Investment Rating - The report maintains a "Buy" rating for NetEase-S (9999 HK) with a target price of HKD 180 0 [1][2] Core Views - NetEase's product cycle has bottomed out with key new games such as *Marvel Rivals* and *Yanyun Sixteen Sounds* set to launch in December 2024 and *Infinity* expected in 2025 [1] - The company's game pipeline is robust with a focus on international IPs and innovative gameplay which could drive future growth [1][18] - Despite short-term revenue pressure due to high base effects in Q3 2024 NetEase's毛利率 exceeded expectations at 62 9% [1] Product Line Summary Key New Games - *Marvel Rivals* a 6v6 hero tactical shooter based on the Marvel IP is set to launch on December 6 2024 with strong pre-registration data indicating potential for significant overseas player acquisition and long-term monetization [1][18] - *Yanyun Sixteen Sounds* an open-world martial arts game is expected to launch on PC by the end of December 2024 with mobile optimization ongoing The game has undergone significant tuning to address earlier concerns and could exceed market expectations [1][25] - *Infinity* an innovative open-world二次元 game is set to begin testing in December 2024 with unique art and gameplay mechanics that could expand NetEase's presence in the二次元 genre [1][31] Classic Games - Flagship games like *Fantasy Westward Journey* and *Justice* showed some year-over-year pressure in Q3 2024 but are expected to stabilize quarter-over-quarter *Fantasy Westward Journey*手游 continues to attract younger users with lighter gameplay [1][39] - *Justice*手游 saw a decline in Q3 2024 due to high base effects but its high user stickiness and回流率 are expected to support its lifecycle [1][51] Other Notable Games - *Eggy Party* saw a decline in third-party rankings partly due to the shift to官网付费 but is expected to maintain its lead over competitors like *DreamStar* [1][52][54] Financial Performance - NetEase's Q3 2024 revenue was RMB 26 21 billion down 3 9% YoY below Bloomberg consensus due to high base effects from games like *Justice* [1][61] - Game and related value-added services revenue declined 4 2% YoY to RMB 20 86 billion while毛利率 improved to 62 9% exceeding expectations [1][62] - Adjusted net profit attributable to母公司 was RMB 7 5 billion down 13 3% YoY [1][62] Valuation and Forecast - The report下调s NetEase's adjusted net profit forecasts for 2024-2026 to RMB 31 29 billion RMB 33 47 billion and RMB 35 51 billion respectively reflecting the impact of high base effects in Q3 2024 [1][88] - The SOTP valuation assigns an 18x PE to the online游戏业务 for 2025 with target price下调 to HKD 180 0 [1][88]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 5.16 HKD based on a 15x PE valuation for FY25 [3][7]. Core Insights - The company reported strong performance in FY25H1, achieving revenue of 8.804 billion HKD, a year-on-year increase of 17.8%. Operating profit reached 1.47 billion HKD, up 19.6%, and net profit attributable to shareholders was 1.13 billion HKD, reflecting a 23% growth. A mid-term dividend of 0.06 HKD per share was proposed, marking a 20% increase [2][3]. - The brand's down jackets are identified as the core growth driver, with FY25H1 revenue from this category increasing by 22.7%. Notably, the main brand, Bosideng, despite closing 124 stores, still achieved rapid sales growth, indicating effective channel optimization and focus on top stores [2]. - The women's wear segment faced challenges, with a 21.5% decline in revenue due to a persistently weak market environment, leading to an operating loss of 50.42 million HKD. The company is reassessing its strategic focus on this non-core business [2][3]. - The company's OEM business saw a 13.4% revenue growth in FY25H1, maintaining a gross margin above 20% [2]. - Inventory turnover increased to 189 days, up 29 days year-on-year, primarily due to proactive inventory management in response to market conditions [2]. - The company continues to focus on brand-led development, with positive market feedback on new product categories such as sun protection clothing and lightweight down jackets. A collaboration with the Harbin government to create a brand IP is also noted [2]. Financial Forecast and Investment Recommendations - The earnings forecast for FY25-27 has been adjusted, with expected earnings per share of 0.32, 0.37, and 0.43 HKD respectively. The previous estimates for FY25 and FY26 were 0.33 and 0.38 HKD [3][7]. - The company is projected to achieve revenue growth of 13.9% in FY25, with operating profit growth of 12.2% and net profit growth of 16.8% [4].

