Investment Rating - The investment rating for Chow Tai Fook (01929) is "Buy" with a target price of 7.04 HKD, maintaining the rating for the next six months [1]. Core Views - The report highlights strong growth in fixed-price products, which have increased their share in the overall sales mix [1]. - The company reported a significant decline in revenue and net profit for FY25H1, with revenue at 39.41 billion HKD, down 20.4%, and net profit at 2.53 billion HKD, down 44.4% due to substantial fluctuations in international gold prices [1]. - Operating profit for FY25H1 was 6.78 billion HKD, reflecting a 4% increase, with an operating profit margin (OPM) of 17.2%, up 4 percentage points [1]. - The gross profit margin improved to 31.4%, an increase of 6.5 percentage points, benefiting from rising gold prices and a higher contribution from fixed-price gold products [1]. - The interim dividend declared was 0.20 HKD per share, with a payout ratio of 78.9%, the highest in the last five years [1]. Summary by Sections Financial Performance - FY25H1 revenue was 39.41 billion HKD, a decrease of 20.4%, while net profit was 2.53 billion HKD, down 44.4% due to losses from the revaluation of gold lending contracts [1]. - Operating profit was 6.78 billion HKD, up 4%, with an OPM of 17.2%, also up 4 percentage points [1]. - The gross profit margin increased to 31.4%, up 6.5 percentage points, driven by higher gold prices and increased sales of fixed-price gold products [1]. Regional Performance - Revenue from Mainland China, Hong Kong, Macau, and other markets was 33.02 billion HKD and 6.38 billion HKD, respectively, with year-on-year changes of -18.8% and -27.9% [1]. - Retail and wholesale sales in Mainland China were 13.84 billion HKD and 19.19 billion HKD, with year-on-year changes of -21.9% and +16.4% [1]. Product Performance - Revenue from jewelry, platinum, and K-gold products was 5.43 billion HKD, down 20% year-on-year [1]. - Revenue from gold products (valued) was 26.13 billion HKD, down 29.7%, while revenue from gold products (priced) was 4.65 billion HKD, up 117.9% [1]. - Overall revenue from gold products decreased by 21.6%, accounting for 79.4% of total revenue [1]. Strategic Initiatives - The company is focused on five strategic initiatives: brand transformation, product optimization, accelerating digitalization, improving operational efficiency, and enhancing talent development [1]. - Positive progress in brand transformation includes the launch of a new concept store in Central Hong Kong and significant retail value from the signature "Chuan Fu" series, exceeding 1.5 billion HKD since its launch [1]. - The company continues to optimize its product and pricing strategies, with strong sales of priced gold products contributing to a 100% year-on-year increase in retail value in Mainland China [1].

Investment Rating - The report assigns an "Accumulate" rating for the company, marking it as the first coverage [1]. Core Viewpoints - The company has a strong ADC platform technology and its core product, TROP2 ADC, has been approved for market [1]. - The company has established a comprehensive ADC research and development platform, OptiDC, which supports the entire development process from research to production [1][13]. - The company has multiple products in clinical development, with significant partnerships and collaborations enhancing its commercial prospects [1][3]. Summary by Sections Company Overview - Sichuan Kelun-Botai Biopharmaceutical Co., Ltd. focuses on innovative biopharmaceuticals and has established three core platforms for ADC, large molecules, and small molecules [13][21]. - The company has a strong management team with extensive industry experience and a concentrated shareholding structure [15][19]. ADC Development - The ADC market is projected to grow significantly, with the global market expected to reach $63.8 billion by 2030, and the Chinese market projected to reach RMB 68.9 billion by 2030 [54]. - The company has five ADCs in clinical research, with A166 (HER2-ADC) and SKB264 (TROP2-ADC) already in the NDA stage [59][60]. Product Pipeline - The company has four NDA applications accepted by the CDE, including A167 (PD-L1 monoclonal antibody), A166 (HER2 ADC), A140 (biosimilar of cetuximab), and SKB264 (TROP2 ADC) [2]. - The company has established a strong pipeline with over ten clinical candidates, including several in critical trials or NDA registration stages [21]. Financial Projections - The company is expected to generate revenues of RMB 1.217 billion, RMB 1.654 billion, and RMB 2.476 billion for the years 2024, 2025, and 2026, respectively, with net profits projected to be -RMB 720 million, -RMB 606 million, and -RMB 415 million [3].

