Investment Rating - The report maintains a BUY rating for Haidilao and raises the target price to HK$ 20.20, based on an 18x FY25E P/E, up from 16x due to faster expansion and sector re-rating [1][13]. Core Insights - FY24 results showed a small beat primarily driven by robust gross profit margin expansion, with sales increasing by 3% YoY to RMB 42.8 billion, although this was below estimates due to greater-than-expected store closures [1][13]. - The company is expected to experience a mild turnaround in FY25E, supported by potential store expansion acceleration and margin improvements, despite stable same-store sales growth (SSSG) [1][10]. - The "Red Guava" project aims to encourage current store managers to open new restaurants under different brands, with 74 stores already established under 11 new brands as of FY24 [10]. Financial Summary - Revenue is projected to grow from RMB 42,755 million in FY24 to RMB 44,607 million in FY25, reflecting a 4.3% YoY growth [2][15]. - Net profit is expected to increase from RMB 4,700 million in FY24 to RMB 5,213 million in FY25, indicating a 10.3% YoY growth [2][15]. - The gross profit margin is anticipated to remain stable at 62.1% for FY25, supported by improved supply chain capabilities and better input costs [11][16]. Store Expansion and Management - Haidilao opened 59 self-owned stores and 3 franchise stores in FY24, resulting in a net decrease of 19 stores due to 70 closures [10]. - For FY25E, the company expects a net increase of approximately 40 stores, equivalent to about 3% YoY growth, with management estimating around 60-70 new openings [10]. - The adoption of multi-store management and digitalization is expected to enhance operational efficiency and staff productivity [10][11]. Earnings Revision - The FY25E net profit forecast has been cut by 10% to RMB 5,192 million, reflecting greater-than-expected store closures and a more conservative outlook on SSSG [11][13]. - The report indicates a significant improvement in gross profit margin, which is expected to positively impact overall profitability [11][13].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved revenue and net profit of 6.54 billion and 739.43 million respectively in 2024, representing a year-on-year growth of 6.24% and a decline of 13.28% [7] - Third-party sales continue to grow, driven by products like crayfish, while the overall average price has slightly decreased due to the introduction of high-cost performance products [7] - The company is expected to maintain low double-digit growth in third-party revenue in 2025, with potential improvement in related party performance [7] Financial Forecasts - Total revenue is projected to grow from 6.54 billion in 2024 to 8.64 billion in 2027, with year-on-year growth rates of 6.24%, 10.76%, 9.96%, and 8.46% respectively [1][8] - Net profit is forecasted to decline to 739.43 million in 2024, followed by a recovery to 884.67 million in 2025 and 1,087.89 million in 2027 [1][8] - The latest diluted EPS is expected to be 0.71 in 2024, increasing to 1.05 by 2027 [1][8] Revenue Breakdown - Third-party revenue is expected to grow by 9% in the second half of 2024, with specific product categories showing varied performance [7] - Related party revenue is projected to decline by 12.35% in the second half of 2024, with significant drops in certain product categories [7] Strategic Initiatives - The company is enhancing its partner assessment mechanisms and accelerating product launches, with over 50 new products expected in 2024 [7] - The company is focusing on refining channel management and expanding e-commerce and overseas markets, particularly with the new factory in Thailand [7]

Investment Rating - The report maintains a "Buy" rating for Kunlun Energy (00135.HK) [1] Core Views - The company reported a revenue of 187.046 billion yuan for 2024, representing a year-on-year growth of 5.24%. The net profit attributable to shareholders was 5.96 billion yuan, up 4.89% year-on-year. The company declared a dividend of 0.3158 yuan per share, with a core profit payout ratio of 43% [7] - Retail gas volume continues to grow significantly, with a year-on-year increase of 8.1% in retail gas sales volume. The company is expanding its business layout into the central and western provinces of China [7] - The company expects a retail gas volume