Investment Rating - The report maintains a "Buy" rating for Baidu Group with a target price of 137 HKD, indicating an expected upside of over 20% within the next six months [1]. Core Insights - Baidu's total revenue for Q3 2024 is projected to be 33.6 billion CNY, a year-on-year decrease of 2.5%. The Non-GAAP net profit is expected to be 6.2 billion CNY, down 14% year-on-year [1]. - The report anticipates that Baidu Core revenue will be 26.3 billion CNY, a decline of 1.2% year-on-year, with online marketing revenue at 18.7 billion CNY, down 5% [1]. - The AI cloud business is expected to grow, with revenue projected at 5 billion CNY, reflecting a 14% year-on-year increase. The user base for Wenxin Yiyan is expected to reach 430 million, with daily usage hitting 1.5 billion [1]. Summary by Sections Financial Performance - Total revenue for Q3 2024 is expected to be 33.6 billion CNY, down 2.5% year-on-year. Non-GAAP net profit is projected at 6.2 billion CNY, a decrease of 14% [1]. - Baidu Core revenue is anticipated to be 26.3 billion CNY, with online marketing revenue at 18.7 billion CNY, down 5% year-on-year [1]. Business Segments - Non-online marketing revenue is expected to grow by 10% year-on-year, reaching 7.5 billion CNY. iQIYI's revenue is projected to be 7.6 billion CNY, down 5% [1]. - The AI cloud business is projected to achieve 5 billion CNY in revenue, marking a 14% increase year-on-year [1]. Future Outlook - The report suggests that while advertising recovery may be slower than expected, there could be a turning point next year. The application of large language models is expected to drive growth in Baidu's cloud business [1]. - The report emphasizes the ongoing development of AI applications and the establishment of an intelligent agent platform, which has attracted 150,000 enterprises and 800,000 developers [1].

Investment Rating - The report maintains a "Buy" rating for the company, reflecting expectations of significant growth in the next 6-12 months [2][6] Core Views - The company achieved a revenue of RMB 130.7 billion in the first three quarters of 2024, a 9.5% YoY increase, with a net profit of RMB 4.47 billion, turning from a loss to a profit [2] - In Q3 2024, revenue reached RMB 44.4 billion, up 6.6% YoY, with a net profit of RMB 2.2 billion, a 929% YoY increase [2] - The company's cost reduction and efficiency improvement efforts have significantly enhanced profitability, with Q3 gross margin increasing by 3.8 percentage points to 11.7% [2] - The company has expanded its overseas presence by opening new warehouses in Malaysia and the US, and has partnered with Taotian Group to integrate with the Taobao and Tmall platforms [2] Financial Performance - Revenue from JD Group grew by 8.1% in Q3 2024, higher than the overall growth rate, driven by growth in fast-moving consumer goods, 3C, and apparel sectors [2] - Revenue from integrated supply chain customers reached RMB 20.7 billion in Q3 2024, with internal JD Group revenue growing 8.1% and external revenue growing 1.2% [2] - Other customer revenue increased by 7.6% to RMB 23.7 billion, mainly due to increased business volume in express and freight services [2] - Operating costs in Q3 2024 were RMB 39.2 billion, up only 2.2% YoY, reflecting improved operational efficiency and cost control [2] Future Projections - The report raises the net profit forecast for 2024-2026 to RMB 6.7 billion, RMB 7.7 billion, and RMB 8.8 billion, respectively, up from previous estimates of RMB 4.6 billion, RMB 5.2 billion, and RMB 5.9 billion [2] - Revenue growth is expected to slow to 9.63% in 2024, 5.70% in 2025, and 5.89% in 2026, reflecting a maturing market [4] - Net profit growth is projected to be 984.16% in 2024, 15.13% in 2025, and 14.24% in 2026, indicating strong profitability improvements [4] Operational Efficiency - The company's operating costs in Q3 2024 were driven by a 4.8% increase in employee compensation, reflecting workforce expansion [2] - Gross profit in Q3 2024 was RMB 5.2 billion, up 57% YoY, with a net profit margin increasing by 4.5 percentage points to 5% [2] - The company's ROE is expected to improve significantly, reaching 12.17% in 2024, 12.29% in 2025, and 12.30% in 2026 [4] Strategic Initiatives - The company has integrated with Taobao and Tmall platforms, allowing consumers to track JD Logistics shipments within the Taobao and Tmall apps, which is expected to boost business volume [2] - Overseas expansion continues with new warehouses in Malaysia and the US, enhancing global logistics capabilities [2]

