Investment Rating - The report maintains a "Recommend" rating for Tehai International (9658 HK) [4] Core Views - Tehai International achieved strong Q3 2024 results with revenue of $199 million, up 14 6% YoY, and operating profit of $15 million, up 52 0% YoY [3] - The company's profitability improved significantly, with operating margin reaching 7 5%, up 1 8 percentage points YoY, and net profit attributable to shareholders turning positive at $37 72 million [3] - Tehai International's localization strategy and Red Pomegranate Plan are driving market penetration and synergies with its parent brand Haidilao [3] Business Performance - Restaurant revenue grew 14 5% YoY to $191 million, driven by both higher traffic and average spending per customer [3] - Overall table turnover rate increased to 3 8 times per day, with the highest rate in East Asia at 4 3 times per day [3] - Average customer spending rose 8 9% YoY to $25 8, with the highest in North America at $43 5 [3] - Total customer traffic reached 7 4 million, up 4 2% YoY, supporting growth in delivery and other businesses [3] Store Network and Operations - The company had 121 restaurants as of Q3 2024, with no new openings in the quarter but a net increase of 6 stores year-to-date [3] - Same-store sales grew 5 6%, with East Asia showing the strongest growth at 20 5% [3] - Same-store table turnover rate remained stable at 3 7 times per day [3] Cost Management and Profitability - Gross margin improved to 67%, up 1 4 percentage points YoY, driven by supply chain optimization and process improvements [3] - Employee cost ratio was 33 1%, up 0 2 percentage points, while rental and related expenses decreased to 2 7%, down 0 4 percentage points [3] - Other expenses ratio decreased to 9 4%, down 1 2 percentage points [3] Financial Forecasts - Revenue is expected to grow from $794 million in 2024 to $1 008 billion in 2026, with a CAGR of 12 6% [3][28] - Net profit attributable to shareholders is projected to increase from $38 million in 2024 to $68 million in 2026 [3][28] - The company's P/E ratio is forecasted to decline from 28x in 2024 to 16x in 2026, reflecting expected earnings growth [3][28] Valuation and Metrics - The stock is trading at 12 72 HKD as of November 26, 2024 [4] - Key valuation metrics include a P/B ratio of 2 9x for 2024 and 2 2x for 2026, and an EV/EBITDA of 6 56x for 2024 and 5 03x for 2026 [28]

Investment Rating - Buy (Maintained) [1] Core Views - Huazhu Group's Q3 revenue was at the lower end of guidance, with operating profit down 10% YoY [2] - Domestic business net profit declined 1% YoY, while DH business narrowed its operating loss [2] - Domestic business accelerated store openings, with 774 new stores in Q3, reaching a total of 10,707 stores by Q3 2024 [3] - RevPAR declined 8% YoY due to a high base, but Q4 revenue growth guidance is 2-5%, indicating a narrowing decline [3] - Huazhu Group is a leader in the hotel industry, with competitive advantages in brand, traffic, and technology, and has expanded against the trend during the pandemic [4] Financial Performance - Q3 revenue was RMB 6.442 billion, up 2.4% YoY, at the lower end of the 2-5% guidance range [2] - Q3 net profit attributable to shareholders was RMB 1.273 billion, down 5% YoY, with adjusted net profit of RMB 1.372 billion, down 11% YoY [2] - Domestic business revenue was RMB 5.162 billion, up 1% YoY, contributing RMB 1.356 billion in net profit, down 1% YoY [2] - DH business revenue was RMB 1.28 billion, up 9% YoY, with a net loss of RMB 83 million, narrowing from the previous year [2] Store Expansion - Total stores reached 10,707 by Q3 2024, up 18.6% YoY, with 