growth of 8% in 2025, with an anticipated addition of 600,000 to 700,000 new users [7] Financial Summary - Total revenue and net profit forecasts for 2025-2027 are adjusted to 61.47 billion yuan, 64.69 billion yuan, and 67.96 billion yuan respectively, with year-on-year growth rates of 3.14%, 5.24%, and 5.05% [7] - The company’s operating cash flow for 2024 was 12.585 billion yuan, with a free cash flow of 7.044 billion yuan, reflecting a decrease of 19.73 billion yuan year-on-year due to increased capital expenditures [7][8] - The company’s capital expenditures for 2024 increased by 12.54 billion yuan to 6.602 billion yuan, primarily for natural gas sales and LNG receiving stations [7]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 81.61 HKD [7][8]. Core Views - The company is experiencing strong revenue growth, with a projected revenue of 55.39 billion RMB for 2024, representing a year-on-year increase of 57.2% [1]. - The net profit attributable to the parent company is expected to reach 20.62 billion RMB in 2024, reflecting a year-on-year growth of 42.1% [1]. - The company continues to see robust growth momentum, particularly in its flagship product, the collagen stick, which is anticipated to maintain around 20% growth in 2025 [1]. - The online channel revenue for the company has surpassed 50%, with expectations for continued strong growth in 2025 [1]. Revenue and Profit Forecast - The company forecasts revenues of 7,115 million RMB for 2025, with a growth rate of 28.45% [6]. - The net profit attributable to the parent company is projected to be 2,600 million RMB in 2025, indicating a growth of 26.07% [6]. - The earnings per share (EPS) is expected to be 2.53 RMB for 2025 [6]. Product Performance and Market Expansion - The collagen stick's revenue contribution is expected to decrease to below 30% in 2024, with new products like the focus series anticipated to drive growth [2]. - The company has opened its first brand flagship store in Chongqing and continues to expand its offline presence in key cities [2]. - The direct sales channel has shown significant growth, with DTC store sales reaching 35.87 billion RMB, a year-on-year increase of 66% [3]. Margin and Cost Structure - The gross margin for 2024 is projected at 82.1%, a slight decrease of 1.5 percentage points year-on-year due to a higher proportion of sales from essence and cream products [3]. - The selling expense ratio is expected to increase slightly in 2025 due to continued investment in online channels [3]. Valuation Metrics - The company is assigned a price-to-earnings (PE) ratio of 30 times for 2025, reflecting strong online growth and potential contributions from medical beauty products [4]. - The target price has been adjusted to 81.61 HKD, based on a 30 times PE for 2025 [4].

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company is expected to show significant profit elasticity in 2025 due to low raw milk prices, improved operational efficiency, and reduced impairment pressures from 2024 [4][6] - The company has adjusted its channels since March 2024, which has led to a decline in liquid milk revenue, but core product ASP remains strong, indicating structural opportunities [2][3] Revenue and Profitability Summary - In 2024, the company's revenue and net profit attributable to the parent company were 886.7 million and 10.4 million respectively, down 10.1% and 97.8% year-on-year [1] - The operating profit margin (OPM) for 2024 increased by 1.9 percentage points to 8.2%, exceeding the target of a 30-50 basis point increase, mainly due to lower raw milk costs and various quality improvement measures [3][4] - The gross profit margin for 2024 rose by 2.4 percentage points to 39.6% [3] Future Earnings Forecast - The earnings per share (EPS) for 2025 and 2026 are projected to be 1.33 and 1.48 RMB respectively, with an upward revision of 5% and 8% from previous estimates [4][6] - The target price for the company is set at 22.77 HKD, based on a 16x PE ratio for 2025 [4][8] Market Position and Competitive Landscape - The company faces challenges in the liquid milk segment due to supply-demand imbalances and weaker consumer demand, but it has identified structural opportunities in premium products [2][3] - The cheese and ice cream segments show strong competitive advantages, with notable growth in international markets for ice cream [2]

