Investment Rating - The investment rating for Alibaba-SW (09988.HK) is maintained at "Buy" [2][7]. Core Insights - The report indicates that Alibaba's FY2025 Q2 performance met expectations, with a focus on the competitive landscape in the e-commerce sector. The monetization rate for Taotian has stabilized, and non-e-commerce businesses continue to improve, leading to a slight upward revision of the FY2025 adjusted net profit forecast to 151.7 billion yuan [7][8]. - The report anticipates that the domestic e-commerce market share will stabilize, with a potential rebound in monetization rates and continued strong growth in international e-commerce and improvements in Alibaba Cloud profitability [7][8]. Summary by Sections Financial Performance - FY2025 Q2 revenue grew by 5% year-on-year, while non-GAAP net profit declined by 9%, aligning with Bloomberg consensus expectations. Taotian's customer management revenue increased by 2% year-on-year, with a stable monetization rate [8]. - The International Business Group saw a 29% year-on-year revenue increase, while the Cloud Intelligence Group's revenue grew by 7%, with public cloud product revenue experiencing double-digit year-on-year growth [8]. Profitability Forecast - The adjusted net profit forecast for FY2025 is set at 151.7 billion yuan, with projections for FY2026 and FY2027 at 170.7 billion yuan and 189.1 billion yuan, respectively. Corresponding year-on-year growth rates are expected to be -3.7%, 12.5%, and 10.8% [7][11]. - The report highlights that the diluted EPS for FY2025 is projected at 8.1 yuan, with P/E ratios of 9.8, 8.5, and 7.5 for FY2025, FY2026, and FY2027, respectively [11]. Market Dynamics - The report notes that Taotian will continue to invest in user experience to capture market share, with potential fluctuations in profit margins. The number of 88VIP members reached 46 million, supported by low-price subsidies and partnerships with Tencent [9]. - A share buyback program valued at 14.7 billion USD was executed in 2024, representing approximately 6.9% of the market value at that time, with an additional buyback capacity of 22 billion USD remaining [9].

Investment Rating - The report maintains a "Buy" rating for JD Logistics (02618) [3] Core Views - JD Logistics achieved record-high profitability in Q3 2024, driven by cost optimization and external order growth [3] - External orders remain the primary revenue source, accounting for 71.20% of total revenue [6] - The company's net profit surged 438.15% YoY to RMB 2.445 billion in Q3 2024 [3] Financial Performance Revenue - Q3 2024 revenue reached RMB 44.396 billion, up 6.56% YoY [3] - Internal revenue from JD Group grew 8.13% YoY to RMB 12.788 billion, accounting for 28.80% of total revenue [6] - External revenue increased 5.94% YoY to RMB 31.608 billion [6] Profitability - Net profit attributable to shareholders skyrocketed 928.77% YoY to RMB 2.205 billion [3] - Non-IFRS profit rose 205.14% YoY to RMB 2.573 billion [3] - Gross profit margin improved by 3.79 percentage points to 11.71% [10] Cost Structure - Operating costs increased 2.18% YoY to RMB 39.198 billion, lower than revenue growth [11] - Outsourcing costs as a percentage of revenue decreased by 1.26 percentage points [11] Business Segments External Integrated Supply Chain - Revenue grew 1.23% YoY to RMB 7.875 billion, representing 17.74% of total revenue [6] - Customer base expanded 9.36% YoY to 59,300 [6] Pure Distribution Business - Revenue increased 7.60% YoY to RMB 23.733 billion, accounting for 53.46% of total revenue [6] - Deppon contributed RMB 9.850 billion, up 1.03% YoY [6] - Non-Deppon revenue grew 12.80% YoY to RMB 13.883 billion [6] Future Outlook - Revenue is projected to grow 9%, 8%, and 7% in 2024-2026, reaching RMB 182.424 billion, RMB 196.535 billion, and RMB 211.010 billion respectively [12] - Net profit attributable to shareholders is expected to increase 1035%, 10%, and 10% in 2024-2026 [12] - The company's PE ratio is forecasted at 13.03x, 11.83x, and 10.80x for 2024-2026 [12]

