Investment Rating - The report maintains a "Buy" rating for China Resources Beer (291 HK) with a target price of HK$28.60, down from HK$31.30, indicating a potential upside of 19% from the current price of HK$24.00 [2][4][10]. Core Views - The report highlights that the trend of premiumization in the beer segment continues, albeit at a slower pace, while the baijiu business faces challenges due to industry oversupply [8][9]. - It anticipates that China Resources Beer may experience its first year-on-year revenue decline since 2020 in 2024, primarily due to weak demand for alcoholic beverages amid macroeconomic pressures [8][9]. - The report projects a slight recovery in beer sales in 2025, with an expected price increase of 2.2% and a volume growth of 0.7%, benefiting from a recovery in on-the-go consumption channels [10][12]. Summary by Sections Financial Adjustments - The target price has been revised down to HK$28.60 from HK$31.30, reflecting adjustments in earnings forecasts for 2024-2026 due to slower-than-expected growth in the baijiu segment [4][10][14]. - The earnings per share (EPS) estimates for 2024, 2025, and 2026 have been reduced by 1%, 8%, and 9% respectively [4][14]. Revenue and Profit Projections - Revenue for 2024 is projected at RMB 38,566 million, a decrease of 1.7% from previous estimates, with a slight increase to RMB 39,742 million in 2025 [11][15]. - Adjusted net profit is expected to grow by 7% in 2024, driven by lower raw material costs and controlled sales and marketing expenses [8][11]. Market Comparison - The report compares China Resources Beer’s valuation metrics with its peers, noting that its target EV/EBITDA multiple remains at 8 times for 2025, which is at the lower end of the range compared to global beer and domestic baijiu companies [16][17].

Investment Rating - The report maintains a "Buy" rating for Budweiser APAC (1876 HK) with a target price of HK$11.60, reflecting a potential upside of 61% from the current price of HK$7.19 [2][4][9]. Core Insights - The report highlights ongoing challenges in the Chinese market due to macroeconomic factors, high inventory levels, and a shift in channel dynamics, which negatively impacted sales and pricing [8][9]. - Despite strong sales momentum in the South Korean market, price increases are expected to contribute less to revenue growth moving forward [8]. - The report projects a significant decline in normalized EBITDA for Q4 2024, estimating a year-on-year decrease of 25.8% due to reduced sales and rising costs [9][13]. Summary by Sections Financial Performance - Revenue for 2024 is estimated at US$6,280 million, down from US$6,305 million previously, reflecting a 0.4% decrease [14]. - Adjusted net profit for 2024 is projected at US$784 million, a reduction of 6.5% from the previous estimate of US$839 million [14]. - The report anticipates a normalized EBITDA margin decline due to increased costs and lower sales volumes, particularly in the Chinese market [9][13]. Market Analysis - The Chinese market continues to face challenges from a high base effect and weak consumer demand, leading to a projected decline in sales volume [8][9]. - The South Korean market has shown resilience with strong sales, but the impact of price increases is expected to diminish [8]. - The report emphasizes the need for Budweiser APAC to navigate these market dynamics effectively to maintain profitability [9]. Valuation - The target price of HK$11.60 is based on a P/E ratio of 22.4 times the estimated earnings for 2025, which is below the historical average [15]. - The current valuation is considered attractive, with a projected dividend yield of 5.4% for 2025 [15]. - The report suggests that Budweiser APAC's valuation remains compelling compared to its peers in the industry [22].