Investment Rating - The report maintains a "Buy" rating for the company [3][4]. Core Insights - The company has shown significant growth, with Miu Miu's revenue increasing by 105% year-on-year in FY24Q3, while Prada's revenue grew by 2% [1]. - Retail revenue by region indicates a 12% increase in the Asia-Pacific region, an 18% increase in Europe, and a 10% increase in the Americas [1]. - The report highlights the successful initiatives of Miu Miu, including special projects and collaborations that have enhanced brand visibility and cultural discussions [1]. - The earnings forecast has been revised upwards, with projected revenues for 2024-2026 expected to be €5.5 billion, €6.3 billion, and €7.3 billion respectively, compared to previous estimates of €5.11 billion, €5.53 billion, and €6.0 billion [1]. - Net profits are projected to be €820 million, €950 million, and €1.09 billion for the same period, up from previous estimates of €750 million, €850 million, and €930 million [1]. - Earnings per share (EPS) are expected to be €0.32, €0.37, and €0.42, revised from €0.29, €0.33, and €0.36 [1]. - The price-to-earnings (PE) ratios are projected to be 21, 18, and 16 times for the respective years [1]. Financial Data Summary - The total share capital of the company is 2,558.82 million shares [4]. - The total market capitalization is approximately 148.92 billion HKD [4]. - The net asset value per share is 12.86 HKD [4]. - The debt-to-asset ratio stands at 49.13% [4]. - The stock has traded between a high of 66.80 HKD and a low of 40.00 HKD over the past year [4].

Investment Rating - The investment rating for the company is "Accumulate" [3] Core Views - The company experienced short-term fluctuations in Q3 due to weak global consumer demand, but sales are expected to improve marginally in Q4 as the high base effect diminishes [2] - The company's net profit forecasts for 2024-2026 have been revised down to $389 million, $436 million, and $490 million respectively, with the current stock price corresponding to P/E ratios of 9, 8, and 7 times [3] - Q3 sales were weak, with revenue of $880 million, a year-on-year decrease of 8.3% and a fixed exchange rate decline of 6.8% [3] - The gross margin decreased by 0.3 percentage points to 59.3%, and the net profit attributable to the parent company was $66 million, down 39.1% year-on-year [3] Summary by Sections Sales Performance - Q3 revenue breakdown by brand shows a decline: Samsonite at $480 million (-3.9%), TUMI at $190 million (-9.5%), and American Tourister at $140 million (-17.0%) [3] - By channel, wholesale revenue was $530 million (-11.5%) and DTC revenue was $350 million (-3.1%) [3] - By region, Q3 revenue was $330 million in Asia (-12%), $300 million in North America (-8%), $210 million in Europe (-2%), and $50 million in Latin America (-8%) [3] Future Outlook - Sales have shown marginal improvement since October, with a nearly double-digit year-on-year increase during the Singles' Day sales in China [3] - The revenue guidance for 2024 is expected to remain flat year-on-year (at fixed exchange rates), with a positive outlook for 2025 as the company focuses on higher-margin brands, channels, and regions [3]

Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook for its future performance [6][8]. Core Insights - Tehai International, spun off from Haidilao's overseas operations, has established a significant presence in the global market with 122 stores across 13 countries as of June 30, 2024, primarily in Southeast Asia [3][16]. - The company reported a revenue of $371 million in the first half of 2024, reflecting a year-over-year growth of 14.5%, with a notable increase in customer traffic [4][24]. - The international Chinese cuisine market is projected to grow at a CAGR of 7.8% from 2022 to 2027, presenting substantial opportunities for the hot pot segment, where Tehai International holds a competitive advantage [4][5]. Summary by Sections Company Overview - Tehai International operates outside Greater China, focusing on markets in North America, Europe, and Oceania, with a strong foothold in Southeast Asia [3][16]. - The company has a concentrated ownership structure, with the founders holding a significant stake [19]. Financial Performance - The company achieved its first profitability in 2023, with a net profit of $26 million, and is expected to continue growing with projected revenues of $800 million, $933 million, and $1.072 billion for 2024, 2025, and 2026 respectively [6][24]. - The average daily revenue per restaurant has shown an upward trend, increasing from $15,400 in 2022 to $17,200 in 2024 [4][30]. Market Analysis - The global Chinese cuisine market was valued at $306.1 billion in 2022, with hot pot accounting for 11.2% of this market, indicating a strong growth potential for Tehai International [4][5]. - The company has a robust brand presence, ranking 14th among global restaurant brands and first among Chinese brands in 2024 [5]. Operational Highlights - Tehai International's management team is experienced, with the new CEO having over 27 years in the industry, contributing to effective operational strategies [21][23]. - The company has implemented a localized approach to enhance customer experience, achieving a 50% share of non-Chinese customers in 2023 [5][24]. Regional Performance - Southeast Asia remains the largest market for the company, contributing 55% of total revenue, while North America shows significant growth potential with an increase in store openings [34][36]. - The average table turnover rate has improved from 2.1 times per day in 2021 to 3.8 times in 2024, reflecting operational efficiency [27][31].

