Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 76.03 HKD per share, based on a 15x PE valuation for 2025 [3][10]. Core Insights - The company's AI capabilities, particularly the KuaLing model, show significant improvement, with a 195% enhancement in overall performance from version 1.5 to 1.6, indicating strong commercial potential and business empowerment [1]. - The company is experiencing healthy traffic growth, with a projected 4.01 billion daily active users (DAU) in Q4 2024, representing a year-over-year increase of 4.8% [2]. - The e-commerce sector is expected to see a 14% year-over-year growth in GMV during the Double 11 shopping festival, driven by both supply and demand factors [2]. - The advertising revenue is projected to grow by 15% year-over-year, supported by external advertising cycles [2]. Summary by Sections Revenue and Profitability - The company expects total revenue in Q4 2024 to reach approximately 357 billion CNY, reflecting a year-over-year increase of 9.6% [5]. - The adjusted net profit for Q4 2024 is estimated at around 45.4 billion CNY, with an adjusted profit margin of 12.7% [5]. - The gross margin is anticipated to improve by 1.1 percentage points year-over-year to 54.2% in Q4 2024 [5]. Financial Forecasts - The adjusted net profit forecasts for 2024, 2025, and 2026 are 175.51 billion CNY, 201.14 billion CNY, and 243.24 billion CNY, respectively [3][10]. - The company’s revenue is projected to grow from 127.19 billion CNY in 2024 to 141.03 billion CNY in 2025, and further to 153.44 billion CNY in 2026, with respective growth rates of 12.1%, 10.9%, and 8.8% [6][8]. Market Position and Competitive Landscape - The company is actively enhancing its AI capabilities and integrating external large model technologies, which are expected to improve content delivery and advertising efficiency [1]. - The report highlights the importance of the company's ongoing commercial exploration and product integration efforts, particularly in the e-commerce and advertising sectors [1][2].

产能释放驱动 24Q4 收入修复，受益 AI 带动半导体需求回升 证券研究报告 | 公司动态点评 2025 年 02 月 21 日 华虹半导体（01347.HK） | 财务指标 | 2023A | 2024A | 2025E | 2026E | 2027E | | --- | --- | --- | --- | --- | --- | | 营业收入（百万美元） | 2286 | 2004 | 2257 | 2610 | 3125 | | 增长率 yoy（%） | -7.7 | -12.3 | 12.6 | 15.6 | 19.7 | | 归母净利润（百万元） | 280 | 58 | 108 | 247 | 307 | | 增长率 yoy（%） | -37.8 | -79.2 | 85.2 | 129.5 | 24.4 | | ROE（%） | 4.4 | 0.9 | 1.7 | 3.8 | 4.5 | | EPS 最新摊薄（元） | 0.16 | 0.03 | 0.06 | 0.14 | 0.18 | | P/E（倍） | 31.8 | 153.3 | 82.8 | 36.1 | 29.0 | | P/B（ ...

Investment Rating - The report maintains an "OUTPERFORM" rating for Standard Chartered PLC [2] Core Views - The report highlights that net interest income (NII) is under pressure in 2025, but cost control measures are expected to take effect [1][5] - The company reported a 14% year-on-year revenue increase in Q4 2024 on a constant currency basis, exceeding guidance [3][18] - A new $1.5 billion share buyback was announced, following the completion of a previous buyback [3][18] - The core Tier 1 capital ratio for Q4 2024 was stable at 14.2%, with risk-weighted assets declining by $2 billion [3][18] - The report projects net income growth of 9.6% and 11.6% for 2025 and 2026, respectively [4] Financial Summary - For 2024, net interest income is expected to be $10.4 billion, a 10% increase year-on-year, while non-interest income is projected to grow by 20% [5][21] - The report indicates that credit impairment losses for 2024 rose by 5% year-on-year to $557 million [8][21] - The cost-to-income ratio improved to 59% in 2024, a 4 percentage point year-on-year improvement [9][21] - The report anticipates a dividend yield increase from 1.4% in 2023 to 2.5% in 2025 [2][16] Valuation - The target price for Standard Chartered PLC is set at HK$129.57, based on a price-to-book ratio of 0.80 for 2025 [4] - The report provides a forecast for diluted EPS of $1.70 for 2025, with a P/E ratio of 9 [2][16]

