Investment Rating - The investment rating for the company is "Outperform the Market" [2][3]. Core Views - The company achieved a net profit growth of 23% in the first half of the fiscal year, with a revenue increase of 18%. The brand's down jacket business performed particularly well, reflecting strong market leadership [2][8]. - Despite a challenging macroeconomic environment, the company continues to show robust growth, with historical highs in performance for the first half of the fiscal year [32]. - The company maintains a stable gross margin, with a slight year-on-year decrease of 0.1 percentage points to 49.9%, attributed to changes in sales structure and product mix [8][15]. Summary by Relevant Sections Financial Performance - For the first half of the fiscal year ending September 30, the company reported a revenue of 8.8 billion yuan, up 17.8% year-on-year, and a net profit of 1.13 billion yuan, up 23% year-on-year [2][8]. - The revenue breakdown includes brand down jackets (6.06 billion yuan, +22.7%), OEM processing (2.32 billion yuan, +13.4%), women's wear (310 million yuan, -21.5%), and diversified clothing (170 million yuan, +21.3%) [8][9]. Profitability Metrics - The operating profit margin improved by 0.2 percentage points to 16.7%, while the net profit margin increased by 0.5 percentage points to 12.8% [8][15]. - The company’s gross margin for brand down jackets was 61.1%, with slight declines in OEM processing and women's wear margins [15][27]. Inventory and Cash Flow - Inventory increased by 53.4% year-on-year, with inventory turnover days rising by 29 days to 189 days, primarily due to rising down prices and proactive inventory management [23][26]. - The company maintains a strong cash flow position and plans to distribute an interim dividend of 0.06 HKD per share [2][8]. Growth Drivers - New product categories, such as sun protection clothing and functional jackets, are contributing to revenue growth, with online sales for brand down jackets increasing by 24% [26][32]. - The company is optimizing its offline channel quality, closing 29 stores to focus on enhancing the performance of top stores, resulting in significant revenue growth per store [26][32]. Future Outlook - The company forecasts net profits of 3.6 billion, 4.1 billion, and 4.6 billion yuan for FY2025, FY2026, and FY2027, respectively, reflecting growth rates of 17.1%, 13.5%, and 11.6% [33][32]. - The target price is maintained at 5.1 to 5.5 HKD, corresponding to a PE ratio of 15-16x for FY2025, indicating a favorable investment opportunity in the undervalued, high-growth, and high-dividend yielding sector of down jackets [32][33].

Investment Rating - The report assigns a "Recommend" rating for Ascentage Pharma (6855 HK) for the first time [1] Core Views - Ascentage Pharma focuses on innovative product development and international expansion, with a strong pipeline targeting cell apoptosis pathways and next-generation small molecule TKIs [3] - The company's core product, Olverembatinib (HQP1351), is the only third-generation BCR-ABL TKI approved in China and has shown significant clinical benefits for TKI-resistant CML patients [4] - APG-2575, a BCL-2 inhibitor, has the potential to become the second globally approved BCL-2 inhibitor, with multiple Phase 3 trials underway [8] - The company has achieved profitability for the first time in H1 2024, with revenue of RMB 824 million and net profit of RMB 163 million [3] Financial Performance - Revenue for H1 2024 reached RMB 824 million, a 477% YoY increase, driven by intellectual property income of RMB 678 million [52] - Net profit for H1 2024 was RMB 163 million, marking the company's first profitable period [52] - Cash reserves stood at RMB 1.1 billion as of mid-2024, with the company filing for a US IPO to further bolster its financial position [52] Product Pipeline - Olverembatinib (HQP1351): The only third-generation BCR-ABL TKI approved in China, with two indications approved and three Phase 3 trials ongoing (POLARIS-1/2/3) [58] - APG-2575: A BCL-2 inhibitor with a domestic NDA submitted for R/R CLL/SLL, potentially becoming the second globally approved BCL-2 inhibitor [8] - APG-115 and APG-1252: Targeting MDM2-p53 and BCL-2/BCL-xL pathways, respectively, both in Phase 1b/2 trials [58] - APG-2449: A third-generation ALK inhibitor approved for Phase 3 trials in NSCLC [58] Market and Sales - Olverembatinib has achieved cumulative sales of RMB 490 million since its