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 32.72 [8][9]. Core Views - The company reported a revenue of RMB 278.8 billion for 2024, representing a year-on-year increase of 11%, while core net profit decreased by 8.5% to RMB 25.4 billion, aligning with market expectations. The company has successfully established a second growth curve, demonstrating resilience during industry downturns [1]. - The shopping center business showed robust expansion, with retail sales increasing by 19.2% year-on-year and same-store sales growth of 4.6%, surpassing the overall retail growth rate. The rental income from shopping centers rose by 8% to RMB 19.3 billion [2]. - The development business remains in the top tier of the industry, with contract sales declining by 15% to RMB 261.1 billion in 2024, but still outperforming the industry average. The company plans to launch new projects worth RMB 500.9 billion in 2025, indicating a potential recovery in sales [3]. - The company maintains a leading financing advantage, with asset management scale reaching RMB 462.1 billion, and a significant portion of this is from shopping centers. The financing cost decreased by 45 basis points to 3.11%, and cash reserves grew by 16.5% to RMB 133.2 billion [4]. Summary by Sections Financial Performance - For 2024, the company achieved a revenue of RMB 278.8 billion, with a year-on-year growth of 11%. The core net profit was RMB 25.4 billion, down 8.5% from the previous year. The earnings per share (EPS) for 2025 is projected to be RMB 3.60 [1][7]. Business Segments - The shopping center segment reported a retail sales increase of 19.2% year-on-year, with an overall occupancy rate of 97.1%. The company opened 16 new shopping centers during the year, contributing to an 8% increase in rental income [2]. - The development segment saw a contract sales decline of 15% to RMB 261.1 billion, but the company remains optimistic about a sales rebound in 2025, with plans to launch new projects worth RMB 500.9 billion [3]. Financing and Valuation - The asset management platform has a scale of RMB 462.1 billion, with a focus on rental housing and commercial real estate REITs. The financing cost has decreased, and cash reserves have increased, indicating a strong financial position [4]. - The estimated book value per share (BPS) for 2025 is RMB 40.50, with a target price set at HKD 32.72, reflecting a price-to-book (PB) ratio of 0.75 times [5].

Investment Rating - The investment rating for the company is "Buy" [7] Core Views - The company is expected to achieve a revenue of 6.54 billion RMB in 2024, representing a year-on-year increase of 6.4%, while the net profit attributable to the parent company is projected to be 739 million RMB, a decrease of 13.3% year-on-year, which is below expectations due to factors such as reduced procurement prices from related parties and increased marketing expenses [1][4] - The company has declared a final dividend of 383 million RMB, resulting in an annual payout ratio of approximately 95% [1] - The company is focusing on enhancing its product competitiveness through a "product project system" and is expected to benefit from the gradual release of production capacity in Southeast Asia, which may improve overseas supply chain efficiency and increase overseas revenue [1][3] Revenue and Profitability - In 2024, the company expects revenue from related parties to be 19.74 billion RMB, a decrease of 2%, while revenue from third parties is projected to be 43.82 billion RMB, an increase of 8% [2] - The revenue from hot pot base, compound seasoning, and convenient fast food products is expected to be 4.085 billion RMB, 787 million RMB, and 1.605 billion RMB respectively, with year-on-year growth rates of -0.2%, +26.6%, and +15.7% [3] - The gross profit margins for these products are projected to be 33.9%, 33.8%, and 24.7% respectively, with slight changes compared to the previous year [3] Future Projections - The company anticipates a gradual increase in overseas revenue, which currently accounts for less than 10% of total revenue, as the Southeast Asia supply center becomes operational [3] - The earnings per share (EPS) forecast for 2025 is set at 0.82 RMB, with a projected increase to 1.04 RMB by 2027 [4][6] - The target price for the company's stock is set at 17.83 HKD, reflecting a price-to-earnings (P/E) ratio of 20 times for 2025 [4][8]