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved revenue of USD 1.039 billion in FY25Q2, representing a year-on-year increase of 19.4%. The net profit attributable to shareholders was USD 32 million, up 6.2% year-on-year, while the Non-GAAP net profit attributable to shareholders decreased by 29.1% to USD 36 million [3][4] Revenue Performance - The core education business (excluding selection) saw revenue growth of 31.3% year-on-year, exceeding previous guidance of 25%-28% [4] - Revenue from overseas exam preparation and consulting services grew by 21.1% and 31.0% year-on-year, respectively, with the consulting business benefiting from an increase in 2+2 projects and early revenue recognition [4] - Revenue from adult and college exam preparation services increased by 34.9% year-on-year, supported by a more favorable competitive landscape due to the exit of several institutions from the market [4] - New education business revenue grew by 42.6% year-on-year, with non-subject tutoring services expanding in nearly 60 cities and enrollment increasing by 26.5% to 994,000 [4] Guidance and Profitability - For FY25Q3, the company expects revenue (excluding selection) to be between USD 1.0073 billion and USD 1.0325 billion, reflecting a year-on-year growth of 18%-21% [5] - The company has adjusted its full-year revenue growth guidance (excluding selection) to 25% in RMB terms, down from a previous estimate of 30% [5] - The gross margin for FY25Q2 improved by 0.6 percentage points to 52.0%, while the Non-GAAP operating margin decreased by 3.2 percentage points to 2.7% due to pressures from new tourism and selection businesses [5] Profit Forecast and Valuation - The report lowers the net profit forecast for FY2025-2027 to USD 413 million, USD 555 million, and USD 712 million, respectively, reflecting reductions of 13%, 12%, and 11% [6] - The projected EPS for FY2025-2027 is USD 0.25, USD 0.34, and USD 0.44, with corresponding P/E ratios of 18x, 13x, and 10x [6] - The report expresses optimism about the education training industry's outlook and the company's competitive advantages, maintaining the "Buy" rating [6]

Investment Rating - The report maintains a "Buy" rating for Baidu Group-SW (9888.HK) with a target price of HKD 128.7, compared to the current price of HKD 80.15 [3]. Core Views - Baidu Group is expected to experience a revenue decline of 4.5% year-on-year in Q4 2024, with total revenue projected at RMB 33.37 billion. The core revenue is anticipated to decrease by 2.5% to RMB 26.79 billion. The non-GAAP operating profit is expected to drop by 28.9% to RMB 4.41 billion, resulting in an operating margin of 16.5% [1]. - The online marketing business remains under pressure, but there are expectations for stabilization and gradual recovery in 2025, driven by AI commercialization efforts [1]. - Non-online marketing business, particularly cloud services, is showing promising growth, with Baidu's AI features attracting a significant number of paid users [1]. Summary by Sections Revenue Forecast - For Q4 2024, Baidu's total revenue is projected at RMB 33.37 billion, a 4.5% decline year-on-year. The core revenue is expected to be RMB 26.79 billion, down 2.5% [1][11]. - The online marketing services revenue is forecasted to decrease by 8.9% to RMB 17.48 billion, influenced by a weak macro environment and the ongoing transformation of user search through generative AI [1]. Profitability - The non-GAAP net profit for Q4 2024 is expected to be RMB 3.99 billion, with a net profit margin of 12.0% [1]. - The report revises the non-GAAP net profit forecasts for 2024-2026 to RMB 24.3 billion, RMB 25.6 billion, and RMB 28.0 billion, respectively, reflecting a downward adjustment of 8.3%, 7.8%, and 4.6% from previous estimates [1][12]. Business Segments - The non-online marketing business is projected to grow by 12.3% year-on-year in Q4 2024, reaching RMB 9.32 billion. This growth is attributed to the increasing demand for Baidu's cloud services and the successful monetization of Baidu Wenku's AI features, which have seen paid user numbers exceed 40 million [1]. - Baidu's AI capabilities continue to strengthen, with significant user engagement in AI applications and the introduction of innovative products like AI glasses [1][10]. Valuation - The report assigns a valuation multiple below the industry average for 2025, with advertising, smart cloud, and other businesses valued at 10.0x PE, 2.5x PS, and 3.0x PS, respectively. The target price is adjusted to HKD 128.7 [1][3].

