Investment Rating - Maintains a "Buy" rating with a target price of 430 HKD [1][4] Core Views - The 2025 WeChat Open Class PRO event highlighted the potential for further monetization within the WeChat ecosystem, particularly through the integration of mini-programs, WeChat Stores, and service accounts [1] - WeChat Stores have shown rapid growth, with GMV in 2024 reaching 1.92 times that of 2023, and order volume increasing by 2.25 times [1] - WeChat mini-games continue to grow rapidly, with monthly active users (MAU) reaching 500 million and daily active users (DAU) hitting 100 million, a 10% year-over-year increase [1] - Video accounts have seen significant growth, with live streaming sessions by quality content creators increasing by 100% and their income rising by 110% in 2024 [1] - WeChat's AI capabilities, including the newly launched WeChat Cloud AI Code Assistant, are expected to lower the development threshold for mini-programs and support global and intelligent transformation for enterprises [1] WeChat Store Growth - WeChat Stores have expanded comprehensively, helping merchants transition from single-channel to omnichannel operations, thereby enhancing the operability of WeChat e-commerce and broadening user reach [1] - The integration of WeChat Stores with mini-programs and public accounts has improved multi-scene marketing efficiency, with the "gift-giving" feature expected to drive new e-commerce growth by leveraging WeChat's social attributes [1] Mini-Games Performance - Mini-games have demonstrated strong performance, with over 900 games monetizing through IAA (In-App Advertising) and contributing over 1 million in revenue, with the overall market size expected to double in the next three years [1] - IAP (In-App Purchase) mini-games have benefited from improved infrastructure, with notable performance in MMO, SLG, and tower defense genres [1] - Cross-platform mini-games have shown significant growth in PC gaming duration, payment rates, and ARPU [1] Video Accounts and AI - Video accounts have become a new showcase space for mini-games, with short video views increasing by 170% [1] - The WeChat Cloud AI Code Assistant has been applied to hundreds of Tencent applications, facilitating efficient mini-program development [1] - Enterprise WeChat has introduced intelligent tools like smart tables, aiding in the digital transformation of manufacturing and supporting global expansion [1] Financial Projections - Revenue is projected to grow from 6,536.7 billion RMB in 2024E to 7,599.2 billion RMB in 2026E, with a CAGR of 7.3% from 2024E to 2026E [3] - Non-IFRS net profit is expected to increase from 2,255.8 billion RMB in 2024E to 2,761.6 billion RMB in 2026E, with a CAGR of 10.6% over the same period [3] - The stock is currently trading at 15x, 13x, and 12x Non-IFRS PE for 2024E, 2025E, and 2026E, respectively [1][3]

Investment Rating - The report assigns a rating of "Accumulate" to the company with a target price of HKD 58.81, representing a potential upside of 7.9% from the current price of HKD 54.5 [3][11]. Core Insights - The company has demonstrated solid growth in its core business, with a significant reduction in debt levels, indicating improved financial health [2][11]. - The company operates in 260 cities, serving a population of 140 million, and is one of the largest clean energy distributors in China [1]. - The company’s revenue for the first half of 2024 was RMB 54.59 billion, a year-on-year increase of 0.9%, while net profit attributable to shareholders decreased by 22.8% to RMB 2.57 billion [2]. Financial Performance - The gross profit for the first half of 2024 was RMB 6.47 billion, a decrease of 9.7% year-on-year, primarily due to reduced opportunities in the international market and a decline in gas wholesale business [2]. - The company reported a core profit of RMB 3.26 billion, down 16.6% year-on-year, with domestic core business showing a growth of 9.5% to RMB 3.08 billion [2]. - The company’s operating cash inflow was RMB 3.27 billion, with free cash flow reaching RMB 630 million, indicating a stable cash position [2]. Business Segments - The gross profit margin from the company's natural gas sales, energy services, and smart home businesses accounted for 87.3% of total gross profit, reflecting an improvement of 8.6 percentage points year-on-year [2]. - The company has a robust customer base and continues to expand its operational reach, indicating significant growth potential [2]. Debt and Capital