Investment Rating - The report maintains a "Buy" rating for Baidu Group-SW (09888 HK) [6] Core Views - Baidu's core advertising and iQIYI businesses are under short-term pressure, with 2024-2026 non-GAAP net profit forecasts revised downward to 26 1/27 2/29 8 billion yuan (previously 26 8/28 7/31 9 billion yuan), representing year-on-year growth rates of -9 3%/4 4%/9 4% [6] - The adjusted diluted EPS for 2024-2026 is projected at 9 0/9 3/10 0 yuan, with the current stock price of 76 65 HKD corresponding to 2024-2026 P/E ratios of 7 8/7 6/7 1 times [6] - Future growth is expected to be driven by macroeconomic recovery, AI product monetization, and the expansion of autonomous driving in key regions [6] Financial Performance - Baidu's 2024Q3 revenue declined by 3% year-on-year, in line with Bloomberg consensus expectations, while non-GAAP net profit fell 19% to 5 9 billion yuan, below the Bloomberg consensus of 6 2 billion yuan due to iQIYI's underperformance [7] - Baidu Core online marketing revenue decreased by 4% year-on-year in 2024Q3, underperforming the broader internet advertising market, which grew by 5 5% according to QuestMobile data [7] - AI and intelligent cloud revenue grew by 11% year-on-year in 2024Q3, with AI cloud accounting for approximately 11% of the total [7] - Autonomous driving platform Apollo Go saw a 20% year-on-year increase in ride volume in 2024Q3 [7] - iQIYI's revenue declined by 10% year-on-year in 2024Q3, with operating profit margin down by 6 percentage points [7] Business Outlook - Short-term advertising growth is pressured by weak SME client demand, increased competition, and the company's strategic shift towards AI-generated content [8] - AI is expected to enhance advertising monetization efficiency and drive cloud demand growth [8] - Autonomous driving business model validation is anticipated, with a focus on achieving breakeven in key regions [8] - AI cloud is projected to achieve higher steady-state profit margins compared to traditional businesses [8] Financial Projections - Revenue is forecasted to decline by 1 6% in 2024, followed by growth of 5 7% and 5 2% in 2025 and 2026, respectively [10] - Non-GAAP net profit is expected to decrease by 9 3% in 2024, then grow by 4 4% and 9 4% in 2025 and 2026, respectively [10] - Gross margin is projected to be 50 4% in 2024, improving to 51 2% in 2025 before declining to 42 7% in 2026 [10] - Net margin is expected to remain stable at around 19 7%-20 2% from 2024 to 2026 [10] - ROE is forecasted to decline from 10 7% in 2024 to 9 7% in 2026 [10]

Investment Rating - The report maintains a "Buy" rating for the company, citing its potential for revenue growth and profitability improvements [2][7] Core Views - The company's revenue growth is driven by its integration with Taotian, which is expected to enhance customer ARPU and attract new clients [2][5] - Cost reduction measures have significantly improved profitability, with adjusted net profit increasing by 205.1% YoY in 2024Q3 [6] - The company is expected to achieve revenue of 180.3 billion, 196.0 billion, and 211.2 billion RMB in 2024, 2025, and 2026, respectively, with adjusted net profit margins of 4.0%, 4.1%, and 4.2% [7] Revenue Breakdown - In 2024Q3, the company's total revenue reached 44.4 billion RMB, a 6.6% YoY increase [5] - Integrated supply chain revenue was 20.7 billion RMB, with internal revenue from JD Group growing 8.1% YoY to 12.79 billion RMB, while external revenue was 7.87 billion RMB, with customer numbers up 9.4% but ARPU down 7.4% [5] - Other customer revenue grew 7.6% YoY to 23.7 billion RMB, supported by improved service capabilities and expanded air routes [5] Cost Efficiency - In 2024Q3, employee benefits, outsourcing costs, rental costs, depreciation, and other operating costs were 14.6 billion, 15.0 billion, 3.1 billion, 1.1 billion, and 5.4 billion RMB, respectively, with changes of +4.8%, +2.7%, 0.0%, +10.0%, and -5.3% YoY [6] - Gross margin improved to 11.7%, up 3.8 percentage points YoY, driven by automation, optimized vehicle scheduling, and network structure improvements [6] Future Outlook - The company plans to enhance service quality