Investment Rating - The report assigns a rating of "Buy" for Tencent Holdings (0700) [1]. Core Insights - The third-quarter business performance is generally in line with expectations, with a recovery in gaming, smooth commercialization of video accounts, and short-term pressure on enterprise services. The company is expected to maintain high profit growth for the full year [3]. - The report anticipates that the integration of video accounts and WeChat stores will further enhance the WeChat ecosystem, driving advertising business growth. Deferred revenue from games is expected to gradually materialize, and enterprise services are likely to benefit from ecosystem openness [5]. Financial Summary - For FY24Q3, Tencent achieved operating revenue of 167.2 billion RMB, a year-on-year increase of 8.13%, which is in line with consensus expectations (167.9 billion RMB). Adjusted net profit reached 59.8 billion RMB, a year-on-year increase of 33.2%, significantly exceeding market expectations (54.4 billion RMB) [5]. - The gross profit margin for FY24Q3 was 53.1%, with year-on-year and quarter-on-quarter changes of +3.64% and -0.18%, respectively. The slight decline in the quarter was mainly due to a 2.65 percentage point decrease in advertising gross margin [5]. - The company expects to repurchase over 100 billion HKD worth of shares for the full year [5]. Segment Performance - Value-added services (VAS) revenue for FY24Q3 was 82.7 billion RMB, a year-on-year increase of 9.2%, with gaming revenue at 51.8 billion RMB, up 12.6%. Domestic and international gaming revenues were 37.3 billion RMB and 14.5 billion RMB, respectively [5]. - Social network revenue reached 30.9 billion RMB, a year-on-year increase of 3.9%, meeting expectations [5]. - Advertising revenue for FY24Q3 was 30 billion RMB, a year-on-year increase of 16.6%, with video account advertising revenue growing over 60% year-on-year [5]. - Enterprise services revenue for FY24Q3 was 53.1 billion RMB, a year-on-year increase of 2%, showing slower growth mainly due to overall macroeconomic impacts [5]. Operational Data - The WeChat ecosystem remains robust, with VAS paid user growth showing positive momentum. The number of WeChat and WeChat MAUs increased by 3% year-on-year [31]. - The number of paid accounts for value-added services increased by 9% year-on-year [31].

Investment Rating - Buy (Maintained) [1] Core Views - The company's cargo volume continues to grow, and profitability maintains rapid growth [1] - The company's strategic transformation has significantly improved profitability, and the scale effect is expected to further enhance unit gross profit [2] - The company's long-term development potential is promising, driven by service price increases and efficiency improvements [2] Financial Performance - In Q3 2024, the company achieved total revenue of RMB 3,044.1 million, a year-on-year increase of 21.2% [1] - Gross profit was RMB 476.3 million, up 66.7% year-on-year [1] - Adjusted pre-tax profit was RMB 284.1 million, a year-on-year increase of 39.2% [1] - Adjusted net profit was RMB 218.4 million, up 28.0% year-on-year [1] - Net profit was RMB 189.6 million, a year-on-year increase of 24.8% [1] Cargo Volume and Market Expansion - In Q3 2024, the company's cargo volume reached 3.73 million tons, up 18.5% year-on-year and 5.3% quarter-on-quarter [1] - The growth in cargo volume is attributed to the company's focus on service quality, network expansion, and enhanced franchise network ecosystem [1] - As of September 2024, the company had approximately 32,000 freight partners and agents, an increase of 4,000 compared to the same period in 2023 [1] - Mini-parcel (70 kg or less) and small-parcel (70-300 kg) cargo volumes grew by 37.3% and 22.6% year-on-year, respectively, driven by the "3300 policy" and e-commerce growth [1] Revenue and Cost Analysis - In Q3 2024, the company's LTL (Less Than Truckload) revenue per ton was RMB 815, up 2.3% year-on-year but down 0.7% quarter-on-quarter [3] - The quarter-on-quarter decline in