Investment Rating - Buy (Maintained) [1] Core Views - Lenovo Group achieved strong double-digit growth across all three business groups for the first time in three years during FY2025H1, driven by the initial success of hybrid AI [1][3] - Revenue for FY2025H1 reached $33.297 billion, a 21.92% YoY increase, with net profit rising 41.37% to $602 million [1] - Q2 FY2025 revenue grew 23.87% YoY and 15.56% QoQ to $17.85 billion, with net profit increasing 43.85% YoY and 47.32% QoQ to $359 million [1] Business Segments Summary Intelligent Devices Group (IDG) - Revenue for FY2025H1 was approximately $24.9 billion, a 15% YoY increase, with operating profit growing 22% [3] - AI PCs accounted for 14% of total laptop shipments in China during Q2 FY2025 [3] - Smartphone revenue surged 43% YoY, driven by strong growth in APAC, EMEA, and North America [3] Infrastructure Solutions Group (ISG) - Revenue grew 65% YoY to $6.5 billion in FY2025H1, marking a historic high [3] - Operating losses narrowed by approximately $1 million QoQ in Q2 FY2025, moving closer to breakeven [3] - The Neptune liquid cooling solution attracted new orders, leveraging expertise in high-performance computing [3] Solutions and Services Group (SSG) - Q2 FY2025 revenue reached a record high of $2.165 billion, with an operating margin of 20% [3] - SSG contributed 32% of the total operating profit from the three business groups [3] - The group is well-positioned to capitalize on hybrid AI trends, driving future growth [3] Financial Forecasts - Revenue for FY2025E and FY2026E is projected at $66.127 billion and $71.493 billion, respectively, with YoY growth of 16.3% and 8.1% [7][8] - Net profit attributable to shareholders is expected to be $1.299 billion in FY2025E and $1.462 billion in FY2026E, with EPS of $0.10 and $0.12, respectively [7][8] - P/E ratios for FY2025E and FY2026E are forecasted at 11.24X and 10.00X [7][8] Market Performance - Lenovo Group's stock underperformed the Hang Seng Index over the past year, with a -16.0% return compared to the index's -4.4% [3] - Current stock price is HKD 9.17, with a 52-week range of HKD 7.80-12.26 [3] - Market capitalization stands at HKD 113.75 billion [3]

Investment Rating - The report maintains a "Buy" rating for China General Nuclear Power Corporation (1164.HK) with a target price of HKD 2.25 [1][4]. Core Views - The third quarter operational performance met expectations, with a uranium production of 692.6 tons, achieving a completion rate of 97.2%. The report anticipates increased demand for natural uranium due to renewed focus on nuclear power in both China and the U.S. [1][2]. - The report forecasts net profits for the years 2024 to 2026 to be HKD 420.8 million, HKD 849.2 million, and HKD 1 billion respectively, with corresponding EPS of HKD 0.055, HKD 0.112, and HKD 0.137 [2][3]. Summary by Sections Production and Sales Performance - In Q3 2024, the company achieved a uranium production of 692.6 tons, with individual mines showing completion rates of 99.4% and 101.6% for specific operations [2]. - New procurement orders signed in Q3 totaled 1,179 tons, a year-on-year decrease of 47.1% but a quarter-on-quarter increase of 14.9%. The sales orders were 1,288 tons, reflecting a year-on-year decrease of 43.2% but a quarter-on-quarter increase of 44.9% [2]. Financial Performance - The report projects sales revenue to grow from HKD 3.65 billion in FY2022 to HKD 11.92 billion in FY2026, with a growth rate of 101.8% in FY2023 [3]. - The net profit is expected to decline slightly in FY2024 to HKD 420.8 million, before increasing significantly in the following years [3]. Valuation Metrics - The report provides a PE ratio forecast of 32.51 for FY2024, decreasing to 13.09 by FY2026, indicating an improving valuation as earnings grow [3]. - The projected PB ratio is expected to decline from 32.4 in FY2024 to 2.39 in FY2026, suggesting a more favorable valuation over time [3].