Investment Rating - The report assigns a "Buy" rating for Sinopec Engineering Group (SEG) with a target price of 8 HKD, based on a 12x PE for 2025 [5]. Core Insights - Sinopec Engineering Group is a leading energy and chemical engineering company in China, providing comprehensive solutions across various sectors including oil refining, petrochemicals, and clean energy [12][16]. - The company has demonstrated stable profitability with a gross margin around 10% and a net margin of approximately 5% from 2019 to 2023, alongside a consistent dividend payout ratio of 65% [16][22]. - The domestic market is experiencing a trend of upgrading refining processes and a surge in coal chemical projects, with significant new contracts signed in 2024 [3][4]. - Internationally, SEG is focusing on the MENA region, where the value of awarded oil and gas projects has reached unprecedented levels, contributing to a 32.7% growth in overseas orders [4]. Summary by Sections Company Overview - Sinopec Engineering Group, a subsidiary of Sinopec, is a prominent player in the energy and chemical engineering sector, listed in Hong Kong since May 2013 [12]. - The company operates 12 subsidiaries, providing a wide range of services including engineering consulting, project management, and construction [12][13]. Industry Landscape - The energy and chemical engineering industry has high barriers to entry due to complex processes, specialized requirements, and long project cycles [2][27]. - SEG's main competitors in the domestic market include China Petroleum Engineering Construction and China Chemical Engineering [29]. Domestic Market Trends - The refining sector in China is undergoing structural adjustments, with major projects from both Sinopec and PetroChina aimed at upgrading facilities [3]. - The coal chemical industry is poised for growth, with a projected 295 projects by January 2025, significantly increasing SEG's order intake [3]. International Market Focus - The MENA region is becoming a focal point for SEG, with a record contract value of 94 billion USD for oil and gas projects expected in the upcoming year [4]. - The company has seen a substantial increase in overseas orders, continuing the growth trend established in 2023 [4]. Financial Performance and Valuation - SEG's revenue has remained stable above 50 billion RMB, with a reported revenue of 56.26 billion RMB in 2023, marking a 6% year-on-year increase [16]. - The forecasted net profit for 2024, 2025, and 2026 is 2.525 billion, 2.757 billion, and 2.943 billion RMB respectively, with an EPS of 0.57, 0.63, and 0.67 RMB [5].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 12.00, representing a potential upside of 47.04% from the current price of HKD 8.16 [1][5][11]. Core Insights - The company has increased its investment in AI technology, responding to national calls for inclusive finance and focusing on wealth management for financial institutions. It has made significant breakthroughs in intelligent voice and digital human technologies, particularly in semantic understanding and human-computer interaction [2][3][8]. - The company has successfully won multiple cooperation projects with financial institutions, leveraging its business ecosystem to drive growth. Recent projects include strategic partnerships with UnionPay and a credit risk model upgrade for Shengjing Bank [4][9][10]. Financial Performance - In the first half of 2024, the company achieved revenue of RMB 1.321 billion, a year-on-year increase of 6%. The overall gross margin was 73.2%, reflecting a 1.1 percentage point improvement [3][7]. - The net profit attributable to shareholders for the same period was RMB 140 million, a decline of 32% year-on-year. Adjusted net profit, excluding option fees, was RMB 197 million, down 13% [3][7]. - The company expects EPS for 2024, 2025, and 2026 to be RMB 0.58, RMB 0.75, and RMB 0.92, respectively, with corresponding PE ratios of 13.2, 10.2, and 8.3 [5][11]. Market Position and Strategy - The company is actively expanding its AI technology capabilities, which are considered industry-leading. It aims to meet the financing needs of small and micro enterprises and enhance asset preservation and appreciation for C-end customers [5][11]. - The company has a strong client retention rate of 96% among its core customers, which numbered 165, and it continues to expand its business boundaries through AI technology [7][11].

