Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The report highlights a significant overseas licensing deal for the PD1/VEGF dual antibody with Pfizer, exceeding market expectations with a transaction scale of over $1.25 billion upfront payment and potential milestone payments of up to $4.8 billion, along with a double-digit percentage sales share [7] - The company is expected to show substantial revenue growth, with projected revenues reaching RMB 19.1 billion in 2025, representing a year-on-year growth rate of 109.7% [6][8] - The report anticipates a dramatic increase in net profit, forecasting RMB 9.8 billion in 2025, a year-on-year increase of 368.2% [6][8] - The company is expected to maintain a strong market position with core products like Teibiao and Mandi showing robust growth, with Teibiao's sales projected at RMB 5.06 billion in 2024, a 20.4% increase [7] - The report suggests that the company's innovative products and partnerships with various pharmaceutical companies will provide additional revenue growth opportunities [7] Financial Summary - The company's projected operating income for 2025 is RMB 19,102 million, with a gross profit margin of 86.5% [8] - The estimated earnings per share for 2025 is RMB 4.08, with a projected price-to-earnings ratio of 4.37 [6][8] - The report estimates a target market value of approximately RMB 595 billion, equivalent to about HKD 645 billion, based on the company's stable growth and the high elasticity provided by innovative products [7]

Investment Rating - The report maintains a "Buy" rating for the company with a target price adjusted from HKD 605 to HKD 591, indicating a potential upside of 16.9% [1][13]. Core Insights - The company reported first-quarter results that exceeded market expectations, with a revenue of RMB 138 billion, reflecting a year-on-year growth of 16%. The adjusted net profit increased by 3% to RMB 42 billion, surpassing market forecasts by 10% [5][6]. - The demand for leisure travel remains robust, with expectations for a 14% revenue growth in the second quarter. The company anticipates stable growth in business volume as the competitive landscape improves [5][6]. - Adjustments to revenue and profit forecasts were made due to anticipated impacts from tariff disruptions on business travel outbound demand [1][5]. Financial Performance Summary - **Revenue Forecasts**: - 2025E: RMB 61,694 million (down 1.0% from previous forecast) - 2026E: RMB 69,889 million (down 1.6%) - 2027E: RMB 78,816 million (down 2.2%) [4]. - **Profitability Metrics**: - Adjusted operating profit for 2025E is projected at RMB 18,084 million, with an adjusted operating profit margin of 29.3% [4]. - Adjusted net profit for 2025E is expected to be RMB 17,927 million, with a net profit margin of 29.1% [4]. - **Market Position**: - The company’s market capitalization is approximately HKD 330.23 billion, with a 52-week high of HKD 586.00 and a low of HKD 310.20 [3][6]. Earnings Performance Overview - The first quarter of 2025 showed a revenue increase in various segments: - Hotel accommodation: RMB 5,541 million (up 23% year-on-year) - Transportation ticketing: RMB 5,418 million (up 8%) - Vacation services: RMB 947 million (up 7%) - Corporate travel: RMB 573 million (up 12%) [6]. - The company’s gross profit for the first quarter was RMB 11,125 million, with a gross profit margin of 80.3% [6]. Future Outlook - For the second quarter of 2025, the company expects: - Hotel accommodation revenue to reach RMB 6,000 million (up 17%) - Transportation ticketing revenue to be around RMB 5,300 million (up 9%) - Total revenue projected at RMB 14,600 million (up 14%) [8]. - The company is also focusing on maintaining a competitive edge in the market, with expectations of stable growth in business volume as the industry recovers [5][6].

