Investment Rating - The report assigns a "Buy" rating for the company, Shenzhou International, as it is a leading player in the global sportswear manufacturing industry [2][43][44] Core Insights - Shenzhou International has a strong competitive advantage due to its long-standing relationships with high-quality clients, mature manufacturing technology, and diversified production capacity [2][4][44] - The company is expected to benefit from the ongoing recovery in the global sportswear market, with significant growth potential driven by overseas replenishment and expansion of production capacity [2][4][44] - The report forecasts that the company's net profit will grow from 5.785 billion RMB in 2024 to 7.488 billion RMB in 2026, representing year-on-year growth rates of 26.93%, 14.57%, and 12.98% respectively [2][4][42] Summary by Sections 1. Company Overview - Shenzhou International, established in 1988, has developed a robust client base and is a key supplier for major brands like Uniqlo, Nike, and Adidas [9] - The company has a production capacity exceeding 25 million tons of fabric and 550 million garments annually, with a workforce of approximately 97,000 employees [9] 2. Client Demand and Market Trends - The global sportswear market is experiencing growth, particularly in emerging markets, which is expected to continue [15] - The report highlights that the replenishment cycle for inventory among downstream brands is contributing positively to order volumes [15] 3. Competitive Advantages - Shenzhou International's scale and efficiency place it at the forefront of the industry, with high employee productivity and a strong return on equity (ROE) [2][4][25] - The company has maintained a stable gross margin and net profit margin, indicating effective cost management [12][28] 4. Financial Projections - Revenue is projected to increase from 27.954 billion RMB in 2024 to 34.665 billion RMB in 2026, with corresponding growth rates of 11.94%, 11.80%, and 10.90% [42][41] - The report anticipates that the company's sales and management expense ratios will improve, further enhancing profitability [41][39] 5. Valuation Comparison - Shenzhou International's price-to-earnings (P/E) ratio for 2024 is estimated at 15.7x, which is lower than the average P/E of comparable companies at 21.3x, indicating a favorable valuation [2][44]

Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [1][16]. Core Insights - The company has shown a steady increase in financing amounts, with a total facilitated financing of 270.84 billion yuan in Q1-Q3 2024, representing a year-on-year growth of 17.4%. The gross profit margin has significantly improved in Q3 [1]. - The company operates primarily on a SaaS service model, charging a fee based on a percentage of the facilitated financing amount, which is a key factor influencing revenue [1]. - The report highlights a comprehensive growth in customer numbers and a high customer retention rate of 96% as of Q3 2024 [1]. Summary by Sections Financing Performance - Total facilitated financing for Q1-Q3 2024 reached 2708.39 billion yuan, up 17.4% year-on-year. The breakdown includes: - Electronic debt certificate business: 1752.4 billion yuan (up 16.7% year-on-year), accounting for 65% of total financing. - Asset securitization business: 797.8 billion yuan (up 11.9% year-on-year), representing 29% of total financing. - Cross-border cloud financing: 149.1 billion yuan (up 66.8% year-on-year), accounting for 6% of total financing [1]. Customer Growth - As of Q3 2024, the company has partnered with 1917 core enterprises (up 28.8% from the beginning of the year) and 353 financial institutions (up 11.0%). The number of core enterprise customers reached 821 (up 35.9%) [1]. Financial Projections - The report projects adjusted EPS for 2024, 2025, and 2026 to be -0.12, -0.01, and 0.06 yuan respectively, with corresponding sales per share (SPS) of 0.40, 0.47, and 0.58 yuan. The target price is set at 2.07 HKD based on a 4x PS valuation for 2025 [1][2].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 9.78, based on an 18x valuation for 2024 [2][7]. Core Insights - The company is positioned in the lucrative spicy snack food sector, with a compound annual growth rate (CAGR) of approximately 22.6% expected for net profit from 2024 to 2026. The market for flavored noodle products is anticipated to see accelerated market share growth, while konjac products are entering a period of significant growth [2][7]. - The report highlights the company's strong brand recognition and innovative product development capabilities, which are expected to drive continued revenue growth and market expansion [5][20]. Summary by Sections Strategic Positioning - The company has established itself as a leading brand in the spicy snack food market, benefiting from a significant reduction in low-priced products, with the share of products priced below 1 yuan dropping from 81% to 8% over the past decade. This positions the company to potentially increase its market share to over 30% [1][20]. - The konjac product segment is experiencing explosive growth, with a market size exceeding 2 billion yuan, and the company is well-positioned to capitalize on this expansion [1][20]. Product and Channel Development - The company focuses on two core product lines: spicy snacks and vegetable products, with a strong emphasis on product innovation and brand reinforcement. The spicy snack segment, particularly the "spicy strips," remains a solid foundation for growth, while vegetable products are emerging as a significant growth driver [1][20]. - The company is expanding its distribution network, aiming for 1 million offline terminals, and has seen a doubling of its presence in snack wholesale and Douyin channels compared to the previous year [1][20]. Financial Performance - The company's revenue has shown steady growth, with a projected increase from 48.72 billion yuan in 2024 to 77.04 billion yuan by 2026, reflecting a growth rate of 12.85% [3][20]. - The net profit attributable to the parent company is expected to rise from 8.80 billion yuan in 2024 to 16.23 billion yuan in 2026, with a remarkable growth rate of 481.87% in 2024 [3][20]. Market Trends - The spicy snack food market is expected to grow significantly, with the overall market size projected to reach 697 billion yuan by 2026. The report emphasizes the distinct characteristics of spicy snacks, which cater to younger consumers and have a high repurchase rate [1][30]. - The report notes that the flavored noodle product segment is experiencing a surge in demand, driven by consumer preferences and market cultivation efforts, which are expected to lead to substantial market expansion [1][30].

