Investment Rating - The investment rating for the company is "Outperform the Market" [4][18]. Core Insights - The company reported a 22% year-on-year increase in adjusted net profit for Q3 2024, exceeding Bloomberg consensus expectations. Revenue for Q3 reached 15.87 billion yuan, a 15.5% increase, also surpassing expectations [2][7]. - The domestic business is showing strong performance during the peak season, with significant growth in hotel bookings and international travel. The company is expected to continue expanding its market share in the domestic hotel sector [2][8]. - The international business is recovering rapidly, with outbound flight and hotel bookings surpassing 120% of 2019 levels, indicating a strong competitive advantage [2][8]. Financial Performance Summary - For 2024, the company expects revenues of 52.93 billion yuan, with a year-on-year growth of 18.9%. The adjusted net profit is projected to be 17.36 billion yuan, reflecting a 32.8% increase [3][14]. - The company’s EBITDA for Q3 was 5.68 billion yuan, a 22.9% increase, indicating improved operational efficiency and cost management [2][7]. - The company’s earnings per share (EPS) for 2024 is estimated at 25.40 yuan, with a price-to-earnings (P/E) ratio of 18.2 [3][14]. Business Segment Performance - Accommodation booking revenue reached 6.80 billion yuan, up 22%, while transportation ticketing revenue was 5.65 billion yuan, a 5% increase. The travel vacation segment generated 1.56 billion yuan, reflecting a 17% increase [2][8]. - The company is focusing on enhancing its international platform, with plans to increase marketing investments in Q4 to capitalize on the overseas travel peak season [2][8]. Future Outlook - The company has revised its revenue forecasts for 2024-2026 to 52.93 billion, 61.71 billion, and 71.25 billion yuan, respectively, indicating a positive growth trajectory [2][8]. - The adjusted net profit estimates for the same period have been increased to 17.36 billion, 19.72 billion, and 22.90 billion yuan, respectively, reflecting strong operational performance [2][8].

Investment Rating - The report maintains a "Recommend" rating for the company [4][9] Core Views - The company's Q3 2024 revenue reached RMB 4.99 billion, a YoY increase of 51.3%, exceeding expectations [2] - Core OTA business revenue was RMB 4.01 billion, up 21.6% YoY, in line with expectations [2] - Net profit attributable to shareholders was RMB 790 million, a YoY increase of 55.5% [2] - Non-GAAP net profit was RMB 910 million, up 46.6% YoY [2] - Hotel take rate improvement drove revenue growth in the accommodation booking segment, with international room nights increasing by 130% YoY [2] - Transportation ticketing revenue reached a historical high of RMB 2.03 billion, driven by a 110% YoY increase in international air ticket volume [2] - Other revenue grew 23.7% YoY to RMB 610 million, supported by strong growth in hotel management and online vacation businesses [2] - The company's average monthly paying users reached 46.4 million, a 5% YoY increase, with ARPU rising to around RMB 70, up RMB 6 QoQ [3] - Non-GAAP net margin was 18%, with core OTA platform margin reaching 31%, a post-pandemic high [3] Financial Forecasts - Revenue is expected to grow from RMB 17.212 billion in 2024E to RMB 24.166 billion in 2026E, with a CAGR of 18.5% [6] - Non-GAAP net profit is projected to increase from RMB 2.732 billion in 2024E to RMB 4.468 billion in 2026E [6] - Adjusted diluted EPS is forecasted to grow from RMB 1.18 in 2024E to RMB 1.92 in 2026E [6] - The company's P/E ratio is expected to decline from 14.01X in 2024E to 8.57X in 2026E [6] Business Performance - Accommodation booking revenue grew 22.2% YoY to RMB 1.38 billion, outperforming ADR and overall hotel industry growth [2] - Vacation segment revenue reached RMB 980 million [2] - The company has 230 million annual paying users and 1.88 billion annual cumulative service users, up 3.4% and 19.9% YoY respectively [3] - Gross margin was 63% in Q3 2024, down 11.2 ppts YoY but only 1.2 ppts QoQ [3] - Sales and marketing expenses as a percentage of revenue decreased by 9.1 ppts YoY to 29% [3]