95% being franchised stores [3] - Q3 saw 774 new store openings, with a net increase of 556 stores, and a target of 2,200 new stores for the full year [3] - Domestic room count reached 1.03 million, up 20% YoY, with franchised rooms at 950,000, up 23% YoY [3] RevPAR and Occupancy - Overall RevPAR in Q3 was RMB 256, down 8.4% YoY, with occupancy at 84.9%, down 1.0 pct YoY [3] - Huazhu's RevPAR was RMB 244, down 2.4% YoY, with occupancy at 82.6%, up 0.8 pct YoY [3] - Q4 revenue growth guidance is 1-5%, implying a low single-digit decline in RevPAR, narrowing from Q3 [3] Financial Forecasts - Adjusted net profit forecasts for 2024-2026 are RMB 3.684 billion, RMB 4.065 billion, and RMB 4.481 billion, respectively [4] - PE ratios for 2024-2026 are 22x, 20x, and 18x, respectively [4] Market Data - Closing price: HKD 26.90 [7] - 52-week low/high: HKD 20.80/34.40 [7] - Price-to-book ratio: 6.86x [7] - Market capitalization: HKD 86.36 billion [7] Financial Ratios - ROE for 2023A: 33.66%, expected to decline to 18.39% by 2026E [12] - Gross margin for 2023A: 34.46%, expected to rise to 36.50% by 2026E [12] - Net profit margin for 2023A: 18.67%, expected to be 15.58% by 2026E [12]

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage in the market [4][6][10]. Core Insights - The company is a leading technology service platform in the Asia-Pacific region, focusing on IT distribution for over 30 years, and has shown stable growth across economic cycles with a revenue CAGR of approximately 6.3% from 2016 to 2023 [1][37]. - The company has a strong commitment to shareholder returns, maintaining a ROE above 10% for 22 consecutive years, with a 2023 ROE of 11.7% and a cash dividend payout ratio that increased to 40% in 2023 [1][49]. - The company is capitalizing on the growth potential in Southeast Asia, with revenue from this region increasing from 21.4% in 2019 to 34.1% in the first half of 2024, significantly contributing to overall performance [4][69]. Summary by Sections 1. Company Overview - The company was established in 1991 and listed in Hong Kong in 2002, providing a comprehensive range of IT services to enhance operational efficiency and reduce transaction costs for partners [1][26]. - It has a robust sales network across nine Asia-Pacific countries, with over 50,000 channel partners [1][27]. 2. Southeast Asia Market Expansion - Southeast Asia's economic growth presents significant potential, with GDP growth rates projected between 4.29% and 8.76% for various countries from 2024 to 2029 [4][54]. - The company is actively expanding its Southeast Asian operations, which have become a major growth driver, with net profit contribution from this region rising to 45.9% in the first half of 2024 [4][69]. 3. Traditional Distribution Business - The IT distribution sector is benefiting from the AI wave and digital transformation, with a projected revenue growth of 11.5% to 11.6% from 2024 to 2026 [6][10]. - The company has established a strong competitive edge through channel development, financial strength, and operational efficiency [10][39]. 4. Cloud Computing Business - The cloud computing segment is expected to grow significantly, with revenue growth rates projected at 30% for 2024, driven by partnerships with leading cloud providers [11][39]. 5. Financial Projections - The company is expected to achieve revenues of 824 billion HKD in 2024, with a net profit of 9.68 billion HKD, reflecting a year-on-year growth of 11.5% and 4.9% respectively [6][10]. - The company’s valuation is attractive, with a projected PE ratio of 6X for 2025, significantly lower than the industry average of 11X [6][10].