Investment Rating - Maintains a **Buy** rating for SenseTime with a target price of **HK$2.00**, up from HK$1.36, based on a 9.0x EV/Sales multiple for FY25E [1][18] Core Views - SenseTime has completed a strategic reorganization, adopting a "1+X" structure to focus on its core AI cloud services, large models, and AI applications, while other ecosystem businesses (smart cars, home robots, smart healthcare, smart retail) operate independently with flexible incentives and financing [1] - The reorganization is expected to accelerate SenseTime's path to breakeven, with breakeven now projected in FY26E (previously expected adjusted net loss of RMB 1.7 billion) [1] - The core AI cloud and Gen AI businesses grew 256% YoY in H1 2024, contributing 60% of total revenue, with significant cost reductions expected as core business headcount is reduced to less than 2,000 (50% of pre-reorganization total) [2] - SenseTime's Gen AI business is expected to grow at a 68% CAGR from FY24 to FY26, driven by increasing computing power and strong demand for AI computing [5] - SenseTime's total operational computing power reached over 20,000 PetaFLOPS in August 2024 (up 233% YoY), with management targeting over 25,000 PetaFLOPS by the end of FY24 [5] Financial Summary - Revenue is projected to grow from RMB 4,541 million in FY24E to RMB 7,498 million in FY26E, with adjusted net profit turning positive at RMB 84.1 million in FY26E [4] - Gross margin is expected to improve from 42.8% in FY24E to 39.0% in FY26E, while adjusted net profit margin is forecasted to turn positive at 1.0% in FY26E [15] - Operating cash flow is expected to improve significantly, turning positive at RMB 199 million in FY24E and reaching RMB 2,798 million by FY26E [25] Valuation - SenseTime's target EV/Sales multiple of 9.0x for FY25E is higher than the industry average of 7.8x, reflecting its leading position in China's Gen AI cloud services market and strong AI infrastructure [18] - The company's EV/Sales multiple is expected to decline from 9.8x in FY24E to 6.8x in FY26E, indicating improving profitability and valuation [25] Market Position - SenseTime ranks third in China's Gen AI IaaS market with a 15% market share as of Q2 2023 [5] - The company's strong AI infrastructure positions it to benefit from the growth of Gen AI, with significant investments in computing power and large models [5]

Investment Rating - The report maintains a "BUY" rating for SenseTime, with a target price raised to HK$2.00, reflecting a potential upside of 17.0% from the current price of HK$1.71 [3][10]. Core Insights - SenseTime has completed a strategic organizational restructuring to focus on its generative AI business, which is expected to accelerate its path to breakeven by FY26E [1]. - The revenue from the core AI Cloud and generative AI businesses grew by 256% year-over-year, accounting for 60% of total revenue in 1H24 [1]. - The restructuring is anticipated to lead to significant expense reductions, with the core business headcount reduced to below 2,000, representing less than 50% of the total group headcount prior to restructuring [1]. Financial Summary - Revenue projections for FY24E, FY25E, and FY26E are RMB4,541 million, RMB5,955 million, and RMB7,498 million respectively, indicating a growth trajectory [2][13]. - Adjusted net profit is expected to improve from a loss of RMB3,615.9 million in FY24E to a profit of RMB84.1 million in FY26E [2][13]. - The adjusted net margin is forecasted to improve from -79.6% in FY24E to +1.1% in FY26E, driven by robust growth in the generative AI business and a significant decline in operating expenses [1][2]. Market Position - SenseTime is positioned as the third largest generative AI IaaS service provider in China, holding a market share of 15% as of 2H23 [1]. - The company’s total operating computing power exceeded 20,000 PetaFLOPS in August 2024, with expectations to surpass 25,000 PetaFLOPS by the end of FY24 [1]. Valuation - The target price of HK$2.00 is based on a valuation of 9.0x FY25E EV/Sales, which is at a premium to the sector average of 7.8x, reflecting SenseTime's leadership in the generative AI cloud services market [10].

