Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company's Q3 2024 results met expectations, with a steady improvement in gross margin [4]. - Total sales for the first three quarters reached 99,000 units, a year-on-year increase of 21.0%, while total revenue was CNY 24.76 billion, up 40.5% year-on-year [4]. - The gross margin improved to 14.2%, an increase of 16.3 percentage points year-on-year, and the net profit attributable to shareholders was a loss of CNY 4.46 billion, reducing losses by CNY 4.57 billion year-on-year [4]. Summary by Sections Sales and Revenue - In Q3 2024, total sales were 47,000 units, with a quarter-on-quarter increase of 16.3% and a year-on-year increase of 54.0% [4]. - Total revenue for Q3 was CNY 10.1 billion, reflecting an 18.4% increase year-on-year and a 24.5% increase quarter-on-quarter [4]. Gross Margin and Profitability - The gross margin for Q3 was 15.3%, showing a quarter-on-quarter increase of 1.3 percentage points [4]. - The company continues to improve profitability through cost reduction initiatives, with the gross margin for automotive sales rising from 6.4% in Q2 to 8.6% in Q3 [5]. New Product Launches - The launch of the new model MONA M03 significantly boosted sales, achieving over 30,000 pre-orders within 48 hours of its release [5]. - The company also introduced the P7+ model, which saw over 10,000 pre-orders within 12 minutes of its launch [5]. International Expansion - The company has accelerated its international expansion, with significant sales growth in overseas markets, contributing to 15% of total sales in Q3 [5]. Financial Forecasts - Revenue forecasts for 2024-2026 have been revised upwards, with expected revenues of CNY 40.83 billion, CNY 78.92 billion, and CNY 101.35 billion respectively [6]. - The net profit forecast for 2024-2026 has also been adjusted, with expected losses narrowing to CNY 5.91 billion in 2024 and a projected profit of CNY 1.48 billion by 2026 [6].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 61.62 per share, based on a 14x PE valuation for 2024 [1][6][10]. Core Insights - The company's performance in Q3 2024 met expectations, with a focus on the release of synergistic effects in e-commerce across multiple domains [1][9]. - Daily Active Users (DAU) reached 408 million, showing a year-on-year increase of 5.4%, while Monthly Active Users (MAU) grew by 4.3% to 714 million [1][9]. - Advertising revenue increased by 20.0% year-on-year to CNY 176 billion, accounting for 56.6% of total revenue [1][9]. - E-commerce Gross Merchandise Volume (GMV) rose by 15.1% year-on-year to CNY 334.2 billion, with a monthly paid user count of 133 million [1][9]. Summary by Sections User Growth - DAU reached 408 million, MAU at 714 million, and average daily usage time increased by 1.8% to 132 minutes [1][9]. - The company expects DAU to maintain slight growth in Q4 2024, around 400 million [1][9]. Advertising Performance - Q3 2024 advertising revenue was CNY 176 billion, with a year-on-year growth of 20.0% [1][9]. - The internal advertising cycle showed stable growth, while external advertising growth was significant, particularly in media and local life sectors [1][9]. E-commerce Insights - E-commerce GMV grew by 15.1% year-on-year to CNY 334.2 billion, with a monthly paid user count of 133 million [1][9]. - The company anticipates a 14% year-on-year growth in GMV for Q4 2024, driven by e-commerce commissions [1][9]. Financial Performance - Adjusted net profit for Q3 2024 reached CNY 39.5 billion, with a gross margin of 54.3% [1][9]. - The report projects adjusted net profits of CNY 175.51 billion for 2024, with a slight upward revision due to better-than-expected cost control [6][10].

