Investment Rating - The report maintains an "Outperform" rating for Haidilao (06862 HK) [3] Core Views - Haidilao's main brand is expected to see improvements in both same-store operations and store expansion in 2025, while its barbecue brand is set to accelerate development [3] - The company has demonstrated strong operational adjustment capabilities in a weak market environment, with same-store sales expected to return to growth in 2025 [3][32] - The "Pomegranate Plan" is expected to drive the rapid expansion of new brands, particularly the barbecue brand, with synergies in supply chain and labor ensuring profitability [3][32] Business Review - Haidilao, founded in 1994, is a leading player in the hotpot and Chinese dining sectors, with a revenue CAGR of 28 0% and a net profit CAGR of 42 0% from 2015 to 2023 [7] - In 2021, the company faced operational challenges due to rapid expansion and the pandemic, leading to a net loss of RMB 4 16 billion, including over RMB 3 65 billion in impairment losses [8] - The "Woodpecker Plan" implemented in November 2021 helped the company turn around, with a net profit of RMB 1 638 billion in 2022 [9] - In 2023, Haidilao achieved record-high revenue of RMB 41 45 billion and net profit of RMB 4 499 billion, with 1,343 stores by mid-2024 [7][15] Growth Outlook Same-Store Operations - Haidilao's same-store operations are expected to improve, with a stable turnover rate and a recovery in average spending per customer [3][22] - The average spending per customer rebounded to around RMB 100 in December 2024, showing a continuous recovery trend [3] - The overall turnover rate reached 4 2 times in mid-2024, close to the 4 8 times in 2019, despite the number of stores doubling to nearly 1,400 [3] Store Expansion - Haidilao is expected to achieve a mid-single-digit percentage increase in net store openings in 2025, with the franchise model contributing additional growth [3][22] - The company has become more aggressive in store expansion, with plans to open 40-50 new stores in the second half of 2024 [3] New Brand Development - The "Pomegranate Plan" focuses on incubating new brands, with the barbecue brand "Yanqing Barbecue" leading the way [3][23] - Yanqing Barbecue, which opened its first store at the end of 2023, had 12 stores nationwide by November 2024, with plans to expand to 100/200 stores by 2025/2026 [3][23] - The single-store model for Yanqing Barbecue is estimated to generate annual revenue of RMB 10 million, with a net profit margin of 12-14% [3][27] Financial Projections - The report forecasts Haidilao's net profit for 2024-2026 to be RMB 4 62/5 12/5 62 billion, with growth rates of 3%/11%/10%, and a dynamic PE of 19/17/15x [3][32] - Under optimistic assumptions, the net profit for 2025-2026 could reach RMB 5 83/7 16 billion, with growth rates of 3%/26%/23%, and a dynamic PE of 15/12x [32]

Investment Rating - Maintains a "Buy" rating with a target price of HKD 472.48 / USD 60.95 [1][6] Core Views - Yum China (YUMC) is the largest restaurant operator in China by sales, demonstrating resilience across multiple economic cycles and accelerating its expansion into the 10,000-store era [1] - The company's growth momentum is expected to strengthen with the extension of product offerings, breakthroughs in new store formats like K Coffee and Pizza Hut WOW stores, and improved cost-effectiveness [1] - The 4Q24-1Q25 period is critical for validating same-store sales resilience and marks the beginning of the second 10,000-store target [1] - Long-term growth is supported by strong corporate governance, ample cash flow, and high shareholder returns (16.5% annualized shareholder return in 9M24) [1] Same-Store Sales Resilience - Same-store sales resilience is driven by stable demand and high customer loyalty, with strategies including cost-effective products, upgraded product