Investment Rating - Buy (Maintained) [1] Core Views - Sands China's 3Q24 performance slightly exceeded market expectations, with net revenue reaching $1.77 billion, slightly above the expected $1.74 billion, and recovering to 83.1% of the same period in 2019 [2] - The company's adjusted property EBITDA for 3Q24 was $590 million, in line with market expectations, recovering to 77.5% of the same period in 2019 [3] - The disruption from the Londoner Phase II renovation project is expected to peak in 4Q24, with 3,100-3,200 rooms temporarily closed, but the company remains confident in the recovery of EBITDA margins by 2025 [4] Financial Performance - Sands China's total gaming revenue in 3Q24 was $1.68 billion, recovering to 82.6% of the same period in 2019, with VIP and mass market (including slot machines) gaming revenues recovering to 40.4% and 94.2% of 2019 levels, respectively [1] - The company's gaming and non-gaming revenues in 3Q24 were $1.34 billion and $430 million, respectively, recovering to 80.2% and 97.3% of 2019 levels [2] - The adjusted property EBITDA margin in 3Q24 was 33.0%, down 2.7 percentage points from the same period in 2019, primarily due to the impact of the Londoner renovation and slower recovery in mass market gaming [3] Renovation Impact - The Londoner Phase II renovation project affected approximately 2,500 rooms in 3Q24, representing 63% of the Sheraton Grand Macao's rooms and 20% of the company's total room inventory [4] - The company expects the renovation disruption to peak in 4Q24, with 3,100-3,200 rooms temporarily closed, and only around 300 new suites remaining open [4] Future Outlook - Sands China's management is confident in the recovery of EBITDA margins by 2025, driven by the completion of the Londoner Phase II renovation in 2Q25 and the expected rebound in visitor numbers to Macau, particularly in the mass market segment [3] - The company's 2024-2026 revenue forecasts are maintained at $7.11 billion, $7.90 billion, and $8.39 billion, respectively, with adjusted property EBITDA forecasts of $2.27 billion, $2.75 billion, and $3.12 billion [4] - The current stock price implies 2024-2026 EV/EBITDA multiples of 9.6x, 7.9x, and 7.0x, respectively, with a target price of HKD 25.5, implying 2024-2026 EV/EBITDA multiples of 11.6x, 9.6x, and 8.5x [4]

Investment Rating - The report maintains a "Buy" rating for Galaxy Entertainment [1] Core Views - The company's performance in Q3 2024 met expectations, with a net revenue of HKD 10.67 billion, recovering to 83.9% of Q3 2019 levels. The adjusted property EBITDA was HKD 3.1 billion, also recovering to 71.5% of the same period in 2019 [1][2] - The management is optimistic about the future market share growth, supported by strong performance during the Golden Week and the upcoming openings of new luxury properties [3] Financial Forecasts and Valuation - Total revenue projections for 2024, 2025, and 2026 are HKD 45.62 billion, HKD 50.31 billion, and HKD 53.49 billion, respectively, with year-on-year growth rates of 27.8%, 10.3%, and 6.3% [1][3] - Adjusted property EBITDA forecasts for the same years are HKD 12.75 billion, HKD 15.38 billion, and HKD 16.66 billion, with corresponding growth rates of 34.5%, 20.6%, and 8.3% [1][3] - The current stock price corresponds to EV/EBITDA multiples of 11.5, 9.5, and 8.8 for 2024, 2025, and 2026, respectively [3]

Investment Rating - The report maintains an "OUTPERFORM" rating for the company [2][8]. Core Views - The rise in alumina prices is expected to enhance profits, and the cost advantages of the integrated industrial chain are fully demonstrated [6][7][15]. - The company reported significant growth in revenue and net profit for its subsidiary, Shandong Hongqiao New Materials Co., Ltd., with a year-on-year revenue increase of 12.5% and a net profit increase of 141.4% for the first three quarters of 2024 [6][14]. Financial Summary - Revenue projections for 2024-2026 are RMB 149.585 billion, RMB 153.223 billion, and RMB 157.041 billion, respectively, with corresponding EPS of RMB 2.12, RMB 2.16, and RMB 2.30 [5][8][16]. - The gross profit margin (GPM) is expected to improve significantly, reaching 25.7% in 2024, while the return on equity (ROE) is projected to be 17.9% [5][8]. Price and Valuation - The current share price is HK$14.52, with a target price set at HK$18.96, indicating a potential upside of 25% [2][8]. - The company is valued at a price-to-earnings (P/E) ratio of 8x for 2025, reflecting a favorable valuation compared to peers [8][16]. Market Performance - The stock has shown strong absolute returns of 123.2% over the past 12 months, outperforming the MSCI China index by 106.6% [3][9].