Investment Rating - The report maintains a "Buy" rating for the company and adjusts the target price to HKD 56.04 [2][4] Core Views - The company, as a leading real estate brokerage in China, continues to enhance platform value to strengthen market share advantage, showing significant upward elasticity during the real estate recovery cycle [2] - The first quarter of 2025 saw revenue of HKD 23.3 billion, a year-on-year increase of 42%, with Non-GAAP net profit remaining stable at HKD 1.39 billion [5] - The company is focusing on expanding its scale and improving operational efficiency, with expectations for profit margins to recover in the future [5] Financial Performance Summary - **Revenue Forecasts**: - 2023A: HKD 77.777 billion - 2024A: HKD 93.457 billion - 2025E: HKD 110.080 billion - 2026E: HKD 128.165 billion - 2027E: HKD 146.106 billion - Year-on-year growth rates: 28.2%, 20.2%, 17.8%, 16.4%, 14.0% [3][8] - **Profitability Metrics**: - Operating profit for 2023A: HKD 4.797 billion, with a significant year-on-year growth of 675.9% - Net profit attributable to the parent company for 2023A: HKD 5.883 billion, with a year-on-year growth of 524.5% [3][8] - **Earnings Per Share (EPS)**: - 2023A: HKD 1.63 - 2024A: HKD 1.13 - 2025E: HKD 1.36 - 2026E: HKD 1.93 - 2027E: HKD 2.76 [3][8] - **Valuation Ratios**: - Price-to-Earnings (PE) ratio for 2025E: 33.2 - Price-to-Book (PB) ratio for 2025E: 2.1 [3][8] Business Segment Performance - **Existing Home Business**: - GTV (Gross Transaction Value) for existing homes grew by 28% to HKD 5,803 billion, but the contribution margin decreased to 38% due to increased fixed salary costs [5] - **New Home Business**: - GTV for new homes increased by 53% to HKD 2,322 billion, outperforming the market, with a commission rate increase reflecting the value of the company's channels [5] - **Home Decoration and Rental Services**: - Home decoration revenue showed steady growth, while rental income surged by 94% to HKD 5.1 billion, indicating a strong growth phase [5]

Investment Rating - The report maintains a "Buy" rating for the company and adjusts the target price to HKD 56.04 [2][4] Core Views - The company, as a leading real estate brokerage in China, continues to enhance platform value to strengthen market share advantage, showing significant upward elasticity during the real estate recovery cycle [2] - The first quarter of 2025 saw revenue of HKD 23.3 billion, a year-on-year increase of 42%, with Non-GAAP net profit remaining stable at HKD 1.39 billion [5] - The company is focusing on expanding its scale and improving operational efficiency, with expectations for profit margins to recover in the future [5] Financial Performance Summary - **Revenue Forecasts**: - 2023A: HKD 77.777 billion - 2024A: HKD 93.457 billion - 2025E: HKD 110.080 billion - 2026E: HKD 128.165 billion - 2027E: HKD 146.106 billion - Year-on-year growth rates: 28.2%, 20.2%, 17.8%, 16.4%, 14.0% [3] - **Profitability Metrics**: - Operating profit for 2023A: HKD 4.797 billion, with a significant year-on-year growth of 675.9% - Net profit attributable to the parent company for 2023A: HKD 5.883 billion, with a year-on-year growth of 524.5% [3] - **Earnings Per Share (EPS)**: - 2023A: HKD 1.63 - 2024A: HKD 1.13 - 2025E: HKD 1.36 - 2026E: HKD 1.93 - 2027E: HKD 2.76 [3] - **Valuation Ratios**: - Price-to-Earnings (PE) ratio for 2025E: 33.2 - Price-to-Book (PB) ratio for 2025E: 2.1 [3] Business Segment Performance - **Existing Home Business**: - GTV (Gross Transaction Value) for existing homes grew by 28% to HKD 5,803 billion, but the contribution margin decreased to 38% due to increased fixed salary costs [5] - **New Home Business**: - GTV for new homes increased by 53% to HKD 2,322 billion, outperforming the market, with a commission rate increase reflecting the value of the company's channels [5] - **Home Decoration and Rental Services**: - Home decoration revenue showed steady growth, while rental income surged by 94% to HKD 5.1 billion, indicating a strong growth phase [5]

Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company demonstrated steady revenue growth in Q1 2025, with a revenue of 138.3 billion yuan, representing a year-on-year increase of 16.2%. However, the profit margin decreased compared to the previous year [1][9] - The company is strategically increasing investments in international platforms while maintaining flexibility in marketing strategies, which is expected to enhance growth opportunities [3][12] - The company is leveraging the recovery in inbound tourism and the growth of outbound travel, with significant increases in hotel bookings and international travel reservations [2][10] Revenue Breakdown - In Q1 2025, the company reported accommodation booking revenue of 55.4 billion yuan (+23.2%), transportation ticketing revenue of 54.2 billion yuan (+8.4%), and other income sources showing substantial growth [2][10] - Domestic hotel bookings continue to grow, with a double-digit increase in room nights, while outbound travel bookings have recovered over 120%, outpacing industry capacity growth [2][10] - The international platform saw a booking increase of over 60%, driven by favorable visa policies and a significant rise in inbound tourism [2][10] Profitability Analysis - The company's gross profit margin decreased by 0.8 percentage points year-on-year in Q1 2025, attributed to increased personnel costs