Investment Rating - The investment rating for Alibaba is maintained as "Buy" [2] Core Views - The report highlights significant profit improvement and stabilization of Taobao's monetization rate [2] - For FY25Q2, Alibaba's revenue was 236.5 billion HKD, a year-on-year increase of 5%, slightly below Bloomberg consensus expectations of 239.4 billion HKD [2] - Gross profit reached 92.5 billion HKD, up 8.6% year-on-year, exceeding Bloomberg's consensus of 90.4 billion HKD [2] - Adjusted EBITDA and net profit were reported at 47.3 billion HKD (down 4% year-on-year) and 36.5 billion HKD (down 9% year-on-year), respectively [2] - The report anticipates further improvement in Taobao's monetization rate due to increased merchant penetration and service fee enhancements [2] Financial Performance Summary - For FY2024, Alibaba's revenue is projected at 941.2 billion HKD, with a year-on-year growth of 8.3% [4] - Revenue forecasts for FY2025, FY2026, and FY2027 are 1,006.7 billion HKD, 1,104.4 billion HKD, and 1,192.0 billion HKD, reflecting growth rates of 7.0%, 9.7%, and 7.9% respectively [4] - Non-GAAP net profit is expected to be 157.5 billion HKD for FY2024, with projections of 154.4 billion HKD, 167.9 billion HKD, and 182.4 billion HKD for FY2025, FY2026, and FY2027 [4] - The report indicates a decrease in Non-GAAP net profit for FY2025 by 2% year-on-year, followed by growth in the subsequent years [4] Segment Performance - Taobao's revenue for the quarter was 989.9 billion HKD, a year-on-year increase of 2%, which was below expectations [2] - International digital commerce group revenue was 316.7 billion HKD, up 29% year-on-year, slightly exceeding expectations [2] - Local life group revenue reached 177 billion HKD, a 14% year-on-year increase, slightly above expectations [2] - Cloud business revenue grew by 7.1% year-on-year, with adjusted EBITDA significantly exceeding expectations [2] Profitability Metrics - The adjusted EBITDA for the cloud business was reported at 26.6 billion HKD, reflecting a year-on-year increase of 89% [2] - The report projects a return on equity of 8.08% for FY2024, increasing to 14.02% by FY2027 [7] - The total revenue growth rate is expected to stabilize around 7% to 9% over the forecast period [7]

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1]. Core Insights - The company is a leading provider of automotive intelligent driving solutions in China, focusing on both software and hardware integration to drive long-term growth [2][4]. - The company has achieved significant revenue growth, with a 152% year-on-year increase in total revenue for the first half of 2024, reaching 940 million yuan [2]. - The market for advanced driver assistance systems (ADAS) and high-level autonomous driving solutions is expected to grow rapidly, with a projected CAGR of 49% from 2023 to 2030 [3]. Summary by Sections 1. Leading Automotive Intelligent Driving Solution Provider - The company has been dedicated to developing automotive intelligent driving solutions since its establishment in 2015, with products covering advanced driver assistance to high-level autonomous driving [2]. - As of June 30, 2024, the company has secured 275 model designations for its intelligent driving solutions, which is expected to significantly boost revenue [2][4]. - The company’s revenue for the first half of 2024 was 940 million yuan, with a net loss of 1.1 billion yuan, indicating ongoing investment in R&D [2][4]. 2. Accelerating Penetration of High-Level Autonomous Driving - The penetration of high-level autonomous driving models is accelerating, presenting opportunities for both volume and price increases in intelligent driving solutions [3]. - The global market for high-level ADAS and autonomous driving solutions is projected to grow from 61.9 billion yuan in 2023 to 1,017.1 billion yuan by 2030 [3]. - The company ranks fourth among global providers of high-level ADAS and autonomous driving solutions in China, with a market share of 15.4% as of mid-2024 [3]. 3. Comprehensive Layout Around Intelligent Driving Chips - The company offers three main intelligent driving solutions: Horizon Mono, Horizon Pilot, and Horizon SuperDrive, each targeting different aspects of driving safety and automation [4]. - The company has made significant advancements in its intelligent driving chips, moving from the Journey 1 to Journey 5, and is currently accelerating the development of the next-generation Journey 6 [4]. - The company’s intelligent driving solutions have been adopted by 27 OEMs, covering over 285 vehicle models, which enhances its market competitiveness [4]. 