Investment Rating - The report maintains a "Recommend" rating for the company, with an adjusted PE of 17X/16X/13X for 2024-2026 [3][7] Core Views - The company's Q3 2024 performance exceeded expectations, with revenue reaching RMB 15.9 billion, a 16% YoY increase, and net profit attributable to shareholders of RMB 6.8 billion, a 47% YoY increase [2] - The strong summer travel demand drove high growth across all business segments, with accommodation booking revenue increasing by 22% YoY and 32% QoQ to RMB 6.8 billion [2] - Outbound travel business recovery surpassed market levels, reaching 120% of 2019 levels, with international OTA platform revenue growing 60% YoY, accounting for 9% of total revenue [2] - The company's gross margin improved to 82%, driven by the strong growth of hotel booking and international business segments, with Non-GAAP net profit margin reaching 38%, the highest in nearly a decade [3] Business Segments - Accommodation booking: Revenue of RMB 6.8 billion, up 22% YoY and 32% QoQ [2] - Transportation ticketing: Revenue of RMB 5.7 billion, up 5% YoY and 16% QoQ [2] - Travel vacation: Revenue of RMB 1.6 billion, up 17% YoY and 52% QoQ [2] - Corporate travel management: Revenue of RMB 700 million, up 11% YoY and 4% QoQ [2] Financial Projections - Revenue is expected to grow to RMB 52.4 billion in 2024, RMB 60.5 billion in 2025, and RMB 69.0 billion in 2026, with growth rates of 17.7%, 15.5%, and 14.0% respectively [5] - Non-GAAP net profit is projected to be RMB 19.2 billion in 2024, RMB 20.4 billion in 2025, and RMB 24.4 billion in 2026 [5] - Adjusted diluted EPS is forecasted to be RMB 28.04 in 2024, RMB 29.77 in 2025, and RMB 35.66 in 2026 [5] Profitability and Efficiency - The company's gross margin is expected to remain stable at around 82% from 2024 to 2026 [12] - Non-GAAP net profit margin is projected to increase from 32.99% in 2024 to 32.96% in 2026 [12] - ROE is forecasted to improve from 12.39% in 2024 to 12.57% in 2026, reflecting enhanced profitability and operational efficiency [12]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group [5][7]. Core Views - Xiaomi Group's Q3 2024 revenue reached 92.5 billion, a year-on-year increase of 30.5% [2]. - The company is expected to see continued growth in smartphone market share, improved cost cycles, and expansion in IoT and automotive sectors [3][4]. Summary by Sections Financial Performance - Q3 2024 revenue breakdown: smartphones 47.5 billion, IoT 26.1 billion, internet services 8.5 billion, and automotive 9.7 billion [2]. - Adjusted net profit for the quarter was 6.25 billion, with automotive segment showing an adjusted loss of 1.5 billion [2]. Smartphone Segment - Xiaomi's smartphone shipments in Q3 2024 were 43.1 million units, ranking third globally with a market share of approximately 13.8% [3]. - The domestic market share increased to 14.7%, with strong performance in Africa and Latin America [3]. - The average selling price (ASP) of domestic smartphones reached 1,101 yuan, with a high-end product ratio of 20.1% [3]. IoT Segment - IoT revenue for Q3 2024 was 26.1 billion, up 26% year-on-year, with a record gross margin of 20.8% [4]. - The shift from an ecosystem model to self-developed products is expected to enhance quality and cost efficiency [4]. Automotive Segment - As of November 13, 2024, Xiaomi has produced 100,000 vehicles, with a delivery target of 130,000 for the year [4]. - The automotive gross margin is anticipated to improve due to increased delivery scale and batch changes [4]. Future Projections - Revenue forecasts for 2024-2026 are 356.8 billion, 456.8 billion, and 529.9 billion respectively, with year-on-year growth rates of 32%, 28%, and 16% [5]. - Adjusted net profit for the core consumer electronics business is projected to be 31.7 billion, 35.9 billion, and 42.2 billion for the same period [5]. Valuation - The report estimates a target price of 33 HKD for Xiaomi Group based on a P/E ratio of 15x for the consumer electronics segment and a P/S ratio of 2x for the automotive segment [5].