and strategic investments in international expansion [3][11] - The sales expense ratio for Q1 was 21.4%, which is below the annual budget, indicating a flexible approach to marketing expenditures [3][11] - The company expects profit growth to lag behind revenue growth in the short term due to margin pressures, with a projected CAGR of 11% for profits versus 15% for revenue over the next three years [12] Financial Forecasts and Valuation - The company forecasts Non-GAAP net profits of 182 billion yuan, 209 billion yuan, and 244 billion yuan for 2025, 2026, and 2027 respectively, with corresponding dynamic PE ratios of 19, 16, and 14 times [12][19] - Revenue is expected to grow significantly, with projections of 61.6 billion yuan in 2025, 71.1 billion yuan in 2026, and 81.9 billion yuan in 2027, reflecting a robust growth trajectory [4][19] - The company maintains a strong cash flow position and is proposing an additional share buyback plan, indicating a commitment to shareholder returns [12]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [10][8]. Core Insights - The company has entered a profitable era with significant user value being released, as evidenced by a strong growth trajectory in revenue and profitability [4][5]. - The gaming segment continues to show robust growth, with a notable increase in revenue driven by popular titles [6][8]. - The advertising revenue is experiencing rapid growth, supported by AI-driven strategies that enhance operational efficiency [6][8]. Financial Performance Summary - For 2023, the company reported revenue of 22,528 million HKD, with a projected increase to 30,688 million HKD by 2025, reflecting a growth rate of 19.10% [3]. - Non-GAAP net profit is expected to turn positive in 2025, reaching 2,147 million HKD, with a significant improvement from a loss of 3,414 million HKD in 2023 [3][8]. - The gross margin has been on an upward trend, reaching 36.3% in Q1 2025, with high-margin businesses like gaming and advertising contributing to this improvement [5][8]. User Engagement and Growth - Monthly active users reached a historical high of 368 million in Q1 2025, with an average daily usage time of 108 minutes [5]. - The number of paying users has also increased, with 32 million monthly paying users reported [5][7]. Revenue Breakdown - In Q1 2025, the company generated 20 billion HKD from advertising, a 20% year-on-year increase, accounting for 29% of total revenue [6]. - The gaming segment contributed 17.3 billion HKD in revenue, marking a 76% increase year-on-year, driven by the success of titles like "Three Kingdoms: Strategy" [6][8]. - Value-added services generated 28.1 billion HKD in Q1 2025, with a stable membership base of 23.5 million [7]. Future Projections - Revenue projections for 2025, 2026, and 2027 are 30,688 million HKD, 33,499 million HKD, and 36,145 million HKD respectively, with corresponding Non-GAAP net profits of 2,147 million HKD, 3,140 million HKD, and 3,972 million HKD [3][8]. - The company is expected to achieve a P/E ratio of 25.66 in 2025, decreasing to 13.87 by 2027, indicating improving valuation metrics [3][8].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 33.5, indicating a potential upside from the current price of HKD 28.70 [1][2]. Core Insights - The company reported Q1 2025 revenue of RMB 5.4 billion, a year-on-year increase of 2.2%, and a net profit of RMB 890 million, up 35.7% year-on-year. Adjusted EBITDA was RMB 1.5 billion, reflecting a 5.3% increase [7]. - The company is focusing on a light-asset strategy, with rental and owned income accounting for 51.7% of total revenue, while management franchise and licensing contributed 46.3% [3][7]. - The overall hotel count reached 11,685, with 11,564 under the main brand and 121 under the DH division, indicating a net addition of 539 hotels in the reporting period [7]. - The gross margin improved by 0.74 percentage points to 33.2%, driven by the light-asset strategy, while the expense ratio decreased by 0.72 percentage points to 14.46% [7]. - The report anticipates a gradual improvement in RevPAR as the peak season approaches, despite short-term pressures from competition and economic factors [7]. Financial Summary - The company is projected to achieve net profits of RMB 3.68 billion, RMB 4.22 billion, and RMB 4.84 billion for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 20.6%, 15%, and 14.6% [9]. - Earnings per share (EPS) are expected to be RMB 1.20, RMB 1.38, and RMB 1.58 for the same years, with corresponding price-to-earnings (P/E) ratios of 22x, 19x, and 17x, indicating reasonable valuation [9][12]. - The total revenue is forecasted to grow from RMB 25.15 billion in 2025 to RMB 29.85 billion by 2027, reflecting a steady upward trend [12].