4. Profit Forecast and Investment Recommendations - The company is expected to benefit from the increasing sales of high-level autonomous driving vehicles in China, with projected revenues of 21.2 billion yuan, 30.5 billion yuan, and 45.8 billion yuan for 2024, 2025, and 2026, respectively [4]. - The forecasted net profits for the same period are 896.8 million yuan, -58.2 million yuan, and 10 million yuan, indicating a potential turnaround in profitability [4].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 149.00 / CNY 134.69 [4][3] Core Insights - The company reported Q3 revenue of CNY 26.2 billion, a year-over-year decrease of 3.9% but a quarter-over-quarter increase of 2.8%, primarily driven by increased mobile game net revenue [2] - Q3 gross margin was 62.9%, reflecting a year-over-year increase of 0.7 percentage points, mainly due to the growth in gross margin from cloud music [2] - The company anticipates a recovery in game revenue in Q4, driven by the return of Blizzard games, with expected revenue of CNY 21.7 billion, representing a year-over-year increase of 4% and a quarter-over-quarter increase of 4% [2][3] Financial Summary - Q3 net profit attributable to shareholders was CNY 6.54 billion, down 16.6% year-over-year and 3.3% quarter-over-quarter [2] - The company expects net profit for 2024 to be CNY 28.7 billion, with projections of CNY 32.5 billion and CNY 34.9 billion for 2025 and 2026, respectively [3] - The report highlights a total revenue forecast of CNY 106.3 billion for 2024, with a year-over-year growth of 2.77% [3] Revenue Breakdown - Total revenue from games and related value-added services in Q3 was CNY 20.86 billion, a year-over-year decrease of 4.2% but a quarter-over-quarter increase of 4.0% [2] - Mobile game revenue was CNY 14.3 billion, down 9.7% year-over-year and 2.9% quarter-over-quarter, while PC game revenue increased significantly by 29.0% year-over-year and 30.0% quarter-over-quarter to CNY 5.9 billion [2] - Cloud music revenue in Q3 was CNY 2.0 billion, reflecting a year-over-year increase of 1.3% [2] Future Growth Drivers - Upcoming mobile games such as "Seven Days World" and "Yanyun Sixteen Sounds" are expected to drive future growth [3] - The return of Blizzard's "Hearthstone" is anticipated to significantly boost mobile game revenue, with expected daily active users (DAU) increasing by 150% compared to before the game's closure [2]

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [5] Core Views - Tencent's Q3 2024 revenue reached RMB 167.19 billion, representing a year-over-year increase of 8% and a quarter-over-quarter increase of 4%. The gross margin was 53%, up 4 percentage points year-over-year but down 0.2 percentage points quarter-over-quarter [2] - The net profit attributable to shareholders (IFRS) for Q3 2024 was RMB 53.23 billion, a significant year-over-year increase of 47% and a quarter-over-quarter increase of 12%. The non-IFRS net profit was RMB 59.81 billion, up 33% year-over-year and 4% quarter-over-quarter [2] - The report anticipates continued growth in gaming revenue, driven by a low base in Q4 2023 and the longer revenue recognition cycle for overseas income. The gaming revenue is expected to maintain its growth momentum into Q1 2025 [2][3] Summary by Sections Financial Performance - Q3 2024 value-added services revenue was RMB 82.70 billion, up 9% year-over-year and 5% quarter-over-quarter. International gaming revenue was RMB 14.5 billion, also up 9% year-over-year, while domestic gaming revenue was RMB 37.3 billion, up 14% year-over-year [2] - Social network revenue grew by 4% to RMB 30.9 billion, supported by mobile game virtual item sales and music subscription revenue, although partially offset by declines in music and game live streaming services [2] - Q3 2024 advertising revenue was RMB 30 billion, a 17% year-over-year increase, driven by strong demand for advertising inventory from video accounts, mini-programs, and WeChat search [2] Future Projections - The report projects IFRS net profits for 2024, 2025, and 2026 to be RMB 195.13 billion, RMB 224.53 billion, and RMB 249.81 billion respectively, with non-IFRS net profits expected to be RMB 228.64 billion, RMB 261.49 billion, and RMB 291.44 billion [3] - The target price is set at HKD 528.62, with a current share price of HKD 404.2 [5]