Investment Rating - The report initiates coverage on Tehai International (9658 HK) with a "Recommend" rating [6] Core Views - Tehai International, spun off from Haidilao's overseas operations, is a leading player in the international Chinese hotpot market with significant growth potential [3] - The company has demonstrated strong operational performance with revenue growth of 14 5% YoY in 24H1 and improving profitability metrics [4] - With 122 stores across 13 countries as of 2024H1, Tehai has established a solid foundation for international expansion, particularly in Southeast Asia and North America [3][4] - The global Chinese food market is projected to grow at a CAGR of 7 8% from 2022 to 2027, presenting significant opportunities for Tehai's expansion [4] Business Overview - Tehai International operates 122 stores globally as of 2024H1, with Southeast Asia accounting for 60 7% of total stores [3] - The company achieved revenue of $371 million in 24H1, with Southeast Asia contributing 54 9% of total revenue [4] - Key operational metrics show consistent improvement, with table turnover rate increasing from 3 3 times/day in 2022 to 3 8 times/day in 24H1 [4] - Store-level operating profit margin improved significantly from 4 1% in 2022 to 8 7% in 24H1 [4] Industry Analysis - The global Chinese food market reached $306 1 billion in 2022, with a projected CAGR of 7 8% through 2027 [4] - The international hotpot market was valued at $34 3 billion in 2022, accounting for 11 2% of the global Chinese food market [4] - The US represents the largest market for Chinese food internationally, accounting for 17 97% of the global market [46] - The hotpot market is expected to grow to $50 5 billion by 2027, with a CAGR of 8 0% [58] Competitive Advantages - Tehai benefits from Haidilao's strong brand recognition, ranking 14th in the 2024 Global Restaurant Brands Top 25 [5][61] - The company has established a robust management system with a three-tier structure and performance evaluation mechanisms [5] - Tehai maintains strong supply chain capabilities, leveraging Haidilao's existing infrastructure and partnerships [5] - Localization efforts have been successful, with non-Chinese customers accounting for approximately 50% of total customers in 2023 [5] Financial Projections - Revenue is projected to grow from $800 million in 2024 to $1 072 billion in 2026, representing a CAGR of 15 7% [6] - Net profit is expected to increase from $21 million in 2024 to $73 million in 2026 [6] - The company's PE ratio is forecasted to decline from 52x in 2024 to 15x in 2026 as profitability improves [6] Growth Drivers - Southeast Asia remains the core growth market, contributing 54 9% of revenue in 24H1 [4] - North America shows strong potential, with revenue contribution increasing to 20 7% in 24H1 [4] - The company's UE model shows consistent improvement, with daily revenue per store increasing from $15,400 in 2022 to $17,200 in 24H1 [4] - Same-store sales growth remains healthy at 8 2% in 24H1, with East Asia showing the strongest growth at 22 7% [41]