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company achieved a significant revenue increase in Q1 2025, with total revenue reaching 7.003 billion yuan, representing a year-on-year growth of 23.6% [4] - The adjusted net profit for Q1 2025 was 362 million yuan, marking a turnaround from losses in previous periods [4] - The growth in revenue was driven by strong performance in mobile gaming, advertising, and value-added services [4][5] - The company maintains its profit forecasts for 2025-2027, expecting net profits of 513 million, 1.919 billion, and 2.729 billion yuan respectively [4] Revenue Breakdown - In Q1 2025, revenue from value-added services was 2.807 billion yuan (up 11% year-on-year), primarily due to increased live streaming and other services [4] - Advertising revenue reached 1.998 billion yuan (up 20% year-on-year), driven by strong growth in performance-based advertising [4] - Mobile gaming revenue was 1.731 billion yuan (up 76% year-on-year), largely attributed to the success of the game "Three Kingdoms: Strategize the World" [4] - Revenue from IP derivatives and other sources was 467 million yuan (down 4% year-on-year) [4] Profitability Metrics - The company's gross margin in Q1 2025 was 36.3%, an increase of 7.9 percentage points year-on-year, marking 11 consecutive quarters of improvement [5] - The adjusted net profits for the last three quarters were 236 million, 452 million, and 362 million yuan respectively [5] User Growth and Engagement - The platform's daily active users (DAU) reached 107 million (up 4.5% year-on-year), while monthly active users (MAU) hit a record high of 368 million (up 7.9% year-on-year) [6] - The average daily usage time per user was 108 minutes in Q1 2025, an increase of 3 minutes year-on-year [6] - The average age of active users on the platform has increased from 21 in 2018 to 26 in Q1 2025, indicating a maturing user base [6] Financial Summary and Valuation Metrics - The company forecasts revenue growth from 22.528 billion yuan in 2023 to 30.731 billion yuan in 2025, with a year-on-year growth rate of 14.5% [5] - The projected earnings per share (EPS) for 2025 is 1.2 yuan, with a price-to-earnings (P/E) ratio of 107.8 [5]

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 33.5, indicating a potential upside from the current price of HKD 28.70 [1][2][7]. Core Insights - The company reported Q1 2025 revenue of RMB 5.4 billion, a year-on-year increase of 2.2%, and a net profit of RMB 890 million, up 35.7% year-on-year. Adjusted EBITDA was RMB 1.5 billion, reflecting a 5.3% increase [7]. - The company is focusing on a light-asset strategy, with rental and owned income accounting for 51.7% of total revenue, while management franchise and licensing contributed 46.3% [3][7]. - The overall hotel count reached 11,685, with 11,564 under the main brand and 121 under the DH division, indicating a net addition of 539 hotels [7]. - The gross margin improved by 0.74 percentage points to 33.2%, driven by reduced operating costs due to the light-asset strategy [7]. - The report anticipates a gradual improvement in RevPAR as the peak season approaches, despite short-term pressures from competition and economic factors [7]. Financial Summary - The company is projected to achieve net profits of RMB 3.68 billion, RMB 4.22 billion, and RMB 4.84 billion for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 20.6%, 15%, and 14.6% [9][12]. - Earnings per share (EPS) are expected to be RMB 1.20, RMB 1.38, and RMB 1.58 for the same years, with corresponding price-to-earnings (P/E) ratios of 22x, 19x, and 17x, indicating reasonable valuation [9][12]. - The company’s total revenue is forecasted to grow from RMB 25.15 billion in 2025 to RMB 29.85 billion by 2027 [12].

Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company demonstrated steady revenue growth in Q1 2025, with a revenue of 138.3 billion yuan, representing a year-on-year increase of 16.2%. However, the profit margin decreased compared to the previous year [1][9] - The company is strategically increasing investments in international platforms while maintaining flexibility in marketing strategies, which is expected to enhance growth opportunities [3][12] - The company is leveraging the recovery in inbound tourism and the growth of outbound travel, with significant increases in hotel bookings and international travel reservations [2][10] Revenue Breakdown - In Q1 2025, the company reported accommodation booking revenue of 55.4 billion yuan (+23.2%), transportation ticketing revenue of 54.2 billion yuan (+8.4%), and other income sources showing substantial growth [2][10] - Domestic hotel bookings continue to grow, with a double-digit increase in room nights, while outbound travel bookings have recovered over 120%, outpacing industry capacity growth [2][10] - The international platform saw a booking increase of over 60%, driven by favorable visa policies and a significant rise in inbound tourism [2][10] Profitability Breakdown - The company's gross margin decreased by 0.8 percentage points year-on-year in Q1 2025, attributed to increased personnel costs and strategic investments in international platforms [3][11] - The sales expense ratio for Q1 was 21.4%, which is below the annual budget, indicating a flexible approach to marketing expenditures [3][11] - The company expects profit growth to lag behind revenue growth in the short term due to profit margin fluctuations, with a projected CAGR of 11% for profits versus 15% for revenue over the next three years [12] Financial Forecasts and Valuation - The company forecasts Non-GAAP net profits of 182 billion yuan, 209 billion yuan, and 244 billion yuan for 2025, 2026, and 2027, respectively, with corresponding dynamic PE ratios of 19, 16, and 14 [12][19] - The projected revenue for 2025 is 61.6 billion yuan, reflecting a 15.6% increase from the previous year [4][19] - The company maintains a strong cash flow position and is proposing an additional share buyback plan, indicating a positive outlook for shareholder returns [12][19]