launch, with a 120% QoQ growth in H1 2024 [4] - The product is covered by China's national medical insurance, with access to 670 hospitals and DTP pharmacies as of mid-2024 [52] - A strategic partnership with Takeda Pharmaceuticals for global rights to Olverembatinib, with a total deal value of up to $1.3 billion [96] Clinical Development - Olverembatinib has demonstrated superior efficacy and safety in clinical trials, particularly for patients resistant to other TKIs, including ponatinib and asciminib [92] - APG-2575 has shown promising results in clinical trials for CLL/SLL, with an ORR of 73.3% and a PFS of 18.53 months in heavily pretreated patients [118] Industry and Competitive Landscape - The global CML TKI market is valued at approximately $6 billion, with second-generation TKIs dominating the market [79] - In China, the BCR-ABL TKI market is around RMB 4 billion, with second-generation TKIs also leading, but Olverembatinib is the only domestic third-generation TKI [84] - APG-2575 is positioned to compete with venetoclax, the first globally approved BCL-2 inhibitor, which achieved global sales of $2 billion in 2022 [108]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on a PE ratio of 8/10/8 for the years 2024-2026 [5][3]. Core Insights - The company reported strong wholesale sales of 250,000 units in November, a year-on-year increase of 25.0% and a month-on-month increase of 10.3%. Cumulatively, sales from January to November reached 1.967 million units, up 28.4% year-on-year [3]. - New energy vehicle (NEV) sales in November were particularly impressive, totaling 122,453 units, representing an 88.3% year-on-year increase and a 12.6% month-on-month increase, with a penetration rate of 49.0% [3]. - The upcoming launch of the Galaxy Starship 7, the first plug-in hybrid product based on the GEA architecture, is expected to enhance the company's market position in the NEV segment [3]. - The company has increased its stake in Zeekr and gained control over Lynk & Co, which is anticipated to improve internal resource integration and operational efficiency [3]. - The financial forecast for 2024-2026 anticipates revenues of 224.78 billion, 277.69 billion, and 308.83 billion yuan, with net profits of 16.04 billion, 12.58 billion, and 16.32 billion yuan respectively [3][4]. Financial Summary - Projected revenues for 2024, 2025, and 2026 are 224.78 billion, 277.69 billion, and 308.83 billion yuan, with growth rates of 25.4%, 23.5%, and 11.2% respectively [4][18]. - Net profit estimates for the same years are 16.04 billion, 12.58 billion, and 16.32 billion yuan, with corresponding growth rates of 202.1%, -21.5%, and 29.7% [4][18]. - Earnings per share (EPS) are projected to be 1.59, 1.25, and 1.62 yuan for 2024, 2025, and 2026 respectively [4][18].

Investment Rating - The report maintains an "Outperform" rating for Meituan-W (03690.HK) [3][6][38]. Core Insights - Meituan achieved a revenue of 936 billion CNY, representing a year-on-year growth of 22%. The revenue breakdown shows that instant delivery services, transaction commissions, and marketing services grew by 21%, 25%, and 18% respectively [1][9]. - Adjusted net profit reached 128 billion CNY, a significant increase of 124% year-on-year, with an adjusted net profit margin of 14%, up by 7 percentage points [1][9]. - The company is focusing on the growth of its core local business and the development of its overseas operations [1][3]. Revenue and Profitability - The core local business generated 694 billion CNY in revenue, growing by 20% year-on-year, with operating profit increasing by 44% to 146 billion CNY, resulting in an operating profit margin of 21% [15][23]. - The new business segment saw a revenue increase of 29% to 242 billion CNY, with operating losses narrowing to 10 billion CNY, reflecting a 4% operating loss margin [27][28]. Business Segments Performance - Instant delivery total order volume grew by 15%, with restaurant delivery orders increasing by 12% and flash purchase orders rising by 36% [18][21]. - The "God Member" program has seen over 50% of merchants participating, contributing to a 26% growth in Gross Transaction Value (GTV) for the in-store travel and accommodation business [2][23]. Financial Forecasts - The report projects adjusted net profits for 2024-2026 to be 430 billion CNY, 523 billion CNY, and 587 billion CNY respectively, with a target price adjustment to 185-203 HKD, reflecting a potential upside of 40-48% [3][28].

