Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company is entering a new growth phase, focusing on resource integration and strategic alignment, particularly in the electric vehicle (EV) sector [1][12]. - The company has established itself as a leading player in the domestic EV market, with a clear multi-brand strategy that enhances its competitive positioning [2][35]. - The profitability of the main brand in the EV segment is expected to improve significantly, driven by cost reductions and increased sales volume [3][4]. Summary by Sections 1. Introduction - The company has a strong foundation in vehicle manufacturing and is positioned to increase market share and brand value through revenue and profit expansion [10]. 2. New Energy Brand Momentum - The company has clarified its brand positioning with three main brands: Galaxy (mainstream), Zeekr (luxury), and Lynk & Co (youthful) [35][21]. - As of July 2024, the company's new energy vehicle (NEV) sales accounted for over 40% of total sales, with expectations for further growth [35][36]. 3. Profitability - The company is expected to see a turnaround in profitability, with revenue projections of 224.8 billion, 289.7 billion, and 338.8 billion RMB for 2024, 2025, and 2026 respectively [4][5]. - The main brand's EV segment is entering a positive profit cycle, supported by new model launches and cost efficiencies [3][4]. 4. International Expansion - The company is leveraging its global resources to enhance its international market presence, particularly in regions with high demand for its products [4][12]. 5. Smart Technology - The company is advancing its smart driving and cockpit technologies, with significant investments in self-developed systems and collaborations with suppliers [5][12]. 6. Financial Forecast and Investment Recommendations - The report adjusts the profit forecast, expecting net profits of 9.02 billion, 14.1 billion, and 17.45 billion RMB for 2024, 2025, and 2026 respectively [4][5]. - The company is positioned for a strong valuation with a PE ratio of 14, 9, and 8 for the respective years [4][5].

Investment Rating - The report maintains a "Buy" rating for Rongchang Biologics with a target price adjusted to HKD 19.00 from HKD 21.80 [4][5][14]. Core Insights - The company is expected to see a significant increase in revenue, with a forecasted sales revenue of approximately RMB 1.715 billion for 2024, representing a year-on-year growth of nearly 60% [1]. - Shareholder net losses are projected to decrease by about RMB 410 million to approximately RMB 1.47 billion compared to the previous year [1]. - The main product, Taitasip, is anticipated to drive high revenue growth in 2024, particularly in indications such as lupus [1][2]. Revenue and Loss Forecast - Revenue forecasts for 2024-2026 have been raised by 6.1%, 2.6%, and 1.1% respectively, reflecting the company's strong sales performance [3]. - Despite an increase in sales expense forecasts, shareholder net losses are still expected to narrow year-on-year [3]. Product Development and Approvals - The company is making progress in the approval and development of new indications for its main products, Taitasip and Vidisizumab, with potential approvals expected in 2025 for several new indications [2]. - New product applications are anticipated to be submitted within the year, aligning with the company's development timeline [2]. Financial Data Summary - The financial data indicates a significant recovery trajectory, with total revenue expected to grow from RMB 768 million in 2022 to RMB 3.084 billion by 2026 [12]. - Shareholder net losses are projected to decrease from RMB 999 million in 2022 to RMB 438 million by 2026, indicating a substantial improvement in financial health [12].

Investment Rating - Maintain BUY rating for Tuhu Car (9690 HK) with a target price of HK$20 00, representing a 29 9% upside from the current price of HK$15 40 [1][4] Core Views - Tuhu Car's 2H24E adjusted net profit is expected to decline 9% YoY and 32% HoH to RMB243mn due to weaker-than-expected 3Q24 sales and delayed new store openings [1] - FY25E revenue growth is projected to accelerate to 13% YoY, driven by new stores opened in 4Q24 and increased support for existing stores [1] - Gross margin is expected to improve from 25 1% in FY24E to 25 7% in FY25E, supported by lower procurement costs and higher sales of high-margin exclusive and private-label products [10] - Adjusted net profit is forecasted to rise 27% YoY to RMB763mn in FY25E, with a net margin of 4 6% (+0 5ppts YoY) [10] Financial Performance - FY24E revenue is projected at RMB14 764mn (+8 5% YoY), with net profit of RMB445mn (-93 4% YoY) and adjusted net profit of RMB601mn (+25% YoY) [2][10] - FY25E revenue is estimated at RMB16 749mn (+13 4% YoY), with net profit of RMB640mn (+43 9% YoY) and adjusted net profit of RMB763mn (+27% YoY) [2][10] - FY26E revenue is forecasted at RMB18 153mn (+8 4% YoY), with net profit of RMB882mn (+37 9% YoY) and adjusted net profit of RMB994mn (+30 2% YoY) [2][10] Operational Highlights - Total store count is expected to exceed 6 900 by the end of FY24, up from over 900 stores in FY24 [10] - 2H24E gross margin is projected to decline 1 5ppts HoH and 0 7ppts YoY to 24 4% due to price cuts on tire products [10] - Selling expense ratio is estimated to rise 1 1ppts HoH to 13 8% in 2H24E to boost customer traffic [10] Valuation - The target price of HK$20 00 is based on 20x revised adjusted FY25E EPS, reflecting Tuhu Car's resilience compared to peers amid economic uncertainties [10] - Tuhu Car trades at a discount to US peers O'Reilly (ORLY US) and Advance Auto Parts (AAP US), which have valuation multiples of around 30x [10] Share Performance - Tuhu Car's share price has declined 21 1% over the past month, 24 1% over the past three months, and 16 8% over the past six months [6] Shareholding Structure - Tencent Holdings holds a 19 4% stake in Tuhu Car, while Mr Chen Min owns 10 1% [5]