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings (00700.HK) [2] Core Views - The company's business shows resilience with impressive growth in gaming and advertising sectors [2] - The WeChat ecosystem is thriving, with significant advancements in AI deployment and commercial capabilities [2] - The gaming segment continues to grow healthily, with both domestic and international revenues showing positive trends [2] - Advertising revenue, particularly from video accounts, is experiencing high growth rates [2] - Financial technology and enterprise services are stable, with potential for recovery in the future [2] Summary by Sections Performance Overview - In Q3 2024, Tencent reported revenue of 167.2 billion yuan, a year-on-year increase of 8%, and a NON-IFRS net profit of 59.8 billion yuan, up 33% year-on-year [2] Business Analysis - WeChat's mini-program transaction volume exceeded 2 trillion yuan, reflecting a growth of over 10% year-on-year [2] - The gaming revenue reached 51.8 billion yuan in Q3 2024, marking a 13% increase year-on-year, with domestic game revenue at 37.3 billion yuan, up 14% [2] - Advertising revenue was 30 billion yuan, growing 17% year-on-year, with video account ads increasing by over 60% [2] - Financial technology and enterprise services revenue reached 53.1 billion yuan, a 2% increase year-on-year [2] Financial Forecasts and Valuation - Projected NON-IFRS net profits for 2024, 2025, and 2026 are 222.5 billion yuan, 252.6 billion yuan, and 275.2 billion yuan respectively [2] - The current stock price corresponds to a PE ratio of 15.57 for 2024, 13.71 for 2025, and 12.58 for 2026 [2]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 66.15, representing a potential upside of 29.2% from the current price of HKD 51.20 [4][21]. Core Insights - The company has shown strong online sales growth during the Double Eleven shopping festival, with its two main brands, Kefu Mei and Keli Jin, achieving GMV growth rates of over 80% and over 150% respectively compared to the previous year [2]. - The report highlights the successful marketing strategies on platforms like Douyin, which have significantly boosted sales, particularly for Kefu Mei, which saw a GMV increase of 120% on Douyin [2]. - The introduction of new products has also contributed to growth, with Kefu Mei's collagen stick and Keli Jin's new cream series driving substantial sales increases [2]. Financial Performance - Sales revenue is projected to grow from RMB 5,099 million in FY24E to RMB 9,187 million in FY26E, reflecting a compound annual growth rate (CAGR) of approximately 33.6% [3][22]. - Adjusted net profit is expected to rise from RMB 1,971 million in FY24E to RMB 3,130 million in FY26E, indicating a strong profitability trajectory [3][22]. - The company maintains a healthy net debt ratio, with a forecasted net debt ratio of -75.3% by FY26E, indicating a strong balance sheet [3]. Sales Growth and Market Position - Kefu Mei ranked 12th in the Tmall fast-moving consumer goods sales ranking and 4th in the skincare brand ranking during the Double Eleven event, showcasing its competitive position in the market [2][8]. - Keli Jin's new product launches have resulted in a GMV increase of 109% year-on-year, with significant contributions from its new cream and eye cream products [2]. - The report notes that the overall skincare category in e-commerce is experiencing robust growth, with Kefu Mei and Keli Jin leading the charge [12][13]. Earnings Forecast Adjustments - The earnings forecasts for FY24-26 have been slightly adjusted upwards, with revenue and profit estimates reflecting the strong sales momentum and successful product launches [16][20]. - The report anticipates that the company's gross margin will remain stable, with a projected gross margin of 82.20% in FY24E [16][20]. Valuation Metrics - The target price of HKD 66.15 corresponds to a 25x adjusted P/E ratio for FY25E and a 20x adjusted P/E ratio for FY26E, indicating a favorable valuation compared to industry peers [4][18]. - The DCF analysis suggests a strong intrinsic value for the company, with a calculated equity value of HKD 68.02 million [18].

Investment Rating - The report maintains a "Buy" rating for the US and Hong Kong stocks of BeiGene, with target prices adjusted to $255 and HK$153 respectively. The A-share rating is downgraded to "Hold" with a target price of RMB 181 [1][3][7]. Core Insights - The report highlights that BeiGene's total revenue for Q3 2024 reached $1.002 billion, representing a year-over-year increase of 28.2% and a quarter-over-quarter increase of 7.8%. Product revenue was $993 million, up 66.9% year-over-year and 7.8% quarter-over-quarter, slightly below expectations due to lower-than-expected sales of Zanubrutinib in the US [1][3][4]. - The global sales of Zanubrutinib in Q3 2024 amounted to $690 million, a 93.0% increase year-over-year and an 8.3% increase quarter-over-quarter. US sales were $504 million, up 86.5% year-over-year, while European sales surged by 217.2% year-over-year to $97.3 million [1][3][4]. - The report notes a temporary decline in gross margin due to accelerated depreciation from new production lines, with an overall product gross margin of 82.8% in Q3 2024 [1][3][4]. Financial Performance Summary - For Q3 2024, the adjusted non-GAAP operating profit was $65.63 million, an improvement from $48.46 million in Q2 2023. The net loss for the quarter was $121 million, which aligns with expectations but is lower than previous forecasts due to slightly lower revenue gross margins and higher R&D expenses [1][3][4]. - The report projects a slight reduction in revenue forecasts for 2024, with net losses adjusted to $740 million for 2024 and $350 million for 2025, while estimating a near breakeven point by 2026 [3][4]. R&D Pipeline Progress - The report indicates that BeiGene's R&D pipeline is progressing well, with key focus areas including BCL2, BTK CDAC, and CDK4 inhibitors. The BCL2 project has enrolled over 1,300 patients, with several trials expected to complete enrollment by early 2025 [2][3][4]. - The company anticipates that by the end of 2024, a total of 12 solid tumor products will enter clinical trials, with 8 already initiated this year [2].