Expenditure - The company has effectively optimized its debt structure, reducing interest-bearing liabilities to RMB 19.83 billion from RMB 21.92 billion in 2023, with a comprehensive financing cost of 3.4% [2]. - Capital expenditures were RMB 2.74 billion, a significant decrease of 20% year-on-year, reflecting a prudent investment strategy to maintain stable cash flow [2]. Future Outlook - The company projects a 5% growth in natural gas retail volume and a 10%+ increase in gross profit from the natural gas retail business for the year [11]. - The report anticipates that the company will benefit from the seasonal increase in natural gas demand during winter, which may offset the decline in summer sales [11].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][9]. Core Views - The report highlights that the company, Laopu Gold, is positioned in the high-end gold luxury market, with optimistic growth expectations driven by product differentiation and strong brand positioning [5][9]. - The ancient gold market is projected to grow significantly, with a compound annual growth rate (CAGR) of 21.8% from 2023 to 2028, indicating a robust demand for gold products [7]. - The company's unique product offerings and strong design capabilities are seen as key competitive advantages in a market characterized by product homogeneity [7][9]. Summary by Sections Market Performance - The report notes significant absolute and relative price increases for Laopu Gold, with absolute increases of 47.29%, 43.61%, and 75.68% over the past 1, 2, and 3 months respectively [4]. Company Overview - Laopu Gold has expanded its offline presence to 38 stores by the end of 2024, with a focus on high-end shopping districts, enhancing brand visibility and consumer attraction [7]. - The company has successfully implemented promotional activities during key shopping periods, resulting in over 30% year-on-year sales growth in first-tier cities [7]. Financial Projections - Revenue is projected to grow from 3.18 billion in 2023 to 8.04 billion in 2025, with net profit expected to increase from 416 million to 1.95 billion in the same period [8][10]. - The report anticipates a significant increase in same-store sales, driven by brand loyalty and a growing consumer base [7][9]. Strategic Outlook - The company plans to double its store count in the domestic market and expand internationally, targeting Southeast Asia, including Hong Kong, Macau, Tokyo, and Singapore [7][9]. - The report emphasizes the potential for further growth in the high-end jewelry segment, supported by a strong marketing strategy and product innovation [9].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a forecasted investment return exceeding the market benchmark by over 15% in the next 6-12 months [4]. Core Views - The company is expected to face revenue pressure in 2024, with projected revenue of 4.18 billion RMB, a 12% year-on-year decline, primarily due to a decrease in the Chinese film market box office and underperformance of some invested films [1][4]. - The report highlights a potential recovery in the 2025 Spring Festival box office, with specific films like "Detective Chinatown 1900" anticipated to perform well [3][4]. Revenue and Profit Forecast - The company’s online entertainment ticketing revenue is projected to be 1.94 billion RMB in 2024, down 14% year-on-year, which is less than the overall market decline of 22.7% [2]. - Entertainment content service revenue is expected to reach 2.01 billion RMB in 2024, reflecting a 12.7% decrease, with a stable performance anticipated between the first and second halves of the year [3]. - The gross profit margin for 2024 is estimated at 40.3%, with a significant drop in the second half of the year due to high production and promotional costs [3]. Financial Projections - The company’s revenue projections for 2024, 2025, and 2026 are adjusted to 4.2 billion, 4.6 billion, and 5.0 billion RMB respectively, reflecting a slight downward revision [4][5]. - The net profit forecast for 2024 is revised down to 190 million RMB, an 80% decline year-on-year, primarily due to losses from certain film investments [1][4]. Market Position and Strategy - The company is recognized as a leader in the film ticketing business, with strong correlations to the overall film market performance [4]. - The report emphasizes the company's strong film selection capabilities and its strategic partnerships with top artists, which are expected to enhance its market position [2][3].