Investment Rating - The report does not explicitly mention an investment rating for the company [1][2][3] Core Viewpoints - The company announced the acquisition of a land use right in Vietnam's Nghe An province to expand production capacity by 10-15% in the first phase [4][5][6] - The total land area acquired is approximately 512,000 square meters, with a total payment of HKD 220 million (USD 28.66 million) to be paid in installments [7][8][9] - The company plans to invest HKD 500 million in factory construction over the next 15-21 months, with production expected to commence by March 2026 [11][12] - The expansion aligns with the growth trend in the international sportswear market, where the company has seen a 35.8% increase in sportswear and apparel revenue in H1 2024, accounting for 54.6% of total revenue [15][16][19] - The Vietnam facility is expected to enhance operational efficiency due to competitive labor costs and tariff advantages in the international supply chain [25][26][28] Industry Analysis - The international sportswear and leisurewear industry has maintained a growth trend, with the company benefiting from this trend as a core supplier of elastic fabrics [16][17] - From 2014 to 2023, the company's revenue CAGR was 9.5%, with sportswear business revenue CAGR at 31.6% [18] - The sportswear market continues to show potential for scale expansion and fabric upgrades, which aligns with the company's expansion plans [20][21][22] Operational Efficiency - The company's existing Vietnam production base has achieved double-digit profit margins, outperforming other facilities [27] - The new Vietnam expansion is expected to leverage local labor cost advantages and supply chain benefits to further improve operational efficiency and support long-term growth [28][30][31]

Investment Rating - The investment rating for Geely Automobile is "Buy" and is maintained [10]. Core Insights - Geely Automobile reported a record sales figure of 250,000 vehicles in November 2024, marking a year-on-year increase of 27.0% and a month-on-month increase of 10.3% [6]. - Cumulative sales from January to November 2024 reached 1.967 million vehicles, reflecting a year-on-year growth of 30.9% [6]. - The GEA platform is expected to initiate a new product cycle, enhancing profitability and driving sales growth across its brands [8]. Summary by Sections Sales Performance - In November 2024, Geely's total sales reached 250,000 vehicles, with a year-on-year increase of 27.0% and a month-on-month increase of 10.3% [6]. - For the period from January to November 2024, cumulative sales were 1.967 million vehicles, up 30.9% year-on-year [6]. - By brand, Geely's sales in November included 190,000 units for the Geely brand, 75,000 units for Galaxy, 27,000 units for Zeekr, and 33,000 units for Lynk & Co [6]. New Energy Vehicles - November saw strong performance in new energy vehicle sales, totaling 122,000 units, which is an increase of 88.3% year-on-year and 12.6% month-on-month [6]. - New energy vehicles accounted for 49.0% of total sales, up 16.5 percentage points year-on-year [6]. Product Development and Strategy - The GEA platform is set to support a new cycle of product launches, with significant cost reductions and improved efficiency [7]. - The Galaxy E5 and Star Wish models have shown strong sales, contributing to the overall growth [7]. - The integration of Zeekr and Lynk & Co is expected to optimize brand architecture and enhance resource collaboration [8]. Financial Projections - The projected net profits for Geely from 2024 to 2026 are estimated at 16 billion, 11.8 billion, and 15.7 billion respectively, with corresponding PE ratios of 8.0X, 11.0X, and 8.2X [8].