Investment Rating - The report initiates coverage with a Buy rating for AIM Vaccine, supported by its robust pipeline, technological leadership, and international growth potential [1][5][29]. Core Insights - AIM Vaccine is positioned as a leading full-industry-chain vaccine company in China, with strong R&D, manufacturing, and commercialization capabilities. The company has a diverse portfolio, including five advanced vaccine technology platforms and eight commercialized products, with a pipeline of 22 vaccine candidates targeting 13 disease areas [1][3][12]. - The expected revenue CAGR from 2024 to 2027 is projected at 47%, with a breakeven anticipated in 2025 and a net profit of RMB 1.52 billion expected by 2027 [1][5][25]. - The target price for AIM Vaccine is set at HK$11.0, reflecting a 97.7% upside from the closing price on January 20, 2025 [1][25]. Summary by Sections Investment Thesis - The Chinese vaccine market is evolving towards consolidation, favoring companies with competitive technology and diverse product portfolios. AIM Vaccine is uniquely positioned to lead domestically and expand internationally [3][10][12]. - AIM Vaccine's product portfolio includes high-value rabies and pneumococcal vaccines, with a focus on transitioning to advanced vaccine platforms to enhance market share and profitability [3][12][15]. Financial Analysis - Revenue projections indicate a recovery from the negative impacts of COVID-19, with significant growth expected from 2025 onwards due to the launch of high-value products [24][25]. - Financial metrics for 2032 project risk-adjusted revenue of RMB 9.949 billion and net profit attributable to the parent company of RMB 3.939 billion [27][25]. Market Position and Competitive Advantage - AIM Vaccine operates five advanced vaccine technology platforms, ensuring continuous innovation and high-quality production through GMP-certified facilities [4][17]. - The company has an expansive distribution network across all 31 provinces in China and is actively expanding into international markets, enhancing its global reach [18][19]. Pipeline and Growth Drivers - AIM Vaccine's pipeline includes several key products expected to launch in the coming years, including next-generation rabies vaccines and pneumococcal vaccines, which are anticipated to drive substantial revenue growth [16][22][24]. - The company is strategically positioned to capture significant market share in the rabies vaccine segment, projected to grow to RMB 14.8 billion by 2030 [15][16].

Investment Rating - The report maintains a "Buy" rating for Yancoal Australia (3668 HK) with a target price of HKD 40.00, indicating a potential upside of 33.3% based on the current price of HKD 30.00 [4][6][17]. Core Insights - Yancoal Australia's FY24 operational performance is largely in line with expectations, with a 10% year-on-year increase in equity coal production to 36.9 million tons, slightly above the company's guidance of 35-39 million tons [1]. - The average selling price for thermal coal in FY24 decreased by 24% year-on-year to AUD 160 per ton, while metallurgical coal prices fell by 22% to AUD 276 per ton [2]. - The recent change in CEO is not expected to significantly impact the company's operations, as the new acting CEO has over 20 years of experience in coal mining operations and management [3]. Summary by Sections Operational Performance - FY24 equity coal production reached 36.9 million tons, a 10% increase from the previous year, exceeding the forecast of 35.7 million tons by 3% [1]. - Thermal coal sales increased by 15% to 32.5 million tons, slightly below the forecast of 32.9 million tons [1]. - Metallurgical coal sales rose by 10% to 5.2 million tons, surpassing the forecast of 4.6 million tons by 14% [1]. Pricing Trends - The average selling price for thermal coal in FY24 was AUD 160 per ton, down 24% year-on-year but 1% higher than the forecast [2]. - The average selling price for metallurgical coal in FY24 was AUD 276 per ton, which is 5% lower than the forecast [2]. Financial Projections - Revenue for FY24 is projected at AUD 6.798 billion, reflecting a 12.6% decrease from FY23 [5]. - Shareholder net profit is expected to decline by 28.6% to AUD 1.298 billion in FY24 [5]. - The earnings per share (EPS) for FY24 is forecasted at AUD 0.98, with a price-to-earnings (P/E) ratio of 6.0 times [5]. Market Position - Yancoal Australia is supported by its parent company, Yancoal Energy, which provides effective backing for its operations [3]. - The company has a market capitalization of approximately HKD 39.61 billion, with a circulating share ratio of 15.23% [6].