revenue per ton is due to cost-oriented pricing strategies and the "3300 product policy" [3] - Cost per ton in Q3 2024 was RMB 687, down 2.7% year-on-year but up 0.9% quarter-on-quarter [3] - The company improved efficiency through centralized procurement and route optimization, reducing trunk transportation costs to RMB 297 per ton, down 1.8% quarter-on-quarter [3] - Distribution center costs were RMB 140 per ton, down 17% year-on-year but up 0.9% quarter-on-quarter [3] Future Outlook - The company is expected to achieve adjusted net profits of RMB 845 million, RMB 1.066 billion, and RMB 1.276 billion in 2024, 2025, and 2026, respectively [2] - The corresponding P/E ratios are 10.1x, 8.0x, and 6.7x for 2024, 2025, and 2026, respectively [2] - Long-term growth is expected to be driven by service quality improvements, cargo structure optimization, and cost efficiency [3] Market Performance - The company's closing price was HKD 7.90, with a one-year high/low of HKD 9.28/HKD 3.23 [2] - The total market capitalization was HKD 9,175.17 million, with a circulating market capitalization of HKD 9,175.17 million [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The new game cycle and the commercialization of the WeChat ecosystem are expected to continue driving growth for the company [1][3] - The company achieved a revenue of 487.8 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 7%, with a net profit of 142.7 billion yuan, up 62% year-on-year [3] - The report highlights strong performance in domestic gaming and marketing services, with significant contributions from popular games and advertising demand [3][5] Financial Performance Summary - For Q3 2024, the company reported revenue of 167.2 billion yuan (up 8% year-on-year) and a net profit of 53.2 billion yuan (up 47% year-on-year) [3] - The gross margin for Q3 2024 was 53% (up 4 percentage points year-on-year), driven by high-margin revenue growth from domestic gaming and video services [4] - The Non-IFRS net profit margin reached 35.8% in Q3 2024, an increase of 6.7 percentage points year-on-year [4] Growth Drivers - The company’s new games have shown strong performance, with titles like "DNF Mobile" consistently ranking at the top of the iOS sales charts [5] - The WeChat ecosystem's commercialization efficiency is improving, with the GMV of mini-programs exceeding 2 trillion yuan, reflecting a significant year-on-year growth [5] - The report anticipates continued revenue growth from new game launches and the expanding user base of the WeChat platform [5] Earnings Forecast - The earnings forecast for the company has been revised upwards, with expected net profits of 193 billion yuan, 217 billion yuan, and 236 billion yuan for 2024, 2025, and 2026 respectively [3] - Corresponding EPS estimates are 20.8 yuan, 23.4 yuan, and 25.5 yuan for the same years, with current price-to-earnings ratios of 17.9, 15.9, and 14.6 [3][6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved its first quarterly profit in Q3 2024, driven by continuous growth in gaming and advertising sectors [3][4] - Revenue for the first three quarters of 2024 reached 19.097 billion, a year-on-year increase of 18.04%, with Q3 revenue at 7.306 billion, up 25.85% year-on-year and 19.23% quarter-on-quarter [3] - The adjusted net profit for Q3 2024 was 236 million, marking a turnaround from previous losses [3] - The company is optimistic about the growth potential in gaming, membership, advertising, and IP monetization, leading to an upward revision of profit forecasts for 2024-2026 [3] Financial Performance - In Q3 2024, the gross margin was 34.9%, an increase of 9.9 percentage points year-on-year and 5 percentage points quarter-on-quarter [4] - The sales expense ratio was 16.5%, management expense ratio was 6.9%, and R&D expense ratio was 12.4%, indicating effective cost control [4] - The company expects net profits of -1.227 billion, 302 million, and 1.359 billion for 2024, 2025, and 2026 respectively, with corresponding EPS of -2.9, 0.7, and 3.2 [3][6] User Engagement and Growth - Daily Active Users (DAU) reached 1.07 million in Q3 2024, a year-on-year increase of 4%, while Monthly Active Users (MAU) reached 3.48 million, up 2% year-on-year [5] - The DAU/MAU ratio was 30.75%, indicating improved user engagement [5] - Average daily usage time per user was 106 minutes, a historical high, suggesting increased user retention and potential for enhanced monetization [5]