Investment Rating - The report maintains a "Buy" rating for the company [3][19]. Core Insights - The company's total revenue for Q3 2024 reached 7.31 billion CNY, representing a year-over-year increase of 26% and a quarter-over-quarter increase of 19%. The growth was primarily driven by advertising and gaming businesses [1]. - The gross margin for Q3 2024 was 34.9%, an increase of 9.9 percentage points year-over-year and 5.6 percentage points quarter-over-quarter. Non-GAAP operating profit turned positive for the first time at 272 million CNY, with expectations of reaching 400 million CNY in Q4 2024 [1][2]. - The advertising revenue for Q3 2024 was 2.09 billion CNY, up 28% year-over-year and 3% quarter-over-quarter, contributing to an increase in overall gross profit [1][2]. - The gaming revenue for Q3 2024 was 1.82 billion CNY, showing a significant year-over-year increase of 84% and a quarter-over-quarter increase of 81%, mainly due to the performance of the new game "Three Kingdoms: Strategize the World" [1][2]. Summary by Sections Financial Performance - Q3 2024 total revenue: 7.31 billion CNY (yoy +26%, qoq +19%) [1]. - Q3 2024 gross margin: 34.9% (yoy +9.9pp, qoq +5.6pp) [1]. - Q3 2024 Non-GAAP operating profit: 272 million CNY, first positive result [1]. - Q4 2024 revenue forecast: 7.66 billion CNY (yoy +20.67%, qoq +4.86%) [7]. Revenue Breakdown - Advertising revenue in Q3 2024: 2.09 billion CNY (yoy +28%, qoq +3%) [1]. - Live streaming and VAS revenue in Q3 2024: 2.82 billion CNY (yoy +9%, qoq +10%) [1]. - Gaming revenue in Q3 2024: 1.82 billion CNY (yoy +84%, qoq +81%) [1]. Future Projections - Revenue projections for 2024-2026: 26.76 billion CNY (2024), 31.47 billion CNY (2025), 34.11 billion CNY (2026) [2][11]. - Target price set at 166.43 HKD (approximately 153.73 CNY) based on a 2.4x adjusted PS ratio for 2024 [2].

Investment Rating - The report maintains a "Buy" rating for Tongcheng Travel (0780.HK) [5] Core Insights - Tongcheng Travel reported a significant revenue growth of 51.3% year-on-year in Q3 2024, reaching 4.992 billion CNY, driven by strong performance in its core OTA business and vacation services [3] - The adjusted EBITDA for Q3 2024 was 1.319 billion CNY, reflecting a 51.6% increase year-on-year, while the adjusted net profit was 910 million CNY, up 46.6% year-on-year [3] - The company continues to deepen its market penetration, particularly in lower-tier cities, with over 87% of registered users from non-first-tier cities [3] Financial Performance - Q3 2024 revenue breakdown: accommodation booking revenue was 1.378 billion CNY (+22.2% YoY), transportation ticketing revenue was 2.027 billion CNY (+20.64% YoY), and other core OTA revenues were 609 million CNY (+23.7% YoY) [3] - The net profit margin for Q3 2024 was 18.2%, slightly down by 0.6 percentage points compared to the same period last year [3] - The company’s sales costs increased significantly by 117.55% year-on-year to 1.827 billion CNY, primarily due to rising costs in vacation service products and increased employee benefits [3] User Growth and Market Strategy - The average monthly paying users reached 46 million, a 5% increase year-on-year, while annual paying users totaled 232 million, up 3.4% year-on-year [3] - The report highlights the collaboration with Tencent and Alipay as a key factor in user growth, particularly in lower-tier markets [3] - The company aims to enhance its competitive advantage through mergers and acquisitions, expanding its presence in accommodation, vacation, and outbound travel sectors [3] Future Projections - The projected net profits for Tongcheng Travel are expected to be 1.942 billion CNY in 2024, 2.485 billion CNY in 2025, and 2.958 billion CNY in 2026, with corresponding P/E ratios of 20x, 16x, and 13x respectively [3][4]