Investment Rating - The report assigns an "Outperform" investment rating for China LESSO Group Holdings, with a target price of HKD 4.25 based on an 8.5x PE valuation for 2025 [80]. Core Insights - China LESSO Group Holdings is a leading domestic enterprise in the plastic pipe industry, benefiting from the downward trend of raw material prices, which enhances its profitability [39][42]. - The company is expected to see stabilized downstream demand, particularly in the construction and municipal sectors, which are crucial for its plastic pipe business [53]. - The company is actively optimizing its product mix and expanding into overseas markets, including plans for local production in countries like Vietnam and Tanzania [73][76]. Company Overview - China LESSO Group Holdings is a major player in the plastic pipe industry, with over 30 advanced production bases across 19 provinces in China and overseas [4]. - The company has a wide distribution network with 2,891 independent exclusive distributors, offering over 10,000 high-quality products used in various applications [4]. Financial Performance - In the first half of 2024, the company's revenue was RMB 13.564 billion, a year-on-year decrease of 11.3%, with the plastic pipe system contributing over 80% of total revenue [6]. - The gross margin and net margin for the first half of 2024 were 27.48% and 7.47%, respectively, indicating strong profitability compared to industry peers [42]. Market Dynamics - The plastic pipe industry in China has a stable production output, with the total production in 2023 reaching 16.19 million tons, accounting for about 20% of the total plastic products industry [46]. - The demand for plastic pipes is primarily driven by agricultural, municipal, and construction applications, which together account for over 60% of the market [49]. Raw Material Trends - The company benefits from a significant reduction in raw material costs, with prices for key materials like PVC and PE down by approximately 40% compared to 2021 [39]. - The cost of raw materials constitutes over 80% of the main business costs in the plastic pipe industry, making price fluctuations critical for profitability [39]. Future Outlook - The company is diversifying its product offerings beyond traditional markets, including the development of hydrogen and oil transportation pipes [64]. - There is a projected investment of approximately RMB 4 trillion for urban infrastructure upgrades, which will likely benefit the plastic pipe sector [55]. Dividend Policy - The company has maintained a stable dividend payout ratio of around 30%, with a dividend of HKD 0.20 per share in 2023 [21].

Investment Rating - The report assigns an "Outperform" rating for BYD Electronics, marking its first coverage [5]. Core Insights - BYD Electronics is positioned as a leading platform-based high-end manufacturing enterprise, with a diverse portfolio spanning automotive, consumer electronics, and AI computing sectors. The company has shown significant revenue growth in both its consumer electronics and automotive segments, achieving revenues of 97.42 billion and 14.096 billion RMB respectively in 2023, reflecting year-on-year growth of 19% and 52% [1][2]. - The acquisition of Jabil's mobile manufacturing business is expected to deepen BYD's collaboration with Apple, potentially benefiting from the AI-driven upgrade cycle in the consumer electronics market. The company is also enhancing its product structure and deepening partnerships with domestic and international automotive manufacturers [2][3]. - BYD Electronics is actively expanding into new intelligent product sectors, including home energy storage, smart home devices, gaming hardware, drones, IoT, robotics, and data centers, which are anticipated to drive future growth [3][25]. Financial Projections - The forecast for net profit attributable to shareholders for 2024-2026 is projected at 4.681 billion, 6.207 billion, and 7.777 billion RMB, representing growth rates of 16%, 33%, and 25% respectively. The earnings per share (EPS) are expected to be 2.08, 2.75, and 3.45 RMB for the same period [4][3]. - The company's revenue is expected to grow from 129.957 billion RMB in 2023 to 218.501 billion RMB by 2026, with a compound annual growth rate (CAGR) of 21% from 2007 to 2023 [4][31]. Business Segments - The consumer electronics segment remains the largest revenue contributor, accounting for 75% of total revenue in 2023, while the automotive segment is the fastest-growing, with a revenue increase of 52.18% year-on-year [36][39]. - In the automotive sector, BYD Electronics is focusing on high-margin products such as intelligent cockpit systems, intelligent driving systems, and thermal management systems, which are expected to enhance the company's profitability [38][39]. - The company is also leveraging its partnership with NVIDIA to expand its presence in the AI server market, transitioning from contract manufacturing to higher-margin segments such as liquid cooling solutions [3][51]. Market Position - BYD Electronics has established itself as a key supplier for major clients, including Apple and various automotive manufacturers, with over 15 years of collaboration with North American clients [2][20]. - The company has a concentrated ownership structure, with BYD holding a 65.76% stake, allowing for significant control and strategic direction [26][27].

Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Insights - The company achieved profitability in Q4 2024, with total revenue of 7.7 billion yuan, representing a year-over-year growth of 22%. Key revenue streams included value-added services, advertising, gaming, and IP derivatives, with respective revenues of 3.1 billion, 2.4 billion, 1.8 billion, and 460 million yuan, showing year-over-year growth rates of 8%, 24%, 79%, and a decline of 16% [1][2]. - The gross margin improved to 36.1%, an increase of approximately 10 percentage points year-over-year, attributed to revenue growth and reduced operating costs. The adjusted operating profit was 460 million yuan, with an adjusted operating profit margin of about 6.0% [1]. - The company is focusing on high-quality content as a key to entering the AI era, leveraging its rich user-generated content and proprietary IP [2]. Financial Summary - The company revised its revenue forecasts for 2025-2027 to 30.1 billion, 33.7 billion, and 37.6 billion yuan, respectively, with a consistent year-over-year growth rate of 12% [3][5]. - Non-GAAP net profit projections for the same period are 1.61 billion, 2.84 billion, and 4.01 billion yuan, indicating significant growth potential [3][5]. - The report highlights a projected EPS of 3.8 yuan in 2025, increasing to 9.6 yuan by 2027, reflecting a turnaround in profitability [5][12].

Investment Rating - Investment Rating: Buy (Maintained) [2] Core Views - The company achieved revenue of 77.34 billion yuan in Q4 2024, representing a year-over-year increase of 21.8%. Adjusted net profit was 4.52 billion yuan, up 181.4% year-over-year, with growth potential driven by AI in gaming and advertising [5][6] - The game "Three Kingdoms: Strategy" has demonstrated long-term operational capabilities, supporting sustained growth in the gaming business. The global market for SLG games is estimated at 70 billion yuan, with an average game lifespan exceeding 5 years [6] - Advertising business continues to grow rapidly, supported by core user growth. Daily active users (DAU) reached 103 million, up 2.9% year-over-year, while monthly active users (MAU) reached 340 million. The average daily usage time increased by 4.2% to 99 minutes, with daily video views exceeding 4.8 billion [7] Financial Summary - For 2025, 2026, and 2027, the company is expected to achieve revenues of 306.6 billion yuan, 336.2 billion yuan, and 359.6 billion yuan, respectively. Adjusted net profits are projected at 18.8 billion yuan, 33.2 billion yuan, and 40.4 billion yuan for the same years [5][9] - Key financial indicators for 2024A include total revenue of 26,832 million yuan, with a year-over-year growth of 19%. Adjusted net profit is forecasted to be -39 million yuan, with a significant recovery expected in subsequent years [9][10] - The company’s cash flow from operating activities is projected to turn positive in 2025, with net profit expected to reach 811 million yuan [11]