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The report highlights that Q3 revenue was 167.19 billion (YoY +8.1%, QoQ +3.8%), slightly below consensus expectations [2] - Gross profit reached 88.83 billion (YoY +16.1%, QoQ +3.4%), also slightly below consensus [2] - Net profit was 53.23 billion (YoY +47.1%, QoQ +11.8%), exceeding consensus by 17.4% [2] - The report emphasizes stable growth in domestic long-term games and incremental growth from overseas games, with domestic game revenue at 37.3 billion (YoY +14%) driven by titles like "Valorant" and "Honor of Kings" [2] - Marketing business revenue was 30 billion (YoY +16.6%), surpassing consensus expectations [2] Summary by Sections Financial Performance - Q3 revenue was 167.19 billion, slightly missing consensus by 0.4% [2] - Gross profit was 88.83 billion, missing consensus by 0.8% [2] - Net profit was 53.23 billion, beating consensus by 17.4% [2] - The company expects net profits (Non-IFRS) for 2024/25/26 to be 220.80 billion, 238.91 billion, and 260.27 billion respectively [2] Business Segments - Value-added services (VAS) showed a gross margin of 57.5%, exceeding Bloomberg consensus of 56.7% due to growth in gaming revenue [2] - Marketing business gross margin was 53%, below Bloomberg consensus of 56% [2] - Financial technology revenue was 53.1 billion (YoY +2%), slightly below consensus of 54.06 billion [2] Future Outlook - The report anticipates continued growth in gaming and advertising, maintaining a "Buy" rating based on the company's long-term competitive advantages [2]

Investment Rating - The report maintains an "Outperform" rating for NetEase-S (09999 HK) [2][5][28] Core Views - NetEase's PC gaming revenue showed strong growth, while mobile gaming revenue declined due to a high base effect [3][19] - The company's gaming business is stabilizing, with key focus on the upcoming game "Yanyun Sixteen Sounds" [3][21] - NetEase's old games like "Fantasy Westward Journey" remain stable, while "Identity V" and "Naraka: Bladepoint" continue to perform well [3][21] - The company's game development capabilities and pipeline are strong, with multiple new games set to launch [5][21] Financial Performance - In Q3 2024, NetEase reported revenue of RMB 26 2 billion, down 4% YoY, with Non-GAAP net profit of RMB 7 5 billion, down 13% YoY [2][10] - The company's gaming revenue was RMB 20 2 billion, down 1% YoY, with PC gaming revenue up 29% YoY to RMB 5 9 billion [3][19] - NetEase's deferred revenue grew 10% YoY to RMB 15 5 billion [3][20] - Youdao's revenue increased 2% YoY to RMB 1 6 billion, with advertising revenue up 46% YoY [4][22] - NetEase Cloud Music's revenue grew 1% YoY to RMB 2 billion, with gross margin improving 5 6 percentage points to 32 8% [4][26] Business Segments Gaming - PC gaming revenue growth was driven by the return of "World of Warcraft" and the strong performance of "Naraka: Bladepoint" [3][19] - "World of Warcraft" saw a 50% increase in daily active users compared to pre-shutdown levels, while "Hearthstone" saw a 150% increase in active users [3][21] - New games like "Marvel Rivals" and "Yanyun Sixteen Sounds" are set to launch in December 2024 [3][21] Youdao - Youdao's learning services revenue declined 19% YoY to RMB 770 million due to business restructuring and optimization [4][22] - Smart device revenue grew 25% YoY to RMB 320 million, driven by new product launches [4][22] - Advertising revenue increased 46% YoY to RMB 490 million, supported by the application of AI technology [4][22] NetEase Cloud Music - NetEase Cloud Music's gross margin improved significantly, reaching 32 8% in Q3 2024, up 5 6 percentage points YoY [4][26] - The improvement was attributed to increased music subscription revenue and better cost control [4][26] Valuation and Forecast - The report revised down NetEase's profit forecasts for 2024-2026, with adjusted net profit estimates of RMB 32 billion, RMB 36 1 billion, and RMB 38 billion, respectively [5][28] - The target price was adjusted to HKD 157-181, representing a 22% reduction [5][28] - The valuation is based on a 13-15x PE ratio for 2025 [5][28]