Investment Rating - Maintains an OUTPERFORM rating with a target price of HKD 14.39 [1][2] Core Views - The company is expected to achieve stable growth in its pharmaceutical distribution business, with a projected revenue increase of 8.0% in 2024 [3][12] - The pharmaceutical manufacturing sector is forecasted to decline by 6.5% in 2024 due to price reductions and slower growth in traditional Chinese medicine products [3][12] - The company is actively cutting costs and improving efficiency, which is expected to reduce sales and management expense ratios [4][13] Revenue and Profit Forecasts - Total revenue for 2024 is projected to be CNY 277.3 billion, a 6.5% year-on-year increase [3][12] - Net profit attributable to shareholders is expected to reach CNY 4.8 billion in 2024, a 28.1% increase from the previous year [4][13] - Gross profit margin is expected to decline by 0.9 percentage points to 11.1% in 2024 due to price cuts and a higher proportion of low-margin distribution business [4][13] Business Segments - Pharmaceutical distribution business is expected to generate CNY 252.7 billion in revenue, an 8.0% increase, driven by growth in CSO services, import agency business, and SPD services [3][12] - Pharmaceutical manufacturing sector is expected to generate CNY 24.6 billion in revenue, a 6.5% decline, primarily due to price reductions for polymyxin B and slower growth in traditional Chinese medicine products [3][12] Cost Efficiency and Expenses - Sales expense ratio is expected to decrease by 0.7 percentage points to 4.6% in 2024 [4][13] - Management expense ratio is expected to decrease by 0.1 percentage points to 2.1% in 2024 [4][13] - Financial expense ratio is expected to remain stable at 0.6% [4][13] Acquisition and Strategic Moves - The company acquired a 10% equity stake in Shanghai Hutchison Pharmaceuticals Limited, increasing its total stake to 60% and becoming the actual controller [4][14] - Shanghai Hutchison Pharmaceuticals reported revenues of CNY 2.7 billion and a net profit of CNY 660 million in 2023 [4][14] Valuation and Financial Metrics - The company's valuation is based on a DCF model with a WACC of 6.2%, a perpetual growth rate of 3%, and a 60% discount for H-shares relative to A-shares [5][15] - The current stock price corresponds to 2024/2025 P/E ratios of 8.7x/7.7x [5][15] ESG Performance - The company has established a comprehensive environmental management system and is committed to social responsibility and charitable causes [18][19] - The company continuously improves its sustainability governance system and ESG structure [19]

Investment Rating - The report maintains a "Recommended" rating for the company [7]. Core Insights - The company's core business performance exceeded expectations in Q2 FY2025, with revenue of $1.039 billion, a year-over-year increase of 19.4%, and a net profit of $31.93 million, up 6.2% year-over-year [1]. - The core business revenue, which includes education and cultural tourism, grew by 31.3% year-over-year, reaching $894 million, surpassing previous guidance [2]. - The company anticipates a slowdown in growth for its overseas business in the second half of FY2025, projecting a revenue increase of approximately 15% for overseas study-related services due to rising costs and changing parental attitudes [3]. Summary by Sections Financial Performance - Q2 FY2025 revenue was $1.039 billion, with a year-over-year growth of 19.4%. Operating profit was $19.26 million, down 9.8% year-over-year, while net profit was $31.93 million, up 6.2% year-over-year [1]. - The core business (education + cultural tourism) revenue reached $894 million, a year-over-year increase of 31.3%, exceeding the upper limit of previous guidance [2]. Business Segments - The overseas examination and consultation revenue grew by 21.1% and 31.0% year-over-year, while domestic examination revenue increased by 34.9% [2]. - The K9-related new business saw a year-over-year growth of 42.6%, driven by strong demand and stable capacity expansion [2]. Future Guidance - For Q3 FY2025, the company expects core business revenue to be between $1.0073 billion and $1.0325 billion, representing a year-over-year growth of 18-21% [3]. - The anticipated slowdown in overseas business growth is attributed to high demand fatigue and rising overseas study costs [3]. Investment Projections - The report projects total revenue for FY2025 to be $4.873 billion, with a compound annual growth rate (CAGR) of approximately 14% over three years [5]. - Non-GAAP net profit is expected to be $475 million for FY2025, with a CAGR of about 20% over three years [5].