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4]. Core Views - The company's revenue for Q3 2024 reached 167.1 billion RMB, a year-on-year increase of 8.1%, primarily driven by growth in advertising and gaming businesses, while the fintech sector showed weakness due to macroeconomic factors [7][4]. - Adjusted operating profit for Q3 2024 was 61.3 billion RMB, up 19% year-on-year, with Non-IFRS net profit at 59.8 billion RMB, reflecting a 33% increase [7][4]. - The company is expected to continue releasing high-margin business potential as WeChat traffic is optimized, with significant transaction volume facilitated by mini-programs exceeding 2 trillion RMB in Q3 2024 [8][4]. Summary by Sections Advertising Business - In Q3 2024, the company's online advertising revenue was 30 billion RMB, a 17% increase year-on-year, benefiting from enhanced internal transaction capabilities and technological upgrades [13][4]. - Video account marketing services saw revenue growth of over 60%, significantly enhancing WeChat's transaction capabilities [13][4]. Gaming Business - The company's gaming revenue for Q3 2024 was 51.8 billion RMB, a 13% year-on-year increase, with deferred revenue at 106.6 billion RMB, up 20% [11][4]. - Domestic gaming revenue rose 14% to 37.3 billion RMB, with strong performances from titles like "Valorant" and "Honor of Kings" [11][4]. Financial Technology and Enterprise Services - Revenue from fintech and enterprise services grew 2% year-on-year to 53.1 billion RMB, with payment revenue decline offset by growth in wealth management services [14][4]. Financial Forecasts - The company maintains its profit forecasts, expecting adjusted net profits of 219.8 billion RMB, 248.2 billion RMB, and 272.9 billion RMB for 2024, 2025, and 2026 respectively [4][4].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price adjusted to HKD 160 / USD 103, reflecting a potential upside of 34% and 22% respectively from current prices [3][6][18]. Core Insights - The company's overall performance in Q3 2024 was slightly below expectations, with revenue of RMB 26.2 billion, a year-on-year decline of 3.9% but a quarter-on-quarter increase of 2.8%. This was 1.4% lower than market expectations. The adjusted net profit was RMB 7.5 billion, also below market expectations by 5.9% [1][3]. - The gaming segment showed mixed results, with total gaming revenue of RMB 20.2 billion, a year-on-year decline of 1% but a quarter-on-quarter increase of 5%. Mobile game revenue decreased by 10% due to high base effects from last year, while PC game revenue increased by 29% [2][3]. - The company is expected to see short-term growth driven by strong performance in PC games, particularly with upcoming titles and the return of Blizzard games to the Chinese market [2][3]. Financial Performance Summary - Q3 2024 revenue was RMB 26.2 billion, with a gross margin of 62.9%, up 0.7 percentage points year-on-year. The adjusted net profit margin was 28.6% [1][3]. - Revenue forecasts for FY24E and FY25E have been adjusted to RMB 105.6 billion and RMB 112.4 billion respectively, with adjusted net profit forecasts of RMB 31.9 billion and RMB 33.4 billion [3][4]. - The gaming segment's gross margin slightly decreased to 68.8%, while the overall gross margin improved [2][3]. Market Expectations - The target price reflects a P/E ratio of 14.3x for FY25E, indicating confidence in the company's long-term gaming operations and potential for new game releases [3][4]. - The stock is currently trading at HKD 119.5, with a 52-week range of HKD 116 to HKD 185.7, and a market capitalization of HKD 428.9 billion [5][6].