Investment Rating - The report upgrades the investment rating to "Buy" with a target price of HKD 7.05, reflecting a 12x PE for 2025 [4][3]. Core Insights - The company has shown significant growth in its social business, with cumulative downloads reaching approximately 780 million, a 5.7% increase from the previous quarter. Monthly active users reached about 31.74 million, a 9.5% quarter-on-quarter growth. Total revenue from the social business is expected to be between RMB 4.52 billion and RMB 4.72 billion, representing a year-on-year growth of 54.3% to 61.1% [1]. - The innovative business segment, including e-commerce and premium games, is projected to generate revenue between RMB 440 million and RMB 480 million, with a year-on-year growth of 16.1% to 26.6%. The premium game "Alice's Dream" has contributed significantly, achieving a revenue of approximately RMB 705 million, a growth of 80.4% [2]. - The company is focusing on emerging markets, particularly in the Middle East and North Africa, where it has established a strong presence in the app rankings. The application of AI technology is expected to further enhance growth and market share [1]. Summary by Sections Social Business Performance - Cumulative downloads reached approximately 780 million, a 5.7% increase from the previous quarter [1]. - Monthly active users reached about 31.74 million, a 9.5% quarter-on-quarter growth [1]. - Total revenue from social business expected to be between RMB 4.52 billion and RMB 4.72 billion, a year-on-year growth of 54.3% to 61.1% [1]. Innovative Business Growth - Total revenue from innovative business projected to be between RMB 440 million and RMB 480 million, with a year-on-year growth of 16.1% to 26.6% [2]. - Premium game "Alice's Dream" achieved revenue of approximately RMB 705 million, an 80.4% year-on-year growth [2]. Market Expansion Strategy - The company is targeting emerging markets with significant growth potential, particularly in the Middle East and North Africa [1]. - The application of AI technology is expected to drive further growth and enhance market presence [1].

Investment Rating - The report upgrades the investment rating to "Buy" with a target price of HKD 7.05, reflecting an expected relative return of over 20% within the next six months [3][4]. Core Insights - The company has shown impressive growth in its social business, with cumulative downloads reaching approximately 780 million, a 5.7% increase from the previous quarter. Monthly active users reached about 31.74 million, a 9.5% quarter-on-quarter growth. Total revenue from the social business is expected to be between RMB 4.52 billion and RMB 4.72 billion, representing a year-on-year growth of approximately 54.3% to 61.1% [1]. - The company's innovative business segment, which includes e-commerce and premium games, is projected to generate total revenue of RMB 440 million to RMB 480 million, reflecting a year-on-year growth of about 16.1% to 26.6%. The premium game "Alice's Dream" has significantly contributed to this growth, achieving a revenue of approximately RMB 705 million, a year-on-year increase of about 80.4% [2]. Summary by Sections Social Business Performance - The social business has achieved substantial growth, driven by AI technology and strategic acquisitions. The revenue growth trajectory indicates a successful implementation of the company's strategies, with projections showing a significant increase from previous years [1]. Innovative Business Development - The innovative business segment is expanding, with e-commerce and premium games contributing to revenue growth. The focus on emerging markets allows the company to avoid intense competition in mainstream markets while leveraging successful strategies from established players [2]. Financial Projections - Revenue forecasts for FY2024 to FY2026 have been adjusted, with total revenue expected to be RMB 5.08 billion, RMB 5.86 billion, and RMB 6.76 billion respectively. Net profit estimates have also been revised, indicating a strong financial outlook for the company [3].

Investment Rating - The report maintains a "Buy" rating for IGG (799.HK) with a target price of HKD 4.2, representing a potential upside of 13% from the current price of HKD 3.73 [4][5]. Core Insights - The company is expected to see a revenue growth of 9% year-on-year in 2024, reaching RMB 5.72 billion, with an adjusted net profit of RMB 614 million and an adjusted net profit margin of 10.7% [3][4]. - The core product, "King of Avalon," is anticipated to maintain stable revenue in the second half of 2024 due to gameplay adjustments and content updates [3]. - New game products "Doomsday: Last Survivors" (DLS) and "Viking Rise" (VR) are projected to contribute significantly to revenue growth in the second half of 2024, offsetting declines from older games [3][4]. - The company's APP business has transitioned to focus on content-driven applications, particularly in news services, which is expected to drive strong revenue growth in the second half of 2024 [3]. Financial Projections - Revenue and profit forecasts for IGG are as follows: - FY22 Revenue: HKD 4,591 million - FY23 Revenue: HKD 5,266 million - FY24E Revenue: HKD 5,720 million - FY25E Revenue: HKD 6,136 million - FY26E Revenue: HKD 6,348 million - Adjusted Net Profit for FY24E: HKD 614 million, with a target PE of 8.0x [5][4].