Investment Rating - The report maintains an "Overweight" rating for Alibaba-W (9988 HK) with a target price of 121 HKD for FY2025 [2] Core Views - Alibaba's Take Rate has stabilized due to service fees and full-site promotion, with continued investments in supply chain and user experience improvement [1][2] - Cloud Intelligence segment's profitability significantly exceeded expectations, with multiple businesses showing substantial reductions in losses [1][2] - The company's share repurchase program is progressing steadily, with a 24% YoY increase in repurchase amount to $4.1 billion in the quarter [2] Financial Performance - Alibaba's FY2025E-FY2027E revenue is forecasted at 10218/11234/12049 billion RMB, with adjusted net profit of 1441/1825/1905 billion RMB [2] - Taobao and Tmall Group's revenue reached 990 billion RMB in CY24Q3, a 1% YoY increase, with customer management revenue up 2% to 704 billion RMB [2] - Cloud Intelligence revenue grew 7% YoY to 296 billion RMB, with adjusted EBITA surging 89% to 26.6 billion RMB [2] Business Segment Analysis Taobao and Tmall Group - Revenue increased 1% YoY to 990 billion RMB in CY24Q3, driven by double-digit order growth and 88VIP membership reaching 46 million [2] - Take Rate remained stable YoY, with a 0.6% service fee introduced in September expected to contribute fully in CY24Q4 [2] Cloud Intelligence Group - AI-related revenue has maintained triple-digit growth for five consecutive quarters [2] - The group reduced Tongyi Qianwen API prices while advancing scale effects and technological advantages [2] International Commerce - Revenue grew 29% YoY, primarily driven by strong growth in Choice [2] - Adjusted EBITA improved significantly to -29 billion RMB, better than the expected -36 billion RMB [2] Local Services and Digital Media - Local services revenue increased 14% YoY to 177 billion RMB, with adjusted EBITA margin improving by 14 percentage points to -2% [21] - Digital media and entertainment revenue decreased 1% YoY to 57 billion RMB, with adjusted EBITA margin improving by 0.4 percentage points to -3.1% [25] Share Repurchase - The company repurchased $4.1 billion worth of shares in the quarter, a $2.4 billion YoY increase [2] - FY2025 cumulative net share reduction reached 4.4%, with $22 billion remaining in the repurchase program [2] Valuation - The sum-of-the-parts valuation for FY25E stands at 2696 billion RMB, with a 20% holding discount applied [28] - The target price for US-listed BABA is $125, while the HK-listed 9988 HK target is 121 HKD [28]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The gaming business has exceeded expectations, with a focus on new game launches at the end of the year [2] - The company achieved revenue of 26.21 billion yuan in Q3 2024, a year-over-year decrease of 3.9% but a quarter-over-quarter increase of 2.8% [2] - The gaming and related value-added services outperformed expectations with 20.9 billion yuan compared to the 20.7 billion yuan consensus [2] - The company’s long-term games continue to perform well, with significant contributions from titles like "Identity V" and "Naraka: Bladepoint" [2] - New games expected to launch in December, including Marvel IP licensed titles, are anticipated to drive revenue growth [2] Financial Performance Summary - Q3 2024 gross profit was 16.48 billion yuan, with a gross margin of 62.9%, showing a year-over-year decrease of 2.9% [2] - Adjusted net profit for Q3 2024 was 7.5 billion yuan, a year-over-year decrease of 13.3% [2] - The company forecasts adjusted net profits for CY 2024/25/26 to be 31.82 billion, 34.94 billion, and 38.32 billion yuan respectively [2][4] - The company’s revenue growth rates are projected at 2.2% for 2024, 7.1% for 2025, and 6.0% for 2026 [4][8] Key Financial Indicators - The company’s operating income for 2023 is projected at 103.47 billion yuan, with a year-over-year growth of 7.2% [4] - The return on equity (ROE) is expected to decline from 25% in 2023 to 21% by 2026 [4] - The price-to-earnings (P/E) ratio is projected to decrease from 16.1 in 2023 to 10.5 by 2026 [4][8]