Investment Rating - The report maintains a "Buy" rating for the company with a target price adjusted to HKD 177, indicating a potential upside of 9% from the current price of HKD 162.4 [9][24]. Core Insights - The company achieved its first adjusted profit in Q3 2024, reporting revenue of RMB 7.31 billion, a year-on-year increase of 26%, surpassing market expectations by 2%. The adjusted net profit for the same quarter was RMB 236 million, with an adjusted profit margin of 3.2% [7][8]. - The company announced a share buyback plan worth USD 200 million, approximately 2.3% of its current market capitalization [7]. - Strong growth in gaming and advertising segments was highlighted, with daily active users increasing by 4.4% year-on-year to 107 million and monthly active users rising by 2.1% to 348 million, both reaching new highs [8]. - The advertising business grew by 28% year-on-year, driven by increased traffic and the gradual release of user commercial value, with expectations for a 22% year-on-year growth in Q4 advertising revenue [8]. - Gaming revenue surged by 84% year-on-year to RMB 1.82 billion, supported by the success of the game "Three Kingdoms: Strategize the World," with expectations for a 76% year-on-year growth in Q4 gaming revenue [8]. Financial Projections - Revenue projections for the company are as follows: FY22 at RMB 21.9 billion, FY23 at RMB 22.5 billion, FY24E at RMB 26.7 billion, FY25E at RMB 29.5 billion, and FY26E at RMB 32.5 billion [6][12]. - The company is expected to achieve an operating profit of RMB 590 million in FY25 and RMB 1.6 billion in FY26, with adjusted net profits projected to reach RMB 2.2 billion in FY25 and RMB 3.2 billion in FY26 [6][12]. - The gross margin for Q3 2024 was reported at 34.9%, with expectations for further improvement to 36% in Q4 [8]. Market Performance - The company's stock has a 52-week price range of HKD 67.8 to HKD 238.8, with a total market capitalization of HKD 62.05 billion [9][24]. - The report indicates a potential upside of 24% for the US-listed shares, with a target price of USD 23, compared to the current price of USD 18.59 [9][24]. Conclusion - The report emphasizes the company's strong performance in gaming and advertising, alongside its first adjusted profit, as key drivers for maintaining a positive outlook and "Buy" rating [9][24].

Investment Rating - The report maintains an "Outperform" rating for JD Group [5][12][3] Core Views - The company achieved a revenue of 260.4 billion yuan in Q3 2024, representing a year-on-year growth of 5.1%. Retail revenue was 225 billion yuan, up 6.1% year-on-year, with active user numbers and daily active users (DAU) showing double-digit growth [1][6] - Non-GAAP net profit reached 13.2 billion yuan, with a non-GAAP net profit margin of 5.1%, an increase of 0.8 percentage points compared to the same period last year. The adjusted EBITDA margin improved from 5.2% to 5.8% [2][7] - The management indicated that the performance during the Double 11 shopping festival exceeded internal expectations, with both user numbers and purchase frequency achieving double-digit growth [1][6] Financial Forecasts - Revenue projections for 2024-2026 are estimated at 1,135.6 billion yuan, 1,202.9 billion yuan, and 1,282.3 billion yuan, with slight adjustments of +0.1% for each year. Adjusted net profits are forecasted at 44.8 billion yuan, 50.1 billion yuan, and 55.4 billion yuan, reflecting a compound annual growth rate (CAGR) of 11% [3][12] - The company is expected to maintain a price-to-earnings (P/E) ratio of approximately 9x for 2024, with a target price range of 162-194 HKD, indicating a potential upside of 20%-44% from the current price [3][12] Shareholder Returns - In Q3 2024, the company repurchased 31 million shares for approximately 390 million USD, representing 1.1% of the shares outstanding as of June 30, 2024. A new buyback plan was approved in August 2024, allowing for the repurchase of up to 5 billion USD worth of shares by August 2027 [2][7]