Investment Rating - The report maintains a "Buy" rating for Meituan-W (03690) [1][4][7] Core Views - Meituan's Q3 2024 revenue reached 935.8 billion yuan (YoY +22.4%), exceeding consensus expectations by 1.7%, driven by stronger-than-expected core local commerce revenue [1] - Non-IFRS net profit was 128.3 billion yuan (YoY +124.0%), surpassing consensus by 10.1%, with a Non-IFRS profit margin of 13.7% (YoY +6.2pct, QoQ -2.8pct) [1] - The company is expected to achieve revenues of 3369/3898/4469 billion yuan and Non-IFRS profits of 417/539/673 billion yuan in 2024/2025/2026, with corresponding P/E ratios of 22.9/17.7/14.2 [1][7] Core Local Commerce - Core local commerce revenue in Q3 2024 was 693.7 billion yuan (YoY +20.2%), 1.5% above consensus, with delivery orders reaching 70.8 billion (YoY +14.5%) [1] - Delivery revenue was 277.8 billion yuan (YoY +20.9%), 14.2% above consensus, driven by changes in accounting, increased merchant adoption of Meituan delivery, and higher long-distance, nighttime, and large-item orders [1] - Operating profit for core local commerce was 145.8 billion yuan (YoY +44.4%), 13.7% above consensus, with an operating margin of 21.0% (YoY +3.5pct, QoQ -4.1pct) [1] Food Delivery - Food delivery revenue was 467.1 billion yuan (YoY +17.0%), 2.9% below consensus, with total orders reaching 61.5 billion (YoY +12.3%, daily average of 66.86 million) [1] - Average revenue per order was 7.59 yuan (YoY +4.2%), driven by higher-than-expected delivery and advertising revenue, partially offset by lower AOV [1] - Operating profit for food delivery was 88.3 billion yuan (1.44 yuan per order, YoY +29.1%), with an OPM of 18.9% (YoY +1.8pct, QoQ -0.8pct), 0.9pct above consensus [1] Instashopping - Instashopping revenue was 66.9 billion yuan (YoY +39.5%), with total orders reaching 9.3 billion (YoY +32%, daily average of 10.76 million), achieving slight profitability [1] In-store, Hotel & Travel - In-store, hotel & travel revenue was 159.8 billion yuan (YoY +23.0%), 2.1% above consensus, with GTV growth of 23%, 1.5% above consensus [1] - Operating profit for this segment was 52.2 billion yuan (YoY +29.0%), with an OPM of 33.2% (YoY +1.5pct, QoQ -2.0pct), 0.8pct below consensus [1] New Business - New business revenue in Q3 2024 was 242.0 billion yuan (YoY +28.9%), 8.3% below consensus, with an operating loss of 10.3 billion yuan (YoY -79.9%, QoQ -21.9%), 42.4% better than consensus [2] - The operating loss margin was 4.2% (YoY +23.0pct, QoQ +1.9pct), with Meituan优选 (preferred selection) contributing significantly to the reduction in losses [2] - Overseas business investments are expected to increase significantly, with full-year new business losses projected at 72-73 billion yuan, aiming for breakeven by 2026-2027 [2] Financial Summary - Gross profit was 367.5 billion yuan (YoY +36.2%), 3.5% above consensus, with a gross margin of 39.3% (YoY +4.0pct), 0.6pct above consensus [6] - Sales expenses were 179.5 billion yuan (YoY +6.2%), 5.5% above consensus, with a sales expense ratio of 19.2% (YoY -2.9pct, QoQ +1.2pct) [6] - R&D expenses were 52.9 billion yuan (YoY flat), 17.3% below consensus, with an R&D expense ratio of 5.7% (YoY -1.3pct, QoQ -0.8pct) [6] - Administrative expenses were 28.0 billion yuan (YoY +10.2%), in line with expectations, with an administrative expense ratio of 3.0% (YoY and QoQ flat) [6] Investment Recommendations - Meituan's strong competitive position in food delivery and instashopping, coupled with its ability to innovate and optimize efficiency, is expected to drive continued revenue growth and profit extraction [7] - The company's strategic focus on differentiated product selection and overseas expansion is likely to support long-term growth, with profitability expected to improve in the coming years [7]