Investment Rating - The report maintains an **Outperform** rating for JD Logistics (2618 HK) with a target price of **HKD 23.19**, revised from HKD 19.91, representing a 16% increase [3][10] Core Views - JD Logistics achieved **RMB 44.40 billion** in revenue in Q3 2024, a **6.6% YoY increase**, with **Non-IFRS net profit** reaching **RMB 2.60 billion**, up **205.1% YoY** [2][7] - The **Non-IFRS net profit margin** rose to **5.8%**, a **3.8 percentage point increase** from 2.0% in 2023 [2][7] - The company's **integrated supply chain business** contributed **RMB 20.70 billion**, a **5.4% YoY growth**, driven by increased revenue from JD Group and external clients [2][8] - External integrated supply chain clients reached **57,900**, a **9% YoY increase**, with **average revenue per client** at **RMB 133,000** [2][8] - Revenue from other clients grew **7.6% YoY** to **RMB 23.70 billion**, primarily due to increased parcel volume in express delivery and freight business [2][8] Financial Performance - **Gross profit margin** improved to **11.7%**, a **7.9 percentage point increase** from Q3 2023, driven by product and network optimization, technology-driven efficiency, and refined resource management [3][9] - **Operating costs** were **RMB 39.20 billion**, up **2.2% YoY**, reflecting effective cost control measures [3][9] Profit Forecast and Valuation - Total revenue for 2024 is projected to reach **RMB 178.91 billion**, a **7.4% YoY increase**, with a **Non-IFRS net profit margin** of **4.3%** [3][10] - The company's valuation method shifted from **PS to PE** as it entered a stable profit phase, with **Non-IFRS net profit** expected to be **RMB 7.77 billion** in 2024 and **RMB 9.45 billion** in 2025 [3][10] - The current market capitalization implies a **2024/2025 valuation** of **11X/9X**, with a reasonable valuation range of **15X**, corresponding to the target price of **HKD 23.19** [3][10]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 61.62 [1] Core Views - The company achieved its DAU target of 400 million, with DAU increasing by 5.4% YoY to 408 million and MAU growing by 4.3% YoY to 714 million in 3Q24 [1] - User engagement improved, with daily average time spent per user increasing by 1.8% YoY to 132 minutes, and total user time spent growing by 7.3% YoY [1] - Advertising revenue grew by 20.0% YoY to RMB 17.6 billion, accounting for 56.6% of total revenue, with significant growth in external loop advertising, particularly in short drama marketing [1] - E-commerce GMV increased by 15.1% YoY to RMB 334.2 billion, with monthly paying users (MPU) reaching 133 million, up 10.8% YoY [1] - Live streaming revenue declined by 3.9% YoY to RMB 9.3 billion, better than expected, with the number of signed agencies and hosts increasing by over 40% and 60% YoY, respectively [1] - Adjusted net profit for 3Q24 reached RMB 3.95 billion, with a gross margin of 54.3%, up 2.6 percentage points YoY [1] Financial Forecasts - Revenue is expected to grow by 12.1% YoY in 2024E, reaching RMB 127.2 billion, with a gross margin of 54.7% [6] - Adjusted net profit for 2024E is forecasted at RMB 17.55 billion, with a net margin of 13.8% [6] - The company is valued at 14x PE for 2024E, with a target valuation of RMB 245.7 billion (HKD 265.8 billion) [6][10] Operational Highlights - The company leveraged its position as the official broadcaster for the 2024 Paris Olympics, with related content exposure reaching 310.6 billion views and 640 million users engaging with Olympic content [1] - Search functionality saw significant growth, with MAU exceeding 500 million and daily searches increasing by 20% YoY to over 700 million, peaking at over 800 million searches per day [1] - E-commerce initiatives, including the "818" promotion, saw GMV grow by over 24% YoY, with short video-driven GMV increasing by over 40% YoY [1]

Investment Rating - Maintain OUTPERFORM rating with a target price of HK$41.49 [1][2] - Current price is HK$27.30, indicating a significant upside potential [2] Core Views - Steady revenue growth in 24Q3 with revenue reaching CNY 13.30 billion (+14.8%) and net profit of CNY 930 million (+212.2%) [7] - Adjusted net profit margin improved to 10.0% (+1.8 percentage points) in 24Q3 [7] - For the first three quarters of 2024, revenue grew by 7.6% to CNY 41.65 billion, with net profit increasing by 59.4% to CNY 2.97 billion [8] - The company is expanding its online medical insurance settlement services, covering 12 cities and connecting with 2,000 designated retail pharmacies [8] Financial Performance - Revenue for 2024E and 2025E is projected to be CNY 57.40 billion and CNY 64.00 billion, with year-on-year growth rates of 7.2% and 11.5% respectively [9] - Adjusted net profit for 2024E and 2025E is expected to be CNY 4.34 billion and CNY 4.71 billion, with growth rates of 5.0% and 8.6% respectively [9] - Gross profit margin is forecasted to increase from 22.2% in 2023A to 24.0% in 2025E [6] Valuation - DCF valuation estimates the company's equity value at HKD 132.31 billion, corresponding to a share price of HKD 41.49 per share [9] - The valuation is based on a WACC of 8.4% and a perpetual growth rate of 2.0% [9] Operational Highlights - The company has launched over 100 at-home testing services and 27 home care services, covering 14 cities including Beijing, Shanghai, Guangzhou, and Shenzhen [8] - The company is benefiting from government subsidies for elderly-friendly products, which partially offset the impact of stricter regulations on certain medical devices [9] Market Performance - The stock has shown significant volatility over the past year, with a 12-month absolute return of -30.5% [4] - Relative to the MSCI China index, the stock underperformed by 38.4% over the past 12 months [4]

Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology [10] Core Insights - Kuaishou's Q3 2024 revenue reached 31.131 billion CNY, a year-on-year increase of 11.4%, with Non-GAAP net profit at 3.948 billion CNY, up 24.4% [6][8] - The company's online marketing service revenue grew by 20.0% year-on-year, contributing 56.6% to total revenue, driven by AI optimization in advertising [6][7] - Daily active users (DAU) surpassed 400 million for the first time, with a year-on-year growth of 5.4% [7] Summary by Sections Revenue Performance - Kuaishou's Q3 2024 online marketing service revenue was 17.634 billion CNY, up 20.0% year-on-year, while live streaming revenue was 9.338 billion CNY, down 3.9% [6][7] - Other services, including e-commerce, generated 4.159 billion CNY, a 17.5% increase year-on-year, with GMV reaching 334.2 billion CNY, up 15.1% [6][7] User Metrics - Average daily active users reached 408 million, with average monthly active users at 714 million, reflecting a year-on-year increase of 4.3% [7] - In overseas markets, DAU in Brazil grew by 9.7% year-on-year [7] Profitability - Kuaishou's gross margin improved to 54.3%, with an adjusted net profit margin of 12.7% [7] - R&D expenses increased by 4.5% to 3.1 billion CNY, while sales and marketing expenses rose by 15.9% to 10.4 billion CNY [7] Future Outlook - Revenue projections for 2024 and 2025 are estimated at 127.1 billion CNY and 139.7 billion CNY, respectively, with Non-GAAP net profits of 17.7 billion CNY and 21.7 billion CNY [8]

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 35.10, indicating a potential upside of 20.6% from the current price of HKD 29.15 [4][5]. Core Insights - The company achieved its first quarterly profit post-pandemic in Q3 2024, with revenue of HKD 264 million, representing a year-on-year increase of 76.1%. For the first three quarters, total revenue reached HKD 567 million, up 222.9% year-on-year, with a 36.9% growth after adjusting for expected returns of COVID-19 vaccines [2]. - The company's cost management has shown significant improvement, with a reduction in management and R&D expenses by 37.6% and 41.0% respectively, leading to a narrowed net loss of HKD 222 million for the first three quarters [2]. - The company's meningococcal vaccine, "曼海欣," has seen impressive growth, with revenue of HKD 516 million in the first three quarters, a 39.07% increase year-on-year. The product is expected to maintain its market position as the only MCV4 product in China [3]. Summary by Sections Financial Performance - In Q3 2024, the company reported a revenue of HKD 264 million, marking a 76.1% increase year-on-year. The total revenue for the first three quarters was HKD 567 million, reflecting a 222.9% increase year-on-year, with a 36.9% growth after accounting for expected returns of COVID-19 vaccines [2]. - The company managed to reduce its asset impairment losses by HKD 777 million year-on-year, resulting in a narrowed net loss of HKD 222 million for the first three quarters [2]. Product Pipeline and Growth Drivers - The company has multiple product pipelines progressing well, including the PCV13i vaccine, which has received acceptance for market application and is expected to be approved next year, providing a second growth point [4]. - The company is actively pursuing the expansion of its meningococcal vaccine for ages 4-6, with approval anticipated next year, which will enhance sales growth [3]. - The company has also received a USD 17 million grant from the Gates Foundation to advance the development of a restructured polio vaccine, indicating strong support for its R&D initiatives [4].

Investment Rating - Buy rating maintained for Geely Automobile (0175 HK) [10] Core Views - Geely Automobile's Q3 2024 performance showed strong growth with revenue reaching 1676 8 billion yuan, up 36 0% YoY, and net profit attributable to shareholders surging 358 5% YoY to 130 53 billion yuan [6] - The company's new energy vehicle (NEV) transformation is accelerating, with NEV sales accounting for over 50% of domestic market penetration in Q3 [6] - The integration of Zeekr and Lynk & Co is expected to optimize brand structure and enhance internal resource synergy [8] - Geely's GEA architecture supports a new product cycle, with Zeekr, Lynk & Co, and Galaxy brands performing well [8] Financial Performance - Q3 2024 revenue reached 603 8 billion yuan, up 20 5% YoY and 9 8% QoQ, marking a record high for single-quarter revenue [6] - Q3 2024 net profit attributable to shareholders was 24 6 billion yuan, up 92 4% YoY and 78 4% QoQ [7] - Gross margin improved to 15 6% in Q3, with further optimization in expense ratios [7] Brand Performance - Zeekr achieved sales of 55,000 units in Q3, up 51% YoY, with revenue reaching 18 36 billion yuan, a 31% YoY increase [7] - Lynk & Co and Zeekr's integration is expected to reduce related-party transactions and eliminate competition, enhancing resource synergy [8] Strategic Developments - Geely Group plans to transfer 11 3% of Zeekr shares to Geely Automobile, increasing its stake to approximately 62 8% [8] - Zeekr will acquire 51% of Lynk & Co, with 30% of the shares purchased from Volvo Group for 5 4 billion yuan [8] - The transaction is expected to be completed by Q1 2025, further solidifying Geely's strategic focus [8] Valuation and Outlook - Geely Automobile's current valuation remains low, with expected net profits of 160 billion, 118 billion, and 157 billion yuan for 2024-2026, respectively [8] - The company's PE ratios for 2024-2026 are projected at 7 7X, 10 5X, and 7 9X, indicating potential upside [8]

Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Insights - The company achieved revenue of 10.1 billion yuan in Q3 2024, representing a year-on-year increase of 18.4% and a quarter-on-quarter increase of 24.5%. The net loss narrowed to 1.81 billion yuan, down from a loss of 2.08 billion yuan year-on-year. The Non-GAAP net loss was 1.53 billion yuan, a reduction of 1.26 billion yuan year-on-year [6][9]. - The strong new car cycle has led to a significant increase in delivery volumes, contributing to revenue exceeding 10 billion yuan and a record high gross margin of 15.3%. The automotive business revenue reached 8.8 billion yuan, up 12.1% year-on-year, with a delivery volume of 46,500 vehicles, a year-on-year increase of 16.3% [6][9]. - The company is expected to deliver between 87,000 and 91,000 vehicles in Q4 2024, representing a year-on-year growth of 44.6% to 51.3%, with projected revenue of 15.3 billion to 16.2 billion yuan, a year-on-year increase of 17.2% to 24.1% [8][9]. Summary by Sections Financial Performance - In Q3 2024, the company reported revenue of 10.1 billion yuan, a year-on-year increase of 18.4% and a quarter-on-quarter increase of 24.5%. The net loss was 1.81 billion yuan, a reduction from the previous year's loss of 2.08 billion yuan. The Non-GAAP net loss was 1.53 billion yuan, down from 2.79 billion yuan year-on-year [6][9]. - The automotive business generated revenue of 8.8 billion yuan, with a gross margin of 8.6%, an increase of 14.7 percentage points year-on-year and 2.2 percentage points quarter-on-quarter [7][9]. Product and Market Developments - The new car cycle has significantly boosted delivery volumes, with the G9, G6, and MONA M03 models seeing substantial increases in deliveries. The delivery structure shows that G6, MONA, G9, and X9 accounted for 37.8%, 22.7%, 17.8%, and 9.2% of total deliveries, respectively [6][9]. - The company is expanding its overseas strategy, achieving record high overseas sales, with a 70% quarter-on-quarter increase in Q3, accounting for 15% of total sales [8][9]. Future Outlook - The company anticipates a strong continuation of the new car cycle, with the MONA and P7+ models expected to significantly boost sales. The P7+ model has already received over 31,000 pre-orders as of November 7, 2024 [8][9]. - The financial outlook remains positive, with expectations of continued improvement driven by scale effects, cost reductions, and the expansion of software profitability models [9].

Investment Rating - The report maintains a "Buy" rating for both the US-listed (TCOM) and Hong Kong-listed (09961 HK) shares of Trip com Group [5] Core Views - Trip com Group reported strong 3Q24 results with net revenue of RMB 15 9 billion (+16% YoY +32% QoQ) and non-GAAP net profit of RMB 6 billion (+22% YoY) [2] - The company's gross margin improved by 0 3 percentage points YoY to 82 4% in 3Q24 [2] - Outbound travel recovery led the industry with overseas hotel and flight bookings reaching 120% of pre-pandemic levels in 2019 [3] - International OTA platform hotel and flight bookings grew over 60% YoY with APAC bookings up more than 70% [3] Business Segment Performance - Accommodation revenue grew 22% YoY to RMB 6 8 billion in 3Q24 [2] - Transportation revenue increased 5% YoY to RMB 5 7 billion in 3Q24 [2] - Package tour revenue rose 17% YoY to RMB 1 6 billion in 3Q24 [2] - Corporate travel revenue grew 11% YoY to RMB 656 million in 3Q24 [2] Financial Projections - Non-GAAP net profit is forecasted to grow 32% 21% and 16% in 2024 2025 and 2026 respectively reaching RMB 24 2 billion by 2026 [3] - Revenue is expected to grow at a CAGR of 15 7% from 2024 to 2026 reaching RMB 69 6 billion in 2026 [4] - The company plans to enhance shareholder returns in 2025 potentially combining share buybacks with dividends [3] Valuation - The report assigns a 16X PE multiple for 2025 valuing the US-listed shares at $67 44/ADS and HK-listed shares at HK$524 87/share [3] Key Financial Metrics - ROE is projected to improve from 11 4% in 2024 to 12 0% in 2025-2026 [10] - Net margin is expected to remain stable at around 31 5% from 2024 to 2026 [10] - The company's cash position is forecasted to grow from RMB 43 4 billion in 2024 to RMB 76 5 billion in 2026 [8]