Investment Rating - The investment rating for the company is "Buy" (maintained) [3] Core Insights - The company's Q3 2024 revenue reached 31.1 billion CNY, representing a year-over-year increase of 11.4%, which aligns with expectations [2] - Adjusted net profit for Q3 2024 was 3.95 billion CNY, up 24.4% year-over-year, slightly exceeding consensus estimates [2] - Daily Active Users (DAU) reached a record high of 408 million, growing 5.4% year-over-year, while Monthly Active Users (MAU) increased by 4.3% to 714 million [2] - E-commerce Gross Merchandise Volume (GMV) for Q3 2024 was 334.2 billion CNY, up 15.1% year-over-year, driven by strategic initiatives and a significant increase in new merchant registrations [2] - Online marketing revenue grew by 20.0% year-over-year to 17.63 billion CNY, primarily fueled by external marketing clients and the expansion of the In-Apps Ads short video model [2] - The company expects total revenue for 2024-2026 to be 127.29 billion CNY, 141.41 billion CNY, and 155.69 billion CNY respectively, with adjusted net profits projected at 17.64 billion CNY, 22.67 billion CNY, and 27.83 billion CNY [2] Financial Summary - Total revenue for 2023 is projected at 113.47 billion CNY, with a growth rate of 20% [6] - The company anticipates a significant increase in adjusted net profit from 10.27 billion CNY in 2023 to 17.64 billion CNY in 2024, reflecting a growth rate of 72% [6] - Earnings per share (EPS) is expected to rise from 2.36 CNY in 2024 to 6.45 CNY by 2026 [6] - The price-to-earnings (P/E) ratio is projected to decrease from 20.86 in 2024 to 6.40 by 2026, indicating improved valuation metrics over time [6]

Investment Rating - The report maintains a "Buy" rating for Kuaishou Technology (快手) [4][8] Core Views - Kuaishou's Q3 2024 revenue reached 31.131 billion RMB, a year-on-year increase of 11.4%, driven by a 20% growth in core business revenue [4][5] - The company is experiencing steady user growth, with Daily Active Users (DAU) and Monthly Active Users (MAU) reaching 408 million and 714 million respectively, reflecting year-on-year growth of 5.4% and 4.3% [5] - Kuaishou's e-commerce Gross Merchandise Volume (GMV) for Q3 2024 was 334.2 billion RMB, up 15% year-on-year, with a significant increase in active merchants [6][7] Summary by Sections Market Data - Closing price as of November 25, 2024, was HKD 46.35, with a market capitalization of HKD 1,999.35 billion [2] Financial Performance - Q3 2024 adjusted net profit was 3.948 billion RMB, a 24.4% increase year-on-year, with a profit margin of 12.7% [4] - Revenue projections for 2024-2026 have been adjusted upwards to 127.3 billion, 145.3 billion, and 160.9 billion RMB respectively [8][9] User Engagement - User engagement metrics show an average daily usage time of 132.2 minutes, with total usage time increasing by 7.3% year-on-year [5] Commercialization Progress - Online marketing revenue for Q3 2024 was 17.6 billion RMB, a 20% increase year-on-year, with significant growth in various sectors [6] - The company has launched AI applications that have rapidly gained traction, with over 5 million users and significant content generation [7] Future Outlook - The report anticipates continued user growth and commercialization in Q4 2024, with expectations of narrowing overseas losses [7][8]

Investment Rating - The report does not explicitly state an investment rating for the company [2]. Core Insights - In October 2024, the company's total electricity sales volume reached 9,750,483 MWh, representing a year-on-year increase of 20.59%. For the first ten months of 2024, the total sales volume was 108,220,668 MWh, up 30.56% compared to the same period last year [2][3]. - The performance of different power generation types in October 2024 showed significant growth in wind and coal power, with wind power increasing by 39.89% and coal power by 30.42%. In contrast, hydropower experienced a seasonal decline of 25.15% [3]. - The overall electricity sales data indicates strong performance, with wind, coal, and natural gas generation all achieving high growth rates. The growth in wind power is attributed to improved wind resources and the acquisition of assets from the parent company, as well as the increase in self-built wind and solar capacity [3]. Summary by Category Electricity Sales Volume - Total electricity sales volume for October 2024 was 9,750,483 MWh, a 20.59% increase year-on-year. The first ten months of 2024 saw a total of 108,220,668 MWh, up 30.56% from the previous year [2]. - Breakdown by generation type for October 2024: - Hydropower: 825,616 MWh, down 25.15% year-on-year - Wind power: 2,292,301 MWh, up 39.89% year-on-year - Photovoltaic: 1,824,368 MWh, up 12.83% year-on-year - Coal power: 4,467,964 MWh, up 30.42% year-on-year - Natural gas: 203,777 MWh, up 28.10% year-on-year [2]. Future Outlook - The company is expected to maintain stable growth in performance and dividends in the medium to long term. The restructuring of hydropower assets is anticipated to enhance overall valuation, making it a key area of focus [3].

