Investment Rating - The report maintains an "Outperform" rating for the company [2][13][31] Core Insights - The company has shown steady revenue growth and improved profit margins, achieving a revenue of CNY 14.27 billion (+10.2%) and a net profit of CNY 0.77 billion (+72.8%) for the first half of FY25 [7][23] - The consolidation of the advertising business in the health category has enhanced operational efficiency and pricing capabilities, contributing to the simultaneous improvement of gross and net profit margins [23][27] - The self-operated pharmaceutical business and the pharmaceutical e-commerce platform business have reported revenues of CNY 12.12 billion (+5.9%) and CNY 1.71 billion (+67.5%) respectively, while the medical health and digital services segment saw a decline in revenue [24][25][26] Financial Performance - Revenue projections for FY25 and FY26 are CNY 29.78 billion and CNY 32.80 billion, with expected year-on-year growth rates of 10.2% and 10.1% [10][30] - The net profit forecasts for FY25 and FY26 remain at CNY 1.56 billion and CNY 1.98 billion, reflecting improved operational efficiency and steady growth in the advertising business [10][30] - The company's gross profit margin is projected to increase to 23.9% in FY25 and 24.5% in FY26, indicating a positive trend in profitability [6][10] Valuation - Using the DCF valuation method, the company's equity value is estimated at HKD 87.15 billion, corresponding to a target share price of HKD 5.42, reflecting a 14.5% downward adjustment from previous estimates [13][31]

Investment Rating - The report initiates coverage on Yancoal Australia (3668 HK) with a "Buy" rating and a target price of HKD 40.00, implying a 21.6% upside potential [1][4][47] Core Views - Yancoal Australia is a Chinese state-owned coal mining company with operations in Australia, producing both thermal coal for power generation and metallurgical coal for the steel industry [1] - The company is well-positioned to benefit from the rebound in demand, particularly from China, as trade cooperation between China and Australia strengthens [1][16] - Thermal coal prices are expected to remain supported due to ongoing geopolitical risks, increasing thermal power generation in China, and stable demand from other Asian regions [1][22] - Metallurgical coal prices are expected to follow the recovery in the steel market, supported by recent government measures to stabilize the real estate sector in China [2][27] - The company is expected to see a rebound in earnings by FY26, driven by higher thermal and metallurgical coal prices and increased thermal coal sales [3][37] Financial Performance and Forecasts - FY24 revenue is expected to decline by 12.6% to AUD 6.8 billion due to lower coal prices, with net profit attributable to shareholders expected to drop by 28.6% to AUD 1.3 billion [3][37] - FY25 net profit is forecasted to decline by 6.1% to AUD 1.2 billion, but a rebound of 5.4% is expected in FY26 to AUD 1.3 billion, driven by higher coal prices and increased sales [3][37] - Thermal coal sales are expected to grow at a CAGR of 6.8% from FY23 to FY26, reaching 34.6 million tons, while metallurgical coal sales are expected to recover slightly in FY25 and FY26 [31][34] - The company's unit cash operating cost (excluding royalties) is expected to increase from AUD 92/ton in FY24 to AUD 98/ton in FY26 [38] Sensitivity Analysis - A 1.0% change in thermal coal prices in FY24 would result in a 2.44% change in net profit, while a 1.0% change in metallurgical coal prices would result in a 0.62% change [3][40] - In FY25, a 1.0% change in thermal coal prices would impact net profit by 2.73%, and a 1.0% change in metallurgical coal prices would impact net profit by 0.65% [41] - For FY26, a 1.0% change in thermal coal prices would impact net profit by 2.66%, and a 1.0% change in metallurgical coal prices would impact net profit by 0.62% [41] Dividend Policy - The company has maintained a high dividend payout ratio, with FY22-23 payout ratios of 45.2% and 50.5%, respectively [42] - The dividend payout ratio is expected to remain at 49.8% for FY24-26 [42][43] Valuation and Peer Comparison - The company's FY25 P/E ratio of 7.0x is below the peer average of 7.1x, suggesting potential for higher valuation given the expected earnings rebound and increased export opportunities to China [47] - The target price of HKD 40.00 implies an 8.5x FY25 P/E ratio and a 21.6% upside potential [1][47] Operational Highlights - Yancoal Australia operates 7 mines in Australia, with a total annual production capacity of 70 million tons of raw coal and 55 million tons of saleable coal [17] - Thermal coal accounts for 77.0% of the company's coal sales revenue in 1H24, while metallurgical coal contributes 21.4% [17] - China is the largest revenue contributor, accounting for 33.2% of coal sales revenue in 1H24, followed by Japan (23.4%), Taiwan (16.7%), and South Korea (15.1%) [17][20]