Investment Rating - The report assigns a "Buy-B" rating to the company, indicating a potential upside of 48% compared to its current market value [6][131]. Core Insights - The company operates in both upstream manufacturing and downstream retail segments of the sports footwear industry, positioning itself as a leader in the market. It achieved a revenue of $7.89 billion in 2023, with manufacturing and retail contributing 64.1% and 35.9% respectively [1][25]. - The manufacturing segment is expected to see a recovery in orders, with a projected footwear shipment volume of 250 million pairs in 2024, reflecting a double-digit year-on-year growth [1][61]. - The retail segment, while currently facing challenges, is anticipated to benefit from a recovery in foot traffic and improved operational efficiency through digital initiatives [3][115]. Summary by Sections Manufacturing Business - The company is a leading global manufacturer of sports and casual footwear, with a strong focus on efficiency improvements that enhance profit margins. In 2023, it shipped 218 million pairs of footwear, generating $5.06 billion in revenue [1][29]. - The company has established production bases in Indonesia and Vietnam, which are crucial for its operational efficiency. As of the end of 2023, the workforce in manufacturing totaled 242,600 employees, with a significant portion based in these countries [40][41]. - The company has a diversified customer base, with major clients including Nike and Adidas, accounting for 40% and 20% of manufacturing revenue respectively. The company maintains a moderate level of customer concentration, reducing dependency on any single client [44][44]. Retail Business - The company is the second-largest sports goods distributor in China, with over 3,523 retail stores and a revenue of approximately $20.06 billion in 2023. The retail segment is currently focused on enhancing store quality and optimizing the sales network [3][85]. - The retail business has been impacted by external macroeconomic conditions, leading to a decline in same-store sales. However, the introduction of digital sales channels, such as micro-stores, has contributed positively to overall sales [3][99]. - The company is implementing a digital transformation strategy to improve operational efficiency and customer engagement, which includes upgrading its ERP systems and enhancing in-store technology [115][116]. Financial Forecast and Valuation - The company is projected to achieve revenues of $8.13 billion, $8.82 billion, and $9.56 billion for the years 2024, 2025, and 2026 respectively, with corresponding net profits of $450 million, $517 million, and $575 million [6][131]. - The valuation approach includes a 12x multiple for the manufacturing business and a 7x multiple for the retail business, leading to a target market capitalization of HKD 41.8 billion [6][131].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company achieved revenue of 4.523 billion yuan in Q3 2024, representing a year-on-year increase of 19.3%, with adjusted net profit of 686 million yuan, up 6.9% [2] - The report maintains profit forecasts for 2024-2026, expecting net profit attributable to shareholders to be 2.73 billion, 3.39 billion, and 4.16 billion yuan respectively, with current price-to-earnings ratios of 19.1, 15.4, and 12.6 times [2] - The company is focusing on quality retail and interest consumption strategies, with expectations for high-quality growth driven by its store type matrix and O2O strategy in China, accelerated overseas store expansion, and continued profitability from TOP TOY [2] Summary by Sections Domestic Performance - In Q3 2024, MINISO's revenue was 2.44 billion yuan, a 5.7% increase, with offline revenue growing by 3.8% [2] - The company added 324 new stores year-to-date, reaching a total of 4,250 stores, and aims to achieve a net increase of 350-450 stores in 2024 [2] - The report anticipates improved store efficiency driven by differentiated consumer demand and increased O2O touchpoints, with expectations for Q4 performance boosted by IP collaborations [2] Overseas Expansion - In Q3 2024, overseas revenue reached 2.732 billion yuan, a 43% increase, with direct and agency market revenues growing by 45% and 22% respectively [2] - The company added 449 new stores overseas, totaling 2,936 stores, with a target of 650-700 new stores for the year [2] - The report highlights steady same-store growth across various regions, with expectations for continued improvement in store efficiency during the Q4 peak season [2] Profitability - The gross margin for Q3 2024 was 44.9%, an increase of 3.1 percentage points year-on-year, driven by a higher proportion of overseas high-margin direct sales [2] - The operating expense ratio for Q3 2024 was 27.3%, up 5.9 percentage points year-on-year, primarily due to increased costs associated with store expansion [2] - The adjusted operating profit margin was 15.2%, reflecting a decrease of 1.8 percentage points year-on-year, attributed to rising expense ratios from rapid store expansion [2]