Investment Rating - The report maintains an "Outperform" rating for China Resources Beer Holdings (291 HK) with a target price of HK$48.00, down from a previous target of HK$56.00 [5][14]. Core Insights - The company is demonstrating resilience amid industry fluctuations and is steadily advancing its "beer and liquor dual empowerment" strategy. In the first half of 2024, the company achieved revenue of RMB 23.74 billion and net profit attributable to the parent of RMB 4.70 billion, reflecting a year-on-year change of -0.5% and +1.2% respectively [11][12]. - The beer business generated revenue of RMB 22.57 billion, a decrease of 1.4% year-on-year, with sales volume and average selling price changing by -3.4% and +2.0% respectively, outperforming the industry average [11][12]. - The gross profit margin for the beer business improved by 0.6 percentage points to 45.8%, aided by an enhanced product mix and reduced packaging costs [11][12]. - The baijiu segment saw revenue growth of 20.6% year-on-year, reaching RMB 1.18 billion, with gross profit margin rising by 2.1 percentage points to 67.6% [11][12]. - The company reported a 25.6% year-on-year increase in net cash inflow from operating activities and raised its interim dividend by 30% to RMB 0.373 per share, increasing the half-year dividend payout ratio from 20.1% to 25.7% [11][12]. Financial Summary - Revenue projections for the next three years are as follows: RMB 39.51 billion in 2024, RMB 40.39 billion in 2025, and RMB 41.12 billion in 2026, reflecting growth rates of 1%, 2%, and 2% respectively [4][10]. - Net profit estimates are projected to be RMB 5.32 billion in 2024, RMB 5.95 billion in 2025, and RMB 6.35 billion in 2026, with growth rates of 3%, 12%, and 7% respectively [4][10]. - The diluted EPS is expected to increase from RMB 1.64 in 2024 to RMB 1.96 in 2026, with a P/E ratio decreasing from 18 in 2024 to 15 in 2026 [4][10]. Market Context - The report highlights that macroeconomic policies are likely to boost domestic demand, with the valuation of the consumer staples sector showing signs of recovery from historical lows [6][13]. - The H-share consumer staples industry is currently at a historical PE percentile of 1% since 2011, indicating potential for valuation improvement [6][13]. - As a leading player in the beer industry and the only company combining beer and baijiu, China Resources Beer is positioned to benefit from sector valuation recovery [6][13].

[Table_Title] 研究报告 Research Report 7 Nov 2024 小鹏汽车-W XPeng (9868 HK) 从纯电到增程：小鹏汽车市场突围的不得不为 From BEV to EREV: A Strategic Shift XPeng Must Make to Break Through [Table_yemei1] 热点速评 Flash Analysis [Table_summary] (Please see APPENDIX 1 for English summary) 事件 王沈昱 Oscar Wang, CFA 王凯 Kai Wang, CFA 陈昊飞 Haofei Chen, PhD sy.wang@htisec.com k.wang@htisec.com haofei.chen@htisec.com 11 月 6 日，小鹏汽车举办了以"科技改变世界"为主题的"小鹏 AI 科技日"活动。小鹏汽车 CEO 何小鹏首次发布了小 鹏鲲鹏超级电动系统。该系统基于全域 800V 高压碳化硅平台，集成了 5C 超充 AI 电池、混合碳化硅同轴电驱、静 音增程器、AI 电池医生及 AI ...

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive long-term outlook based on its fundamentals and growth strategies [2][3]. Core Insights - The company is expected to achieve revenue growth of 4.1%, 8.4%, and 8.2% for the years 2024, 2025, and 2026, respectively, with projected revenues of $11.43 billion, $12.38 billion, and $13.40 billion [3][4]. - Net profit is forecasted to grow by 10.2%, 8.5%, and 8.3% over the same period, reaching $911 million, $988 million, and $1.07 billion [3][4]. - The company has increased its dividend and share buyback program, raising the total planned amount from $3 billion to $4.5 billion, which represents 23% of its current market capitalization [3][4]. - The restaurant operating profit margins for KFC and Pizza Hut were reported at 18.3% and 12.8%, respectively, showing resilience in profitability [3][4]. - The company opened 438 new stores in Q3 2024, bringing the total to 15,861, with KFC and Pizza Hut showing year-on-year growth of 14% and 13% in store numbers [3][4]. Financial Summary - For the fiscal year 2023, the company reported revenues of $10.98 billion, with a year-on-year growth rate of 14.7% [4][7]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are $2.36, $2.63, and $2.92, respectively [3][4]. - The return on equity (ROE) is expected to be 12.8% in 2023, increasing to 13.5% in 2024 before slightly declining in subsequent years [7][4].