Investment Rating - The report initiates coverage with a **Buy** rating for the company, citing a 55% upside potential based on a 10x PE valuation for 2024 [5][10] Core Views - The company is a global leader in automotive exterior parts, with a strong track record of revenue and profit growth, achieving a 19.7% CAGR in revenue and 12.2% CAGR in net profit from 2006 to 2023 [5] - The company's globalization strategy has been highly successful, with overseas revenue growing at a 29.4% CAGR from 2006 to 2023, and overseas revenue accounting for over 50% of total revenue in H1 2024 [5] - The battery shell business is a key growth driver, with orders worth RMB 125.08 billion as of H1 2024, expected to contribute significantly to future revenue [5][6] - The company's financial metrics are improving, with free cash flow turning positive in 2023, and a potential valuation re-rating as profitability and ROE improve [6] Financial Projections - Revenue is projected to grow from RMB 23.91 billion in 2024 to RMB 34.42 billion in 2026, with a CAGR of 16.0%-21.5% [6][7] - Net profit is expected to increase from RMB 2.25 billion in 2024 to RMB 3.17 billion in 2026, with a CAGR of 18.3%-18.9% [6][7] - Gross margin is forecasted to remain stable at around 27.4% from 2024 to 2026 [6][7] Business Segments - **Battery Shell Business**: Expected to generate revenue of RMB 49.5 billion in 2024, growing to RMB 106.2 billion by 2026, with gross margins improving from 21% to 22.5% [11] - **Plastic Parts Business**: Revenue is projected to grow from RMB 66.4 billion in 2024 to RMB 92.4 billion in 2026, with gross margins stable at around 24%-24.5% [11] - **Aluminum Trim Business**: Revenue is expected to increase from RMB 48.5 billion in 2024 to RMB 60.8 billion in 2026, with gross margins remaining at 37% [11] Growth Catalysts - The company's battery shell business is expected to benefit from the rapid growth of the global electric vehicle market, with a projected market size of RMB 632 billion by 2025 [171] - The company's global factory layout and diversified customer base provide a competitive advantage in the face of rising tariffs and deglobalization trends [5][6] - The company's smart exterior business is seen as a future growth driver, with potential for significant revenue contribution in the coming years [5][6] Market Position - The company is a top player in the global battery shell market, with a market share of approximately 8% in 2023 [175] - The company's global presence and strong customer relationships, including partnerships with major automakers like Tesla, BMW, and Volkswagen, position it well for continued growth [175][176] Historical Performance - The company has consistently expanded its product portfolio, from traditional exterior parts to aluminum components and battery shells, driving ASP growth from RMB 60 to nearly RMB 1,700 [169][170] - Overseas revenue has grown significantly, from RMB 124 million in 2006 to RMB 9.97 billion in 2023, with a CAGR of 29.4% [5][84]

Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook for its stock performance in the near term [4][64]. Core Views - The company has established deep partnerships with leading international brands such as Nike and Adidas, which are expected to drive future growth despite recent challenges [4][10]. - The company is optimizing its offline channel structure by closing inefficient stores and opening larger, more efficient ones, enhancing customer experience and brand image [4][57]. - The company is well-positioned in the sports apparel distribution industry, with a strong brand portfolio and a commitment to expanding its offerings [5][10]. Summary by Sections 1. Industry Growth and Brand Resources - The sports apparel industry is expected to continue its growth trajectory, driven by increasing consumer spending and the expansion of emerging markets [24][28]. - The company has a rich portfolio of agency brands and a leading dividend yield in the industry, reflecting its strong financial health and commitment to returning value to shareholders [10][35]. 2. Anticipating Recovery of International Brands - The company is poised for recovery as international brands adjust their strategies, with new store formats and products expected to rejuvenate sales channels [4][10]. - The company has been proactive in expanding its brand partnerships, including collaborations with emerging brands, which enhances its revenue diversification and risk resilience [35][10]. 3. Profit Forecast and Rating - The company is projected to achieve net profits of 1.316 billion RMB, 1.627 billion RMB, and 1.873 billion RMB for FY2025, FY2026, and FY2027, respectively, with growth rates of -40.53%, 23.62%, and 15.11% [5][64]. - The report highlights that the company's valuation is relatively low compared to peers, justifying the "Accumulate" rating based on its strong market position and brand resources [5][64]. 4. Key Assumptions - The company is expected to maintain a sales expense ratio of approximately 28.90% to 28.30% from FY2025 to FY2027, reflecting its efficient marketing strategies [59][60]. - Management expenses are projected to decline, indicating improved operational efficiency through digital management systems [59][60].

