultra and 15 Ultra marks a significant milestone in the company's high-end strategy [7] - The SU7 Ultra is positioned as a high-performance electric vehicle, aiming to redefine luxury standards in the automotive market [7] - The pricing strategy for the SU7 Ultra is aggressive, with a standard version priced at 529,900 RMB, which is competitive compared to other high-performance electric vehicles [7] - The company aims to leverage its advancements in AIoT and mobile technology to enhance its product offerings and market position [7] Financial Data and Profit Forecast - Revenue projections show a decline from 280,044 million RMB in 2022 to 270,970 million RMB in 2023, followed by a significant increase to 353,967 million RMB in 2024E, and further growth to 497,949 million RMB by 2026E [3][9] - The net profit is expected to rise from 8,490 million RMB in 2022 to 19,274 million RMB in 2023, reaching 36,744 million RMB by 2026E [3][9] - Earnings per share (EPS) are projected to increase from 0.34 RMB in 2022 to 1.45 RMB in 2026E [3][9] - The price-to-earnings (PE) ratio is forecasted to decrease from 141 in 2022 to 33 in 2026E, indicating improved valuation over time [3][9]

Investment Rating - The report maintains an "Accumulate" rating for Budweiser APAC (1876.HK) with a current price of HKD 8.33 [1] Core Views - The report highlights a continued trend of strong performance in the eastern regions while the western regions face challenges, with a dividend payout ratio exceeding expectations [1][8] - Budweiser APAC's 2024 revenue is reported at USD 6.246 billion, reflecting a year-on-year decline of 8.9%, while normalized EBITDA is USD 1.813 billion, down 14.8% year-on-year [5][11] - The company is focusing on high-end and super high-end product strategies, expanding its distribution cities from 220 in 2023 to 235 in 2024 [7][8] Summary by Sections Revenue Performance - For the full year 2024, Budweiser APAC achieved revenue of USD 6.246 billion, with a year-on-year decline of 8.9% and normalized EBITDA of USD 1.813 billion, down 14.8% [5][11] - In Q4 2024, the company reported revenue of USD 1.142 billion, with a year-on-year decline of 11% [5] Regional Performance - Eastern region showed strong growth in Q4 2024 with revenue up 7.8% and volume up 8.5%, while the western region faced a 17% decline in volume [6][7] - The Chinese market continued to struggle in Q4 2024, with a volume decline of 18.9% due to inventory reduction and unfavorable channel mix [7] Management Changes and Dividend Policy - A new CEO, Cheng Yanjun, will take office on April 1, 2025, indicating a commitment to improving the Chinese business [8] - The board proposed a dividend of USD 750 million for the 2024 fiscal year, a 7% increase year-on-year, with a payout ratio of 103% [8] Profit Forecast and Valuation - The profit forecasts for 2025 and 2026 have been revised down to USD 795 million and USD 861 million, respectively, reflecting a 12% and 14% reduction [8][11] - The current stock price corresponds to a PE ratio of 18x for 2025, 16x for 2026, and 15x for 2027, indicating a favorable outlook in the high-end market segment [8][11]

Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook for future performance [11]. Core Viewpoints - Pop Mart is a leading player in the trendy toy industry, with a strong integrated layout covering the entire industry chain. The company has shown rapid growth in revenue and profit, with a significant increase in its market share [1][11]. - The trendy toy market is expected to grow significantly, with the total market value projected to reach 110.1 billion yuan by 2026, indicating a robust growth trajectory for the industry [2][42]. - Pop Mart's strong IP operation capabilities have been validated, with a diverse range of successful IPs contributing to its revenue growth. The company is continuously expanding its product categories and business models [3][11]. Summary by Sections Company Overview - Pop Mart, established in 2010, is the largest trendy toy company in China, focusing on self-owned IP sales. The company has built an integrated platform covering artist discovery, IP operation, consumer engagement, and cultural promotion [6][23]. Industry Growth - The trendy toy industry is rapidly developing, with a market value of approximately 60 billion yuan in 2023, expected to grow at a compound annual growth rate of over 20% [2][42]. - The industry is highly fragmented, with Pop Mart holding an 11.9% market share, leading the competition [2][45]. IP Operation and Business Expansion - Pop Mart has successfully developed a strong IP matrix, with over 10 IPs generating over 100 million yuan in sales in 2023. The company is expanding its product categories, including accessories and plush toys, to enhance customer engagement [3][11]. - The company has established a multi-dimensional business ecosystem around its IPs, including parks and games, which are expected to extend the lifecycle of its IPs [3][11]. Sales Channels and Market Reach - In 2023, Pop Mart's domestic revenue accounted for 87%, with overseas revenue growing rapidly, reaching 30% in 2024H1, a year-on-year increase of approximately 400% [4][11]. - The company has a robust offline and online channel strategy, with 374 retail stores and a significant online presence, leveraging membership systems to enhance customer retention [4][11]. Financial Projections - The company is projected to achieve revenues of 124 billion yuan, 172.69 billion yuan, and 213.04 billion yuan from 2024 to 2026, with corresponding net profits of 29.21 billion yuan, 41.37 billion yuan, and 51.81 billion yuan [11][12].