Investment Rating - The report maintains a "Buy" rating for the company [1][4][9] Core Insights - The company is experiencing strong growth in patient visits, with a total of approximately 1.485 million visits in Q3 2024, representing a year-on-year increase of about 25% [6] - The company is expanding its physical presence, having opened 19 new stores in 2024, including 4 self-built and 15 acquired locations, primarily in key cities [6] - Revenue forecasts for 2024-2026 are projected at 30.74 billion, 39.52 billion, and 50.66 billion RMB, with adjusted net profits of 4.15 billion, 5.41 billion, and 7.06 billion RMB respectively [4][6] Financial Summary - For the fiscal year 2024, the company is expected to generate revenue of 3,074 million RMB, with a growth rate of 32.31% [3][7] - Adjusted net profit for 2024 is forecasted at 414.58 million RMB, reflecting a growth rate of 36.06% [3][7] - The adjusted net profit margin is projected to be 13.49% in 2024, with a return on equity (ROE) of 13.10% [3][7] Operational Highlights - The company has formed a strategic partnership with Meituan Medical to enhance online service coverage, allowing over 30,000 traditional Chinese medicine practitioners to provide services through the platform [4][6] - The company is focusing on scaling its operations in provincial capital cities and enhancing its online service capabilities [4][6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company held its 2024 Investor Open Day on November 8, 2024, focusing on "High-Quality Development of New Energy Vehicle Insurance" and introduced innovative measures in auto insurance management and achievements in new energy vehicle insurance [2][6] - The penetration rate of new energy vehicles continues to rise, making new energy vehicle insurance a key focus for future auto insurance reforms [6] - The company is committed to advancing the transformation and upgrading of new energy vehicle insurance, with expectations for improvement in the combined operating ratio (COR) for new energy vehicle insurance [7][8] Summary by Sections Company Overview - The company is classified under the non-bank financial/insurance sector [4] - Current stock price is HKD 12.52, with a total market capitalization of HKD 86,379.16 million [4] Financial Performance - From 2020 to 2023, the sales of new energy passenger vehicles in China increased from 1.11 million to 7.75 million, with a compound annual growth rate (CAGR) of 91%, significantly higher than the overall growth of traditional passenger vehicles at 4% [6] - The number of new energy vehicles in circulation rose from 4.92 million to 20.41 million, with their share of total vehicle ownership increasing from 1.8% to 6.1% [6] - As of the first half of 2024, the share of new energy vehicles in total vehicle ownership reached 7.2% [6] Market Position - The company's market share in new energy commercial vehicle insurance reached 35.45% in the first nine months of 2024, an increase of 1.49 percentage points year-on-year [7] - The company has served over 22 million new energy vehicle customers [7] Future Outlook - The company aims to create a new business model that covers the entire lifecycle of vehicle insurance and all customer service scenarios, enhancing risk management and service capabilities [7] - The projected net profit for the company from 2024 to 2026 is expected to be HKD 33.87 billion, HKD 35.73 billion, and HKD 39.80 billion, with growth rates of 38%, 6%, and 11% respectively [8]

Investment Rating - The report maintains an "Outperform" rating for the company [3][11]. Core Views - The company achieved a record high revenue of $2.17 billion in Q3 2024, with a year-over-year increase of 34% and a quarter-over-quarter increase of 14% [1]. - The gross margin for Q3 2024 was 20.5%, exceeding the guidance upper limit of 20% [1]. - The company expects Q4 2024 revenue to grow by 0%-2% quarter-over-quarter, with an annual revenue forecast of approximately $8 billion for 2024 [1]. - The utilization rate of production capacity increased by 5.2 percentage points quarter-over-quarter, reaching 90.4% [1]. - The average selling price (ASP) for 8-inch wafers rose to $966, reflecting a year-over-year increase of 1% and a quarter-over-quarter increase of 15% [1]. Financial Summary - Revenue for 2024 is projected at $8.01 billion, with a year-over-year growth of 26.8% [2]. - Net profit for 2024 is estimated at $509 million, a decrease of 43.7% compared to 2023 [2]. - The company’s capital expenditure in Q3 2024 was $1.179 billion, a significant decrease of 44.8% year-over-year [1]. - The company’s revenue composition shows that 12-inch wafers contributed 78.5% to the total wafer revenue [1]. Revenue Breakdown - In Q3 2024, revenue from consumer electronics, industrial, and automotive sectors grew year-over-year by 145.4%, 33.5%, and 17.9% respectively [1]. - The revenue from China accounted for 86.4% of total revenue in Q3 2024, indicating an increase both year-over-year and quarter-over-quarter [1].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's gross margin has consistently exceeded expectations, indicating an improvement in its process competitiveness [1] - The reduction in government subsidies has led to a downward revision of the net profit forecast for 2024 from $620 million to $540 million [2] - The company is expected to benefit from the upgrade of products by domestic IC design clients, which may enhance its profitability [2] Financial Performance Summary - In Q3 2024, the company reported revenue of $2.17 billion, a quarter-on-quarter increase of 14.2%, aligning with company guidance and Bloomberg consensus [3] - The gross margin for Q3 2024 was 20.5%, surpassing both company guidance and Bloomberg consensus, primarily due to improved capacity utilization and product mix [3] - The net profit for Q3 2024 was $149 million, which was below Bloomberg consensus expectations due to reduced government subsidies [3] Future Guidance - The company has guided for Q4 2024 revenue to grow by 0%-2%, which is above Bloomberg consensus expectations [4] - The gross margin guidance for Q4 2024 is set at 18%-20%, in line with market expectations [4] - The company's revenue forecast for 2024 is $8.017 billion, reflecting a year-on-year growth of 26.8% [4]