Investment Rating - The report gives a "Buy" rating for the company, with a target price of 98.5 HKD per share based on a 2.3x PS valuation for 2025 [6]. Core Insights - The company, as the exclusive franchisee of Domino's Pizza in mainland China, Hong Kong, and Macau, is entering a rapid store expansion phase with expected profitability improvements. In 2023, the company achieved a revenue of 3.05 billion CNY, with a CAGR of 38.2% from 2019 to 2023. By the end of 2024, the company is projected to have over 1,000 stores, significantly up from 100+ in 2017 [4][6]. - The domestic pizza industry is in a growth phase, with a market size of 37.5 billion CNY in 2022 and a CAGR of 7.8% from 2017 to 2022. The penetration rate in lower-tier markets remains low, indicating substantial expansion potential [4][6]. - The report highlights the successful growth strategies of Domino's in the U.S. and draws parallels to the company's potential in China, emphasizing the importance of operational efficiency, digital innovation, and a strong franchisee management system [4][6]. Summary by Sections 1. Company Overview - The company is the exclusive franchisee of Domino's Pizza in China, having undergone significant management changes and expansion since 2017. It has rapidly increased its store count from 268 in 2019 to 914 in the first half of 2024 [15][20]. 2. Market Potential - The Chinese pizza market is expected to grow significantly, with projections indicating a market size of 45.8 billion CNY in 2023 and 77.1 billion CNY by 2027, reflecting a CAGR of 15.5% [48]. 3. Financial Performance - The company has shown strong revenue growth, with a 2023 revenue of 3.05 billion CNY, and is expected to reach 4.26 billion CNY in 2024, representing a 39.6% year-on-year increase. The net profit is projected to turn positive in 2024, with a net profit margin of 2.5% in the first half of 2024 [6][35]. 4. Competitive Advantages - The company maintains a competitive edge through its commitment to service efficiency, with a 30-minute delivery guarantee, a high-quality product offering, and a robust supply chain management system [4][6]. 5. Management and Governance - The management team, led by CEO Wang Yi, has extensive experience in the fast-food industry, contributing to the company's strategic direction and operational efficiency [20][22]. 6. Future Outlook - The company is expected to double its store count in the next three years, with a revenue CAGR of over 30%. The anticipated financial performance includes revenues of 4.26 billion CNY in 2024, 5.22 billion CNY in 2025, and 6.37 billion CNY in 2026 [6][35].

Investment Rating - The report maintains a "Buy" rating for Anta Sports with a 6-month target price of HKD 103.8 [6][10] Core Views - Anta Sports' main brand achieved high single-digit growth in Q4 2024, with children's products growing at low double digits and e-commerce growing nearly 20% [7] - FILA returned to growth in Q4 2024, with high single-digit growth in main products, mid single-digit growth in children's products, and high double-digit growth in Fusion products [7] - Other brands, including Descente and Kolon, grew 45-50% and 60-65% respectively in Q4 2024, maintaining a high growth rate [7] - Anta Sports' new store formats, such as ANTA SNEAKERVERSE and Super Anta, have been successful in targeting different consumer segments [8] - The company is expected to benefit from industry development as a leading player in China's sports goods industry [8] Financial Performance and Forecast - Revenue is expected to grow from RMB 53.65 billion in 2022 to RMB 84.06 billion in 2026, with a CAGR of 9.2% [9] - Net profit attributable to shareholders is forecasted to increase from RMB 7.59 billion in 2022 to RMB 15.07 billion in 2026 [9] - Gross margin is projected to improve from 60.2% in 2022 to 63.3% in 2026 [9] - EPS is expected to grow from RMB 2.82 in 2022 to RMB 5.43 in 2026 [9] - ROE is forecasted to remain stable at around 20% from 2023 to 2026 [15] Operational Highlights - Inventory turnover days improved from 138 days in 2022 to 122.8 days in 2023 and are expected to remain at 123 days from 2024 to 2026 [15] - Accounts receivable days decreased from 50.4 days in 2022 to 46.5 days in 2023 and are expected to stabilize at 50 days from 2024 to 2026 [15] - The company's capital structure is improving, with the