Investment Rating - The report maintains a "BUY" rating for WuXi Biologics, with a target price raised from HK$22.88 to HK$24.24, indicating a potential upside of 36.6% from the current price of HK$17.74 [3][8]. Core Insights - WuXi Biologics added 151 new projects in 2024, the highest in its history, with over half from the US, showcasing strong global competitiveness and client trust [1][8]. - The company is set to receive US$140 million in near-term payments from enabling discovery services for 7 global projects in 2024, highlighting lucrative milestone income [1][8]. - The Ireland site is on track to achieve breakeven in 2025, and the company plans to expand its drug substance capacity significantly, with a focus on establishing a comprehensive global production network [1][8]. Financial Summary - Revenue is projected to grow from RMB 17,034 million in FY23A to RMB 20,687 million in FY25E, reflecting a year-on-year growth of 13.4% [2][18]. - Adjusted net profit is expected to increase from RMB 4,739 million in FY24E to RMB 5,358 million in FY25E, representing a growth of 13.0% [2][18]. - The adjusted EPS is forecasted to rise from RMB 1.15 in FY24E to RMB 1.30 in FY25E, with a P/E ratio decreasing from 14.3x in FY24E to 12.7x in FY25E [2][18]. Project Pipeline and Growth - The company’s project pipeline now includes 817 projects, with a significant increase in process performance qualification (PPQ) projects expected to grow by 31% YoY to 101 in 2025 [1][8]. - WuXi Biologics completed 77 PPQ projects in 2024, marking a 26% increase year-on-year, indicating strong momentum for future growth in CMO revenue [1][8]. Overseas Operations - The Ireland biologics facility has shown strong client demand trends, successfully completing multiple 16k-liter PPQ batch productions, supporting profitability targets for 2025 [1][8]. - WuXi Biologics is constructing a new 36k-liter drug substance capacity facility in the US, aiming to expand total drug substance capacity to 491k liters, with approximately 49% located overseas [1][8].

Investment Rating - The report maintains a "Buy" rating for WuXi Biologics, reflecting a positive outlook based on demand recovery and growth potential [4][28]. Core Insights - WuXi Biologics achieved a record addition of 151 new projects in 2024, with over half coming from the United States, indicating strong global competitiveness and client trust [2][3]. - The company expects revenue and adjusted profit (excluding minority interests) to grow by 5%-10% in 2024, with accelerated growth anticipated in 2025 [1][4]. - The unique CRDMO business model continues to drive significant milestone revenue, with $140 million in recent payments expected from seven global projects [3][4]. - The company is expanding its global manufacturing network, with a focus on achieving breakeven at its Ireland site in 2025 and increasing drug substance capacity in the U.S. [3][4]. Financial Summary - Revenue is projected to grow from RMB 18,236 million in FY24E to RMB 20,687 million in FY25E, representing a 13.4% increase [5][12]. - Adjusted net profit is expected to rise from RMB 4,739 million in FY24E to RMB 5,358 million in FY25E, reflecting a 13.0% growth [5][12]. - The adjusted earnings per share (EPS) is forecasted to increase from RMB 1.15 in FY24E to RMB 1.30 in FY25E [5][12]. Target Price Adjustment - The target price has been raised from HKD 22.88 to HKD 24.24 based on a discounted cash flow (DCF) model, with a weighted average cost of capital (WACC) of 9.64% and a terminal growth rate of 2.0% [4][6].