Investment Rating - The investment rating for the company is "Outperform the Market" [4][10][3] Core Views - The company reported a revenue of 14.3 billion HKD for FY2025H1, representing a year-on-year growth of 10%, primarily driven by the rapid growth of its pharmaceutical platform business [1][7] - The adjusted net profit margin increased from 5.0% to 6.8% year-on-year, and the gross profit margin improved from 22.1% to 24.8%, attributed to a shift in product mix towards higher-margin health equipment and supply chain efficiency [2][7] - The company expects continued growth in online health consumption, with online growth rates significantly outpacing offline [8] Revenue Summary - The company's pharmaceutical self-operated revenue reached 12.1 billion HKD, a 6% increase year-on-year, with a focus on optimizing the self-operated product category structure [1][7] - E-commerce platform service revenue surged to 1.7 billion HKD, marking a 68% increase, mainly due to the integration of health category advertising and improved advertising-platform synergy [1][7] - Revenue from healthcare and digital services declined to 440 million HKD, a 9% decrease year-on-year [1][7] Profit Summary - The adjusted net profit for FY2025 is projected to be 2.035 billion HKD, with a significant increase of 47% from previous estimates, driven by the acquisition of Alibaba's advertising business [3][10] - The company aims to maintain a disciplined approach to investment while gradually increasing its market share in platform business [2][7] - The forecasted adjusted net profit for FY2026 is 2.495 billion HKD, and for FY2027, it is expected to reach 3.242 billion HKD [6][10] Financial Metrics - The company’s current stock price corresponds to a FY2025 price-to-earnings ratio of 31x, with a target price range of 5.52 to 5.78 HKD, indicating an upside potential of 32% to 39% from the current price [3][10] - The projected revenue for FY2025 is 31.052 billion HKD, with a year-on-year growth of 14.9% [6][10] - The adjusted net profit margin is expected to reach 6.6% in FY2025, increasing to 8.5% by FY2027 [6][10]

Investment Rating - Buy (First Coverage) [1] Core Views - The company is the largest city gas operator in China, with stable cash flow matching capital expenditures and steadily increasing dividends [1] - The gas sales business benefits from high-quality projects and improved profitability due to market-oriented reforms [1] - The company is rapidly expanding its comprehensive service and comprehensive energy businesses, creating new growth points [1] - The company's city gas projects are of high quality, with price adjustments driving profit recovery, and the dual-comprehensive business growing faster than the industry [1] Business Overview City Gas Operations - The company is the largest city gas operator in China, with 276 city gas projects across 25 provinces as of 2024H1 [1] - Retail gas sales reached 387.80 billion cubic meters in 2023, accounting for 10% of national consumption [1] - The company's retail gas volume grew at a CAGR of 9.8% from 2018 to 2023, with a 5.3% YoY increase in 2024H1 [1] - The company's gas sales gross margin improved to 0.54 yuan/cubic meter in 2024H1, up 0.04 yuan/cubic meter YoY [1] Comprehensive Services - The company has 55.808 million urban residential users as of 2023, with 72.9% located in tier 1-3 cities [1] - Comprehensive service segment profit grew 18.99% YoY to 1.37 billion HKD in 2023, and further increased 22.12% YoY to 760 million HKD in 2024H1 [1] - The company's market share in kitchen appliances and insurance businesses reached 8.6% and 23.0% respectively in 2023 [1] Comprehensive Energy Business - The company focuses on distributed photovoltaic, distributed energy, and transportation energy sectors [1] - Energy sales volume increased 84.9% YoY to 2.94 billion kWh in 2023, with a gross profit of 270 million HKD, up 125% YoY [1] - In 2024H1, energy sales volume grew 54.6% YoY to 1.49 billion kWh, with a gross profit of 160 million HKD, up 84.3% YoY [1] Financial Performance - The company's operating revenue is expected to reach 98.882 billion HKD in 2024, with a YoY decrease of 2.83% [1] - Net profit attributable to shareholders is forecasted to be 5.722 billion HKD in 2024, with a YoY increase of 9.5% [1] - EPS is expected to be 2.47 HKD in 2024, with a P/E ratio of 11.5x [1] Valuation and Peer Comparison - The company's net profit is expected to grow at a CAGR of 9.1% from 2023 to 2026, faster than its peers [87] - The company's P/E ratio is 12.6x for 2023, 11.5x for 2024, 10.5x for 2025, and 9.7x for 2026, lower than the industry average [87]