debt-to-capital ratio decreasing from 45.3% in 2022 to a projected 31.3% in 2026 [15] Market Performance - The stock price was HKD 78.6 as of January 9, 2025, with a total market capitalization of HKD 221.9 billion [10] - The 12-month trading range was between HKD 74.2 and HKD 80.1 [10] - The stock showed a 14.61% absolute return over the past 12 months, despite a 4.24% relative underperformance [12]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [4] Core Insights - The company is a leading Tier 2 supplier of automotive-grade intelligent driving chips, with rapid growth driven by its Huashan and Wudang series of chips [1][15] - The company has established partnerships with over 49 automotive OEMs and Tier 1 suppliers, including major players like FAW Group and Bosch [1][28] - Revenue has surged from 53 million in 2020 to 312 million in 2023, with a projected revenue of 492 million in 2024 [1][5] - The company is expected to benefit from the increasing penetration of autonomous driving technology, with the market for ADAS SoCs projected to reach 49.6 billion RMB by 2028, growing at a CAGR of 28.6% from 2023 to 2028 [2][36] Summary by Sections Company Overview - The company is recognized as the third-largest global supplier of automotive-grade high-performance SoCs based on 2023 shipment data [1][15] - It focuses on providing integrated solutions that include proprietary ISP and NPU IP cores, middleware, and algorithms for autonomous driving applications [15][19] Market Trends - The penetration rate of autonomous driving vehicles is expected to exceed 93.5% in China by 2028, surpassing the global average [2] - The complexity of automotive electronic architectures is driving the demand for SoCs, which are becoming the mainstream core chips in vehicles [2][36] Financial Performance - The company reported a net profit of 1.105 billion in H1 2024, reflecting a year-on-year increase of 129.63% [1][29] - Revenue is projected to grow significantly, with estimates of 4.92 billion, 10.39 billion, and 17.41 billion for 2024E, 2025E, and 2026E respectively [4][5] Product Development - The company has developed two series of automotive-grade SoCs: the Huashan series for high-performance applications and the Wudang series for cross-domain functionalities [19][25] - The Huashan A1000 Pro, launched in 2021, is noted for its performance, providing over 106 TOPS of computing power, making it one of the highest-performing automotive SoCs in China [24][25] Customer Base and Partnerships - The company has seen a steady increase in its customer base, with a retention rate rising from 18% in 2021 to 35% in 2023 [3] - It has secured 23 model orders from 16 automotive OEMs and Tier 1 suppliers, indicating strong market demand for its products [3][28]

Investment Rating - Buy (Maintained) [1] Core Views - The company's main brand showed accelerated growth in Q4 2024, with e-commerce performing particularly well, driven by extended Double 11 promotions [8] - Saucony continued its strong growth trajectory, with Q4 2024 sales up 50% YoY and full-year growth exceeding 60% [8] - The company is expected to further expand its running shoe product matrix in 2025, including the launch of the 7th generation of the 160 series and other segmented products [8] - The main brand's discount rate improved YoY, and inventory levels remained healthy at around 4 months [8] - The company is expected to increase store openings in high-tier cities for Saucony in 2025, while also expanding into commuter and retro product lines [8] Financial Forecasts - Revenue is expected to grow from RMB 14,346 million in 2023A to RMB 17,520 million in 2026E, with a CAGR of 6.9% [1] - Net profit attributable to shareholders is projected to increase from RMB 1,030 million in 2023A to RMB 1,648 million in 2026E, with a CAGR of 16.9% [1] - EPS is forecasted to rise from RMB 0.38 in 2023A to RMB 0.61 in 2026E [1] - P/E ratio is expected to decline from 13.42x in 2023A to 8.39x in 2026E, indicating potential undervaluation [1] Operational Highlights - Main brand's Q4 2024 retail sales grew by high single digits YoY, with e-commerce sales up over 20% [8] - Saucony's Q4 2024 retail sales increased by 50% YoY, with full-year growth exceeding 60% [8] - The company maintained a healthy inventory turnover of around 4 months [8] - The main brand's discount rate improved to 7-7.5折 in Q4 2024, compared to the previous quarter [8] Market Data - Closing price: HKD 5.60 [6] - 52-week range: HKD 3.68 - HKD 7.13 [6] - P/B ratio: 1.57x [6] - Market capitalization: HKD 15,028.44 million [6] Financial Ratios - ROE is expected to increase from 11.62% in 2023A to 13.43% in 2026E [9] - Gross margin is projected to improve from 42.17% in 2023A to 44.43% in 2026E [9] - Net profit margin is forecasted to rise from 7.18% in 2023A to 9.41% in 2026E [9] - Debt-to-asset ratio is expected to decline from 48.50% in 2023A to 43.90% in 2026E [9]