Investment Rating - The report maintains a "Buy" rating for Leap Motor (9863.HK) with a target price of HKD 40.6, indicating a potential upside of 26% from the current price of HKD 32.20 [3][5][8]. Core Insights - Leap Motor is expected to achieve its first positive net profit in Q4, becoming the second profitable new energy vehicle manufacturer among its peers. The company anticipates a significant increase in sales volume, targeting 500,000 units by 2025, supported by stable domestic subsidy policies [8]. - The report highlights a substantial improvement in gross margin, projecting it to reach around 13% in Q4 2024, driven by increased sales volume and effective cost management [8]. - The financial forecasts for Leap Motor show a revenue increase from RMB 12.4 billion in 2022 to RMB 69.2 billion by 2026, with a projected revenue growth rate of 295% in 2022 and 37% in 2026 [4][10]. Financial Summary - Revenue projections for Leap Motor are as follows: - 2022: RMB 12,385 million - 2023: RMB 16,747 million - 2024E: RMB 30,771 million - 2025E: RMB 50,581 million - 2026E: RMB 69,234 million - The expected gross margin is projected to improve from (15.4%) in 2022 to 15.9% in 2026, with net losses decreasing significantly over the forecast period [4][9]. - The report estimates that Leap Motor will achieve a net profit of RMB 2.85 billion by 2026, transitioning from a net loss of RMB 5.1 billion in 2022 [4][10]. Valuation - The valuation method used is the sum-of-the-parts approach, applying a price-to-sales ratio of 1.0x for both automotive sales and services, leading to a target price of HKD 40.6 [11]. - The current price-to-sales ratio for Leap Motor is noted to be 0.7x, suggesting potential for upward revaluation as profitability improves [8][11].

Investment Rating - The investment rating for Tencent Holdings is "Buy" with a current price of HKD 380.00 and a fair value of HKD 478.52 [5][20]. Core Views - The report anticipates a strong performance in gaming, resilient advertising, and a recovery in financial services for Tencent in Q4 2024. The expected revenue for Q4 2024 is RMB 169.1 billion, representing a year-over-year increase of 9% [9][20]. - The gaming revenue is projected to accelerate, with expectations of reaching RMB 46.6 billion in Q4 2024, a 14% year-over-year increase. Domestic gaming is expected to grow by 16% while overseas gaming revenue is projected to increase by 10% [9][20]. - The report maintains a positive outlook on Tencent's core business driven by product innovation and social media traffic, suggesting that the company can gradually release its commercialization potential through innovations like WeChat stores [9][20]. Summary by Sections Earnings Forecast - The report provides a detailed earnings forecast for Tencent from 2022 to 2026, with revenue expected to grow from RMB 5,546 million in 2022 to RMB 7,685 million in 2026, reflecting a compound annual growth rate (CAGR) of approximately 7.8% [4][20]. - Non-GAAP net profit is projected to increase from RMB 1,149 million in 2022 to RMB 2,775 million in 2026, with a significant growth rate of 45.3% in 2024 [4][20]. Financial Metrics - The report highlights key financial metrics, including an expected EPS of RMB 24.10 in 2024, with a P/E ratio of 14.5, and a projected ROE of 22.4% [4][20]. - The EBITDA is forecasted to grow from RMB 1,612 million in 2022 to RMB 3,379 million in 2026, indicating a strong operational performance [4][20]. Valuation - The report employs a Sum-of-the-Parts (SOTP) valuation method, estimating the core business value at HKD 404 billion and the investment business value at HKD 37.23 billion, leading to a total fair value of HKD 478.52 per share [17][20]. - The gaming business is valued at HKD 189.74 per share based on an 18x P/E ratio, while the advertising business is valued at HKD 104.73 per share using a 27x P/E ratio [17][20].