combinations, and reduced delivery fees [3] - Delivery sales accounted for 40% of total sales in 3Q24, up 5 percentage points year-over-year [3] - Membership sales contributed 65% of system-wide sales, with membership numbers exceeding 510 million, a 113% increase since 2019 [3] Restaurant Profitability - Cost structure optimization is key to maintaining restaurant-level profitability, with measures including improved bargaining power for raw materials, increased store manager efficiency, and optimized rental structures [3] - Sensitivity analysis shows that a 5% increase in daily sales could boost KFC and Pizza Hut store profits by 14% and 20%, respectively, with profit margins of 19.1% and 14.9%, higher than historical averages [3] Expansion Strategy - Yum China's next 10,000-store growth will come from下沉 markets,加密 existing locations, and轻资产 models [3] - KFC and Pizza Hut have significant expansion potential, with long-term store targets of over 20,000 and 5,000 stores, respectively [3] - The company is increasing加盟店比例 to leverage regional resources and accelerate expansion [3] Financial Projections - Revenue is projected to grow from USD 11,289 million in 2024E to USD 13,147 million in 2026E, with net income increasing from USD 901.16 million to USD 1,070 million over the same period [5] - EPS is expected to rise from USD 2.30 in 2024E to USD 3.04 in 2026E, with ROE remaining stable around 13% [5] Valuation and Shareholder Returns - The target price is based on a 23x PE multiple for 2025, reflecting confidence in the company's growth trajectory [4] - Yum China has a strong track record of shareholder returns, with a 16.5% annualized return in 9M24 and plans to return USD 4.5 billion to shareholders from 2024-2026 [1][29] Market Position and Competitive Advantage - Yum China benefits from its先发优势 in下沉 markets and its ability to leverage scale effects to maintain profitability [19] - The company's strong brand,供应链 capabilities, and digital transformation efforts position it well for long-term growth [1][19]

Investment Rating - The report maintains a "Buy" rating for the company [10][8]. Core Insights - The company reported FY2025H1 results with revenue and net profit of HKD 83.05 billion and HKD 11.39 billion, respectively, reflecting a year-on-year decline of 7% in revenue but a slight increase of 0.3% in net profit [2][6]. - Domestic sales are under pressure, but recent government subsidies are expected to provide a recovery, while export sales continue to show strong growth [6][7]. - The company is building high barriers in brand, product, and supply chain, enhancing competitiveness through design marketing and channel transformation, and is expected to continue gaining market share in the soft furniture industry [8][7]. Revenue Summary - Domestic sales decreased by 17% in H1, with offline and online sales down 15% and 22%, respectively [6][7]. - The company added 280 brand specialty stores, increasing the total to 7,516, focusing on expanding coverage in lower-tier markets and enhancing same-store sales performance [6][7]. - Export sales increased by 14%, with North America and Europe growing by 6% and 38%, respectively [7]. Profitability Analysis - Gross margin and net profit margin improved in FY2025H1, attributed to lower raw material costs and effective cost control [7][8]. - The average unit costs for various materials decreased, with leather and steel down by 5.3% and 8.3%, respectively [7]. - Advertising and marketing expenses decreased by 33%, and management expenses fell by 31%, contributing to overall profitability [7]. Future Outlook - The company anticipates a recovery in domestic sales driven by government subsidies and an improved product matrix [8]. - For FY2025-2026, the company expects net profits of HKD 24.5 billion and HKD 27.8 billion, with corresponding PE ratios of 7.9x and 7.0x [8][13].