Investment Rating - The report maintains a "Buy" rating for Baidu with a target price of HKD 124.15 [5][11] Core Views - Baidu's total revenue for Q3 2024 was RMB 33.56 billion (YoY -2.6%), in line with Bloomberg expectations, while adjusted net profit was RMB 5.89 billion (YoY -19%) [3] - Core advertising revenue remains under pressure, with ad revenue at RMB 18.8 billion (YoY -4.6%), while non-marketing revenue grew 12.4% YoY to RMB 7.7 billion, driven by intelligent cloud business [3] - Baidu's gross margin for Q3 2024 was 51.1% (YoY -1.6pct), with core gross margin at 58.8% (YoY -1.3pct) [3] - AI capabilities are a long-term strategic focus, with Ernie Bot daily calls reaching 1.5 billion and user base at 430 million [3] - Intelligent driving commercialization is progressing, with RoboTaxi completing 988,000 rides in Q3 2024 (YoY +20%) and cumulative rides exceeding 8 million as of October 28, 2024 [3] Financial Performance - Baidu's core revenue for Q3 2024 was RMB 26.5 billion (YoY -0.2%), slightly better than Bloomberg's expectation of -0.8% YoY [3] - Adjusted operating profit margin for Baidu core was 25.1% in Q3 2024 (YoY +0pct, QoQ -1.1pct) [3] - For 2024E, Baidu's revenue is expected to be RMB 131.9 billion (YoY -2.0%), with adjusted net profit of RMB 26.5 billion [11] - The company's 2024E adjusted PE is maintained at 12x, implying a market cap of RMB 317.7 billion [11] AI and Cloud Business - Ernie Bot ecosystem has attracted 150,000 enterprises and 800,000 developers, with PaddlePaddle ecosystem serving 430,000 enterprises and creating 1.01 million models [3] - Over 60% of central state-owned enterprises and large private enterprises have chosen Baidu Intelligent Cloud for AI innovation [3] - Cloud business revenue in Q3 2024 was RMB 4.922 billion (YoY +11.0%), contributing significantly to non-marketing revenue growth [10] Intelligent Driving - RoboTaxi service completed 988,000 rides in Q3 2024 (YoY +20%), with cumulative rides exceeding 8 million as of October 28, 2024 [3] - The sixth-generation autonomous vehicle RT6 has been deployed in multiple cities [3]

Investment Rating - The report maintains a "BUY" rating for BYDE, with a target price of HK$44.41, implying a 29.3% upside from the current price of HK$34.35 [5][10][11]. Core Insights - Key growth drivers identified for BYDE include Apple products, New Energy Vehicles (NEV), and AI server components, which are expected to contribute positively to revenue in 2025 [3][10]. - The management has a positive outlook for all segments in Q4 2024 and 2025, highlighting growth in iPad market share, high-end Android demand, and the ramp-up of AI server products [3][10]. - The automotive segment is projected to generate revenue of RMB30 billion in FY25E, driven by high-end Advanced Driver Assistance Systems (ADAS) and suspension products [3][10]. - AI server sales are expected to reach RMB1 billion in FY24E and RMB3-5 billion in FY25E, with a gross profit margin similar to industry peers at around 10% [3][10]. Revenue and Profit Forecasts - Revenue is forecasted to grow from RMB129,957 million in FY24E to RMB196,265 million in FY25E, representing a year-on-year growth of 32.3% [4][8]. - Net profit is expected to increase from RMB4,428 million in FY24E to RMB6,070 million in FY25E, with a growth rate of 37.1% [4][8]. - The report indicates a consistent increase in earnings per share (EPS), projected to rise from RMB2.67 in FY24E to RMB3.36 in FY25E [4][8]. Valuation Metrics - The stock is currently trading at a P/E ratio of 11.9x for FY25E, which is considered attractive compared to the target P/E of 15.0x [3][10][11]. - The report employs a Sum-of-the-Parts (SOTP) valuation approach, assigning a P/E of 15x to various business segments, reflecting their growth potential and earnings visibility [10][11][12]. Segment Performance - The assembly segment is expected to contribute 16% to FY25E profit, while the automotive intelligent segment is projected to account for 29% [12]. - The component business, including Jabil components, is also expected to contribute significantly, with each segment assigned a target P/E of 15x [11][12].

