Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company is actively transforming its brand strategy to break through the limitations of a single brand, focusing on differentiated store formats and a multi-brand operational capability [4][8] - The company aims to expand its market presence both domestically and internationally, with specific plans for store openings and revenue growth projections [68] Summary by Sections 1. Company Overview - The company has over 80% of its stores operating under a Direct-to-Consumer (DTC) model, enhancing its control over channel operations and inventory management [8] - The company is restructuring its store types into five levels: Arena, Palace, Elite, Standard, and Non-standard, to diversify its retail strategy [54][56] 2. Financial Projections - Revenue projections for 2024, 2025, and 2026 are estimated at 704.70 billion, 781.21 billion, and 864.19 billion CNY, respectively, with year-on-year growth rates of +13.0%, +10.9%, and +10.6% [4][68] - Net profit estimates for the same years are 137.33 billion, 140.12 billion, and 156.73 billion CNY, with growth rates of +34.2%, +2.0%, and +11.9% [4][68] 3. Brand Strategy - The company is launching new store concepts such as "Super Anta," "Champion Store," and "0 Carbon Mission Store," each targeting different consumer segments and emphasizing unique product offerings [12][41][49] - The "Super Anta" concept aims to create a one-stop shopping experience for sports products, focusing on high-quality, cost-effective items [12][13] 4. International Expansion - The company has made strides in international markets, particularly in North America and Southeast Asia, with plans to open stores in the U.S. and expand its presence in Southeast Asia [61][66] - The partnership with Kyrie Irving has helped the company gain traction in the global sneaker market, with successful product launches and collaborations [11][65] 5. Competitive Positioning - The company is positioned as a potential leader in the market, akin to Uniqlo and Decathlon, leveraging its supply chain advantages and brand recognition [23][68] - The report highlights the importance of Olympic sponsorships and collaborations with high-profile athletes in enhancing brand image and market reach [11][23]

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings with a target price of HKD 430 [4][56]. Core Insights - The company is expected to achieve a revenue of RMB 1681.7 billion in Q4 2024, representing a year-over-year growth of 8.4%. This growth is primarily driven by the gaming and online advertising sectors [1][43]. - The gross margin is projected to be 53.5%, an increase of 3.6 percentage points year-over-year, with a gross profit of RMB 900.2 billion, reflecting a 16.1% increase [1][49]. - The operating profit is forecasted to be RMB 525 billion, a year-over-year increase of 28.7%, with a Non-IFRS net profit of RMB 549.3 billion, also up 28.7% year-over-year [1][49]. Summary by Sections 1. Value-Added Services - The revenue from value-added services is expected to reach RMB 766.1 billion in Q4 2024, a year-over-year increase of 10.9%. Game revenue is projected at RMB 475.3 billion, reflecting a 16.2% growth [1][43]. - Domestic game revenue is anticipated to be RMB 319.4 billion, up 18.3% year-over-year, driven by popular titles like "Honor of Kings" and "Peacekeeper Elite" [12][25]. - New game releases such as "Valorant" and "Dungeon & Fighter: Origin" are expected to contribute to revenue growth in Q4 2024 [13][19]. 2. Social Network - Social network revenue is projected to be RMB 290.9 billion in Q4 2024, a 3.1% increase year-over-year, driven by the growth of WeChat mini-games [1][26]. - The number of monthly active users for mini-games reached 500 million, with daily active users at 100 million, showing a 10% year-over-year growth [26][28]. 3. Marketing Services - The marketing services revenue is expected to be RMB 337.4 billion in Q4 2024, a year-over-year increase of 13.2% [30][34]. - The growth is anticipated to be supported by the recovery of social retail sales and the integration of WeChat's ecosystem for enhanced marketing efficiency [34][35]. 4. Financial Technology and Enterprise Services - Financial technology and enterprise services revenue is projected at RMB 558.4 billion, reflecting a 2.7% year-over-year growth [2][37]. - The improvement is attributed to a slight recovery in commercial payment services and stable cloud service revenues [37][38]. 5. Financial Performance - The company is expected to maintain steady revenue growth, with a projected Non-IFRS net profit of RMB 2,223.2 billion for 2024, reflecting a 41.0% growth year-over-year [58]. - The report highlights the potential for operational leverage to be released as high-margin businesses like video accounts and live e-commerce continue to grow [55][56].