Investment Rating - The investment rating for the company is "Outperform the Market" with a target valuation range of HKD 7.40 to 8.90 [5][48]. Core Insights - The company has a stable revenue growth model driven by "IT distribution + value-added services," with a focus on building a comprehensive ecosystem across the entire industry chain [3][8]. - In 2023, the company's revenue was HKD 738.9 billion, a year-on-year decrease of approximately 4%, while the net profit reached HKD 9.22 billion, a year-on-year increase of 12% [3][23]. - The company is expanding its business in Southeast Asia, benefiting from the region's large population and digital transformation needs, with revenue growth from HKD 69 billion in 2013 to HKD 160 billion in 2023, averaging about 10% annually [3][12]. Financial Performance - The company's gross profit margin improved to 4.73% in 2023, an increase of 0.36 percentage points from 2022 [23][30]. - The operating efficiency remained stable, with accounts receivable turnover days stable at around 68 days, while inventory turnover days increased from 34 days in 2019 to 55 days in 2023 [23][33]. - The company expects net profits for 2024, 2025, and 2026 to be HKD 10.58 billion, HKD 12.95 billion, and HKD 15.30 billion, respectively [48][50]. Business Segments - The company operates in three main business segments: enterprise systems, consumer electronics, and cloud computing, providing comprehensive ICT solutions [12][17]. - The enterprise systems segment accounted for 54.7% of total revenue in 2023, with expected growth rates of 13.7% in 2024, 16.0% in 2025, and 24.2% in 2026 [37][56]. - The consumer electronics segment generated HKD 304 billion in revenue in 2023, representing 41.1% of total revenue, with a projected growth rate of 4.0% annually from 2024 to 2026 [38][41]. - The cloud computing segment is a rapidly growing area, with revenue of HKD 31 billion in 2023, expected to grow at rates of 28.1% in 2024, 26.4% in 2025, and 25.4% in 2026 [39][41]. Market Position and Strategy - The company has established partnerships with major technology firms such as Huawei, Alibaba, Tencent, and Apple, leveraging a distribution network that supports over 50,000 channel partners [16][12]. - The company is actively expanding its presence in Southeast Asia, with strategic initiatives in countries like Thailand and the Philippines, focusing on sectors such as renewable energy and cybersecurity [17][12].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company has shown a steady and proactive approach in acquiring land in the open market, with a significant increase in average sales price [6] - The company maintains its profit forecast, expecting net profit attributable to shareholders to be 3.654 billion, 4.397 billion, and 5.070 billion RMB for 2024-2026, with corresponding EPS of 1.44, 1.74, and 2.00 RMB [6][10] - The current stock price corresponds to a PE ratio of 6.6, 5.5, and 4.7 for the years 2024, 2025, and 2026 respectively, indicating potential for profit recovery after the completion of low-margin project transfers [6] Sales Performance - In November 2024, the company's self-invested project sales area was 520,000 square meters, a year-on-year decrease of 36.59%, with sales amounting to 17.7 billion RMB, down 13.66% year-on-year [7] - The average sales price increased to 34,298 RMB per square meter, reflecting a year-on-year growth of 31.99% [7] - Cumulatively, from January to November 2024, the company sold 5.1 million square meters, a decrease of 14.72%, with total sales amounting to approximately 148.7 billion RMB, down 11.91% year-on-year [7] Land Acquisition - In November 2024, the company added five new land reserves, including a plot in Hangzhou with a total price of 1.716 billion RMB and a floor price of 36,568 RMB/m², with a premium rate of 22.92% [8] - Other notable acquisitions include land in Beijing, Xi'an, Nanjing, and Suzhou, with varying floor prices and premium rates [8] Construction and Management - The company's construction management projects achieved a sales area of 1.09 million square meters in November 2024, a year-on-year decrease of 6.03%, with contract sales amounting to 13.4 billion RMB, a year-on-year increase of 1.52% [9] - Cumulatively, from January to November 2024, the total contract sales amount for construction management projects reached 98.1 billion RMB [9]

Investment Rating - The report does not provide a specific investment rating for the company [3] Core Insights - Dongyue Group focuses on the domestic chemical new materials market, reducing the impact of overseas policies such as tariffs [1][8] - The company has exited its real estate business to concentrate on its core chemical operations [1][34] - The company has seen significant growth in operating profit, particularly in the refrigerant segment due to quota implementation driving prices up [1][25][27] Summary by Sections Company Overview - Dongyue Group, established in 1987 and listed in Hong Kong since 2007, primarily produces four categories of chemical products: polymer materials, organic silicon, refrigerants, and dichloromethane and caustic soda [1][7] - The company generates 84.8% of its revenue from the domestic market, which mitigates the direct impact of overseas policies [1][8] Financial Performance - For 1H24, the company's