Investment Rating - The report maintains a "Buy" rating for NIO-SW (09866 HK) with a target price of HK$47 9 and a target market cap of $12 8 billion [3][5] Core Views - NIO's Q3 2024 performance showed strong delivery numbers with 61 855 vehicles delivered including 61 023 NIO brand and 832 Onvo brand vehicles Revenue declined 2 1% YoY but increased 7% QoQ to RMB18 67 billion with gross margin improving to 10 7% [3] - The company expects Q4 2024 revenue to be between RMB19 68-20 38 billion representing 15%-19 2% YoY growth driven by the Onvo brand despite potential softness in NIO brand sales [3] - NIO is rapidly expanding its product matrix with the NT3 0 platform's first model ET9 set for launch in December 2024 and delivery in March 2025 priced at RMB800 000 The Onvo brand is expected to drive growth with new SUV models launching in 2025 [3] - The company aims to double its 2025 sales compared to 2024 supported by its expanding product portfolio and charging infrastructure with 2 737 battery swap stations and 24 282 charging piles globally as of November 20 2024 [3] Financial Performance - Q3 2024 gross margin improved by 2 8pct YoY and 1 1pct QoQ to 10 7% with automotive gross margin reaching 13 1% due to lower BOM costs Non-GAAP net loss narrowed to RMB4 4 billion with a loss margin of 23 6% [3] - For 2024-2026 the report forecasts sales of 220 000 400 000 and 490 000 vehicles respectively with total revenues of RMB66 1 billion RMB102 8 billion and RMB122 1 billion Non-GAAP net loss margins are expected to improve from -27% in 2024 to -11% in 2026 [3] - The company's financials show a strong cash position with RMB32 94 billion in cash and equivalents as of Q3 2024 and total assets of RMB117 38 billion [9] Product and Market Strategy - NIO's product strategy includes the launch of the ET9 under the NIO brand new SUV models under the Onvo brand and the debut of the Firefly brand targeting the compact car market in 2025 [3] - The company plans to expand its charging network significantly in 2025 to support its sales growth aiming for county-level coverage of battery swap stations [3] - NIO maintains a leading position in China's premium EV market with over 40% market share in the RMB300 000+ pure EV segment [3] Valuation and Forecast - The report values NIO at 0 9X 2025e P/S with a target market cap of $12 8 billion and a target price of HK$47 9 for the HK-listed shares and $6 2 for the US-listed shares [3] - Sales are expected to grow from 222 886 units in 2024 to 492 297 units in 2026 with the Onvo and Firefly brands contributing significantly to the growth [15]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance [4][63]. Core Views - The company focuses on a "single brand, multiple categories, and multiple channels" strategy, leveraging the "Guochao" trend for rapid development. It emphasizes innovation in product design and technology, maintaining a strong brand image in the sportswear sector [2][4][10]. - The company has seen significant growth in its e-commerce channels, with online revenue accounting for 27.9% of total revenue in the first half of 2024, up 5.4 percentage points from 2019. The direct sales channel has also recovered, reaching 24.4% of total revenue [5][56]. - The company is expected to continue its growth trajectory, with projected net profits of 31.26 billion RMB, 34.45 billion RMB, and 38.76 billion RMB for 2024, 2025, and 2026, respectively [6][60]. Summary by Sections 1. Company Operations - The company maintains a single brand strategy, focusing on five core categories: running, basketball, badminton, fitness, and sports lifestyle. It optimizes its offline channel layout and develops various store types to meet customer needs [2][27]. - The company has enhanced its brand image by integrating sports resources and sponsoring major events, which has increased brand exposure and product professionalism [35][37]. 2. E-commerce and Financial Management - E-commerce has become a new growth driver, with significant revenue increases from online channels. The company has also improved its management efficiency, leading to a better net profit margin [48][50]. - The company’s revenue and gross profit have shown a compound annual growth rate (CAGR) of 18.77% and 18.35%, respectively, from FY2019 to FY2023 [48][49]. 3. Profit Forecast and Valuation - The company is projected to achieve revenues of 281.61 billion RMB, 298.70 billion RMB, and 319.07 billion RMB for 2024, 2025, and 2026, with corresponding net profits of 31.26 billion RMB, 34.45 billion RMB, and 38.76 billion RMB [60][62]. - The report compares the company with peers in the sportswear industry, noting that its price-to-earnings (P/E) ratio for 2024 is 12.0X, which is lower than the industry average of 14.1X, supporting the "Buy" rating [6][63].

Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company's Q3 2024 results met expectations, with a steady improvement in gross margin [4]. - Total sales for the first three quarters reached 99,000 units, a year-on-year increase of 21.0%, while total revenue was CNY 24.76 billion, up 40.5% year-on-year [4]. - The gross margin improved to 14.2%, an increase of 16.3 percentage points year-on-year, and the net profit attributable to shareholders was a loss of CNY 4.46 billion, reducing losses by CNY 4.57 billion year-on-year [4]. Summary by Sections Sales and Revenue - In Q3 2024, total sales were 47,000 units, with a quarter-on-quarter increase of 16.3% and a year-on-year increase of 54.0% [4]. - Total revenue for Q3 was CNY 10.1 billion, reflecting an 18.4% increase year-on-year and a 24.5% increase quarter-on-quarter [4]. Gross Margin and Profitability - The gross margin for Q3 was 15.3%, showing a quarter-on-quarter increase of 1.3 percentage points [4]. - The company continues to improve profitability through cost reduction initiatives, with the gross margin for automotive sales rising from 6.4% in Q2 to 8.6% in Q3 [5]. New Product Launches - The launch of the new model MONA M03 significantly boosted sales, achieving over 30,000 pre-orders within 48 hours of its release [5]. - The company also introduced the P7+ model, which saw over 10,000 pre-orders within 12 minutes of its launch [5]. International Expansion - The company has accelerated its international expansion, with significant sales growth in overseas markets, contributing to 15% of total sales in Q3 [5]. Financial Forecasts - Revenue forecasts for 2024-2026 have been revised upwards, with expected revenues of CNY 40.83 billion, CNY 78.92 billion, and CNY 101.35 billion respectively [6]. - The net profit forecast for 2024-2026 has also been adjusted, with expected losses narrowing to CNY 5.91 billion in 2024 and a projected profit of CNY 1.48 billion by 2026 [6].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 61.62 per share, based on a 14x PE valuation for 2024 [1][6][10]. Core Insights - The company's performance in Q3 2024 met expectations, with a focus on the release of synergistic effects in e-commerce across multiple domains [1][9]. - Daily Active Users (DAU) reached 408 million, showing a year-on-year increase of 5.4%, while Monthly Active Users (MAU) grew by 4.3% to 714 million [1][9]. - Advertising revenue increased by 20.0% year-on-year to CNY 176 billion, accounting for 56.6% of total revenue [1][9]. - E-commerce Gross Merchandise Volume (GMV) rose by 15.1% year-on-year to CNY 334.2 billion, with a monthly paid user count of 133 million [1][9]. Summary by Sections User Growth - DAU reached 408 million, MAU at 714 million, and average daily usage time increased by 1.8% to 132 minutes [1][9]. - The company expects DAU to maintain slight growth in Q4 2024, around 400 million [1][9]. Advertising Performance - Q3 2024 advertising revenue was CNY 176 billion, with a year-on-year growth of 20.0% [1][9]. - The internal advertising cycle showed stable growth, while external advertising growth was significant, particularly in media and local life sectors [1][9]. E-commerce Insights - E-commerce GMV grew by 15.1% year-on-year to CNY 334.2 billion, with a monthly paid user count of 133 million [1][9]. - The company anticipates a 14% year-on-year growth in GMV for Q4 2024, driven by e-commerce commissions [1][9]. Financial Performance - Adjusted net profit for Q3 2024 reached CNY 39.5 billion, with a gross margin of 54.3% [1][9]. - The report projects adjusted net profits of CNY 175.51 billion for 2024, with a slight upward revision due to better-than-expected cost control [6][10].