Investment Rating - The report maintains a "BUY" rating for China Life, with a target price of HK$20.00, indicating a potential upside of 38.1% from the current price of HK$14.48 [3][8]. Core Insights - China Life expects a significant increase in net profit for FY24, projecting growth of 122%-144% YoY under IFRS, translating to RMB56.2-66.4 billion, and 100%-120% YoY under ASBE, amounting to RMB51.2-61.4 billion. This is a decrease from the 174% increase observed in the year-to-3Q24 [1][8]. - The potential decline in 4Q net profit is attributed to investment volatilities, despite a strong capital market performance in 3Q24, which boosted total investment income by 152.4% YoY in the first nine months of FY24 [1][8]. - The company is adjusting its strategic asset allocation, increasing exposure to high-dividend yield stocks and balancing equity exposure between FVTPL and FVOCI [1][8]. Financial Performance Summary - For FY24, net profit is expected to range from RMB102.4 billion to RMB112.6 billion, with a projected net profit of RMB110.857 billion for FY24, a significant recovery from RMB47.547 billion in FY23 [2][9]. - EPS is forecasted to be RMB3.85 for FY24, a decrease from the previous estimate of RMB4.45, while FY25 and FY26 EPS are projected at RMB2.68 and RMB2.81 respectively [2][8]. - The company anticipates a 19.2% growth in NBV for FY24 and 9.2% for FY25, supported by a total premium growth of 4.7% YoY to RMB671.7 billion in FY24 [1][8]. Valuation Metrics - The stock is currently trading at 0.24x FY25E P/EV and 0.67x FY25E P/BV, with an expected annualized ROE of 21% in FY24 [1][8]. - The projected dividend yield for FY24 is 8.6%, reflecting an increase in DPS, although it may not match the earnings growth due to the unsustainable nature of net fair value gains [1][8].

Investment Rating - The report assigns an "Accumulate" rating for the company, marking the first coverage of the stock [1]. Core Insights - The company, UBTECH, is a leading player in the humanoid robot sector in China, having achieved commercialization in this field. It offers intelligent service robot solutions that integrate hardware and software, targeting both enterprise and consumer markets [2][3]. - The humanoid robot market is expected to grow significantly, supported by government policies and advancements in AI technology. The market size could reach trillions in the long term, with various applications across industries [3][30]. - The company has maintained high R&D investment, averaging 470 million yuan annually from 2020 to 2023, which has enabled it to lead in technology and patent filings in the humanoid robot space [4][38]. Summary by Sections Company Overview - UBTECH, founded in 2012, is recognized as the first publicly listed humanoid robot company in China, focusing on both enterprise and consumer-grade robots. It holds a significant market share in the education robot sector, reaching 23% in 2022 [2][13]. Revenue Growth and Structure - The company's revenue has shown stable growth, with a CAGR of 13% from 2020 to 2023. In the first half of 2024, revenue reached 487 million yuan, a year-on-year increase of 87%, primarily due to successful project deliveries [2][18]. - The revenue breakdown for 2024H1 indicates that education robots account for 33%, logistics robots for 12%, and consumer robots for 36% of total revenue [2]. Market Potential and Industry Trends - The humanoid robot industry is positioned for rapid growth, with government policies encouraging development. The Ministry of Industry and Information Technology has set ambitious goals for establishing an innovation system by 2025 [3][31]. - The demand for humanoid robots in the automotive sector is projected to reach 5625 units by 2025 and 62500 units by 2030, driven by the growth of the new energy vehicle market [4][33]. R&D and Technological Advancements - UBTECH has invested heavily in R&D, with an average R&D expense rate of 53% from 2020 to 2023. The company has over 2100 patents related to robotics and AI, leading the global market in effective humanoid robot patents [4][38]. - The company employs a full-stack technology approach, allowing for efficient integration of various applications and services, which enhances its product offerings and market competitiveness [4][43]. Commercialization and Product Development - The company has successfully commercialized its humanoid robots, with the latest model, Walker S, being applied in industrial settings. This model features advanced capabilities for quality inspection and operational tasks [4][47].