Investment Rating - Buy (Maintained) [3] Core Views - The company's business structure optimization and refined management have driven rapid growth in performance [3] - The company's freight volume increased by 18.5% YoY in Q3 2024, with revenue growing by 21.2% YoY to 3.04 billion CNY [4] - Gross profit surged by 66.7% YoY to 480 million CNY, with gross margin improving by 4.3 percentage points to 15.6% [4] - Net profit attributable to shareholders rose by 27.9% YoY to 190 million CNY, with net margin increasing by 0.3 percentage points to 6.2% [4] Business Performance - The number of freight partners and agents increased by 14.3% YoY to approximately 32,000 in Q3 2024 [7] - Terminal customers served by the company and its partners exceeded 5.8 million in H1 2024, up from over 5 million in the same period last year [7] - Average freight volume per outlet increased by 3.7% YoY to 117 tons in Q3 2024 [7] - The company's product competitiveness improved, with average shipment time reduced to less than 64 hours in September 2024, down from 68 hours in H1 2024 [7] - The loss rate per 100,000 shipments decreased to 0.03 in Q3 2024 from 0.04 in H1 2024, and complaints per 100,000 shipments dropped to 39.2 from 51 [7] Business Structure Optimization - The company's freight structure continued to optimize, with 0-70kg mini parcels growing by 37.3% YoY, 70-300kg small LTL (Less Than Truckload) growing by 22.6% YoY, and 300kg+ large LTL growing by 6.6% YoY in Q3 2024 [10] - The average weight per shipment decreased from 109kg in H1 2022 to 81kg in Q3 2024, reflecting significant optimization in freight structure [10] Cost Management and Profitability - The company reduced 55 less efficient small distribution centers in 2023 and optimized its fleet management, leading to a significant decrease in core costs [13] - Unit trunk line cost decreased from 0.317 CNY/kg in Q3 2023 to 0.297 CNY/kg in Q3 2024, and unit distribution center cost dropped from 0.168 CNY/kg to 0.140 CNY/kg [13] - The company's gross margin reached 15.6% in Q3 2024, up 4.2 percentage points YoY [13] - Management expense ratio remained low, with Q3 2024 at 7.3%, down from 9.9% in H1 2022 [14] Strategic Focus - The company is implementing the "Five Best" strategy, focusing on cost optimization, quality improvement, stable delivery times, fast service response, and dense network coverage [15] - The strategy aims to enhance customer retention and attract new customers, driving long-term growth in both volume and profitability [15] Financial Forecasts - Revenue is expected to grow by 17% YoY to 11.6 billion CNY in 2024, 16% YoY to 13.5 billion CNY in 2025, and 13% YoY to 15.24 billion CNY in 2026 [19] - Net profit attributable to shareholders is projected to increase by 105% YoY to 803 million CNY in 2024, 24% YoY to 1 billion CNY in 2025, and 15% YoY to 1.15 billion CNY in 2026 [19] - The company's PE ratio is expected to be 10.79x in 2024, 8.67x in 2025, and 7.53x in 2026 [19]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 149.00 / CNY 134.69 [4][3] Core Views - The company's revenue for Q3 2024 was CNY 26.2 billion, showing a year-over-year decrease of 3.9% but a quarter-over-quarter increase of 2.8%, primarily driven by increased mobile game net income [2] - The gross margin for Q3 was 62.9%, reflecting a year-over-year increase of 0.7 percentage points, mainly due to the growth in gross margin from cloud music [2] - The company expects significant revenue growth in Q4 2024, driven by the return of Blizzard games, with projected revenue reaching CNY 21.7 billion, a year-over-year increase of 4% and a quarter-over-quarter increase of 4% [2][3] Financial Summary - Q3 2024 total revenue from games and related value-added services was CNY 20.86 billion, down 4.2% year-over-year but up 4.0% quarter-over-quarter [2] - Mobile game revenue was CNY 14.3 billion, down 9.7% year-over-year and down 2.9% quarter-over-quarter, while PC game revenue was CNY 5.9 billion, up 29.0% year-over-year and up 30.0% quarter-over-quarter [2] - The company forecasts net profit attributable to shareholders for 2024-2026 to be CNY 28.7 billion, CNY 32.5 billion, and CNY 34.9 billion respectively [3] Revenue Breakdown - Q3 2024 cloud music revenue was CNY 2.0 billion, up 1.3% year-over-year, primarily due to increased subscription revenue [2] - Q3 2024 Youdao revenue was CNY 1.57 billion, up 2.3% year-over-year and up 19.0% quarter-over-quarter, driven by growth in online marketing services and smart devices [2]