Investment Rating - The report assigns a **Buy** rating to WuXi Biologics (2269 HK) with a target price of HK$26.12, representing a 48% upside from the current price of HK$17.60 [1] - The DCF (WACC: 9.9%) target price of HK$26.12 corresponds to a 2025 P/E ratio of 26x [5] Core Views - WuXi Biologics demonstrates strong competitiveness in the high-end market, with 151 new projects signed in 2024, over half from the US, including 13 Phase III and commercialization projects [3] - The company's technical platforms are leading, with 8 projects generating over $200 million annually, 10 projects over $100 million, and 8 projects over $50 million [4] - WuXi Biologics has a significant global presence, with multiple centers and bases in China, the US, and Europe, capturing 70% market share in CDMO services for Chinese innovative drug overseas projects in 2024 [4] - The company expects accelerated revenue growth in 2025, driven by new project signings in research services (R), shortened delivery times in development (D), and a substantial number of PPQ projects in commercial manufacturing (M) [4] Financial Summary - Revenue is projected to grow from RMB 15,269 million in 2022 to RMB 23,611 million in 2026, with a CAGR of 12% [6] - Gross profit is expected to increase from RMB 6,724 million in 2022 to RMB 9,336 million in 2026 [6] - Net profit attributable to shareholders is forecasted to rise from RMB 4,420 million in 2022 to RMB 4,188 million in 2026, with a CAGR of 7% [6] - EPS is estimated to grow from RMB 1.01 in 2022 to RMB 0.96 in 2026 [6] Operational Highlights - WuXi Biologics completed 16 PPQ projects in 2024, with a success rate exceeding 98%, and expects to complete 24 PPQ projects in 2025 [3] - The company has significantly reduced project timelines, with monoclonal antibody projects in North America taking only 9 months from DNA to IND, and autoimmune projects delivered in 6 months, well ahead of industry standards [3] - The company's digital transformation and geopolitical dynamics are expected to further enhance operational efficiency [4]

Investment Rating - The report maintains a **Buy** rating for Xtep International (1368 HK) with a target price of HK$6.95, representing a **26% upside** from the current price of HK$5.51 [1][2] Core Views - Xtep International is expected to achieve **high single-digit revenue growth** in 2025, driven by its focus on the running segment [4] - The company's 2024 revenue and net profit are forecasted to grow by **1.5% and 21.3%** respectively, with a **7.3% revenue growth** on a like-for-like basis [5][8] - For 2025, revenue and net profit are projected to increase by **2.5% and 11.5%** respectively, with a **9.2% revenue growth** on a like-for-like basis [6][8] Financial Performance - Xtep brand revenue is expected to grow by **4.1% in 2024**, driven by high single-digit growth in retail sales and strong performance in the children's segment [5] - Saucony is projected to achieve **~50% growth in Q4 2024** and **over 60% growth for the full year 2024**, contributing to a **55% increase in the professional sports division revenue** [5] - The company plans to upgrade over **30% of its old stores** to the ninth-generation format in 2025, aiming to drive growth through improved store efficiency [6] - Saucony's new stores are achieving monthly sales of **RMB 500k**, significantly higher than the average of **RMB 300k+**, with plans for further expansion in 2025 [6] Valuation and Forecasts - The report maintains a **12x 2025 P/E** valuation for Xtep International, with a target price of HK$6.95 [7] - Revenue for 2024-2026 is forecasted to grow by **1.5%, 2.5%, and 8.8%** respectively, reaching **RMB 14.56bn, RMB 14.92bn, and RMB 16.24bn** [7][8] - Net profit for 2024-2026 is expected to grow by **21.3%, 11.5%, and 12.7%** respectively, reaching **RMB 1.25bn, RMB 1.39bn, and RMB 1.57bn** [7][8] Financial Ratios - Gross margin is expected to remain stable at **44.2% in 2024**, **44.1% in 2025**, and **44.6% in 2026** [11] - Net profit margin is projected to improve from **8.6% in 2024** to **9.3% in 2025** and **9.7% in 2026** [11] - The company's ROE is forecasted to increase from **13.0% in 2024** to **13.3% in 2025** and **13.8% in 2026** [11]