Investment Rating - The investment rating for Hong Kong Exchanges and Clearing Limited (388 HK) is "Buy" with a target price of HKD 404.00 [7][8]. Core Views - The report discusses the optimization of the securities market's transaction fee structure, which will eliminate the upper and lower limits on stock and ETP transaction fees, adjusting the new rates to 0.0042% and 0.0020% respectively, effective from June this year. This change is expected to balance transaction costs across different types of trades, potentially increasing revenue volatility for the exchange but having a minimal long-term impact on average fee rates [1][2]. Summary by Sections Transaction Fee Structure - The new fee structure will adjust the transaction fees for general exchange trades to 0.0042% for buyers and sellers, compared to the current rates of 0.0020% and 0.0010%. The minimum and maximum fees will be removed, which currently are HKD 2/1 and HKD 100/50 respectively. In comparison, the A-share market has a transaction fee rate of 0.001% [1][2]. Revenue and Profit Forecast - The report anticipates increased revenue volatility for the exchange due to the removal of fee limits, which will strengthen the correlation between transaction fees and trading volumes. It is estimated that 77% of trades could see reduced transaction costs under the new structure. The average effective transaction fee rate is projected to remain around 0.0042% over the 2019-2024 period, with an average transaction amount of approximately HKD 62,000 [2][4]. Market Activity - As of February 21, 2025, the average daily trading volume for the first quarter of 2025 reached HKD 200.3 billion, up from HKD 186.9 billion in the fourth quarter of 2024. This increase in trading activity is expected to support the exchange's performance and valuation [3]. Earnings and Valuation - The profit forecasts for the years 2024, 2025, and 2026 have been slightly adjusted to HKD 131 billion, HKD 132 billion, and HKD 133 billion respectively. The target price remains at HKD 404, based on a DCF model with a 50-year forecast period and a discount rate of 5% [4][6].

Investment Rating - The report suggests a positive outlook for the company, recommending active attention to its developments [4]. Core Insights - The establishment of a robotics company aims to empower the entire robotics industry through diverse services such as sales agency, leasing, industry consulting, and supply chain management, enhancing the application of quality robotics enterprises and products [2]. - The company has initiated a partnership to establish a Beijing Robotics Industry Development Investment Fund with a total commitment of 10 billion yuan, focusing on key sectors like humanoid robots, medical robots, and industrial automation, thereby creating a closed-loop system of investment, production, and services [3]. - The existing parking business provides stable cash flow and synergizes with investments in robotics and autonomous driving, positioning the company for potential growth as a platform and ecosystem enterprise [4]. Summary by Sections - **Investment Rating**: The company is expected to benefit from improved liquidity and valuation levels after being included in the Hang Seng Index and returning to the Hong Kong Stock Connect [4]. - **Robotics Company Establishment**: The new robotics company will leverage the company's strategic initiatives to enhance the commercialization of humanoid robots and improve industry service capabilities [2]. - **Investment Fund**: The partnership to create a 10 billion yuan fund will support innovative companies in the robotics sector, facilitating market access and technological implementation [3].

Investment Rating - The report assigns an "Outperform" rating for the company [1]. Core Insights - The company is positioned as a global leader in compliant vaping technology, with significant growth potential in the Heat-Not-Burn (HNB) segment [3]. Market Overview - The global new tobacco market is estimated at approximately $76.9 billion in 2023, with HNB and e-cigarettes accounting for 45% and 28% of the market, respectively [4][14]. - The penetration rate of new tobacco products among smokers is only 8.1%, indicating substantial room for growth [15]. Regional Analysis - **United States**: The largest market for new tobacco, valued at $24.8 billion in 2023, with HNB market potential expected to increase following patent resolutions between major tobacco companies [23][27]. - **Europe**: The market reached $31 billion in 2023, with a high acceptance of HNB products, particularly in Eastern Europe [5]. - **Japan and South Korea**: Dominant markets for HNB, with respective market sizes of $11.7 billion and $2.6 billion in 2023, showing strong growth trends [5]. Competitive Landscape - Major tobacco companies like PMI and BAT are leading the transition to new tobacco products, with significant market shares in the HNB segment [6]. - The company holds approximately 13.7% of the global e-vapor device market, with a focus on expanding its HNB product offerings [7]. Financial Projections - The company is projected to achieve net profits of $1.304 billion, $1.578 billion, and $2.040 billion for the years 2024, 2025, and 2026, respectively, with corresponding EPS of 0.21, 0.26, and 0.33 [8]. - The estimated market value for the company is expected to reach between HKD 714 billion and HKD 1,020 billion by 2025, with a PE ratio ranging from 45 to 65 [8]. Growth Drivers - The growth is driven by the industry's beta benefits and the anticipated regulatory clarity, alongside the commercialization of HNB products for major clients [8].