by increasing transportation routes and frontline staff, while exploring opportunities in industrial belts [7] - Integration with Taotian is expected to provide a new revenue stream, contributing to future growth [7]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [2][12]. Core Insights - The company reported a revenue of HKD 8.31 billion for the first half of FY25, a year-on-year decrease of 7.1%, while the net profit attributable to shareholders was HKD 1.14 billion, reflecting a slight increase of 0.3% year-on-year [3]. - The company continues to maintain a favorable dividend payout ratio of 51.1%, with a dividend of HKD 0.15 per share [3]. - Domestic sales faced pressure due to a downturn in the real estate market and weak consumer spending, while overseas sales, particularly in Europe and other regions, showed significant growth [3]. Financial Performance Summary - For FY25H1, domestic sales decreased by 17.2%, while North America and Europe saw increases of 5.7% and 37.7%, respectively [3]. - The company’s gross profit margin improved to 39.5%, up 0.4 percentage points year-on-year, primarily due to a decrease in raw material costs [3]. - The net profit margin increased by 1.0 percentage point to 13.7% in FY25H1 [3]. Future Outlook - The domestic furniture consumption subsidy policy is expected to improve sales, with furniture retail sales showing a year-on-year increase of 0.4% and 7.4% in September and October, respectively [3]. - The U.S. market is anticipated to benefit from interest rate cuts, which may boost the real estate sector, while the company’s overseas production capacity and manageable tariff risks position it well for continued growth [3]. - Earnings per share (EPS) forecasts for FY25, FY26, and FY27 are projected at HKD 0.59, HKD 0.64, and HKD 0.70, respectively, with corresponding price-to-earnings (P/E) ratios of 8X, 7X, and 7X [3][6].

Investment Rating - The report assigns a "Buy" rating for the company, Yuanyuan Group, marking its first coverage [6][11]. Core Insights - Yuanyuan Group is the world's largest sports shoe manufacturer and has a deep layout in the global sports retail industry, with a low valuation and high dividend yield. The company is expected to experience a recovery in manufacturing business profitability and a gradual improvement in retail business performance [6][8][11]. - The company has shown a significant improvement in its operational performance in the first three quarters of 2024, with revenue and net profit growth [6][8][11]. Summary by Sections Company Overview - Yuanyuan Group, established in 1988, has evolved from a sandal and slipper manufacturer to the largest sports and outdoor shoe manufacturer globally, collaborating with top brands like Nike and Adidas [65]. - The company has faced challenges due to external market fluctuations and the impact of the pandemic on retail operations, but strategic adjustments have begun to yield positive results [65][66]. Manufacturing and Retail Business - The manufacturing segment contributes over 60% of the company's revenue, with a focus on optimizing customer and order structures to enhance efficiency [71]. - The retail segment, operated through its subsidiary Baosheng International, has faced short-term pressures but is expected to recover as the domestic retail environment improves [6][8][11]. Financial Performance - The company has maintained a stable revenue growth rate of 0.4% from 2013 to 2023, although net profit has seen a compound annual decline of 4.5% during the same period [71][73]. - For the forecast period of 2024-2026, the company expects net profits of $444 million, $536 million, and $600 million, respectively, with corresponding price-to-earnings ratios of 8, 6, and 6 times [6][11]. Market Demand and Competitive Landscape - The global demand for sports shoes is expected to grow, with a compound annual growth rate of 5.4% from 2009 to 2023, outpacing other footwear categories [92][94]. - The competitive landscape is intensifying, with major brands like Nike and Adidas maintaining significant market shares, while emerging brands are gradually increasing their presence [90][96].