Investment Rating - The report maintains a "Buy" rating for WuXi XDC (2268 HK) [1][8] Core Views - WuXi XDC's 2024 revenue and adjusted net profit are estimated at RMB 3.93 billion and RMB 1.11 billion, respectively, exceeding previous expectations [2] - The company's global competitiveness in ADC CRDMO is strong, with robust demand and orderly capacity expansion [1][2] - The report expects continued high growth in overseas revenue and orders in 2H24, driven by the company's leading position in the ADC CRDMO field [2] Performance and Growth - Revenue and adjusted net profit for 2024 are projected to grow by 85% and 170% YoY, respectively [1] - The company has 12 Phase III projects, with 9 entering the PPQ stage, and more projects are expected to advance to PPQ in 2H24 [2] - Commercial production for some projects is anticipated to begin in 2025, further driving revenue growth [2] ADC Market Demand - ADC CRDMO demand is expected to grow significantly as ADC molecules progress to late-stage clinical trials and commercialization [3] - Three ADC drugs are under FDA review, and four have submitted applications in China, with approvals expected within the next year [3] - MNCs are actively conducting global registration trials, increasing demand for late-stage clinical production [3] Capacity Expansion and Margin Improvement - The XBCM2 production line, with an annual capacity of 60 batches of 2,000L antibody intermediates and 80 batches of 1,000L conjugated drug substances, was launched in December 2024 [4] - Additional capacity expansions, including XDP3 in Wuxi and Singapore, are expected to be completed by 2025-2026, further supporting commercial production and improving gross margins [4] Financial Forecasts and Valuation - Adjusted net profit forecasts for 2024-2026 are revised to RMB 1.11 billion, RMB 1.51 billion, and RMB 1.83 billion, respectively, reflecting an 11%, 5%, and 2% increase from previous estimates [5][13] - The target price is raised to HKD 43.55, based on a 1.14x PEG ratio for 2025, reflecting a 25% premium due to the company's strong competitive position in the global ADC industry [5][15] Financial Metrics - Revenue for 2024E is projected at RMB 3.93 billion, with a YoY growth of 85.08% [7] - Net profit for 2024E is estimated at RMB 1.05 billion, a 269.84% YoY increase [7] - ROE is expected to improve to 17.53% in 2024E, up from 8.18% in 2023 [7]

Investment Rating - The report initiates coverage on Techtronic Industries (669 HK) with a "Buy" rating and a target price of HKD 132.59, based on a 24x PE for 2025 [1][7]. Core Views - Techtronic Industries is a global leader in the power tools and outdoor power equipment (OPE) sectors, with strong brand and technological advantages. The company is expected to benefit from overseas channel replenishment, interest rate cuts, and product replacement cycles, leading to steady operational growth by 2025 [1][2][20]. - The long-term trend towards lithium battery electrification in power tools and OPE is seen as a significant opportunity for the company, which is well-positioned to capitalize on this shift [2][21]. Summary by Sections Company Overview - Techtronic Industries has been deeply involved in the power tools industry for nearly 40 years, transitioning from an OEM role to owning 13 global brands, including Milwaukee and RYOBI. The company holds the largest market share in both the global power tools and OPE markets, with respective shares of 16.6% and 20.4% [20][26]. Industry Analysis - The industry is experiencing a demand recovery supported by U.S. interest rate cuts and product replacement cycles. The current demand environment remains strong, with expectations for significant product update demand in 2025 [21][22]. - The long-term outlook for lithium battery electrification is positive, with Techtronic Industries positioned to benefit as a leading player in this transition [2][21]. Competitive Advantages - The company boasts a robust brand portfolio, technological leadership, and a global production network. It has established strong relationships with major retailers, enhancing its sales capabilities [3][22]. - Techtronic's technological edge is exemplified by its early investment in lithium battery technology, which has allowed it to lead in product innovation and maintain competitive barriers [22][24]. Financial Projections - Revenue is projected to grow from USD 13.73 billion in 2023 to USD 17.44 billion by 2026, with a compound annual growth rate (CAGR) of 8.63%. Net profit is expected to increase from USD 976.34 million in 2023 to USD 1.47 billion by 2026 [6][13]. - The earnings per share (EPS) is forecasted to rise from USD 0.53 in 2023 to USD 0.80 in 2026, reflecting the company's strong growth trajectory [6][13]. Market Positioning - The company has a diversified production base across Asia, Europe, and the Americas, which reduces its exposure to trade risks and enhances its operational flexibility [3][23]. - Despite concerns about potential trade tensions, Techtronic's global production strategy and established market presence provide a buffer against such risks [4][23].