Investment Rating - The report maintains a "Buy" rating for the company [2][4]. Core Insights - The company's performance continues to exceed expectations, with Q3 2024 revenue reaching 93.6 billion RMB, a year-on-year increase of 22.4%, surpassing market consensus of 92 billion RMB. Operating profit was 13.7 billion RMB, up 307.5% year-on-year, with an operating margin of 14.6%, an increase of 10.2 percentage points year-on-year. Adjusted net profit was 12.8 billion RMB, a 124.0% year-on-year increase, also above market expectations of 11.8 billion RMB [4]. - The core local business revenue was 69.4 billion RMB, growing 20.2% year-on-year, with operating profit of 14.6 billion RMB, up 44.4% year-on-year. The new business segment generated 24.2 billion RMB in revenue, a 28.9% increase, with operating losses narrowing by 79.9% to 1 billion RMB [4]. - The company's instant delivery orders reached 7.1 billion, a 14.5% year-on-year increase, with daily average orders hitting 76.93 million. The food delivery segment saw a recovery in average order value, with a decrease in the decline rate compared to previous months [4]. - The company is strategically expanding into overseas markets, with the launch of KeeTa in Riyadh, Saudi Arabia, indicating significant growth potential in the local delivery market [4]. Financial Summary - For the fiscal year 2023, the company reported revenue of 276.745 billion RMB, with a projected increase to 337.075 billion RMB in 2024, representing a year-on-year growth of 21.8%. Adjusted net profit is expected to rise from 23.253 billion RMB in 2023 to 44.254 billion RMB in 2024, reflecting a growth rate of 90.3% [3][8]. - The adjusted net profit margin is projected to improve from 8.4% in 2023 to 13.1% in 2024, with adjusted EPS increasing from 3.78 RMB to 7.19 RMB [3][8]. - The company has been actively repurchasing shares, having bought back over 600 million USD worth of stock since early September, amounting to approximately 4.2% of its shares [4].

Investment Rating - The report maintains a "Buy" rating for the company [2][3]. Core Views - The company reported a significant revenue increase of 32.1% year-over-year, achieving 18.86 billion RMB in the first half of 2024, driven by a recovery in the smartphone market and growth in automotive and VR business segments [3]. - The gross profit reached 3.25 billion RMB, reflecting a 52.4% year-over-year increase, while net profit surged by 142.0% to 1.11 billion RMB, exceeding market expectations [3]. - The smartphone segment is expected to benefit from the demand recovery and product structure improvement, with a projected smartphone shipment of 1.24 billion units in 2024 [3]. - The automotive business is also on an upward trajectory, with a forecasted global shipment of 340 million automotive cameras in 2024, representing a 30.8% year-over-year growth [3]. - The XR business is gaining traction, with anticipated annual sales of over 2 million units for AI glasses, indicating a growing market for AR applications [3]. - The company is projected to achieve revenues of 38.2 billion RMB, 44.2 billion RMB, and 48.3 billion RMB for the years 2024, 2025, and 2026 respectively, with net profits expected to reach 2.54 billion RMB, 3.25 billion RMB, and 3.65 billion RMB in the same years [3]. Summary by Sections Financial Performance - The company reported a revenue of 18.86 billion RMB for the first half of 2024, a 32.1% increase year-over-year, surpassing the consensus estimate of 17.22 billion RMB [3]. - The net profit for the same period was 1.11 billion RMB, a 142.0% increase year-over-year, exceeding the expected 1.03 billion RMB [3]. - The gross margin improved significantly, reflecting better profitability in smartphone camera modules [3]. Business Segments - **Smartphone Business**: The company saw a recovery in smartphone demand, with a shipment of 1.108 billion camera lenses, a 17.1% increase year-over-year, and a slight decline in camera module shipments [3]. - **Automotive Business**: The company shipped 88.5 million automotive lenses in the first ten months of 2024, a growth of 11.6% year-over-year, with expectations for continued growth in the coming years [3]. - **XR Business**: The company is positioned as a supplier for AI glasses, with significant sales growth anticipated in the AR market [3]. Future Outlook - The company is expected to benefit from trends in AI smartphones and high-end product demand, with a positive outlook for its automotive and XR segments [3]. - Revenue projections for 2024-2026 indicate strong growth, with net profit margins expected to improve [3].