Investment Rating - The report maintains a "Buy" rating for Kingsoft Software (3888.HK) [4] Core Views - Kingsoft Software is experiencing positive momentum across its gaming and office software businesses, with significant growth expected in the coming years [3][4] - The gaming segment, particularly the "Jian Wang 3" series, continues to show resilience and profitability, with multiple new games set to launch in 2025 [3][4] - The office software segment is transitioning to a dual subscription model, with the recent launch of WPS AI 2.0 expected to enhance user engagement and revenue [2][3] Summary by Sections 1. Company Overview - Kingsoft Software is one of the earliest software internet companies in China, focusing on gaming and office software, with a balanced revenue contribution from both segments [16][19] 2. Gaming Business - The gaming business is primarily driven by the "Jian Wang" series, which has maintained its appeal over 15 years, with new titles expected to launch in 2025 [3][36] - "Jian Wang 3" has successfully integrated cross-platform data, leading to a significant increase in active users, with 11.46 million monthly active users reported in its first month of open beta for "Jian Wang 3 Wu Jie" [3][49] - The company has five games in its pipeline for 2025, including self-developed and licensed titles, indicating a robust future gaming portfolio [3][68] 3. Office Business - Kingsoft Office is a leading provider of office software in China, with a successful transition to a dual subscription model that has shown positive results [2][74] - The launch of WPS AI 2.0 has introduced new AI tools that enhance user experience and are expected to drive revenue growth in both B2B and B2C segments [2][80] - The company is also expanding its overseas presence, with significant potential for growth in international markets [2][98] 4. Joint Ventures - Kingsoft Cloud is expected to improve its profitability, benefiting from strategic partnerships with Xiaomi and Kingsoft Software, with projected revenue caps for 2025-2027 reaching 113 billion RMB [2][126] - Cheetah Mobile is undergoing a transformation towards AI-driven services, although it remains in a loss-making state in the short term [3][4] 5. Financial Forecast - The report has revised its net profit forecasts for Kingsoft Software for 2024-2026 to 1.52 billion, 2.07 billion, and 2.48 billion RMB, respectively, reflecting a strong growth trajectory [3][135] - Revenue is projected to grow significantly, with a compound annual growth rate (CAGR) of 19.9% expected for 2024 [3][135]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company's thermal power sales volume for 2024 is projected to reach 2,076.37 billion kWh, representing a year-on-year growth of 7.4%. The thermal power sales volume specifically for the second half of 2024 is expected to be 832.63 billion kWh, with a year-on-year increase of 4.46% [2][5]. - The average price of Q5500 thermal coal at Qinhuangdao Port for the second half of 2024 is forecasted to be 835.74 CNY/ton, a decrease of 75.47 CNY/ton compared to the previous year. This cost reduction, combined with stable electricity sales growth, is anticipated to improve the company's thermal power profitability [2][8]. - The company is expected to see significant growth in its renewable energy segment, with wind power sales volume projected to increase by 14.53% and solar power sales volume by 105.80% in the second half of 2024. This growth is driven by the expansion of installed capacity [2][8]. Summary by Sections Thermal Power Performance - The company achieved a thermal power sales volume of 1,554.10 billion kWh in 2024, marking a 4.0% increase year-on-year. The second half of 2024 is expected to see a thermal power sales volume of 832.63 billion kWh, reflecting a 4.46% year-on-year growth. The steady decline in coal prices is expected to alleviate cost pressures and enhance profitability [5][8]. Renewable Energy Growth - The company’s wind power sales volume reached 437.71 billion kWh in 2024, up 10.5% year-on-year, while solar power sales volume surged by 141.5% to 69.16 billion kWh. The second half of 2024 is projected to see wind power sales of 213.83 billion kWh (up 14.53%) and solar power sales of 37.67 billion kWh (up 105.80%) [5][8]. Future Outlook and Investment Value - The company plans to add 40 million kW of renewable energy capacity during the 14th Five-Year Plan period, with an estimated investment of approximately 466 billion HKD in 2024 for new wind and solar projects. The consistent dividend policy, with a 2023 dividend of 0.915 HKD per share and a payout ratio of 40%, underscores the company's investment value [2][8].