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [1] Core Insights - The company reported a significant profit exceeding expectations, with a notable increase in gross margin by 6.85 percentage points in its financial technology segment [1][4] - Revenue growth remains strong, with a year-over-year increase of 12.1% in Q3 2024, reaching 167.2 billion RMB, although slightly below Bloomberg consensus expectations [1][20] - Non-IFRS net profit for the same quarter was 59.813 billion RMB, reflecting a year-over-year growth of 33.2%, surpassing Bloomberg consensus [1][20] Summary by Sections Revenue Growth and Profitability - The company achieved total revenue of 167.2 billion RMB in Q3 2024, a year-over-year increase of 12.1%, slightly below the expected 167.9 billion RMB [1][20] - The non-IFRS net profit was 59.813 billion RMB, up 33.2% year-over-year, exceeding the expected 54.4 billion RMB [1][20] Gaming Performance - Domestic gaming revenue reached 37.3 billion RMB, growing 14.1% year-over-year, while international gaming revenue was 14.5 billion RMB, up 9% year-over-year [2][24] - The growth in international gaming was driven by strong performances from titles like PUBG MOBILE and VALORANT, which saw a 30% increase in revenue [2][24] Advertising Revenue - Advertising revenue was 30 billion RMB, reflecting a year-over-year increase of 17%, driven by strong demand from advertisers on various platforms [3][30] - The gross margin for advertising increased to 52.99%, up 0.71 percentage points year-over-year [3][30] Financial Technology and Enterprise Services - Financial technology and enterprise services revenue was 53.1 billion RMB, a 2% year-over-year increase, although below the expected 54.1 billion RMB [3][34] - The gross margin for this segment improved to 47.79%, up 6.85 percentage points year-over-year, driven by growth in wealth management services [3][34] Operational Data Growth - The combined monthly active users (MAU) for WeChat reached 1.382 billion, a 3% year-over-year increase, while QQ's MAU was 571 million, a 1% increase [3][36] Margin Improvement - Overall gross margin for Q3 2024 was 53.36%, up 3.87 percentage points year-over-year, attributed to growth in high-margin revenue sources [3][40] - The gross margin for value-added services was 57.45%, reflecting growth in both domestic and international gaming revenues [3][40] Expense Trends - Sales expenses increased by 18.9% year-over-year, primarily due to increased marketing efforts for new games [3][42] - Management expenses rose by 10.5% year-over-year, driven by higher R&D and employee costs [3][42] Earnings Forecast and Rating - The adjusted net profit forecast for 2024-2026 was raised to 217.4 billion, 240.6 billion, and 265.3 billion RMB respectively, with corresponding PE ratios of 16, 14, and 13 times [4][47] - The report emphasizes the company's strong business moat and ecosystem, maintaining the "Buy" rating [4][47]

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [5] Core Views - Tencent's Q3 2024 revenue reached RMB 167.19 billion, representing a year-over-year increase of 8% and a quarter-over-quarter increase of 4%. The gross margin was 53%, up 4 percentage points year-over-year but down 0.2 percentage points quarter-over-quarter [2][3] - The net profit attributable to shareholders (IFRS) for Q3 2024 was RMB 53.23 billion, a significant year-over-year increase of 47% and a quarter-over-quarter increase of 12%. The non-IFRS net profit was RMB 59.81 billion, up 33% year-over-year and 4% quarter-over-quarter [2][3] - The report anticipates continued growth in gaming revenue, driven by a low base in Q4 2023 and the expected performance of new game versions in early 2025 [2][3] Summary by Sections Revenue Breakdown - Value-added services revenue for Q3 2024 was RMB 82.70 billion, up 9% year-over-year and 5% quarter-over-quarter. International gaming revenue was RMB 14.5 billion, also up 9% year-over-year, while domestic gaming revenue was RMB 37.3 billion, up 14% year-over-year [2] - Social network revenue grew by 4% to RMB 30.9 billion, supported by mobile game virtual item sales and music subscription revenue, although offset by declines in music and game live streaming services [2] Advertising and Financial Services - Online advertising revenue for Q3 2024 was RMB 30.0 billion, a 17% increase year-over-year, driven by strong demand for advertising inventory from video accounts, mini-programs, and WeChat search [2] - Financial technology and enterprise services