Investment Rating - The report maintains a "Buy" rating for Trip.com Group (9961.HK) [6] Core Views - The company reported Q3 2024 net revenue of 15.873 billion RMB, a year-over-year increase of 15.5%, exceeding Bloomberg consensus expectations [1] - The net profit attributable to shareholders reached 6.765 billion RMB, up 46.6% year-over-year, with Non-GAAP net profit at 5.963 billion RMB, a 21.8% increase year-over-year, significantly surpassing the consensus estimate of 4.773 billion RMB [1][2] - The company’s gross margin for Q3 was 82.4%, with a Non-GAAP operating profit margin of 34.4%, reflecting strong cost control and profitability [2] Revenue and Profitability - Revenue breakdown shows hotel accommodation at 6.802 billion RMB (up 21.7% YoY), transportation ticketing at 5.650 billion RMB (up 5.3% YoY), and vacation revenue at 1.558 billion RMB (up 17.3% YoY) [2] - The company’s international OTA platform saw hotel and flight bookings increase by over 60% year-over-year, indicating robust growth in international markets [2][3] Market Performance - The Asia-Pacific region remains the primary market for Trip.com, with booking volumes growing over 70% [3] - The company has also seen a 100% year-over-year increase in inbound hotel orders, with some hotels participating in overseas promotions experiencing over 200% growth in bookings [3] Financial Forecast - The report projects Non-GAAP net profits for FY2024, FY2025, and FY2026 to be 17.417 billion RMB, 18.997 billion RMB, and 21.407 billion RMB respectively, with corresponding Non-GAAP EPS of 25.48 RMB, 27.79 RMB, and 31.32 RMB [3][5] - The adjusted P/E ratios for the same periods are forecasted to be 18x, 17x, and 15x [3][5] Conclusion - The report expresses optimism regarding the company's ability to outperform the industry in outbound tourism, supported by its strong brand and user base [3]

Investment Rating - Buy (Maintained) [2] Core Views - The company's gaming revenue has consistently exceeded expectations, and the WPS B-end business is showing signs of recovery [6] - The company's 2024Q3 revenue was 2.915 billion yuan, a year-on-year increase of 41.5%, with net profit attributable to the parent company reaching 413 million yuan, significantly surpassing expectations [6] - The gaming business, driven by "JX3," saw a year-on-year increase of 77.7% to 1.71 billion yuan in 2024Q3 [6] - WPS B-end business is expected to recover, with institutional subscription revenue stabilizing and showing a 23.8% quarter-on-quarter increase [6] - The company's 2024-2026 net profit forecasts have been revised upward to 1.796/2.052/2.450 billion yuan, with year-on-year growth rates of 271.5%/14.3%/19.4% respectively [6] Financial Performance - 2024Q3 revenue: 2.915 billion yuan, up 41.5% YoY [6] - 2024Q3 net profit: 413 million yuan, compared to 28.49 million yuan in the same period last year [6] - Gaming revenue in 2024Q3: 1.71 billion yuan, up 77.7% YoY [6] - WPS B-end subscription revenue: Stabilized with a 23.8% quarter-on-quarter increase [6] - 2024-2026 net profit forecasts: 1.796/2.052/2.450 billion yuan, with YoY growth rates of 271.5%/14.3%/19.4% [6] Gaming Business - "JX3" drove a 77.7% YoY increase in gaming revenue to 1.71 billion yuan in 2024Q3 [6] - "JX3 Wujie" achieved full-platform data inheritance and interoperability, with 11.46 million monthly active users in its first month of public testing [6] - New expansion for "JX3" was released in late October 2024, expected to drive continued rapid growth in Q4 [6] - "Jie Xian Ji" began public testing in August 2024, with over 3 million global pre-registrations and ranked 17th on Steam's wishlist [6] WPS Business - WPS B-end business showed signs of recovery, with institutional subscription revenue stabilizing and increasing 23.8% quarter-on-quarter [6] - WPS AI 2.0 enhanced user experience, improving payment stickiness and conversion rates [6] - Institutional authorization revenue increased by 9.0% YoY and 9.4% quarter-on-quarter, indicating recovery in the Xinchuang business [6] - WPS Hongmeng version began public testing in October 2024, expected to drive future growth in the B-end business [6] Valuation Metrics - 2024-2026 diluted EPS: 1.34/1.54/1.83 yuan [6] - 2024-2026 P/E ratios: 22.0/19.3/16.1x [6] - 2024-2026 P/B ratios: 1.7x [6] - 2024-2026 ROE: 9.1%/10.3%/12.3% [6]