Investment Rating - The report assigns an "Buy" rating for the company, indicating strong potential for growth and recovery in profits driven by robust manufacturing demand and retail adjustments [4][7][66]. Core Insights - The company, Yu Yuan Group, is recognized as a leading global footwear manufacturer with a strong retail presence, benefiting from a diversified business model that includes both manufacturing and retail operations [6][18]. - The manufacturing segment is experiencing a recovery in profit margins due to increased demand from overseas sports brands, with capacity utilization reaching 92% in Q3 2024, leading to improved operational efficiency [6][41]. - The retail segment is expected to gradually recover as domestic demand improves, with the company diversifying its brand portfolio to include emerging high-growth sports brands [6][50]. Summary by Sections 1. Company Overview - Yu Yuan Group was established in 1988 and listed on the Hong Kong Stock Exchange in 1992, with manufacturing bases in multiple countries including Vietnam, Cambodia, and Indonesia [18]. - The company operates in both manufacturing and retail sectors, with a significant shareholding in Bao Sheng International for retail operations in Greater China [18]. 2. Manufacturing Business - The global demand for sports footwear is on the rise, with the company solidifying its position as a key supplier to major brands like Nike and Adidas [28]. - The manufacturing segment contributes approximately 68% of total revenue, with a year-on-year revenue growth of 9% in Q3 2024 [27][28]. - The company has improved its return on assets (ROA) and return on equity (ROE) to 6.5% and 10.8% respectively, marking the highest levels since 2018 [41]. 3. Retail Business - The retail segment is poised for recovery, supported by favorable national policies and increasing consumer spending, with the market for sports apparel expected to grow significantly [46][49]. - The company is actively diversifying its brand offerings, including partnerships with emerging brands, which is expected to enhance its market position [50]. - Inventory management has shown improvement, with a decrease in absolute inventory levels post-pandemic, indicating effective control measures [60]. 4. Financial Forecast and Valuation - The company is projected to achieve revenues of $8.18 billion, $8.83 billion, and $9.61 billion for the years 2024, 2025, and 2026 respectively, with corresponding net profits of $450 million, $498 million, and $556 million [66]. - The report employs a segmented valuation approach, with a weighted average price-to-earnings (P/E) ratio of 16.8x for comparable companies, while the company's P/E for 2024 is estimated at 7.6x, indicating significant upside potential [7][66].

Investment Rating - The investment rating for the company is maintained at Neutral [1] Core Insights - The company reported a revenue of Rmb2.19 billion for 1HFY25, representing a year-on-year decline of 9.3%. The adjusted net loss attributable to the parent company was Rmb4.039 million, which aligns with expectations. The revenue decline and loss were primarily due to the spin-off of the "Yuhui Tongxing" live-streaming channel [4][9] - The spin-off of the live-streaming channel negatively impacted GMV growth, with GMV for 1HFY25 at Rmb4.8 billion, down 15.8% year-on-year. The GMV composition included Rmb1.77 billion from self-operated products and Rmb3.03 billion from third-party product sales. Following the spin-off, the company is focusing on a multi-live-streaming and multi-host strategy, which has started to show signs of recovery in GMV [5][10] - Business adjustments led to a significant increase in expenses, with administrative expenses rising by 180.7% year-on-year to Rmb392 million due to a personal reward of Rmb140 million given to Dong Yuhui. Marketing expenses also increased by 24.3% year-on-year to Rmb459 million. The profit margin for 1HFY25 recovered to 4.4%, a decrease of approximately 13.7 percentage points compared to the same period last year [6][11] Financial Data and Profit Forecast - The company’s revenue projections for FY25 to FY27 are Rmb4.717 billion, Rmb5.035 billion, and Rmb5.448 billion, respectively, with a forecasted decline of 27.71% in FY25 [7] - The adjusted net profit attributable to the parent company is projected to be Rmb245 million, Rmb382 million, and Rmb440 million for FY25, FY26, and FY27, respectively [12] - The target price is maintained at HK$13.9 [12]

Investment Rating - The report maintains a "Buy" rating for New Oriental [1][11] Core Insights - New Oriental reported a revenue of USD 1.039 billion for the second quarter of FY25, representing a year-on-year increase of 19.4%. However, the Non-GAAP net profit attributable to the parent company decreased by 29.1% to USD 36 million [2][8] - The education business continues to show strong growth, with a revenue increase of 28% year-on-year to USD 899 million. New business revenue, including non-academic training and learning machines, reached USD 301 million, up 43% year-on-year [3][9] - The overseas education business is facing challenges, with revenue of USD 249 million in the latest quarter, a 30.3% increase year-on-year, but expected to slow down in the next quarter due to reduced demand [4][10] Financial Performance and Forecast - For FY25, the adjusted net profit attributable to the parent company is projected to be USD 493 million, with revenues expected to grow to USD 5.271 billion, reflecting a year-on-year growth rate of 22.2% [6][11] - The company anticipates continued growth in non-academic training, with enrollment expected to reach 3.82 million, indicating significant potential compared to pre-"Double Reduction" policy levels [3][9] - The target price is set at USD 109.5 under the SOTP valuation, equivalent to HKD 85.6, maintaining the "Buy" rating [11]