revenue was RMB 53.09 billion, up 2% year-over-year and 5% quarter-over-quarter, with growth in wealth management services offset by a decline in payment services due to weak consumer spending [2] Profit Forecast and Valuation - The report projects IFRS net profit for 2024-2026 to be RMB 195.13 billion, RMB 224.53 billion, and RMB 249.81 billion respectively, with non-IFRS net profit expected to be RMB 228.64 billion, RMB 261.49 billion, and RMB 291.44 billion [3] - A sum-of-the-parts (SOTP) valuation method is used, resulting in a target price of HKD 528.62, maintaining the "Buy" rating [3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 63.42 HKD, indicating a potential upside of 79% from the current price of 35.50 HKD [2][4]. Core Insights - The company achieved a turnaround in Q3 2024, reporting a revenue of 255 million USD, a 309% year-on-year increase, and a net profit of 27.9 million USD, reversing a loss of 58.7 million USD from the previous year [2]. - The recovery in the Q3 performance is attributed to rising gold and copper prices, with gold reaching 2,629.95 USD/ounce, a 12.8% increase since June, and copper prices remaining historically high due to tightening supply and increased demand from the renewable energy sector [2]. - The resumption of operations at the Jiama mine has led to a decrease in cash production costs to 3.85 USD/pound, a 4.9% reduction from the previous quarter [2]. - The company has provided production guidance for 2024, expecting gold production from the Changshanhao mine to be between 3.3 to 3.5 tons and copper production from the Jiama mine to be between 43,200 to 44,500 tons [2]. Financial Summary - For the fiscal year ending December 31, 2022, the company reported revenues of 1.10 billion USD, which decreased by 3% year-on-year. In 2023, revenues dropped significantly to 459.43 million USD, a 58% decline [3][5]. - The forecast for 2024 anticipates a revenue increase to 764.01 million USD, representing a 66% growth, with net profit projected to recover to 95.4 million USD [3][5]. - The company’s earnings per share (EPS) is expected to rise from -0.06 USD in 2023 to 0.24 USD in 2024, reflecting a significant recovery [3][5]. - The price-to-earnings (PE) ratio is projected to be 19.2 in 2024, decreasing to 5.0 in 2025 and 4.7 in 2026, indicating an attractive valuation compared to historical levels [3][5].

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [5] Core Views - Tencent reported a revenue of 167.2 billion RMB for Q3 2024, representing an 8% year-on-year increase. The adjusted net profit attributable to shareholders was approximately 59.8 billion RMB, a significant 33% increase compared to the previous year, exceeding Bloomberg's consensus estimate of 54.4 billion RMB [2][4] - The gaming sector is experiencing a strong product cycle, with domestic game revenue increasing by 14% to 37.3 billion RMB, driven by titles such as "Valorant," "Honor of Kings," and "Peacekeeper Elite." International game revenue grew by 9% to 14.5 billion RMB, supported by strong performances from "PUBG MOBILE" and "Brawl Stars" [3] - The advertising revenue saw a 17% increase to 30 billion RMB, fueled by strong demand for ads on video accounts, mini-programs, and WeChat search, along with the branding boost from the Olympics [4] Summary by Sections Financial Performance - Q3 2024 revenue breakdown: Gaming (51.8 billion RMB), Social Networks (30.9 billion RMB), FinTech and Enterprise Services (53.1 billion RMB), Advertising (30 billion RMB) [2] - Adjusted net profit for Q3 2024 was 59.8 billion RMB, with significant contributions from equity method investments and a reduced effective tax rate of 14% [2][3] Business Segments - Gaming: Domestic revenue increased by 14% to 37.3 billion RMB, while international revenue grew by 9% to 14.5 billion RMB. The company expects higher international game revenue to reflect in Q4 and next year's figures [3] - FinTech and Enterprise Services: Revenue growth slowed, with payment transaction volume increasing by about 10%, but average transaction value declined [3] - Advertising: Revenue increased by 17% to 30 billion RMB, with significant growth potential in video account ads and WeChat search ads [4] Future Projections - Revenue forecasts for 2024-2026 are 657.3 billion RMB, 702.3 billion RMB, and 752.0 billion RMB, respectively. Non-GAAP net profit estimates are approximately 223.5 billion RMB, 243.1 billion RMB, and 266.2 billion RMB for the same period [4][8]