Investment Rating - The report maintains a "Buy" rating for Huaneng International Power Co., Ltd. with a target price of HKD 5.45 [7][4]. Core Views - The company's 2024 revenue is expected to decrease by 3.5% year-on-year to RMB 245.55 billion, while equity profit is projected to increase by 21.9% to RMB 10.185 billion, slightly below expectations due to higher domestic coal power costs in Q4 2024 [1][2]. - The company plans to add 9.42 GW of new renewable energy capacity in 2024 and aims for an additional 10 GW in 2025, which is expected to drive sustainable growth [1][3]. - The dividend for 2024 is set at RMB 0.27 per share, with a payout ratio of 58.78%, resulting in a dividend yield of 6.4% based on the closing price on March 26 [1][4]. Financial Performance Summary - In 2024, the total profit from domestic coal power is expected to recover to 1.9 cents per kWh, despite a decrease in the tax-inclusive electricity price by 1.09 cents per kWh [2]. - The company’s total profit from wind and solar projects in 2024 is projected to be RMB 94.97 billion, slightly above the forecast of RMB 84.26 billion [3]. - The report forecasts a decrease in the electricity price for thermal power by 3.9% and 4.0% for 2025 and 2026, respectively, leading to a downward adjustment of equity profit for 2025 and 2026 [4][6]. Valuation Metrics - The report estimates the company's 2025 book value per share (BPS) to be RMB 4.57, with a price-to-book (PB) ratio of 1.1x based on 2025 estimates, which is higher than its historical average [4][6]. - The expected earnings per share (EPS) for 2024 is RMB 0.65, with a projected increase to RMB 0.79 in 2025 [6][21].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][6]. Core Views - The beverage industry is experiencing steady growth, with the ready-to-drink beverage segment showing significant potential for expansion, particularly in the ready-to-drink tea market, which is expected to reach a scale of 312.7 billion yuan by 2024, with a compound annual growth rate (CAGR) of 17.3% from 2023 to 2028 [1][16]. - The company, as a leading player in the ready-to-drink tea sector, has a strong market position due to its high cost-performance ratio and extensive store coverage, with over 45,000 stores nationwide [2][3]. - The company is also expanding into the ready-to-drink coffee market, with its brand "Luckin Coffee" expected to capture a larger share in lower-tier markets [1][3]. Summary by Sections Industry Overview - The ready-to-drink beverage market is projected to grow significantly, with ready-to-drink tea accounting for 50% of the segment, and the overall beverage market expected to reach 1.6 trillion yuan by 2024 [16][17]. - The market is transitioning from a fragmented structure to a more concentrated one, with the company being the absolute leader in the affordable ready-to-drink tea segment [22][23]. Company Positioning - The company has a stable ownership structure, with the founders holding over 80% of the shares, ensuring strong control and management continuity [2][33]. - The company has been in a rapid expansion phase since 2020, with a significant increase in store numbers, particularly in lower-tier cities, where it has achieved a coverage rate of 56.31% in third to fifth-tier cities [2][47]. Financial Performance - The company reported total revenue of 186.6 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 21%, with a net profit of 34.9 billion yuan, up 45% year-on-year [2][50]. - Revenue projections for 2024-2026 are estimated at 242.38 billion yuan, 285.87 billion yuan, and 324.60 billion yuan, respectively, with net profits expected to reach 40.34 billion yuan, 50.59 billion yuan, and 58.88 billion yuan [4][5]. Growth Potential - The company anticipates that the number of domestic stores could exceed 50,000 in the medium term, with potential maximum store numbers reaching between 60,000 to 80,000 [3][4]. - The ready-to-drink coffee segment is also seen as a significant growth opportunity, with "Luckin Coffee" positioned to benefit from the expanding coffee consumption market [3][28]. Valuation - The report suggests a target price of 431.42 HKD for the stock, based on a valuation of 30 times earnings for 2025, indicating a favorable investment outlook [4][6].