Investment Rating - The report assigns a "Buy" rating for TCL Electronics, marking the first coverage of the company [12][10][192]. Core Views - TCL Electronics is expected to achieve a breakthrough in high-end market share through its strategic focus on mid-to-high-end products, leveraging its advantages in product quality, channel distribution, and brand strength [2][10]. - The company's profitability is anticipated to improve as panel price fluctuations stabilize, aided by internal resources from Huaxing Optoelectronics [2][6]. - The diversification of TCL's business boundaries is ongoing, with growth driven by market share expansion, operational efficiency improvements, and industry diversification [2][10]. Summary by Sections Company Overview - TCL Electronics, originating from a tape manufacturing background, has evolved into a global leader in display technology, with a projected revenue of HKD 45.494 billion in H1 2024 and a global TV shipment market share of 13.3%, ranking among the top three worldwide [4][10]. Historical Challenges - The TV industry has faced significant profitability fluctuations due to intense competition and price wars initiated by internet brands, leading to a fragmented market and reduced margins for traditional manufacturers [5][28]. Recovery and Growth Prospects - The global TV market is stabilizing, with increasing demand for high-end and large-screen TVs. TCL's strategic focus on Mini LED technology is expected to capture a larger share of the mid-to-high-end market [6][55]. - The shift of panel production capacity to mainland China is likely to shorten price fluctuation cycles, enhancing TCL's ability to manage costs effectively [6][137]. Operational Efficiency - TCL has optimized its mobile and tablet business, focusing on profitable markets in Europe and America, which is expected to improve gross margins in 2024 [7][138]. - The company has also restructured its internet business, which is anticipated to have significant growth potential despite recent regulatory challenges [7][144]. Industry Diversification - TCL's foray into the solar energy sector is supported by favorable policies and a growing market, with significant revenue growth expected from this segment [8][180]. - The company is leveraging its existing distribution channels to enhance its solar business, which has shown rapid growth since its inception [8][181]. Value Reassessment - The 2023 stock incentive plan reflects TCL's confidence in future growth, with projected compound annual growth rates (CAGR) for net profit of 13%-23% from 2024 to 2026 [9][187]. - Compared to industry averages, TCL's valuation appears attractive, suggesting significant investment potential as market share and profitability are expected to improve [9][188]. Investment Recommendations - The report emphasizes that TCL's growth will be driven by market share expansion, operational efficiency, and industry diversification, with projected net profits of HKD 1.328 billion, HKD 1.639 billion, and HKD 2.014 billion for 2024-2026, respectively [10][192].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [4] Core Views - The company focuses on smart electric vehicles and has a diverse management team with backgrounds in internet, automotive manufacturing, and strategic financing [1][12] - The company has shown robust growth in vehicle sales and significant improvement in loss rates, with a compound annual growth rate of 83% in deliveries from 2019 to 2023 [2][20] - The company has launched advanced smart driving systems and new models that have been well received in the market, indicating strong demand [3][30] Summary by Sections 1. Product Matrix and Management Team - The company is a leading smart electric vehicle manufacturer in China, with a diverse management team that shapes its unique DNA [1][12] - The current product lineup includes six models ranging from sedans to SUVs, priced between 110,000 to 420,000 yuan [1][14] 2. Sales Growth and Financial Improvement - Annual delivery volume increased from 12,728 units in 2019 to 144,161 units in 2023, with a monthly sales increase of 255% from January 2021 to September 2024 [2][20] - In the first half of 2024, total revenue reached 14.66 billion yuan, a year-on-year increase of 61%, while net loss improved by 48% to -2.653 billion yuan [2][26] - Gross margin improved from -24% in 2019 to 14% in 2024, and net margin improved from -159% to -18% during the same period [2][28] 3. Leading Smart Technology and New Model Sales - The company launched the XNGP smart driving system in 2022, which has been continuously upgraded and is capable of full-scenario intelligent driving [3][30] - The new model MONA M03 was launched in August 2024, achieving over 10,000 units sold in its second month of delivery [3][38] - The P7+ model began pre-sales in October 2024, with over 30,000 orders placed within the first hour and 48 minutes [3][42] 4. Profit Forecast and Investment Recommendations - Revenue projections for 2024, 2025, and 2026 are estimated at 43.195 billion yuan, 64.324 billion yuan, and 95.754 billion yuan respectively, with net profits expected to improve significantly by 2026 [4][52] - The report emphasizes the company's leading smart driving technology and strong sales growth as key factors for investment [4][51]

Investment Rating - The report maintains a rating for the company [3] Core Insights - The company is projected to achieve revenue growth from 13,601 million in 2023 to 17,389 million in 2026, reflecting a compound annual growth rate (CAGR) of approximately 7% [8] - The net profit is expected to increase from 6,701 million in 2023 to 1,204 million in 2026, indicating a significant recovery after a dip in 2024 [8] - The report highlights a projected increase in adjusted net profit from 481 million in 2023 to 1,258 million in 2026, showcasing strong growth potential [8] Financial Summary - **Balance Sheet**: Total assets are expected to grow from 38,870 million in 2023 to 42,210 million in 2026, with current assets increasing from 8,271 million to 11,623 million [7] - **Cash Flow Statement**: Operating cash flow is projected to rise from 1,021 million in 2023 to 1,729 million in 2026, indicating improved cash generation capabilities [7] - **Profitability Ratios**: The gross margin is expected to improve from 24.7% in 2023 to 27.2% in 2026, while the return on equity (ROE) is projected to increase from 150.3% to 17.1% over the same period [8]