Investment Rating - Buy rating maintained for Meituan-W (03690) [2] Core Views - Meituan's 3Q24 revenue reached 935.77 billion yuan (YoY +22%), slightly exceeding Bloomberg consensus by 1.7% [2] - Adjusted EBITDA was 145.29 billion yuan (YoY +135%), 9.0% above Bloomberg consensus [2] - Adjusted net profit stood at 128.29 billion yuan (YoY +124%), 10.1% above Bloomberg consensus [2] - Operating profit surged to 136.85 billion yuan (YoY +308%), 41% above Bloomberg consensus [2] Segment Performance Core Local Commerce - Revenue: 693.73 billion yuan (YoY +20%), 1.5% above Bloomberg consensus [2] - Operating profit: 145.82 billion yuan (YoY +44%), 13.7% above Bloomberg consensus [2] - Operating margin improved by 3.5 percentage points to 21.0% [2] - Instant delivery orders grew 14.5% YoY to 7.1 billion, with daily orders reaching 77.17 million [2] New Initiatives - Revenue: 242.04 billion yuan (YoY +29%), 3.9% above Bloomberg consensus [2] - Operating loss narrowed to 10.26 billion yuan (YoY +80%), 42.4% above Bloomberg consensus [2] - Meituan Flash Shopping daily orders exceeded 10 million, with peak orders reaching 16 million during Qixi Festival [2] - Flash warehouses surpassed 30,000, covering multiple consumer categories [2] In-store, Hotel & Travel - Order volume grew over 50% YoY [2] - Annual transacting users and active merchants reached record highs [2] - "Hotel + X" cross-selling strategy enhanced supply diversification [2] Financial Projections - 2024-2026 revenue forecast: 3,367/3,857/4,352 billion yuan (previous: 3,344/3,889/4,421 billion yuan) [4] - 2024-2026 adjusted net profit forecast: 423/521/707 billion yuan (previous: 386/522/698 billion yuan) [4] - Revenue growth rates: 22%, 15%, 13% for 2024-2026 respectively [4] - Adjusted net profit growth rates: 82%, 23%, 36% for 2024-2026 respectively [4] Key Financial Metrics - 2024E revenue: 3,366.99 billion yuan (YoY +22%) [6] - 2024E adjusted net profit: 423.05 billion yuan (YoY +82%) [6] - 2024E EPS: 5.71 yuan [6] - 2024E P/E ratio: 19x [6] Strategic Initiatives - Diversified supply through initiatives like Pinhaofan, Shenqiangshou, and brand satellite stores [2] - Merchant support measures including 6-12 month commission rebates and 1 billion yuan subsidies [2] - AI-powered location services for restaurant merchants [2] - Expansion of flash warehouses to 100,000 by 2027, targeting 200 billion yuan market size [2]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised to HKD 26, indicating a potential upside of 24.7% from the current price of HKD 20.85 [4][18]. Core Insights - The company is positioned to benefit from the increasing average vehicle age in China and a shift towards more rational consumer spending habits. Its proprietary systems enhance supply chain and store management, leading to standardized products and services that cater to younger consumers, resulting in lower customer acquisition costs and higher user retention [1][2]. - The company is expected to capture market share from traditional 4S dealerships as consumers downgrade their spending. Its self-controlled products offer high cost-performance ratios, potentially yielding higher gross margins than branded products, thus creating a positive cycle for customer acquisition and profit growth [2]. - The expansion of the store network is anticipated to offset potential growth pressures at individual store levels. The management reported a 22% year-on-year increase in new store applications in the first half of the year, with expectations to grow from approximately 6,300 stores to about 7,000 by year-end and around 7,900 next year [2][3]. Financial Summary - Revenue projections for the current and next year have been adjusted upwards by 1-2% to RMB 14.936 billion and RMB 17.127 billion, respectively, with gross margins improving to 26.0% and 26.8% [2][10]. - Adjusted net profit estimates have been raised by 3-5% to approximately RMB 634 million and RMB 1.029 billion for the current and next year [2][10]. - The company’s financial metrics indicate a significant recovery, with a projected net profit margin of 4.2% for FY24E and 6.0% for FY25E, alongside an increase in return on equity to 18.4% by FY25E [12][15].