Investment Rating - Buy (Maintained) [1] Core Views - YiduCore empowers full-scenario solutions, driving continuous profitability with adjusted EBITDA of RMB 27 million in FY1H25 [1] - Revenue declined by 7.6% YoY to RMB 329 million, primarily due to lower income from Life Science Solutions (LSS) and Health Management Platform and Solutions (HMPS) segments [1] - Gross margin decreased by 2.6pct to 35.6%, mainly due to changes in product mix [1] - Net loss attributable to shareholders narrowed to RMB 43 million from RMB 76 million in the same period last year [1] Business Segment Performance Big Data Platform Solutions (BDPS) - Revenue increased by 4.5% YoY to RMB 134 million, driven by YiduCore's full-scenario solutions [1] - Gross margin decreased by 7.8pct to 37.4% due to product mix changes [1] - YiduCore analyzed over 5.5 billion medical records from 1.1 billion patients and covered more than 2,800 hospitals [1] - The company launched a "Big Data + Large Language Model" dual-middle platform solution, focusing on a 70-billion-parameter model for medical vertical applications [1] Life Science Solutions (LSS) - Revenue decreased by 15.0% YoY to RMB 145 million, but gross margin improved by 1.9pct to 29.7% [1] - The top 20 multinational pharmaceutical companies are clients, with a customer retention rate of 117.45% [1] - The company's clinical trial solutions address industry pain points such as long timelines, high costs, and low success rates in drug development [1] Health Management Platform and Solutions (HMPS) - Revenue decreased by 12.4% YoY to RMB 51 million, with gross margin declining by 5.4pct to 47.8% [1] - The company maintained its leading position in "Huiminbao" business in core Chinese cities, with over 90% of users located in the top 15 GDP-ranked provinces [1] - The "Happy Health Tech" mini-program, integrated with the "Huiminbao" platform, was launched to enhance claims efficiency [1] Financial Forecasts and Valuation - Revenue forecasts for FY25-27 were revised downward by 11.0%/17.4%/23.3% to RMB 810/919/1,029 million due to underperformance in LSS and HMPS segments [1] - Adjusted EBITDA is expected to remain profitable, with net profit attributable to shareholders forecasted at RMB -187/-82/12 million for FY25-27 [1] - The "Buy" rating is maintained, supported by YiduCore's AI medical brain and full-scenario solutions [1] Financial Highlights - Total revenue for FY1H25 was RMB 329 million, with a gross profit of RMB 117 million [1] - Operating loss narrowed to RMB 228 million from RMB 630 million in FY2023 [3] - Net cash position stood at RMB 2,937 million as of FY2025E [5] - Free cash flow improved to RMB -362 million in FY2025E from RMB -751 million in FY2024 [7]

Company Overview - Current stock price of WH Group (0288 HK) is HKD 6 43 with a total market capitalization of HKD 82 5 billion [2] - The stock has a 52-week price range of HKD 6 50 to HKD 4 41 and an average daily trading volume of HKD 172 6 million over the past 3 months [2] Smithfield Spin-off and Valuation Potential - WH Group plans to spin off its US subsidiary Smithfield for an independent listing on a US exchange with an expected issuance of up to 20% of shares [4] - Post-listing WH Group will retain at least 80% ownership in Smithfield which will continue to be fully consolidated in WH Group's financials [4] - Smithfield's minimum valuation is expected to be no less than its net asset value of USD 5 38 billion as of September 30 [4] - WH Group shareholders will receive a dividend in kind equivalent to 0 35% to 0 45% of Smithfield's enlarged issued share capital [4] - Smithfield's revenue and net profit for 2022 2023 were USD 16 2 billion USD 14 6 billion and USD 724 million USD -70 million respectively [5] - For the first 9 months of 2024 Smithfield reported revenue and profit of USD 10 19 billion and USD 61 million respectively with a post-tax loss of USD 10 million [5] - Smithfield's minimum valuation implies a P E ratio of 8x compared to Tyson and Hormel's 14x P E [5] Financial Performance - WH Group's revenue for 2020 2021 2022 2023 and H1 2024 were USD 25 589 million USD 27 293 million USD 28 136 million USD 26 236 million and USD 12 293 million respectively [6] - Net profit attributable to shareholders for the same periods were USD 828 million USD 1 068 million USD 1 370 million USD 629 million and USD 784 million [6] - Net profit margins were 3 2% 3 9% 4 9% 2 4% and 6 4% respectively [6] - P E ratios were 13x 10x 8x 17x and 8x respectively [6] Industry and Market Context - US hog prices have shown a significant year-over-year recovery in 2024 [9] - Soybean meal prices in the first 10 months of 2024 decreased by 28% year-over-year [12] - Corn prices in the first 10 months of 2024 decreased by 16% year-over-year [12] Peer Comparison - WH Group's 2024E revenue and net profit are forecasted at USD 25 7 billion and USD 1 42 billion respectively with a P E of 7x [12] - Shuanghui Development's 2024E revenue and net profit are forecasted at USD 5 89 billion and USD 5 1 billion respectively with a P E of 15x [12] - Tyson Foods' 2024E revenue and net profit are forecasted at USD 53 6 billion and USD 1 22 billion respectively with a P E of 18x [12] - Hormel's 2024E revenue and net profit are forecasted at USD 12 2 billion and USD 930 million respectively with a P E of 18x [12]