Investment Rating - The report maintains a "Buy" rating for New Oriental-S (09901.HK) [4][7] Core Views - The company's FY2025Q2 revenue exceeded guidance, achieving net revenue of $1.039 billion, a year-over-year increase of 19.4%. Excluding Dongfang Zhenxuan, net revenue reached $894 million, up 31.3% year-over-year [1] - The K12 business remains stable despite seasonal fluctuations, with a 5% quarter-over-quarter growth in learning centers. The company aims for a 20-25% year-over-year increase in teaching point capacity for FY25 [2] - The company expects a slight pressure on profit margins in Q3 due to macroeconomic impacts on high-end education and tourism businesses, while K12 education is anticipated to continue growing [3] Summary by Sections Financial Performance - FY2025Q2 gross margin reached 52.02%, with operating profit margin at 1.9%. Excluding Dongfang Zhenxuan, the operating profit margin was 2.8%, reflecting a year-over-year increase [3] - Deferred revenue as of FY25Q2 was $1.961 billion, indicating a year-over-year growth of 19.2%, which supports future revenue [4] Business Segments - Traditional education services such as study abroad exam preparation and consulting saw year-over-year growth of 21.1%, 31.0%, and 34.9% respectively, indicating stable performance during the off-season [2] - New business lines, including non-academic services, reported a 42.6% year-over-year revenue increase, with live commerce contributing significantly to overall GMV [2] Future Guidance - For FY2025Q3, the company projects net revenue (excluding Dongfang Zhenxuan) to grow by 18%-21%, with a conservative outlook due to macroeconomic pressures [4] - Full-year revenue for FY2025 is expected to grow by over 25% year-over-year [4] Financial Projections - The report forecasts Non-GAAP net profits of $501 million, $623 million, and $744 million for FY2025, FY2026, and FY2027 respectively, reflecting growth rates of 31.5%, 24.4%, and 19.3% [4][6]

Investment Rating - The report assigns a "Hold" rating to Tsingtao Brewery-H (168 HK) with a target price of HK$56.20 [2][4] - The target price represents a 7% upside from the current price of HK$52.55 [3] - The rating was downgraded from "Buy" to "Hold" due to a weaker macro environment and lower growth expectations [4][10] Core Views - Tsingtao Brewery's sales decline is expected to narrow in 4Q24, with a projected year-on-year drop of 2.7%, compared to a 5.1% drop in 3Q24 [8] - The company's gross margin is expected to benefit from lower raw material costs, with a 1.6% year-on-year decline in cost per ton [8] - Adjusted net loss is expected to narrow slightly to RMB 625 million in 4Q24 from RMB 714 million in 4Q23, driven by better gross margins and operating expense control [8] - The new chairman is expected to continue the current strategy, focusing on efficiency improvement and margin expansion [9] - Revenue and net profit are expected to grow at a single-digit rate in 2025, with free cash flow increasing from RMB 1.2 billion in 2023 to RMB 2.6 billion in 2024, providing room for shareholder returns [9] Financial Performance and Forecasts - Revenue for 2024E is projected at RMB 29.527 billion, a 6.4% decline from 2023A, while 2025E revenue is expected to grow by 3.0% to RMB 30.418 billion [12] - Adjusted EPS for 2024E is forecasted at RMB 3.16, a 3% decline from the previous estimate of RMB 3.25 [4] - Adjusted net profit for 2025E is expected to grow by 7.7% to RMB 4.662 billion, with free cash flow increasing significantly [9] - Gross margin is expected to improve to 35.9% in 2024E and 36.2% in 2025E, driven by stable raw material prices [15] Valuation and Peer Comparison - The target price of HK$56.20 is based on a 7.6x 2025E EV/EBITDA multiple, in line with global peers [10] - Tsingtao Brewery-H's 2025E P/E ratio of 14.3x is comparable to its domestic peers, such as China Resources Beer (12.2x) and Budweiser APAC (13.9x) [16] - The company's 2025E EV/EBITDA multiple of 6.9x is slightly lower than the global peer average of 7.6x [16] Market and Industry Outlook - The domestic beer market is expected to stabilize, with Tsingtao Brewery's sales volume projected to grow by 1.0% in 2025, while the average price per ton is expected to increase by 2.0% [9] - The government is expected to continue introducing consumption stimulus plans to aid market recovery [9] - Competition in the high-end beer market may ease, potentially benefiting Tsingtao Brewery's revenue growth [23] Key Adjustments - Revenue forecasts for 2024E/2025E/2026E were lowered by 1.8%/3.1%/3.1% due to weaker-than-expected domestic consumption recovery [14] - Adjusted EPS forecasts for 2024E/2025E/2026E were revised down by 2.8%/7.1%/6.9% [15] - Gross margin forecasts for 2025E/2026E were reduced by 1.0/0.9 percentage points, reflecting lower-than-expected price growth [14]