Investment Rating - The report maintains an "Outperform" rating for the company with a target price of HKD 27.35 per share based on a 2024 PE valuation of 12X [5][17]. Core Insights - The company reported a significant increase in net profit, with a 172.3% rise to USD 150 million in Q3 2024, driven by a 12.5% increase in total revenue to USD 2.06 billion [2][13]. - Manufacturing revenue grew by 23.1% year-on-year, while the gross profit margin (GPM) increased by 0.6 percentage points to 24.1% [2][14]. - The company achieved a 9M return on invested capital (ROIC) and return on assets (ROA) of 10.8% and 6.5%, respectively, marking a 7-year high [2][13]. Financial Performance - Q3 manufacturing capacity utilization reached 95%, the highest in nine quarters, with a 9M GPM at a 7-year high [3][14]. - The average selling price (ASP) for products decreased by 4.9% year-on-year to USD 20.73, but the decline in prices narrowed each quarter [4][15]. - The retail segment saw Baosheng revenue decline by 10.8% to RMB 4 billion, but the gross profit margin improved to 33.5% [5][16]. Revenue Forecast - The company expects net profits for 2024-2026 to be USD 470 million, USD 520 million, and USD 570 million, respectively, reflecting a positive growth outlook [5][17]. - The dividend payout ratio is projected to be around 70% in 2024, leading to an expected dividend yield of 10.0% based on the closing price on November 15 [5][17].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company has experienced rapid revenue and profit growth in Q3 2024, driven by technological innovation and customer acquisition, leading to a maintained "Buy" rating [2] - The revenue for the first three quarters of 2024 reached $1.055 billion, a year-on-year increase of 36.0%, with adjusted net profit of $19.164 million, up 37.4% year-on-year [2] - In Q3 2024, the company achieved revenue of $416 million, a year-on-year increase of 54.6% and a quarter-on-quarter increase of 23.6%, with adjusted net profit of $10.668 million, up 162.4% year-on-year [2] Revenue and Profitability Summary - The programmatic advertising platform Mintegral saw accelerated revenue growth, achieving $403 million in Q3 2024, a year-on-year increase of 57.6% and a quarter-on-quarter increase of 25.7% [3] - The gaming category generated $295 million in revenue in Q3 2024, a year-on-year increase of 46.5%, while non-gaming categories reached $108 million, up 98.5% year-on-year [3] - The gross margin for Q3 2024 was 21.1%, an increase of 0.5 percentage points year-on-year, and the net profit margin was 2.4%, up 1 percentage point year-on-year [3] Future Growth Drivers - The company is leveraging AI to enhance the Mintegral platform, with the D7 Target ROAS feature launched in October 2024 to improve marketing ROI for clients [4] - The ongoing iteration of ROAS technology is expected to drive long-term growth by accumulating rich marketing data [4] - The company has expanded its client base in non-gaming categories, indicating the effectiveness of its multi-vertical strategy [3][4] Financial Projections - The company forecasts net profits of $40 million, $72 million, and $88 million for 2024, 2025, and 2026 respectively, with corresponding EPS of $0.03, $0.05, and $0.06 [2][5] - The current price-to-earnings (P/E) ratios are projected at 25.2, 14.0, and 11.4 for 2024, 2025, and 2026 respectively [2][5]