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 9.81, representing a potential upside of 54.5% from the current price of HKD 6.35 [4][30]. Core Insights - The company is expected to experience rapid growth in its key product, Tevazo, with projected revenues of RMB 5.11 billion in 2024, accounting for 58% of total revenue. The penetration rate of Tevazo among CTIT patients is anticipated to increase from 29% in 2023 to 35% in 2024 [8][9]. - The company has successfully renewed multiple products in the national medical insurance directory, including Tevazo and HER2 monoclonal antibody, which will help stabilize prices and support steady growth [2][3]. - The company has a robust pipeline with several innovative products entering NDA or Phase III clinical trials, expected to be approved between 2025 and 2027, providing new growth momentum [2][3]. Financial Summary - Revenue is projected to grow by 12.8% in 2024 and 12.2% in 2025, with corresponding revenues of RMB 8.82 billion and RMB 9.89 billion respectively [3][20]. - The net profit attributable to shareholders is expected to increase by 23.7% in 2025, reaching RMB 2.18 billion, with a basic earnings per share of RMB 0.90 [3][20]. - The current market capitalization corresponds to a PE ratio of 6.6 times for 2025, indicating an attractive valuation [2][3]. Pipeline and Product Development - The company is advancing its pipeline with several products, including long-acting EPO and IL-17, which are expected to be submitted for approval in 2025 [2][17]. - The introduction of new products, such as the oral solution of paclitaxel and other late-stage clinical products, is anticipated to become significant growth drivers starting in 2026 [2][17]. - The company is also expanding its product offerings in dermatology and hair loss, with promising products like Winlevi and semaglutide in Phase III clinical trials [16][17]. Market Position and Competitive Advantage - The company has established a strong marketing team and channel advantages in the autoimmune field, which will help capture market share for new autoimmune drugs post-launch [15][17]. - Tevazo is positioned as a leading treatment option for chemotherapy-induced thrombocytopenia (CIT), with evidence supporting its efficacy over competitors [10][13].

Investment Rating - The report assigns a "Buy" rating for China Gold International Resources Corp. [3] Core Views - The company is expected to benefit from the gradual resumption of operations at the Jiama mine, with a projected annual gold production of approximately 49,000 tons and copper production reaching 44,500 tons. The report anticipates a bullish trend in gold and copper prices, leading to estimated net profits of $132 million, $361 million, and $423 million for 2024, 2025, and 2026 respectively, with corresponding EPS of $0.33, $0.91, and $1.07 [8][9]. Summary by Sections Company Overview - China Gold International Resources Ltd. is a Hong Kong-listed company primarily engaged in gold and copper mining, backed by the China National Gold Group. The company operates two major mines: the Changshan Gold Mine in Inner Mongolia and the Jiama Mine in Tibet. In 2022, the company produced 7.4 tons of gold and 85,000 tons of copper, but production was affected in 2023 due to the Jiama mine's temporary shutdown [24][28]. Mine Resumption and Performance Recovery - The Jiama mine is set to resume operations in mid-2024, contributing significantly to profit recovery. The company reported a revenue of $463 million in the first three quarters of 2024, a year-on-year increase of 19.31%, with a net profit of -$0.05 million, reflecting a 40.07% improvement compared to the previous year. The recovery is attributed to the resumption of the Jiama mine's second-phase processing plant and the stable production at the Changshan mine [35][36]. Resource and Production Capacity - The Jiama mine has substantial resources, with proven and controlled copper reserves of 5.5436 million tons and gold reserves of 4.39 million ounces as of the end of 2023. The mine's production capacity is expected to support ongoing operations for over 30 years, with a design capacity of 50,000 tons per day [9][64]. Financial Projections and Valuation - The report projects significant revenue growth for the company, with expected revenues of $884.16 million, $1.354 billion, and $1.615 billion for 2024, 2025, and 2026 respectively. The anticipated P/E ratios for these years are 16.37, 6.01, and 5.12, indicating a favorable valuation outlook [12][8].