Investment Rating - The investment rating for Greentown China (03900.HK) is "Buy" (maintained) [6][33]. Core Views - Greentown China has shown strong performance in land acquisition and sales, with a significant improvement in its industry ranking, maintaining a "Buy" rating. The company reported a stable sales performance in 2024, with a notable decrease in sales amount being less severe than that of the top 100 real estate companies. The company has actively acquired land in the open market and has a robust and quality land reserve structure [6][7][8]. Summary by Sections Sales Performance - In December 2024, the company's self-invested project sales area was 690,000 square meters, a year-on-year decrease of 21.6%, with a sales amount of 21.7 billion yuan, down 14.9%. The average sales price was 31,504 yuan per square meter, down 6.3% year-on-year. For the entire year, the cumulative self-invested sales area was 5.91 million square meters, down 13.8%, and the cumulative sales amount was 171.8 billion yuan, down 11.6% [7]. Land Acquisition - In December 2024, the company added 4 plots of land in key cities, with a total land area of 216,000 square meters and a total land price of 4.83 billion yuan. The total land acquisition amount for 2024 was 64.1 billion yuan, a year-on-year decrease of 19%, ranking the company among the top four in the industry for land acquisition [8][29]. Financial Summary - The projected net profit for Greentown China for 2024-2026 is 3.04 billion, 3.60 billion, and 3.99 billion yuan respectively, with corresponding EPS of 1.20, 1.42, and 1.57 yuan. The current stock price corresponds to a PE ratio of 6.5, 5.5, and 5.0 times for the respective years [6][10].

Investment Rating - The report maintains a "Buy" rating for JD Health, with a target price not specified [4]. Core Viewpoints - JD Health has entered a strategic partnership with China Resources Sanjiu, aiming to set a benchmark in the pharmaceutical retail industry through comprehensive collaboration in areas such as digital marketing and corporate social responsibility [1]. - The company has demonstrated robust growth, with Q3 2024 revenue reaching 13.302 billion yuan, a year-on-year increase of 14.8%, and operating profit soaring by 216.0% to 552 million yuan [2]. - The integration of online medical insurance services is expected to enhance market share, with JD Health already providing online insurance payment services in 12 cities, covering over 1 billion people [2]. - During the Double Eleven shopping festival, JD Health saw significant growth in various health-related product categories, with a 140% increase in sales for products targeting the elderly [3]. - The company has set ambitious sales growth targets in collaboration with several health brands, aiming for a 300% increase over the next three years [3]. Summary by Sections Strategic Partnership - JD Health and China Resources Sanjiu have signed a strategic cooperation agreement to enhance pharmaceutical retail capabilities and drive high-quality industry development [1]. Financial Performance - For Q3 2024, JD Health reported revenues of 13.302 billion yuan, a 14.8% increase year-on-year, and an operating profit of 552 million yuan, reflecting a 216.0% growth [2]. Market Expansion - The company has expanded its online medical insurance services to 12 cities, with nearly 2000 retail pharmacies connected, potentially increasing user penetration [2]. Product Growth - JD Health experienced a significant increase in sales during the Double Eleven event, with a 7.2-fold increase in order volume and nearly tripling transaction value [3]. Strategic Goals - The company aims for a 300% sales increase in collaboration with various health brands over the next three years, reflecting a trend towards diversified health consumption [3].