Investment Rating - The report maintains a "Buy" rating for Li Ning (2331) [2] Core Views - Q3 sales met expectations, with healthy discount inventory and strong National Day sales performance [2] - Q4 sales are expected to improve significantly due to a low base effect [2] - Long-term growth is supported by brand strength, product innovation, and refined operations [2] - Overseas business is promising with the establishment of a joint venture with Sequoia [2] Financial Performance - Q3 total channel sales declined by mid-single digits year-over-year, with offline sales down by high single digits and online sales up by mid-single digits [2] - Terminal discounts deepened, with offline discounts increasing by low single digits year-over-year [2] - Inventory-to-sales ratio was approximately 5 months as of September, with a healthy inventory age structure [2] - National Day sales showed improvement both online and offline, with positive sales growth since October [2] - Full-year 2024 revenue growth is expected to be low single digits, with a low double-digit profit margin [2] Joint Venture and Overseas Expansion - Li Ning established a joint venture with Sequoia to develop and operate the Li Ning brand outside mainland China [2] - The listed company and Mr Li Ning hold a combined 55% stake in the joint venture, with an investment of approximately HKD 58 million [2] - The joint venture is expected to accelerate the brand's internationalization with Sequoia's resources and expertise [2] - The listed company has the right to reclaim partial equity after 4 years and full equity after 8 years, ensuring control over overseas operations [2] Financial Forecasts - Net profit forecasts for 2024-2026 are maintained at RMB 3 20 billion, RMB 3 62 billion, and RMB 3 88 billion, respectively [2] - Corresponding P/E ratios are 12x, 11x, and 10x for 2024-2026 [2] Market Data - Current stock price: HKD 15 28 [2] - 52-week price range: HKD 12 92 - HKD 30 20 [3] - Current market capitalization: HKD 39 491 million [3] Peer Comparison - Li Ning's 2024E P/E ratio is 13x, compared to the peer average of 12x [6] - 2024E EPS is HKD 1 14, with 2025E and 2026E EPS at HKD 1 29 and HKD 1 39, respectively [6]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has a strong foundation built over 20 years, with a new strategic plan aimed at achieving a "new Mengniu" under the leadership of the new president [1] - The company is well-positioned in the dairy industry with a solid supply chain, marketing strategies, and a focus on product innovation [1] - Short-term benefits are expected from the liquid milk segment, while long-term growth will focus on structural upgrades and international expansion [1] Summary by Sections 1. Company Development - Established in 1999 and listed in 2004, the company has undergone several management changes and strategic evolutions, with a focus on traditional strengths and international innovation [1][26] - The company has diversified its product offerings across various categories, including liquid milk, ice cream, milk powder, and cheese [1][26] 2. Competitive Position - The company has strengthened its control over high-quality milk sources through strategic partnerships and acquisitions, maintaining a significant market share in fresh milk [1][39] - Marketing efforts have been enhanced through a dual-brand strategy, leading to a strong brand presence in the industry [1] 3. Liquid Milk Growth - The company is expected to benefit from an upward cycle in the dairy price and a potential turning point in profitability due to improved supply-demand dynamics [1] - Long-term focus includes upgrading the product structure, particularly in high-end milk products and yogurt [1] 4. Strategic Layout and International Expansion - The company is expanding into cheese and ice cream markets, with significant growth potential in Southeast Asia through acquisitions [1][39] - The international strategy is supported by strong partnerships and acquisitions that enhance the company's competitive edge [1] 5. Shareholder Returns - The company plans to increase its dividend payout and share buyback programs, enhancing shareholder returns [1] - The report anticipates improved cash flow and operational efficiency, leading to a sustainable increase in shareholder value [1] 6. Earnings Forecast and Investment Advice - Revenue forecasts for 2024-2026 are set at 927.4 billion, 955.4 billion, and 980.6 billion respectively, with corresponding net profit estimates of 43 billion, 48.4 billion, and 53.2 billion [1] - The company is expected to maintain a lower P/E ratio compared to peers, reinforcing the "Buy" rating [1]