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 1.35, maintaining the rating for the next six months [1]. Core Viewpoints - The company reported a revenue of HKD 1.693 billion for FY24, representing a year-on-year increase of 11.6%, while the adjusted net profit attributable to shareholders was HKD 830 million, up 5.1% [1]. - The company maintains a stable dividend payout ratio, planning to distribute a final dividend of HKD 0.06 per share and an interim dividend of HKD 0.07 per share, which is approximately 28% of the adjusted net profit [1]. - The total number of full-time students reached 76,000 as of August 2024, with undergraduate students accounting for about 90% of the total [1]. - The company has established partnerships with over 3,000 enterprises, providing more than 10,000 student internship positions annually [1]. Revenue Breakdown - The revenue sources include tuition fees, accommodation fees, and other educational service fees, with tuition fees accounting for 93.8% of total revenue as of August 31, 2024 [1]. - The breakdown of revenue includes tuition fees of HKD 1.587 billion, accommodation fees of HKD 97 million, and other educational service fees of HKD 8 million, with year-on-year growth rates of +12.4%, +5.1%, and -34.2% respectively [1]. Future Outlook - The company aims to continue its high-quality development path, deepen the integration of industry and education, and increase investment in education to cultivate skilled talents [1]. - The company has introduced new majors in artificial intelligence, intelligent manufacturing engineering, and robotics engineering to serve emerging national strategic industries [1].

Investment Rating - Buy (Maintained) [7] Core Views - The company's Q3 2024 performance was largely in line with expectations, with revenue reaching RMB 6.442 billion, a YoY increase of 2.45%, within the guidance range of 2%-5% [2] - Domestic RevPAR declined due to a high base effect, with ADR having a greater impact, while overseas operational indicators remained stable [3] - The company continues to expand its hotel network and upgrade its products, raising its full-year store opening guidance to 2,400 stores (previously 2,200 stores) [4] - Operating costs and expenses increased YoY due to business expansion, but the company's performance remained largely in line with expectations [5] - The company emphasized its dividend and share repurchase plans to enhance shareholder returns, including a USD 1 billion share repurchase plan over five years [6] Financial Performance - Q3 2024 revenue: RMB 6.442 billion, up 2.45% YoY, with domestic revenue at RMB 5.162 billion (up 0.96% YoY) and overseas revenue at RMB 1.280 billion (up 8.94% YoY) [2] - Q3 2024 net profit attributable to shareholders: RMB 1.273 billion, down 4.79% YoY [2] - Domestic RevPAR: RMB 256, down 8.1% YoY, with ADR at RMB 301, down 7.0% YoY [3] - Overseas RevPAR: EUR 82, up 3.7% YoY, with ADR at EUR 117, up 2.5% YoY [3] Expansion and Operations - Q3 2024 domestic store openings: 774 new stores (3 directly operated, 771 franchised), with a net increase of 557 stores [4] - Pipeline: 2,899 stores in the domestic market, with 1,082 economy and 1,817 mid-to-high-end hotels [4] - The company is accelerating its store expansion, with a focus on upgrading its product offerings and optimizing its brand portfolio [4] Shareholder Returns - The company announced a 3-year shareholder return plan, including a maximum distribution of USD 2 billion and a USD 1 billion share repurchase plan over five years [6] - In the first three quarters of 2024, the company repurchased approximately USD 270 million worth of shares and returned approximately USD 470 million to shareholders through dividends and share repurchases [6] Future Outlook - The company expects Q4 2024 revenue growth of 1%-5% (excluding DH growth) [12] - Forecasted revenue for 2024-2026: RMB 23.774 billion, RMB 25.455 billion, and RMB 27.561 billion, with YoY growth rates of 8.6%, 7.1%, and 8.3%, respectively [12] - Forecasted net profit attributable to shareholders for 2024-2026: RMB 3.839 billion, RMB 4.524 billion, and RMB 5.134 billion, with YoY growth rates of -5.9%, 17.8%, and 13.5%, respectively [12] Financial Ratios - 2024E P/E: 20.1x, 2025E P/E: 17.1x, 2026E P/E: 15.0x [12] - 2024E P/B: 4.6x, 2025E P/B: 3.6x, 2026E P/B: 2.9x [13]