operating profit increased by 135.2% year-on-year to 650 million RMB, driven by effective cost management and rising refrigerant prices [1][10] - The revenue for FY23 was 14,493 million RMB, with a growth rate of 26.4% compared to FY22 [5][11] Product Segments - **Refrigerants**: The implementation of production quotas has led to a significant increase in prices, with R32 refrigerant prices reaching 40,000 RMB per ton in December 2024, compared to 13,000 RMB and 18,000 RMB in the same period of 2022 and 2023 respectively [1][25][27] - **Polymer Materials**: The segment has shown a 35.2% increase in operating profit for 1H24, with a profit margin increase of 5 percentage points to 14.9% [13] - **Organic Silicon**: The segment turned profitable in 1H24, recording a profit of 53.68 million RMB due to lower production costs and increased sales [19] - **Dichloromethane and Caustic Soda**: This segment's performance improved by 44.4% in 1H24, attributed to a significant drop in unit costs [33] Market Position and Valuation - The company's FY25 price-to-earnings ratio is projected at 6.3 times, indicating a valuation comparable to its peers in the Hong Kong chemical sector [37]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 58.29, indicating a potential upside of 23.9% from the current share price of HKD 47.05 [2][4]. Core Insights - The company has demonstrated robust global store expansion, achieving a record high gross margin of 44.1% in Q3 2024, up 3.7 percentage points year-on-year [2][4]. - Revenue for the first three quarters of 2024 reached HKD 12.281 billion, reflecting a year-on-year increase of 13.7% [2][4]. - The adjusted net profit margin for Q3 was 15.7%, slightly down from 15.2% in the previous year, indicating a minor decline of 1.3 percentage points [2][4]. - Domestic same-store sales faced pressure, with a decline of approximately 1.7%, particularly in lower-tier cities, while higher-tier cities performed better [2][4]. - The company is expected to benefit from strategic initiatives that enhance average transaction value, with a projected increase in same-store sales driven by IP strategies [2][4]. Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of HKD 12.281 billion, a 13.7% increase year-on-year, with Q3 revenue at HKD 4.523 billion, up 6.9% [2][4]. - The adjusted net profit for the first three quarters was HKD 1.768 billion, reflecting a year-on-year increase of 177.2% [2][4]. - The company’s gross margin improved due to a higher contribution from overseas markets, with overseas revenue share rising from 32% to 37% year-on-year [2][4]. - The report forecasts continued revenue growth, with projected revenues of HKD 17.212 billion in 2024, HKD 20.729 billion in 2025, and HKD 24.359 billion in 2026 [6][7]. Store Expansion and Market Strategy - As of Q3 2024, the company had a total of 4,250 stores in China, with a net increase of 135 stores during the quarter [2][4]. - The overseas store count reached 2,936, with a net addition of 183 stores in Q3, indicating strong international expansion [2][4]. - The report highlights the potential for further growth in overseas markets, particularly with the upcoming Harry Potter IP release expected to boost sales [2][4].

Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported FY2025H1 results with revenue of 8.8 billion HKD, a year-on-year increase of 18%, and a net profit attributable to shareholders of 1.13 billion HKD, up 23%, slightly exceeding expectations [5]. - The expansion of product categories has been effective, with notable performance from the Xuezhongfei brand. Revenue from the Bosideng and Xuezhongfei brands increased by 19% and 47% respectively, reaching 5.28 billion HKD and 390 million HKD [5][6]. - The improvement in expenses and tax rates is significant, although there was a goodwill impairment in women's wear affecting profits. The gross margin for the Bosideng brand slightly increased by 0.9 percentage points, while the overall group gross margin decreased by 0.1 percentage points to 61.1% [6]. - The company maintained stable operations with a relatively stable dividend, distributing 0.06 HKD per share, a 20% increase year-on-year [6][7]. - Overall, despite challenges such as store closures and goodwill impairment, the company achieved favorable revenue and profit growth, indicating effective multi-category expansion and stable operations [7]. Summary by Sections Financial Performance - For FY2025H1, the company achieved revenue of 8.8 billion HKD, a year-on-year increase of 18%, and a net profit of 1.13 billion HKD, up 23% [5]. - The revenue from the Bosideng brand increased by 19% to 5.28 billion HKD, while Xuezhongfei saw a 47% increase to 390 million HKD [5][6]. Operational Efficiency - The gross margin for the Bosideng brand improved by 0.9 percentage points, while the overall group gross margin slightly decreased by 0.1 percentage points to 61.1% [6]. - The company reported a decrease in sales expense ratio by 1.4 percentage points to 25.8%, although management expenses increased by 0.9 percentage points to 8.7% due to higher employee option expenses [6]. Future Outlook - The company is expected to achieve net profits of 3.6 billion HKD, 4.2 billion HKD, and 4.7 billion HKD for FY2025, FY2026, and FY2027 respectively, with corresponding P/E ratios of 11, 10, and 9 [7].