Investment Rating - The report initiates coverage on EDA Group Holdings with a "BUY" rating, setting a target price of HK$3.57 per share, indicating a potential upside of 53.2% from the current price of HK$2.33 [2]. Core Insights - EDA Group is positioned as a leading provider of end-to-end supply chain solutions for B2C export e-commerce, leveraging its proprietary EDA Cloud platform to enhance operational efficiency and customer connectivity [13][25]. - The B2C export e-commerce supply chain solutions market is projected to grow significantly, with a market size of RMB402.4 billion in 2022 and an expected CAGR of 9.1% from 2022 to 2027, driven by the increasing adoption of pre-sale stocking models [8][39]. - EDA's technology capabilities and asset-light model, which includes self-operated and partnered warehouses, provide a competitive edge, allowing for scalable growth and improved profitability [10][24]. Company Overview - EDA Group Holdings is a comprehensive supply chain solutions provider for e-commerce vendors, offering services that include cross-border logistics, overseas warehousing, and fulfillment delivery, all integrated into the EDA Cloud platform [13]. - The company primarily utilizes a pre-sale stocking model, which allows e-commerce vendors to store products in overseas warehouses, facilitating faster and more reliable delivery to end consumers [34][39]. Financial Performance - EDA's revenue for FY22 was RMB709 million, with a projected revenue growth of 70.6% to RMB1,209 million in FY23, and further growth to RMB2,776 million by FY26, reflecting a CAGR of 31.9% [4]. - Adjusted net profit is expected to grow from RMB36.8 million in FY23 to RMB222.6 million by FY26, indicating a CAGR of 34.3% [4]. Market Analysis - The B2C export e-commerce market in China has seen rapid growth, with a GMV of RMB3.2 trillion in 2022, and is expected to reach RMB6.0 trillion by 2027, driven by improved payment systems and increased online shopping habits [30]. - The supply chain solutions market is fragmented, with over 4,000 players, and EDA ranks seventh among providers utilizing the pre-sale stocking model, holding a market share of approximately 0.4% [9]. Competitive Advantages - EDA Cloud platform serves as a key competitive advantage, providing a seamless supply chain experience and enabling efficient resource allocation among logistics and supply chain service providers [10][25]. - The company has established long-term relationships with high-quality customers, with an average business relationship duration of four years with its five largest customers, enhancing customer retention and satisfaction [12][26]. Growth Catalysts - Key growth catalysts for EDA include the mitigation of geopolitical risks, expansion of partnerships with leading e-commerce platforms, and stronger-than-expected earnings growth [8].

Investment Rating - The report initiates coverage on EDA Group with a "Buy" rating and sets a target price of HK$3.57, representing a 53.2% upside from the current price of HK$2.33 [1]. Core Insights - EDA Group is positioned to benefit from the rapid growth of the B2C export e-commerce market, with a projected revenue CAGR of 31.9% from 2023 to 2026 and an adjusted net profit CAGR of 34.3% [1][2]. - The company ranks seventh among B2C export e-commerce supply chain solution providers in mainland China, with a market share of approximately 0.4% as of 2022 [1][6]. - EDA's cloud platform is a key competitive advantage, enhancing operational efficiency and enabling seamless integration of logistics and supply chain services [1][7]. Summary by Sections Company Overview - EDA Group provides end-to-end supply chain solutions for e-commerce vendors, integrating cross-border logistics, overseas warehousing, and fulfillment services into its proprietary EDA Cloud platform [10][15]. Market Analysis - The B2C export e-commerce supply chain solutions market experienced a CAGR of 28.8% from 2017 to 2022, reaching a market size of RMB 402.4 billion in 2022, with expectations to grow to RMB 621.3 billion by 2027 [5][27]. - The market is characterized by a shift towards pre-sale inventory models, which are expected to grow at a CAGR of 14.5% from 2022 to 2027, driven by improved shopping experiences and faster delivery times [5][27]. Financial Forecast - Revenue projections for EDA indicate growth from RMB 709 million in FY22 to RMB 2,776 million by FY26, with a significant increase in adjusted net profit from RMB 36.8 million in FY22 to RMB 222.6 million by FY26 [2][4]. Competitive Advantages - EDA's cloud platform is highlighted as a critical asset, facilitating efficient connections between logistics providers and B2C e-commerce platforms, thus improving operational efficiency [7][20]. - The company maintains long-term strategic partnerships with major clients, enhancing its ability to deliver differentiated value and ensuring stable revenue streams [8][22]. Customer Base - EDA has served over 850 clients, with a growing number of core customers contributing significantly to its revenue, indicating a robust and expanding customer base [8][22].