Investment Rating - The report suggests a positive investment outlook for Harbin Electric, recommending active attention due to the company's profit exceeding expectations [5] Core Insights - The company anticipates a net profit of approximately 1.7 billion RMB for the fiscal year 2024, representing a significant increase of about 196% compared to the previous year's profit of 575 million RMB [1][2] - The growth in profit is attributed to increased demand for thermal and nuclear power equipment, successful management efficiency improvements, and the development of the pumped storage industry [2] - As a leading energy equipment manufacturer in China, Harbin Electric's new energy equipment business achieved revenues of 9.61 billion RMB in the first half of 2024, marking a year-on-year growth of 43.4% [3] - The national electricity consumption is projected to grow by 6.8% in 2024, indicating sustained demand for energy equipment, which benefits the company as a key player in the industry [4] Summary by Sections - **Profit Forecast**: The company expects a net profit of 1.7 billion RMB for 2024, significantly higher than the previously predicted 1.06 billion RMB [2] - **Energy Equipment Business**: Harbin Electric is a major player in the energy equipment sector, with substantial market shares in hydro, thermal, and nuclear power equipment. The new energy equipment business is expected to continue its strong performance into 2025 [3] - **Electricity Demand**: The national electricity consumption is projected to reach 98,521 billion kWh in 2024, with a year-on-year increase of 6.8%, supporting ongoing demand for the company's products [4]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [4]. Core Insights - The company reported a 14.2% year-on-year decline in retail value for FY25Q3, with a 13.0% decline in mainland China and a 20.4% decline in Hong Kong, Macau, and other markets, influenced by macroeconomic factors and high gold prices [1]. - Same-store sales showed a narrowing decline due to stabilized gold prices and successful product optimization measures, with mainland China same-store sales down 16.1% and Hong Kong and Macau down 21.3% [1]. - The company is making positive progress in brand transformation, optimizing product and pricing strategies, and improving operational efficiency [3]. Retail Performance - In FY25Q3, the retail value of gold jewelry and products in mainland China decreased by 13.0%, while same-store sales fell by 15.3%. In Hong Kong and Macau, retail value dropped by 33.5%, with same-store sales down 36.2% [2]. - The average selling price of gold products remained resilient, increasing to 6300 HKD in mainland China and 8800 HKD in Hong Kong and Macau [2]. - For the embedded category, retail value in mainland China decreased by 11.9%, while the Hong Kong and Macau markets saw a 34.4% increase in retail value, benefiting from effective promotional activities [2]. Store Expansion - As of December 31, 2024, the company had 6836 retail points, with a net closure of 255 stores during the quarter [3]. - In mainland China, there were 6685 retail points, with a net closure of 261 stores, while Hong Kong, Macau, and other markets had 151 retail points, with a net opening of 6 stores [3]. - The total number of retail points for the group was 7065, reflecting a net decrease of 259 stores [3]. Financial Forecast - The report maintains profit forecasts, expecting net profits of 5.63 billion HKD, 6.91 billion HKD, and 7.68 billion HKD for FY25-27, corresponding to PE ratios of 12, 10, and 9 times [3].

Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [4][18]. Core Insights - The company is projected to face challenges in 2024, with expected revenue of 4.185 billion yuan, a year-over-year decline of 12%. This is attributed to a downturn in the film market and underperformance of certain films. The net profit attributable to shareholders is anticipated to drop to 178 million yuan, a year-over-year decrease of 80.5% [1][7]. - Looking ahead to 2025, the company is expected to see operational improvements, with revenue projected to rebound to 5.266 billion yuan, reflecting a year-over-year growth of 25.8% [1][7]. Financial Projections - Total revenue for 2024 is estimated at 4.185 billion yuan, down from 4.758 billion yuan in 2023, with a projected growth of 5.266 billion yuan in 2025 [3][8]. - The net profit for 2024 is expected to be 178 million yuan, significantly lower than 910 million yuan in 2023, with a recovery to 733 million yuan in 2025 [3][8]. - The earnings per share (EPS) is projected to be 0.16 yuan in 2024, compared to 0.79 yuan in 2023, with an expected increase to 0.64 yuan in 2025 [3][8]. Revenue Breakdown - Online ticketing revenue is expected to decline to 1.944 billion yuan in 2024, a year-over-year decrease of 44%. This includes a projected 1.594 billion yuan from movie ticketing, down 20% due to a weaker film market [7]. - Live performance ticketing revenue is anticipated to grow to 350 million yuan, a year-over-year increase of 29%, benefiting from a strong demand in the live performance sector [7]. - Revenue from entertainment content services is projected to be 2 billion yuan in 2024, down 13% year-over-year, primarily due to underperformance of key films [7]. Profitability Metrics - The gross margin for 2024 is expected to be 40%, a decrease of 10 percentage points from the previous year, influenced by the underperformance of certain films [7]. - The report anticipates an increase in the sales and management expense ratio to 30.5% in 2024, reflecting the impact of declining revenues while some costs remain fixed [7]. Valuation and Target Price - The target price for the company's stock is set at 10.7 HKD, based on a relative valuation method using a price-to-earnings (P/E) ratio of 13 times for 2025 [4][7].

Investment Rating - The report assigns a "Buy" rating to the company with a current price of HKD 26.75 and a target value of HKD 34.20 [4][248]. Core Insights - The company is a leading urban gas provider in China, with a strong focus on city gas operations and a significant market share, achieving a compound annual growth rate (CAGR) of 25% in gas sales from 2008 to 2023 [9][39]. - The company is expected to benefit from the recovery of LNG prices and the implementation of pricing policies that will enhance profitability [9][248]. - The report highlights the company's robust financial health, with a return on equity (ROE) consistently above 10% and a dividend payout ratio increasing to 50.3% in 2023, indicating strong shareholder returns [9][94]. Summary by Sections 1. Company Overview - The company is backed by China Resources Group and has been deeply involved in the urban gas sector for over 20 years, ranking among the top three in gas sales nationwide [21][23]. - As of 2024H1, the company operates 276 urban gas projects across 25 provinces, with a coverage of 97.08 million users [31][39]. 2. Pricing and Profitability - The company has seen a recovery in profitability due to the stabilization of gas prices and the implementation of a pricing mechanism that aligns sales prices with procurement costs [9][160]. - The average selling price of gas in 2023 was HKD 3.50 per cubic meter, with a gross margin of HKD 0.51 per cubic meter, showing improvement from previous years [160][248]. 3. Business Segments - Gas sales accounted for 82% of total revenue in 2023, with a significant contribution from the connection business, which, despite its smaller share, has a high profit margin [55][241]. - The comprehensive service segment has been growing rapidly, with revenues reaching HKD 40.45 billion in 2023, driven by kitchen and heating services [202][204]. 4. Financial Projections - The company is projected to achieve net profits of HKD 50 billion, HKD 57 billion, and HKD 63 billion for the years 2024 to 2026, respectively, with corresponding earnings per share (EPS) of HKD 2.17, HKD 2.44, and HKD 2.73 [9][243]. - The report anticipates a gradual recovery in gross margins, with expected improvements in the gas sales segment due to favorable pricing policies [239][240]. 5. Market Dynamics - The urban gas market in China is expected to continue growing, driven by increasing urbanization and the demand for cleaner energy sources [97][106]. - The company is well-positioned to capitalize on these trends, with a strategic focus on expanding its service offerings and enhancing customer engagement through innovative service models [207][212].