Investment Rating - The report maintains a "Buy" rating for the company and raises the target price to HKD 69.19, up from HKD 66.15, indicating a potential upside of 33.8% from the current price of HKD 51.70 [1][3]. Core Insights - The company has shown impressive online growth in 2024, with a projected revenue increase of over 50% and a net profit growth of around 40%. The GMV for its brands, 可复美 and 可丽金, reached RMB 5.4 billion, a year-on-year increase of 57% across major online platforms [1][6]. - The report highlights the strong performance of 可复美 on Tmall and Taobao, with a GMV growth of 42%, ranking second in the market. The anticipated approval of a new collagen injection product is expected to further drive growth in 2025 [1][6]. - 可丽金 is also experiencing rapid growth, with a GMV of RMB 660 million in 2024, reflecting a 103% year-on-year increase, driven by key product launches [1][6]. Financial Summary - The company’s revenue is projected to grow from RMB 3,524 million in FY23 to RMB 5,406 million in FY24, representing a growth rate of 53.4%. The adjusted net profit is expected to increase from RMB 1,451.8 million in FY23 to RMB 2,108.6 million in FY24, a growth of 45.2% [2][36]. - The report provides a detailed financial outlook, with revenue estimates for FY25 and FY26 at RMB 7,288 million and RMB 9,729 million, respectively, indicating continued strong growth [2][36]. - The company’s net debt ratio is projected to increase, reflecting a shift towards a more leveraged capital structure as it invests in growth opportunities [2][36].

Investment Rating - The report maintains a **Buy** rating for Great Wall Motor (2333 HK) with a target price of HKD 17.36, representing a potential upside of **30.3%** from the current price of HKD 13.32 [1][6] Core Views - Great Wall Motor's 2024 full-year and Q4 performance was largely in line with expectations, driven by strong sales of the Tank brand and robust export performance [2] - The company is expected to achieve a net profit of RMB 12.4-13.0 billion in 2024, a year-on-year increase of **76.60%-85.14%**, with non-GAAP net profit rising **94.47%-106.88%** [6] - The Tank brand saw a **42.12%** year-on-year increase in sales, reaching 231,000 units, contributing significantly to the company's profitability [6] - Great Wall Motor's high-end and intelligent vehicle strategy is progressing smoothly, with the company dominating the Chinese off-road vehicle market and successfully expanding into the high-end segment [6] - The company's global expansion, including production bases and R&D centers in Russia, Thailand, India, and Brazil, supports its growth prospects [6] Financial Performance - Revenue is projected to grow from RMB 137.34 billion in 2022 to RMB 261.44 billion in 2026, with a CAGR of **13.0%** [5] - Net profit is expected to increase from RMB 8.27 billion in 2022 to RMB 18.04 billion in 2026, with a CAGR of **18.9%** [5] - EPS is forecasted to rise from RMB 0.96 in 2022 to RMB 2.11 in 2026, with a CAGR of **18.9%** [5] - The company's gross margin is expected to improve from **19.4%** in 2022 to **20.5%** in 2026, driven by higher sales of premium models and improved product mix [14] Market and Industry Analysis - Great Wall Motor sold 1.23 million vehicles in 2024, including 321,800 new energy vehicles, a year-on-year increase of **22.82%** [6] - Overseas sales reached 453,100 units, up **43.39%** year-on-year, accounting for a significant portion of total sales [6] - Sales of vehicles priced above RMB 200,000 reached 309,600 units, a year-on-year increase of **37.13%**, representing **25.1%** of total sales [6] - The company plans to launch several new models and technology platforms in 2025, including the Tank 500 Hi4-Z, which was officially launched on January 1, 2025, and the Tank 400/700 Hi4-Z, which will feature enhanced power performance and pure electric range [6] Valuation and Target Price - The target price of HKD 17.36 is based on the company's strong performance in high-end and intelligent vehicle segments, as well as its global expansion strategy [6] - The potential upside of **30.3%** reflects the market's confidence in the company's growth prospects and its ability to maintain profitability through premium product offerings and export growth [1][6]