Investment Rating - The report maintains a "Buy" rating for Alibaba Pictures (1060.HK) with a target price of HKD 0.54, compared to the current price of HKD 0.41 [2]. Core Insights - Alibaba Pictures reported FY25H1 revenue of RMB 3.05 billion, a year-on-year increase of 17%, with a gross profit of RMB 1.32 billion, reflecting an 18% growth. The adjusted EBITDA was RMB 640 million, up 39% year-on-year, while the net profit attributable to shareholders decreased by 27% to RMB 337 million due to investment impairments [2][5]. - The growth in revenue is primarily driven by the performance of the live entertainment market and the consolidation of the Damai platform. The company aims to increase the share of live entertainment revenue to 20%-30% of total revenue [2][5]. Summary by Sections Revenue Performance - The revenue breakdown shows that content business revenue was RMB 1.22 billion, down 17.3% year-on-year, attributed to a sluggish film market. The company has around 70 films in its pipeline, with 35 awaiting release, including key titles like "Feng Shen Part II" and "The Murder Case 3" [2]. - Ticketing and technology platform revenue reached RMB 1.23 billion, a significant increase of 138.6% year-on-year, driven by the rapid growth of Damai's ticketing business [2]. - The IP derivatives business generated RMB 600 million, a decline of 3.4% year-on-year, mainly due to last year's inclusion of Damai's agency revenue [2]. AI Investments and Innovations - The company is enhancing its AI capabilities across various business forms, including virtual filming and digital avatars. Two virtual filming studios are operational, and three more are under construction, aimed at reducing production costs and improving user experience [2]. - The introduction of digital personas has led to successful commercial collaborations, and AI is expected to participate in 70% of material production in the future [2]. Profit Forecast and Valuation - The profit forecast for FY25-FY27 has been revised down to RMB 531 million, RMB 849 million, and RMB 1.026 billion, respectively, reflecting a decrease of 35%, 10%, and 1% from previous estimates [2]. - The valuation has been adjusted to an 18x PE ratio based on FY26 earnings, maintaining the target price of HKD 0.54 [2].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 16 HKD, indicating a potential upside of 34% from the current price of 11.96 HKD [2][7]. Core Insights - The company's Q4 earnings are expected to remain under pressure due to a continuous decline in photovoltaic glass prices. For the first three quarters, the company reported a revenue of 14.604 billion RMB, a year-on-year decrease of 8.06%, and a net profit attributable to shareholders of 1.296 billion RMB, down 34.18% year-on-year [4][11]. - The industry is entering a demand off-season, with supply-side production cuts accelerating. As of November 22, the mainstream price for 2.0mm coated photovoltaic glass is 12 RMB per square meter, and for 3.2mm coated glass, it is 19.5 RMB per square meter, remaining stable compared to the previous week. The industry is currently facing increased inventory levels, with stock days rising above 40 days [5][12]. - The company plans to adjust its new capacity based on market conditions. As of Q3 2024, the total production capacity is 23,000 tons per day, with a reduction of approximately 20% due to cold repairs and blocked furnaces. The company is considering the production schedule for its planned lines in Anhui and Nantong based on market demand [6][13]. Summary by Sections Financial Performance - For the first three quarters, the company achieved a revenue of 14.604 billion RMB, a decrease of 8.06% year-on-year. The net profit attributable to shareholders was 1.296 billion RMB, down 34.18% year-on-year, with a basic earnings per share of 0.55 RMB. The Q3 net profit attributable to shareholders was -203 million RMB, impacted by the decline in photovoltaic glass prices and impairment losses [4][11]. Industry Outlook - The photovoltaic glass industry is currently in a demand downturn, with increased inventory levels and a forecasted recovery in demand expected in 2025. The report anticipates that after the first quarter's off-season, demand will rebound in the second quarter, leading to a destocking phase and a rational return of glass prices [5][12]. Capacity Planning - The company has a total production capacity of 23,000 tons per day as of Q3 2024, with plans to adjust the production schedule for new capacity based on market conditions. The company is also set to launch overseas production lines in Vietnam and Indonesia, expected to commence in 2026 or later [6][13].