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings with a target price of 430 HKD [4][56]. Core Insights - The company is expected to achieve a revenue of 1681.7 billion RMB in Q4 2024, representing a year-on-year growth of 8.4% driven by strong performance in value-added services, particularly in gaming and online advertising [1][43]. - The gross margin is projected to be 53.5%, an increase of 3.6 percentage points year-on-year, with a gross profit of 900.2 billion RMB, reflecting a 16.1% increase [1][49]. - Operating profit is forecasted at 525 billion RMB, a 28.7% increase year-on-year, with a Non-IFRS net profit of 549.3 billion RMB, also up 28.7% [1][49]. Summary by Sections 1. Value-Added Services - Gaming revenue is expected to reach 766.1 billion RMB in Q4 2024, with a year-on-year growth of 10.9%. Domestic gaming revenue is projected at 319.4 billion RMB, up 18.3% [1][12]. - Key games like "Honor of Kings" and "Peacekeeper Elite" continue to perform well, supported by new game launches such as "Path of Exile 2" and "One Piece: Odyssey" [1][17]. 2. Marketing Services - Online advertising revenue is anticipated to be 337.4 billion RMB, reflecting a year-on-year growth of 13.2%. The growth rate is expected to slow compared to Q3 2024 due to macroeconomic conditions [1][30]. - The integration of WeChat's ecosystem is expected to enhance marketing efficiency and attract more advertisers [1][34]. 3. Financial Technology and Enterprise Services - Revenue from financial technology and enterprise services is projected at 558.4 billion RMB, a year-on-year increase of 2.7%. This growth is attributed to improvements in commercial payment services and stable cloud service revenues [2][37]. - The launch of AI-driven services is expected to enhance the company's offerings in the financial technology sector [2][38]. 4. Financial Performance - The company is expected to maintain a steady revenue growth trajectory, with significant contributions from high-margin businesses such as gaming and WeChat video accounts [1][43]. - The operating leverage is anticipated to continue releasing as the company benefits from its diverse revenue streams [1][48]. 5. Valuation and Investment Recommendations - The report adjusts the Non-IFRS net profit forecasts for 2024-2026 slightly downward, reflecting a robust internet platform amidst a weak macroeconomic recovery [3][56]. - The current price corresponds to a Non-IFRS P/E ratio of 15 for 2024, 13 for 2025, and 12 for 2026, indicating a favorable valuation [3][58].

Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [5] Core Insights - The core education business continues to show considerable growth, with FY25 Q2 revenue reaching $1.04 billion, a year-on-year increase of 19.4%. Excluding self-operated products and live e-commerce, revenue grew by 31% [1] - The company reported a strong performance in overseas exam preparation and consultation services, with revenue growth of 21% and 31% respectively. Domestic exam preparation for adults and university students saw a revenue increase of 34.9% [1] - New educational initiatives maintained robust growth, with a revenue increase of 42.6%. Non-subject tutoring services were launched in approximately 60 cities, attracting around 994,000 registrations [1] - The company aims to enhance service quality and operational efficiency while balancing sustainable growth and profitability [1] Summary by Sections Financial Performance - For FY25 H1, the company reported revenue of $2.47 billion, a year-on-year increase of 25.6%. Operating profit was $310 million, up 37.9%, while net profit attributable to shareholders was $280 million, an increase of 41.9% [2] - The company has expanded its self-operated product offerings to 600 SKUs, contributing approximately 37% to total GMV [2] Operational Metrics - The Non-GAAP operating profit for FY25 Q2 was $28 million, a decrease of 45.8%. The net profit attributable to shareholders was $32 million, reflecting a 6.2% increase [1] - The company recorded a net operating cash flow of $310 million for the quarter, with total cash and cash equivalents amounting to approximately $4.8 billion [3] Future Outlook - The company expects FY25 Q3 revenue (excluding self-operated products and live e-commerce) to be between $1.01 billion and $1.03 billion, representing a year-on-year growth of approximately 18% to 21% [4] Adjusted Earnings Forecast - The revenue forecast for FY25-27 has been adjusted to $5.2 billion, $6.3 billion, and $7.5 billion respectively. The adjusted net profit forecast for FY25-27 is $500 million, $620 million, and $750 million respectively [5]

Investment Rating - The report assigns a "Buy" rating to the company, Kunlun Energy [10][106]. Core Views - In the current environment of declining interest rates and a focus on dividends due to national reforms, the decrease in oil and gas prices is expected to improve cost conditions, leading to a reevaluation and second pricing of Kunlun Energy as a dividend asset [4][10]. - Compared to its peers, Kunlun Energy has stable natural gas sales price differentials, a leading position in the central and western regions, the ability to accommodate the industrial transfer of high-energy-consuming enterprises, and a relatively strong capacity for dividend enhancement [4][10]. Summary by Sections Company Overview - Kunlun Energy is one of the five major gas companies in China, with its market performance historically weaker than its peers due to significant impacts from oil price fluctuations [6][15]. - The company has shifted its focus from upstream exploration and production to downstream natural gas sales, reducing its cyclical attributes and enhancing its utility characteristics [6][15]. Strategic Positioning - The company has established a comprehensive natural gas industry chain, focusing on terminal natural gas sales, LPG sales, LNG processing and storage, and exploration and production [7][28]. - Kunlun Energy has expanded its natural gas sales business, benefiting from internal synergies, with LNG receiving station load rates exceeding industry averages [7][32]. Market Dynamics - The macroeconomic environment is improving, and the "dual carbon" strategy is driving domestic natural gas consumption growth [8][50]. - Kunlun Energy has a strong presence in the central and western natural gas markets, with significant sales regions including Xinjiang, Yunnan, Gansu, and Hubei, which will benefit from the industrial transfer of high-energy-consuming enterprises [8][52]. Financial Performance - The company is expected to achieve revenues of CNY 59.47 billion, CNY 62.93 billion, and CNY 66.08 billion from 2024 to 2026, with corresponding EPS of CNY 0.69, CNY 0.73, and CNY 0.76 [10][106]. - The report highlights that Kunlun Energy's dividend capacity is relatively strong compared to its peers, supported by a good asset structure and cash flow [9][90]. Investment Outlook - The report suggests that Kunlun Energy's valuation may improve due to its stable natural gas sales price differentials and strong dividend potential, especially as the company focuses on enhancing shareholder returns [9][90]. - The anticipated capital expenditure reduction and improved asset structure further support the company's ability to increase dividends [9][90].