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has a strong foundation built over 20 years, with a new strategic plan aimed at achieving a "new Mengniu" under the leadership of the new CEO [1] - The company is positioned as a leader in the dairy industry, with a solid supply chain and marketing strategy that enhances its competitive edge [1] - Short-term benefits are expected from the liquid milk segment, while long-term focus is on structural upgrades and diversification into multiple product categories [1] Summary by Sections 1. Company Development - Established in 1999 and listed in 2004, the company has undergone five management changes, with the latest CEO taking office in March 2024 [1][26] - The company aims to leverage its traditional strengths while expanding internationally and innovating [1] 2. Competitive Position - The company has strengthened its control over high-quality milk sources through strategic partnerships and acquisitions, maintaining a significant market share in fresh milk [1] - The marketing strategy includes a dual-brand framework that enhances brand power and market presence [1] 3. Liquid Milk Growth - Short-term performance is expected to improve as the industry moves towards supply-demand balance by 2025, with the company poised to benefit from this shift [1] - Long-term growth is anticipated through upgrades in high-end products and expansion in low-temperature fresh milk and yogurt segments [1] 4. Diversification and Internationalization - The company is expanding into cheese and ice cream markets, with significant potential in Southeast Asia through recent acquisitions [1] - The strategic focus on multiple product categories is expected to enhance overall growth and market presence [1] 5. Shareholder Returns - The company plans to increase its dividend payout and has initiated a share buyback program, aiming to enhance shareholder returns [1] - The report forecasts a steady improvement in cash flow and operational efficiency, supporting the anticipated increase in dividends [1] 6. Earnings Forecast and Investment Advice - Revenue projections for 2024-2026 are set at 927.4 billion, 955.4 billion, and 980.6 billion respectively, with corresponding net profit estimates of 43 billion, 48.4 billion, and 53.2 billion [1] - The company is expected to maintain a lower P/E ratio compared to peers, reinforcing the "Buy" rating [1]

Investment Rating - The report maintains a "Buy" rating for New Oriental Education Technology (9901 HK) with a target price of HKD 80.00, indicating a potential upside of 59.8% from the current price of HKD 50.05 [1][4]. Core Insights - The core education business remains robust, with a revenue of USD 1.44 billion for Q1 FY2025, reflecting a year-on-year growth of 30.5%. Excluding Dongfang Zhenxuan, revenue grew by 33.5% [1]. - Adjusted operating profit reached USD 300 million, a 23% increase year-on-year, with an adjusted operating margin of 21% [1]. - The company is expected to maintain a revenue growth of 30% for the fiscal year 2025, with an operating profit margin of 13% [2]. Summary by Sections Financial Performance - For FY2025, revenue is projected to reach USD 5.235 billion, with a year-on-year growth of 21.4% [3]. - Net profit is expected to be USD 563 million, with an EPS of USD 3.40, reflecting a growth of 49% year-on-year [3]. - The company’s P/E ratio is projected to be 1.9 for FY2025, indicating attractive valuation [3]. Business Segments - Traditional business segments such as study abroad preparation and consulting showed year-on-year revenue growth of 18.8% and 20.7% respectively, contributing approximately 50% to total revenue [1]. - New business segments experienced a 50% year-on-year revenue increase, contributing about 24% to total revenue [1]. - The number of teaching points increased to 1,089 as of August 31, 2024, with a management target of 20-25% expansion for FY2025 [1]. Market Outlook - The report suggests that New Oriental remains a leading player in the education training industry, with opportunities to adjust its product structure in response to market demand [2]. - The company is expected to benefit from scale effects due to last year's expansion of teaching points, which will enhance profitability [1].

[Table_Info] 维持优于大市 Maintain OUTPERFORM 评级 优于大市 OUTPERFORM 现价 HK$75.20 目标价 HK$80.90 HTI ESG 4.0-3.5-5.0 E-S-G: 0-5, (Please refer to the Appendix for ESG comments) 1mth 3mth 12mth 绝对值 51.3% 87.1% 238.0% 绝对值（美元） 51.7% 87.9% 240.3% 相对 MSCI China 34.7% 68.1% 215.7% [Table_Profit] Rmb mn Dec-23A Dec-24E Dec-25E Dec-26E Revenue 6,301 12,420 16,206 19,966 Revenue (+/-) 36% 97% 30% 23% Net profit 1,191 2,851 3,879 4,951 Net profit (+/-) 108% 139% 36% 28% Diluted EPS (Rmb) 0.89 2.14 2.91 3.72 GPM 61.3% 65.1% 66.2% ...