Investment Rating - The report does not explicitly state an investment rating for the company [2]. Core Insights - In October 2024, the company's total electricity sales volume reached 9,750,483 MWh, representing a year-on-year increase of 20.59%. For the first ten months of 2024, the total sales volume was 108,220,668 MWh, up 30.56% compared to the same period last year [2][3]. - The performance of different power generation types in October 2024 showed significant growth in wind and coal power, with wind power increasing by 39.89% and coal power by 30.42%. However, hydropower experienced a seasonal decline of 25.15% [2][3]. - The overall electricity sales data indicates strong performance, with wind, coal, and natural gas generation all achieving high growth rates. The growth in wind power is attributed to improved wind resources and the acquisition of assets from the parent company, as well as the increase in self-built wind and solar capacity [3]. Summary by Category Electricity Sales Volume - Total electricity sales volume for October 2024 was 9,750,483 MWh, a 20.59% increase from October 2023. The first ten months of 2024 saw a total of 108,220,668 MWh, up 30.56% year-on-year [2]. - Breakdown of sales volume by generation type for October 2024: - Hydropower: 825,616 MWh, down 25.15% year-on-year - Wind power: 2,292,301 MWh, up 39.89% - Photovoltaic: 1,824,368 MWh, up 12.83% - Coal power: 4,467,964 MWh, up 30.42% - Natural gas: 203,777 MWh, up 28.10% [2]. Performance Comparison - The company demonstrated superior performance compared to peers in terms of electricity sales growth, highlighting the stability provided by its diversified power generation portfolio [3]. - The impact of anticipated declines in long-term electricity prices in Guangdong is minimal, as the company's capacity in that region accounts for only 10% of its total installed capacity [3]. Future Outlook - The report maintains a positive long-term outlook for the company's performance and dividend stability, with expectations for overall valuation improvement following the restructuring of hydropower assets [3].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's core business, including education services and managed operations, grew by 43% and 53% respectively, with significant growth in study tours [2] - FY2024 group revenue, annual profit, and adjusted net profit attributable to the parent company were 3.321 billion, 556 million, and 577 million yuan, representing year-on-year growth of 44.2%, 66.3%, and 56.4% respectively [1] - The company's ROE reached a historical high of 24%, driven by reduced capital expenditures and a shift towards leasing for expansion [2] Business Performance - Comprehensive education services, restaurant operations, product sales, and management and franchise fee revenues were 1.745 billion, 919 million, 597 million, and 60 million yuan, with year-on-year growth of 42.7%, 65.5%, 23.2%, and 52.9% respectively [2] - In 2024, 90% of the company's high school students exceeded the Chinese university undergraduate admission score, a 6.5 percentage point increase year-on-year, and 55% exceeded the first-tier university admission score, a 4.7 percentage point increase [2] - The company added 3 new managed schools in FY2024, contributing to the growth in management and franchise fee income [2] Financial Metrics - FY2024 gross margin was 33.8%, a slight decrease of 0.1 percentage points year-on-year, while net margin and adjusted net margin were 16.7% and 17.4%, up 2.2 and 1.4 percentage points respectively [2] - Administrative expenses as a percentage of revenue decreased by 2.7 percentage points to 7.8%, primarily due to reduced employee costs and office administrative expenses [2] - Contract liabilities increased by 2.4% to 1.346 billion yuan, while capital expenditures decreased to 407 million yuan from 600 million yuan in the previous year [2] Future Outlook - The company's high school business is expected to maintain a 30% annual revenue growth, with the number of high school students projected to double by 2027 [3] - The managed school business is expected to grow from 10 schools to 100 segments by 2027, with potential for further integration of high-margin literacy programs [3] - Revenue and net profit forecasts for FY2025-2027 have been adjusted, with FY2027 revenue and net profit projected at 7.843 billion and 1.329 billion yuan respectively [3] Valuation and Share Repurchase - The company's latest closing price on November 25, 2024, was HK$4.24, with FY2025-2027 P/E ratios of 11x, 8x, and 6x respectively [3] - The company plans to repurchase HK$200 million worth of shares, with HK$140 million already repurchased [3]