Investment Rating - The investment rating for the company is "Buy" and maintained [1] Core Insights - The automotive aftermarket is experiencing cautious consumer spending, leading to accelerated changes in the supply-side landscape. The cumulative output per vehicle in the automotive aftermarket is expected to decline by 1% year-on-year in 2024, with quarterly changes showing a mixed trend [4] - The company is expanding its workshop stores steadily, with a total of 6,311 stores as of the first half of 2024, an increase of 402 stores from the end of 2023. The company plans to open an additional 500-600 stores in the second half of 2024 [5] - The company's revenue is projected to grow by approximately 8% year-on-year in the second half of 2024, despite a decrease in single-store revenue due to pricing strategies [6] Company Overview - The latest closing price is HKD 15.480, with a total share capital of 819 million shares and a market capitalization of HKD 127 billion [3] - The company has a debt-to-asset ratio of 60.81% and a price-to-earnings ratio of 19.6 [3] - The largest shareholder is Imaginary Structure Investment (Hong Kong) Limited [3] Financial Projections - Revenue projections for 2024, 2025, and 2026 are HKD 147.89 billion, HKD 163.46 billion, and HKD 179.17 billion, respectively, with corresponding net profits of HKD 4.49 billion, HKD 7.09 billion, and HKD 10.46 billion [6][10] - The expected gross margin for the full year of 2024 is 25.1%, with a slight decrease in net profit margin anticipated in the second half of 2024 [6]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is expected to capture more market share at the industry bottom, although profit growth is anticipated to slow down [1] - Revenue for 2024 is projected to grow by 8.5% to 14.76 billion, with adjusted net profit expected to increase by 25.3% to 600 million [8] - The company is enhancing its pricing power and brand promotion in a weak demand environment, leading to an accelerated market share increase [8] Financial Forecasts - Revenue (in million) for the years 2022A to 2026E is projected as follows: - 2022A: 11,547 - 2023A: 13,601 - 2024E: 14,759 - 2025E: 16,245 - 2026E: 17,868 [1] - Adjusted net profit (in million) is forecasted as: - 2022A: (2,136) - 2023A: 6,703 - 2024E: 427 - 2025E: 622 - 2026E: 845 [1] - Non-IFRS net profit (in million) is expected to be: - 2022A: (552) - 2023A: 481 - 2024E: 603 - 2025E: 806 - 2026E: 1,021 [1] Market Data - The closing price is 15.48 HKD, with a market capitalization of approximately 11,622.33 million HKD [5] - The price-to-earnings (P/E) ratio for 2025 is projected at 15 times [8] Operational Insights - The company plans to open 1,000 new stores in 2024, with a total store count exceeding 6,800 by year-end [8] - The average store efficiency is expected to decline due to weak demand and market expansion [8]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company's FY2025H1 revenue reached 2.187 billion, a year-over-year decrease of 9.3%, with a net loss attributable to shareholders of 968 million [8] - The company is focusing on a multi-channel strategy, with expectations for incremental contributions from WeChat stores [8] - The company has successfully launched competitive self-operated product lines, contributing to stable growth [8] - Adjusted net profit forecasts for FY2025-2026 have been revised down to 225 million and 502 million respectively, with a new FY2027 forecast of 695 million [8] Financial Performance Summary - Total revenue (in million) for FY2023A, FY2024A, FY2025E, FY2026E, and FY2027E is projected at 4,511, 6,528, 4,483, 4,998, and 5,448 respectively, with year-over-year growth rates of 651.26%, 44.69%, -31.33%, 11.50%, and 9.00% [1] - Net profit attributable to shareholders (in million) for the same periods is expected to be 971.29, 249.14, 35.56, 397.32, and 589.91, with year-over-year changes of 1,468.32%, -74.35%, -85.73%, 1,017.49%, and 48.47% [1] - The company's gross margin for FY25H1 improved by 0.7 percentage points to 33.6% [8] - The company’s self-operated products accounted for approximately 37% of total GMV in FY25H1 [8] Market Data - The closing price is 15.54 HKD, with a market capitalization of approximately 16,095.81 million HKD [5] - The price-to-earnings ratio (P/E) for FY2025E is projected at 415.72 [1]