Investment Rating - The report maintains a "Buy" rating for BYD Electronics with a target price of HKD 54, indicating a potential upside of 36.4% from the current price of HKD 39.4 [2][3][5]. Core Insights - The consumer electronics and automotive electronics segments are expected to continue their growth trajectory, driven by increased demand from overseas clients and the recovery of high-end Android smartphone demand. The company anticipates a stronger performance in Q4 compared to Q3 due to seasonal trends [2]. - The automotive electronics segment is projected to generate nearly RMB 20 billion this year, with expectations of exceeding RMB 30 billion next year as high-value products ramp up production [2]. - AI-related business is beginning to contribute revenue, with expectations of generating around RMB 1 billion this year and potentially doubling next year [2]. - The company forecasts revenue growth of 28.7%, 12.7%, and 8.3% for the years 2024, 2025, and 2026, respectively, with net profits expected to grow by 14.3%, 23.2%, and 18.1% during the same period [2][4]. Financial Summary - Total revenue for 2022 was RMB 107.19 billion, with a growth of 20.4% in 2023 to RMB 129.96 billion. Forecasts for 2024, 2025, and 2026 are RMB 167.30 billion, RMB 188.47 billion, and RMB 204.05 billion, respectively [4][8]. - Net profit for 2022 was RMB 1.86 billion, increasing to RMB 4.04 billion in 2023, with projections of RMB 4.62 billion, RMB 5.69 billion, and RMB 6.72 billion for the following years [4][8]. - The company’s gross margin is expected to improve slightly due to increased automation and cost reductions, with gross profit projected to reach RMB 12.71 billion in 2024 [4][8].

Investment Rating - The report does not explicitly mention the investment rating for Meituan-W (3690 HK) [2][3] Core Views - Meituan reported 3Q24 revenue of RMB 93 6 billion, a YoY increase of 22 4% [3] - The company's core local commerce segment saw operating profit grow by 44 4% to RMB 14 6 billion, with an operating margin of 21 0%, up 3 5 percentage points YoY [4] - Meituan's new business segment achieved revenue of RMB 24 2 billion, a YoY increase of 28 9%, with operating losses narrowing by 79 9% to RMB 1 0 billion [4] - The company's cash and cash equivalents stood at RMB 42 5 billion as of September 30, 2024 [3] Operational Highlights - Meituan's instant delivery transaction volume reached 7 08 billion orders in 3Q24, a YoY increase of 14 5% [3] - Meituan Flash Delivery expanded to more lower-tier markets, with major retailers accelerating their presence [4] - The domestic hotel room nights continued to grow steadily, with the company collaborating with suppliers to offer more diverse options [4] - Meituan Youxuan's losses continued to narrow sequentially, while other new businesses achieved profitability as a whole in 3Q24 [4] - Keeta was officially launched in Riyadh, Saudi Arabia in October [4] Financial Performance - Meituan's total expenses in 3Q24 were RMB 26 0 billion, with an expense ratio of 27 83%, down 4 55 percentage points YoY [4] - Sales and marketing expenses increased by 6 2% to RMB 18 0 billion, but the expense ratio decreased by 2 9 percentage points to 19 2% [4] - R&D investment remained stable at RMB 5 3 billion, with the expense ratio decreasing by 1 3 percentage points to 5 7% [4] - Administrative expenses increased by 10 2% to RMB 2 8 billion, with the expense ratio remaining stable at 3 0% [4] - The company's net cash flow from operating activities was RMB 15 2 billion in 3Q24 [4] Financial Projections - Meituan's revenue is expected to grow from RMB 276 7 billion in 2023 to RMB 450 2 billion in 2026, with a CAGR of 14 43% [5] - Net profit is projected to increase from RMB 13 9 billion in 2023 to RMB 56 7 billion in 2026, with a CAGR of 23 20% [5] - The company's gross margin is forecasted to remain stable around 38 23% to 38 97% from 2024 to 2026 [5] - Return on equity is expected to be around 22 42% to 22 75% from 2024 to 2026 [5]