Investment Rating - The target price for the company is HK$199.20, representing an 18.1% upside from the current price of HK$168.70 [10] - The investment rating is based on a DCF valuation, with the target price revised upward by 26% to HK$199.20, reflecting improved earnings forecasts and an extended valuation horizon to 2025 [25] Core Views - The company's Q3 2024 revenue reached RMB 93.6 billion, a 22% YoY increase, surpassing both the analyst's and Bloomberg consensus expectations [6] - Adjusted net profit for Q3 2024 was RMB 12.8 billion, exceeding expectations by 4% and 10%, driven by better-than-expected performance in the Core Local Commerce (CLC) segment and reduced losses in new initiatives [6] - The company is focusing on operational integration within the CLC segment and expanding its food delivery (FD) business in the Middle East, which may slightly offset short-term earnings growth but supports long-term ecosystem development [6] Financial Performance Core Local Commerce (CLC) - CLC revenue and operating profit for Q3 2024 were RMB 69.4 billion and RMB 14.6 billion, respectively, growing 20% and 44% YoY, both exceeding expectations [7] - CLC operating margin improved by 3.5 percentage points to 21.0%, driven by increased delivery service revenue per order and optimized user subsidies [18] - CLC revenue and operating profit for Q4 2024 are expected to grow 18% and 44% YoY, reaching RMB 65.2 billion and RMB 11.6 billion, respectively [7] New Initiatives - New initiatives revenue in Q3 2024 grew 29% YoY to RMB 24.2 billion, with operating losses narrowing to RMB 1.0 billion, better than expected [8] - Meituan Select's operating losses narrowed to RMB 1.7 billion in Q3 2024, significantly better than the RMB 5.0 billion loss in Q3 2023 [8] - Excluding Meituan Select, other new initiatives achieved an operating profit of RMB 70 million in Q3 2024 [8] International Expansion - The company is investing in FD expansion in the Middle East, with expected operating losses of RMB 5.55 billion in Q4 2024 due to this expansion [9] - The financial impact of international FD expansion is expected to fully materialize in 2025, with higher gross transaction value (GTV) margins compared to domestic FD due to higher average order values (AOV) and delivery fees [9] Forecast and Valuation Adjustments - Revenue forecasts for 2024 and 2025 were revised upward by 0.2% and 0.4%, respectively, reflecting better-than-expected FD revenue growth [23] - Operating profit forecasts for 2024 and 2025 were raised by 14.0% and 6.2%, respectively, due to improved unit economics in the FD segment [23] - Non-IFRS net profit forecasts for 2024-2026 were increased by 5% to 9%, with the target price raised to HK$199.20 based on a DCF valuation [6] Valuation Methods - The DCF valuation assumes a WACC of 11.0% and a terminal growth rate of 2.5%, resulting in a target price of HK$199.20 [25] - A sum-of-the-parts (SOTP) valuation cross-check suggests a per-share valuation of HK$230.0, with FD and ISHT segments valued at 20.0x and 17.0x 2025E PE, respectively [28] Financial Summary - Revenue for 2024E is projected at RMB 336.97 billion, with a YoY growth of 21.8%, while adjusted net profit is expected to reach RMB 45.04 billion, a 93.7% YoY increase [13] - The company's ROE is forecasted to improve to 23.0% in 2024E, up from 9.9% in 2023A [13] - The P/E ratio for 2024E is 25.5x, declining to 18.1x by 2026E, reflecting strong earnings growth [37]