Investment Rating - Maintain "Overweight" rating [1] Core Views - Q3 revenue slightly exceeded the upper guidance range, with profits surpassing expectations: Q3 revenue reached 4,991 million yuan, up 51.6% YoY, slightly exceeding the guidance range of 45-50% [2] - User subsidies narrowed, leading to significant improvement in sales expense ratio: Q3 gross margin was 63.4%, down 14.8 pct YoY, while sales expense ratio improved to 29.4%, down 9.1 pct YoY [2] - Transportation and accommodation businesses showed steady growth: Core OTA segment revenue increased by 21.6% YoY, with transportation ticketing and accommodation booking revenues reaching 2,027 million yuan and 1,378 million yuan, respectively, both hitting historical highs [3] - Monthly paying users reached a new historical high, with continued penetration in lower-tier markets: As of Q3 2024, annual paying users reached 232 million, up 3.4% YoY, with over 87% of registered users residing in non-tier-1 cities [3] Financial Performance and Forecasts - Revenue and profit forecasts adjusted upward: Expected 2024-2026 net profit attributable to parent company adjusted to 2,093.75 million yuan, 2,648.42 million yuan, and 3,265.09 million yuan, respectively [4] - EPS and valuation metrics: 2024E EPS is 0.90 yuan per share, with a P/E ratio of 18.81x [1] - Key financial ratios: ROE expected to improve from 8.78% in 2023A to 12.70% in 2026E, with net profit margin projected to increase from 13.06% to 13.56% over the same period [14] Business Segments - Transportation ticketing and accommodation booking: Q3 revenue for transportation ticketing and accommodation booking grew by 20.6% and 22.2% YoY, respectively [3] - Vacation segment: Q3 vacation segment revenue reached 979 million yuan, exceeding the company's guidance of 900-950 million yuan [3] Market and User Metrics - User engagement: Q3 average monthly paying users reached 46 million, up 5.0% YoY, with transaction volume of 72.8 billion yuan, up 2.4% YoY [3] - Lower-tier market penetration: Approximately 70% of new paying users on the WeChat platform in Q3 came from non-tier-1 cities [3]

Investment Rating - The report initiates coverage with a "Buy" rating for the company, setting a target price of HKD 2.36 based on a 3x net present value (NPV) calculation [2][4]. Core Insights - The company is expected to benefit from a structural growth trend in nuclear power, leading to increased demand for natural uranium over the next decade. This is coupled with limited uranium supply, which is anticipated to keep uranium prices elevated in the coming years [2]. - The average uranium price is projected to rise to USD 85 per pound in 2024, representing a year-on-year increase of over 30%, with further annual increases of 8% expected in 2025 and 2026 [2]. - The company's net profit is forecasted to double by 2026 compared to 2023, despite a projected decline in net profit for 2024 due to increased tax expenses [4]. Summary by Sections Company Overview - The company holds stakes in four low-cost uranium mines located in Kazakhstan through joint ventures with Kazatomprom (KAP). The average mining cost for these mines ranges from USD 17 to 27 per pound, which is considered low on a global scale [3]. Financial Projections - For 2023, the company's net profit is expected to decline by 11% to HKD 440 million, primarily due to a significant increase in tax expenses. However, net profits are projected to rebound with increases of 52% and 63% in 2025 and 2026, respectively [4]. - The sensitivity analysis indicates that a 1% increase in uranium spot prices could lead to a 0.7% increase in net profit for the company [4]. Cost and Tax Considerations - The report notes an increase in Kazakhstan's mineral extraction tax (MET), which will rise from 6% in 2024 to 9% in 2025. However, the overall impact of the new tax regime is expected to be manageable due to the relatively small scale of the mines [3]. - Anticipated increases in production costs are projected at 12% and 9% for 2025 and 2026, respectively, due to tight sulfuric acid supply [3].