Investment Rating - The report maintains a "Buy" rating for Zai Lab (ZLAB.US/9688.HK) and slightly lowers the target price to $55 for US shares and HK$43 for Hong Kong shares [1][4]. Core Insights - In Q3 2024, Zai Lab's net loss significantly narrowed to $41.67 million, a decrease of 39.7% year-over-year and 48.1% quarter-over-quarter, primarily due to lower-than-expected selling and administrative expenses [1]. - Product revenue for Q3 2024 reached $101.8 million, representing a 47% year-over-year increase and a 1.7% quarter-over-quarter increase, aligning with consensus expectations [1]. - The gross margin for product sales was stable at 64.1%, with a slight decrease of 0.8 percentage points quarter-over-quarter [1]. - The company continues to see strong growth in Efgartigimod, with Q3 2024 revenue of $27.3 million, a remarkable increase of 458% year-over-year and 17.6% quarter-over-quarter [1]. - Zai Lab has achieved approximately 65% market potential coverage for Efgartigimod, with around 10,000 myasthenia gravis patients having used the drug, and a stable monthly addition of about 1,000 new patients [1]. Financial Summary - The report projects a narrowing of net loss to $260 million for 2024, with slight adjustments to the 2025 and 2026 net loss and profit forecasts based on updated financial information [1][4]. - Revenue forecasts for 2024, 2025, and 2026 are $402 million, $651 million, and $995 million respectively, with year-over-year growth rates of 50.6%, 62.2%, and 52.8% [4][5]. - The report anticipates that Zai Lab will continue to expand its product pipeline, with several key drugs expected to be commercialized in China by the end of 2024 and early 2025 [1][4]. Market Expectations - The current stock price for Zai Lab is $29.0, with a potential upside of 90% to the target price of $55.0 [2]. - The stock has a 52-week price range of $13.4 to $36.6, and the total market capitalization is approximately $2.885 billion [2]. - For the Hong Kong shares, the current price is HK$23.4, with a potential upside of 84% to the target price of HK$43.0 [3].

14 Nov 2024 CMB International Global Markets | Equity Research | Company Update Tencent (700 HK) Higher consumer internet revenue contribution boosted margin Tencent announced inline 3Q24 results: total revenue was up by 8% YoY to RMB167.2bn, in line with our/Bloomberg consensus estimate of RMB166.8/167.9bn; non-IFRS operating profit grew by 19% YoY to RMB61.3bn, in line with our estimate of RMB61.4bn. Looking ahead, we remain positive on earnings growth in 4Q24E driven by the acceleration in games revenue ...

Investment Rating - The report maintains a **BUY** rating for FIT Hon Teng (6088 HK) with a new target price of **HK$4.38**, representing a **40% upside** from the current price of HK$3.14 [2][16] Core View - The report is optimistic about FIT Hon Teng's growth prospects, driven by strong **3-year guidance (2025-27)** with a **20% revenue CAGR** and **GPM/OPM targets of 22%/8% by FY27E** [2] - Key growth drivers include **AI server/networking** (GB200 ramp-up, product portfolio expansion), **Auto-Kabel Group integration**, and **AirPods production capacity expansion** in India [2] - The company's **3Q24 results** were in-line with expectations, showing **accelerated margin recovery** with **GPM at 21.7%** and **OPM at 8.2%**, despite weakness in the EV segment [3] Financial Performance - For **FY24E**, the report estimates **revenue growth of 9% YoY** and **net profit growth of 43% YoY**, driven by **high single-digit revenue growth** and **GPM of 20%+** [3] - The company's **FY25-27E guidance** includes a **20% revenue CAGR**, with **GPM/OPM targets of 22%/8%**, supported by growth in **AI server, mobility, and audio products** [4] - **FY25E revenue** is projected at **US$5,896 million**, with **net profit of US$308.1 million**, representing a **67.2% YoY growth** [6] Valuation - The stock is trading at **9.3x/7.1x FY25/26E P/E**, which is considered attractive given the **67%/31% EPS growth** projected for FY25/26E [5] - The new target price of **HK$4.38** is based on a **13x FY25E P/E**, reflecting confidence in the company's **"3+3 Strategy"** and **profitability recovery** [16] Growth Drivers - **AI Server/Networking**: FIT Hon Teng is expected to benefit from **GB200 AI server component orders**, with **power busbar and CDU liquid cooling connectors** starting delivery in **4Q24E** [4] - **Auto-Kabel Integration**: The integration of Auto-Kabel is expected to close soon, contributing **meaningful revenue in FY25E** [4] - **AirPods Production**: The first production line in India is on track for **mass production in early FY25E**, with a second line to begin construction in **1H25E** [4] Revenue Breakdown - **Networking revenue** is expected to grow **59% YoY in FY24E**, driven by **AI server and traditional server growth** [11] - **Mobility revenue** is projected to grow **56% YoY in FY24E**, supported by **EV business and Voltaira contributions** [11] - **AirPods revenue** is expected to reach **US$591.6 million in FY25E**, growing significantly from **US$233.75 million in FY24E** [11] Scenario Analysis - The report provides a **bull, base, and bear scenario** for FIT's **AI server revenue in 2025**, with **total NVDA AI server revenue** ranging from **US$238.3 million (bear)** to **US$962.6 million (bull)** [13][14][15]