Investment Rating - The investment rating for the company is "Buy" (maintained) [8] Core Views - The company reported a revenue of HK$8.305 billion for H1 of the fiscal year 24/25, representing a year-on-year increase of 7.08%, with a net profit of HK$1.139 billion, showing a slight increase of 0.3% [2] - The gross margin improved to 39.5%, up by 0.4 percentage points year-on-year, while the net margin increased to 13.7%, up by 1.0 percentage points, indicating a significant enhancement in profitability [2][6] - The company has a dividend payout ratio of 51.1%, with a current dividend yield of 6-7% [2] Domestic Sales - Revenue from the Chinese market was HK$4.975 billion, down 17.2% year-on-year (excluding real estate), primarily due to declining consumer confidence [3] - Offline store revenue decreased by 14.9% to HK$3.487 billion, despite an increase of 280 stores to a total of 7,516, focusing on lower-tier markets and new cities [3] - Online sales fell by 21.6% to HK$1.007 billion, with efforts to enhance brand influence through live streaming and collaborations with key influencers [3] International Sales - Revenue from the North American market reached HK$2.154 billion, up 5.7%, with sales volume increasing by 18% despite a price drop of 10.2% [4] - Revenue from Europe and other overseas markets surged by 37.7% to HK$733 million, driven by a decrease in raw material costs [4] Product Categories - Revenue from sofas and accessories was HK$5.817 billion, down 5.83%, with total sales volume of 908,000 units, a 3.0% increase year-on-year [5] - Domestic sofa revenue decreased by 15.6%, while export sales volume increased by 22.8% [5] - Revenue from bedding (entirely domestic) fell by 18.95% to HK$1.209 billion due to insufficient domestic consumption [5] Financial Metrics - The gross margin was 39.5%, up 0.4 percentage points, primarily due to declining raw material prices [6] - The total expense ratio decreased to 22.91%, down 1.1 percentage points year-on-year [6] - The net profit margin improved to 13.7%, exceeding expectations [6] Earnings Forecast and Valuation - The company is expected to achieve revenues of HK$17.647 billion, HK$18.698 billion, and HK$19.826 billion over the next three fiscal years, with a projected decline of 4% in the first year [7]

Company Rating - The report assigns a "Buy" rating to Alibaba Pictures (01060 HK) with a current price of 0 41 HKD and a fair value of 0 65 HKD [1][2][3] Core Views - Alibaba Pictures reported FY25H1 revenue of 3 051 billion RMB, up 16 64% YoY, with adjusted EBITA of 642 million RMB, up 39 23% YoY, driven by the consolidation of Damai since November 30, 2023 [6] - FY25H1 content business revenue declined 17 30% YoY to 1 224 billion RMB due to a weak film market, with domestic box office down 38% YoY [6] - Ticketing and tech platform revenue surged 138 60% YoY to 1 227 billion RMB, with Damai maintaining a dominant position in the live entertainment ticketing market [6] - IP derivatives and other business revenue decreased 3 42% YoY to 599 million RMB, but segment profit grew 5 83% YoY to 176 million RMB [6] Financial Forecasts - Revenue is projected to grow to 6 004 billion RMB in FY25, 7 454 billion RMB in FY26, and 8 428 billion RMB in FY27 [10] - Net profit attributable to shareholders is expected to reach 527 million RMB in FY25, 886 million RMB in FY26, and 1 058 billion RMB in FY27 [10] - The report values Alibaba Pictures at 20x FY26 PE, implying a fair value of 0 65 HKD per share [6] Business Segments - Content business: Revenue is forecasted at 2 484 billion RMB in FY25, 3 392 billion RMB in FY26, and 3 905 billion RMB in FY27, with segment profit margins recovering to 14% in FY26 and FY27 [13][14] - Ticketing and tech platform: Revenue is expected to reach 2 477 billion RMB in FY25, 2 811 billion RMB in FY26, and 3 084 billion RMB in FY27, with segment profit margins stable at 60% [13][15] - IP derivatives and other: Revenue is projected at 1 042 billion RMB in FY25, 1 251 billion RMB in FY26, and 1 439 billion RMB in FY27, with segment profit margins steady at 27% [13][16] Market Outlook - The domestic film market is expected to recover in FY26, with total box office (including service fees) forecasted at 45 billion RMB in FY25, 55 billion RMB in FY26, and 60 billion RMB in FY27 [20] - Alibaba Pictures has a strong pipeline of 35 films in production and 35 films in development, including major titles scheduled for release during the 2025 Spring Festival [14]