Investment Rating - The report maintains an "Outperform" rating for RoboSense [1][17][18] Core Insights - The company achieved cumulative revenue of Rmb1.135 billion in the first three quarters of 2024, representing a year-on-year increase of 91.5%. Gross profit reached Rmb170 million, up 375.4% year-on-year, with a gross profit margin of 15.0%, an increase of 8.93 percentage points year-on-year [1][17] - The report highlights optimism regarding incremental revenue from the MX product, which is expected to enhance revenue expectations for the next year. The company has made smooth progress in its overseas business, expanding mid-to-long-term growth potential [1][17] - The robotics segment has unveiled new achievements, leveraging fresh opportunities to establish a second growth curve [1][17] Financial Performance Summary - For 3Q24, the company reported revenue of Rmb408 million, a 54.7% increase year-on-year and an 11.4% increase quarter-on-quarter. Gross profit was Rmb71 million, up 210.2% year-on-year and 31.7% quarter-on-quarter, with a gross profit margin of 17.5%, an increase of 8.75 percentage points year-on-year and 2.69 percentage points quarter-on-quarter [1][17] - The net loss attributable to shareholders for 3Q24 was Rmb82 million, improving by 77.4% year-on-year and 40.2% quarter-on-quarter, with a net profit margin of -20.2%, up by 117.7 percentage points year-on-year and 17.37 percentage points quarter-on-quarter [1][17] - The company estimates revenues for 2024-2026 to be Rmb1.727 billion, Rmb3.280 billion, and Rmb4.600 billion, respectively, with EPS projected at Rmb-1.00, Rmb-0.52, and Rmb0.00 [1][17] Market Position and Valuation - Based on comparable company valuations, the report assigns a price-to-sales (PS) ratio of 3x for 2025, leading to a target price of HK$23.46, which is a 12% reduction from the previous target price of HK$26.78 [1][17] - The report notes that the company has successfully established partnerships with seven overseas car manufacturers, which is expected to provide new revenue growth momentum by 2026 [1][17]

Investment Rating - The report maintains a "Buy" rating for the company [1][2] Core Insights - The company reported a revenue of 1.13 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 91.5%, with a net profit attributable to shareholders of -350 million yuan, up 69.0% year-on-year [1] - The ADAS product line continues to show strong growth, with Q3 2024 revenue reaching 330 million yuan, a year-on-year increase of 87.1% and a quarter-on-quarter increase of 8.7% [1] - The company has successfully expanded its MX product line, achieving partnerships with 28 automakers and increasing the number of targeted models to 92 [1] - The robotics segment has seen significant progress, with Q3 2024 revenue of 60 million yuan, a year-on-year decrease of 6.1% but a quarter-on-quarter increase of 44.5% [1] Financial Forecasts - The company’s revenue forecasts for 2024-2026 have been adjusted to 1.76 billion, 2.86 billion, and 4.14 billion yuan respectively, with corresponding net profit forecasts of -530 million, -250 million, and 400 million yuan [2] - The projected P/S ratios for 2024-2026 are 4.5, 2.8, and 1.9 respectively [2] Market Position - The company achieved a market share of 35.0% in the ADAS sector for the first three quarters of 2024, maintaining its position as the industry leader [1] - The ASP for ADAS products decreased by 24.2% year-on-year to 2500 yuan, indicating competitive pricing strategies [1] Key Financial Metrics - The company reported a gross margin of 17.5% in Q3 2024, with expectations for further improvement in Q4 [1] - The projected EPS for 2024-2026 is -1.18, -0.55, and 0.10 yuan respectively [2][13]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved high-quality growth in the first half of the fiscal year 2024/25, with revenue and net profit increasing by 17.8% and 23.0% year-on-year, respectively [1] - The company continues to focus on its main brand and product categories, enhancing its market position and operational efficiency [4] - The company is expected to perform well in the winter sales season, leveraging its leading