Investment Rating - The report maintains an **Outperform** rating for JD Logistics (2618 HK) with a target price of **HKD 23.19**, revised from HKD 19.91, representing a 16% increase [3][10] Core Views - JD Logistics achieved **RMB 44.40 billion** in revenue in Q3 2024, a **6.6% YoY increase**, with **Non-IFRS net profit** reaching **RMB 2.60 billion**, up **205.1% YoY** [2][7] - The **Non-IFRS net profit margin** rose to **5.8%**, a **3.8 percentage point increase** from 2.0% in 2023 [2][7] - The company's **integrated supply chain business** contributed **RMB 20.70 billion**, a **5.4% YoY growth**, driven by increased revenue from JD Group and external clients [2][8] - External integrated supply chain clients reached **57,900**, a **9% YoY increase**, with **average revenue per client** at **RMB 133,000** [2][8] - Revenue from other clients grew **7.6% YoY** to **RMB 23.70 billion**, primarily due to increased parcel volume in express delivery and freight business [2][8] Financial Performance - **Gross profit margin** improved to **11.7%**, a **7.9 percentage point increase** from Q3 2023, driven by product and network optimization, technology-driven efficiency, and refined resource management [3][9] - **Operating costs** were **RMB 39.20 billion**, up **2.2% YoY**, reflecting effective cost control measures [3][9] Profit Forecast and Valuation - Total revenue for 2024 is projected to reach **RMB 178.91 billion**, a **7.4% YoY increase**, with a **Non-IFRS net profit margin** of **4.3%** [3][10] - The company's valuation method shifted from **PS to PE** as it entered a stable profit phase, with **Non-IFRS net profit** expected to be **RMB 7.77 billion** in 2024 and **RMB 9.45 billion** in 2025 [3][10] - The current market capitalization implies a **2024/2025 valuation** of **11X/9X**, with a reasonable valuation range of **15X**, corresponding to the target price of **HKD 23.19** [3][10]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 61.62 [1] Core Views - The company achieved its DAU target of 400 million, with DAU increasing by 5.4% YoY to 408 million and MAU growing by 4.3% YoY to 714 million in 3Q24 [1] - User engagement improved, with daily average time spent per user increasing by 1.8% YoY to 132 minutes, and total user time spent growing by 7.3% YoY [1] - Advertising revenue grew by 20.0% YoY to RMB 17.6 billion, accounting for 56.6% of total revenue, with significant growth in external loop advertising, particularly in short drama marketing [1] - E-commerce GMV increased by 15.1% YoY to RMB 334.2 billion, with monthly paying users (MPU) reaching 133 million, up 10.8% YoY [1] - Live streaming revenue declined by 3.9% YoY to RMB 9.3 billion, better than expected, with the number of signed agencies and hosts increasing by over 40% and 60% YoY, respectively [1] - Adjusted net profit for 3Q24 reached RMB 3.95 billion, with a gross margin of 54.3%, up 2.6 percentage points YoY [1] Financial Forecasts - Revenue is expected to grow by 12.1% YoY in 2024E, reaching RMB 127.2 billion, with a gross margin of 54.7% [6] - Adjusted net profit for 2024E is forecasted at RMB 17.55 billion, with a net margin of 13.8% [6] - The company is valued at 14x PE for 2024E, with a target valuation of RMB 245.7 billion (HKD 265.8 billion) [6][10] Operational Highlights - The company leveraged its position as the official broadcaster for the 2024 Paris Olympics, with related content exposure reaching 310.6 billion views and 640 million users engaging with Olympic content [1] - Search functionality saw significant growth, with MAU exceeding 500 million and daily searches increasing by 20% YoY to over 700 million, peaking at over 800 million searches per day [1] - E-commerce initiatives, including the "818" promotion, saw GMV grow by over 24% YoY, with short video-driven GMV increasing by over 40% YoY [1]