Investment Rating - The report maintains a **Buy** rating for China Taiping Insurance (966 HK) with a target price increase to **HKD 15.0**, representing a potential upside of **25.4%** [1][2] Core Views - The company's **2024 full-year profit growth** is expected to accelerate compared to the first half, driven by a low base in the second half of 2023 [1] - **New business value (NBV)** growth is projected to remain ahead of peers, with a **56% YoY increase** in 2024, following an **85.5% YoY growth** in the first half of 2024 [2] - The report highlights that **fiscal policy support** is expected to continue, which will benefit the company's asset-side performance [2] Profit Forecast Adjustments - **NBV** for 2024E is revised upward by **3.2%** to **HKD 11,694 million**, while the **NBV margin** is adjusted up by **0.6 percentage points** to **31.2%** [3] - **Embedded value (EV)** for 2024E is slightly increased by **0.1%** to **HKD 221,422 million**, with a similar adjustment for **life insurance EV** [3] - **Return on average equity (ROAE)** for 2024E is adjusted downward by **0.1 percentage points** to **8.8%** [3] Financial Projections - **Net profit attributable to shareholders** is expected to grow by **40.3% YoY** in 2024E, reaching **HKD 8,685 million**, followed by a **3.7% increase** in 2025E [6] - **Total investment yield** is projected to improve to **4.01%** in 2024E, up from **2.66%** in 2023 [6] - **Combined ratio** for 2024E is forecasted at **97.5%**, consistent with the previous estimate [3] Key Metrics - **Life insurance premium service income** is expected to grow by **5.0%** in 2024E, while **property insurance premium service income** is projected to increase by **3.0%** [6] - **Contractual service margin (CSM)** for 2024E is estimated at **HKD 210,829 million**, with a **0.2% YoY growth** [6] - **Dividend per share** is forecasted to increase to **HKD 0.40** in 2024E, up from **HKD 0.30** in 2023 [6] Peer Comparison - Among peers, China Taiping Insurance has the **second-highest potential upside** of **25.4%**, following China Life Insurance (2628 HK) with **31.4%** [10] - The company is categorized as a **mainland life insurer**, alongside peers such as Ping An Insurance (2318 HK) and China Pacific Insurance (2601 HK) [10]

Investment Rating - The report maintains an "Outperform" rating for Baidu Group-SW (09888 HK) [4] Core Views - Baidu's total revenue in Q3 2024 was RMB 33 5 billion, down 3% YoY, with adjusted net profit attributable to shareholders of RMB 5 9 billion, down 19% YoY [2] - Baidu Core revenue remained flat YoY at RMB 26 5 billion, while iQIYI revenue decreased by 10% YoY to RMB 7 2 billion [2] - Baidu Core's advertising revenue declined by 5% YoY, with 20% of search results generated by AI (up from 18% in August) and 70% of MAUs using generative search [2] - AI and large language models (LLMs) contributed incremental revenue to the advertising system, with approximately 20,000 advertisers generating daily ad spend [2] - Baidu's intelligent cloud revenue grew by 11% YoY to RMB 5 billion, with AI contributing 11% of total intelligent cloud revenue [5] - Apollo Go provided approximately 988,000 rides in Q3 2024, a 20% YoY increase, with cumulative rides exceeding 8 million in October [5] Financial Performance - Baidu Group's adjusted net profit margin remained stable at 18%, with Baidu Core's adjusted net profit margin at 21% [2] - Baidu Core's online marketing revenue was RMB 18 8 billion, down 5% YoY, while non-online marketing revenue increased by 12% YoY to RMB 7 7 billion [8] - Baidu Core's adjusted net profit attributable to shareholders was RMB 5 7 billion, down 18% YoY [8] - Baidu APP's MAUs reached 704 million in September 2024, a 6% YoY increase [16] AI and Cloud Business - AI model inference costs were optimized, with ERNIE processing 1 7 trillion tokens daily, up from 600 million in August [5] - The proportion of unmanned driving operations exceeded 70% nationwide in Q3 2024 and surpassed 80% in October, reaching 100% in Chongqing [5] - Baidu's intelligent cloud business maintained double-digit growth, with AI contributing 11% of total revenue [27] Financial Forecasts - Revenue is expected to grow from RMB 134 6 billion in 2023 to RMB 162 9 billion in 2026, with a CAGR of 7 1% [3] - Adjusted net profit attributable to shareholders is forecasted to be RMB 28 6 billion in 2024, RMB 31 billion in 2025, and RMB 33 2 billion in 2026 [30] - The adjusted EPS is projected to increase from RMB 10 19 in 2024 to RMB 11 82 in 2026 [3] Valuation - The report assigns a fair value range of HKD 100 00 to HKD 120 00 for Baidu Group-SW [4] - The current share price is HKD 76 65, with a total market capitalization of HKD 215 02 billion [4]