position in the down jacket market [5] Financial Performance Summary - Revenue for the first half of fiscal year 2024/25 reached 8.8 billion RMB, with a year-on-year growth of 17.8% [1] - Net profit attributable to shareholders was 1.13 billion RMB, reflecting a year-on-year increase of 23.0% [1] - Earnings per share (EPS) for the period was 0.1 RMB, with a proposed interim dividend of 0.06 HKD per share [1] - Gross margin for the first half of the fiscal year was 49.9%, a slight decrease of 0.1 percentage points year-on-year [1] - Operating profit margin improved by 0.2 percentage points to 16.7%, while net profit margin increased by 0.5 percentage points to 12.8% [1] Business Segment Performance - The main business segments include brand down jackets, OEM processing, women's wear, and diversified clothing, with revenue contributions of 68.9%, 26.3%, 3.5%, and 1.3%, respectively [1] - Revenue growth rates for these segments were +22.7%, +13.4%, -21.5%, and +21.3% year-on-year [1] - The brand down jacket segment saw revenue growth driven by the main brand Bosideng, which accounted for 87.1% of the down jacket business [1] Market Strategy and Outlook - The company is enhancing its product innovation and expanding its market presence, particularly in the high-end segment through acquisitions and strategic investments [4] - The focus remains on strengthening brand leadership, category management, channel operations, and customer experience [4] - The company anticipates continued strong sales performance as it enters the winter season, supported by its diversified product offerings [5]

Investment Rating - The investment rating for Meituan-W (03690.HK) is maintained at "Buy" [2][7]. Core Views - Short-term performance growth is expected to fluctuate, but the overall profit trend remains upward. The company has adjusted its non-IFRS net profit forecasts for 2024-2026 to 43.5 billion, 55.7 billion, and 70.7 billion CNY respectively, reflecting year-on-year growth rates of 87.1%, 28.1%, and 27.0% [7]. - The current stock price of 168.7 HKD corresponds to price-to-earnings ratios of 22.5, 17.6, and 13.8 for the years 2024, 2025, and 2026 respectively [7]. - The company is expected to benefit from solid delivery barriers, resilient flash purchase business, and improved profit margins as the competitive landscape stabilizes [7]. Summary by Sections Financial Performance - In Q3 2024, the company reported revenue of 93.58 billion CNY, a year-on-year increase of 22.4%, slightly exceeding Bloomberg's consensus estimate of 92 billion CNY. The non-IFRS net profit was 12.8 billion CNY, up 124% year-on-year, also surpassing the consensus estimate of 11.7 billion CNY [8]. - Core business revenue grew by 20.2% year-on-year, with instant delivery transaction volume increasing by 14.5%. The operating profit margin for the core business improved to 21.0%, up 3.5 percentage points year-on-year [8]. Business Segments - The core business is expected to see profit growth outpacing revenue growth due to improved advertising monetization rates and optimized delivery costs. The community group buying business is also reducing losses better than expected [9]. - New business segments, including Xiaoxiang Supermarket and Kuaidilong, contributed to a 28.9% year-on-year revenue increase, with an operating profit margin of -4.2%, narrowing by 1.9 percentage points quarter-on-quarter [8][9]. Future Outlook - The company anticipates continued improvement in delivery unit economics (UE) and expects short-term fluctuations in in-store profit margins. Increased investment in overseas businesses is also planned [9]. - The macroeconomic recovery is expected to drive profit growth revisions, with a stable competitive environment in the in-store sector likely to enhance profit margins [7][9].