Investment Rating - Strong Buy (Maintained) with a target price range of HKD 21.9-24.8 [1] Core Views - The company's Q3 2024 performance exceeded expectations, with revenue reaching RMB 60.4 billion, a 20% YoY increase, and net profit attributable to shareholders of RMB 2.455 billion, a 92% YoY increase [1] - The company plans to increase its stake in Zeekr to 62.8% through the acquisition of shares held by its parent company, and Zeekr intends to acquire Lynk & Co shares from Geely Holding and Volvo to achieve a 51% controlling stake and consolidation [1] - The Geely brand's performance in Q3 2024 was strong, with sales of 410,000 units, a 15% YoY increase, and net profit of RMB 2.62 billion, an 81% YoY increase, driven by the success of the Galaxy E5 and improved profitability in the Galaxy series [2] - Zeekr's performance remained stable, with sales of 55,000 units in Q3 2024, a 51% YoY increase, and a net profit of RMB 10 million, turning profitable compared to the previous quarter [2] - The company's strategic integration of internal resources, including the consolidation of Lynk & Co by Zeekr, is expected to streamline operations and improve efficiency in high-end brand management, product lines, and R&D [2] - The company is expected to see rapid growth in sales and operating performance in the next two years, driven by its successful new product cycle and global expansion, with projected sales of 2.15 million, 2.56 million, and 2.89 million units for 2024-2026, with new energy vehicle penetration rates of 40%, 54%, and 62% respectively [2] - The company's net profit attributable to shareholders for 2024-2026 is forecasted to be RMB 16 billion, RMB 13.6 billion, and RMB 17.5 billion, with corresponding P/E ratios of 8.1x, 9.5x, and 7.4x [2] Financial Highlights - Q3 2024 revenue: RMB 60.4 billion, +20% YoY [1] - Q3 2024 net profit attributable to shareholders: RMB 2.455 billion, +92% YoY [1] - Geely brand Q3 2024 sales: 410,000 units, +15% YoY, net profit: RMB 2.62 billion, +81% YoY [2] - Zeekr Q3 2024 sales: 55,000 units, +51% YoY, net profit: RMB 10 million [2] - 2024-2026 projected sales: 2.15 million, 2.56 million, and 2.89 million units, with new energy vehicle penetration rates of 40%, 54%, and 62% respectively [2] - 2024-2026 projected net profit attributable to shareholders: RMB 16 billion, RMB 13.6 billion, and RMB 17.5 billion [2] Strategic Integration - The company is undergoing significant internal resource integration, including the consolidation of Lynk & Co by Zeekr, which is expected to streamline operations and improve efficiency in high-end brand management, product lines, and R&D [2] - The integration is expected to resolve past issues of resource redundancy and overlap, leading to more effective management of the company's high-end brands and product lines [2] Future Outlook - The company is expected to see rapid growth in sales and operating performance in the next two years, driven by its successful new product cycle and global expansion [2] - The company's strategic integration of internal resources is expected to create synergies and improve future performance [2] - The company's focus on global operations, self-developed intelligent driving, in-car systems, and chips is expected to strengthen its competitive position in key growth areas such as overseas markets and intelligent capabilities [2]

Investment Rating - The report maintains a "Strong Buy" rating for Geely Automobile (00175.HK) with a target price range of HKD 21.9-24.8, compared to the current price of HKD 13.90 [1]. Core Views - The third quarter of 2024 showed impressive results with revenue of CNY 60.4 billion, a year-on-year increase of 20%, and a net profit attributable to shareholders of CNY 2.455 billion, up 92% year-on-year [1]. - The company is strategically integrating its resources, including increasing its stake in Zeekr to 62.8% and acquiring Lynk & Co shares to achieve a controlling interest [1]. - The performance of Geely's main brand exceeded expectations, with Q3 2024 sales of 530,000 units, a 19% year-on-year increase [1]. - The report anticipates rapid growth in sales and operational performance over the next two years, driven by the company's electric vehicle transformation and strategic resource integration [1]. Financial Summary - **Revenue**: - 2023A: CNY 179.204 billion - 2024E: CNY 242.975 billion (35.6% YoY growth) - 2025E: CNY 314.136 billion (29.3% YoY growth) - 2026E: CNY 378.165 billion (20.4% YoY growth) [2][6] - **Net Profit**: - 2023: CNY 5.308 billion - 2024E: CNY 16.011 billion (207.3% YoY growth) - 2025E: CNY 13.588 billion (-15.3% YoY growth) - 2026E: CNY 17.539 billion (29.4% YoY growth) [2][6] - **Earnings Per Share (EPS)**: - 2024E: CNY 1.59 - 2025E: CNY 1.35 - 2026E: CNY 1.74 [2][6] - **Price-to-Earnings Ratio (PE)**: - 2024E: 8.1 - 2025E: 9.5 - 2026E: 7.4 [2][6] Sales and Production Outlook - The report projects total sales of 2.15 million, 2.56 million, and 2.89 million units for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 28%, 19%, and 13% [1]. - The share of new energy vehicles is expected to increase to 40%, 54%, and 62% in the same years [1].

Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company has experienced a significant improvement in sales margins in October, although it faces pressure in achieving its annual sales target. For the period from January to October 2024, the company achieved sales of 91 billion yuan, a year-on-year decrease of 24.8%, completing 61.9% of its 2024 sales target of 147 billion yuan [1][4]. - The company is actively acquiring core land reserves and participating in land storage to revitalize assets. In the first ten months of 2024, the company added a total construction area of 1.95 million square meters in key cities such as Guangzhou, Beijing, and Shanghai, with a focus on high-quality land acquisition [2]. - The company’s financial condition remains stable, with a net debt ratio of 58.6% and a cash-to-short-term debt ratio of 1.53 times as of mid-2024, indicating a strong credit advantage [2]. Summary by Sections Sales Performance - In October 2024, the company achieved sales of 13.36 billion yuan, representing a year-on-year increase of 46.8% and a month-on-month increase of 85.3% [1]. Land Acquisition and Asset Management - The company has focused on acquiring land in core first- and second-tier cities, with 62% of the newly added land area located in Guangzhou, Beijing, and Shanghai. The company plans to transfer three plots of land to the Guangzhou Land Development Center for storage, with a total area of approximately 230,000 square meters and a total consideration of about 13.5 billion yuan [2]. Financial Performance - For the first half of 2024, the company reported revenue of 35.34 billion yuan, a year-on-year increase of 10.1%. However, the comprehensive gross margin decreased by 4.0 percentage points to 13.7%, and the net profit attributable to shareholders was 1.83 billion yuan, down 15.9% year-on-year [2]. - The company’s expected basic EPS for 2024-2026 has been revised down to 0.76, 0.91, and 0.95 yuan, respectively, with the current stock price corresponding to a PE ratio of 7.4, 6.2, and 5.9 times for the same period [3].

Investment Rating - Buy (Maintained) [1] Core Views - Geely Auto's Q3 2024 performance met expectations, with a strong new product cycle driving growth [1] - Revenue in Q3 2024 reached RMB 60.378 billion, up 20.50% YoY, with net profit of RMB 2.455 billion, up 92.40% YoY [1] - The Galaxy brand and exports contributed significantly to revenue growth, with Galaxy E5 driving a 51.54% YoY increase in sales [1] - Zeekr's gross margin improved significantly, contributing to stable profitability for the group [1] - The company expects continued growth in Q4 2024 and 2025, driven by new models like the Galaxy L6/L7 and the StarShip 7 [1] Financial Performance Revenue and Profit - 2024E revenue is projected at RMB 216.289 billion, up 20% YoY, with net profit of RMB 16.209 billion, up 214% YoY [1] - 2025E revenue is expected to reach RMB 263.751 billion, with net profit of RMB 12.175 billion [1] - 2026E revenue is forecasted at RMB 311.402 billion, with net profit of RMB 14.540 billion [1] Key Financial Ratios - 2024E ROE is projected at 18%, with a P/E ratio of 8.0x [1] - 2025E ROE is expected to be 12%, with a P/E ratio of 10.6x [1] - 2026E ROE is forecasted at 13%, with a P/E ratio of 8.9x [1] Product and Market Performance - Galaxy brand sales in Q3 2024 reached 72,300 units, up 110.95% YoY, driven by the Galaxy E5 [1] - Exports in Q3 2024 totaled 116,600 units, up 60.25% YoY [1] - The average selling price (ASP) in Q3 2024 was RMB 130,000, up 0.58% YoY [1] Future Outlook - The company plans to launch new models, including the Galaxy L6/L7 and StarShip 7, which are expected to drive further growth [1] - The new Thor EM-i powertrain, with a thermal efficiency of 46.5%, is expected to enhance the performance of upcoming models [1] - The company anticipates continued growth in revenue and profitability, supported by a strong product pipeline and market expansion [1] Financial Projections Balance Sheet - 2024E cash and equivalents are projected at RMB 68.710 billion, up from RMB 36.775 billion in 2023A [2] - 2024E total assets are expected to reach RMB 205.500 billion, up from RMB 192.598 billion in 2023A [2] Income Statement - 2024E operating income is projected at RMB 216.289 billion, with operating profit of RMB 7.282 billion [2] - 2025E operating income is expected to reach RMB 263.751 billion, with operating profit of RMB 11.517 billion [2] Cash Flow - 2024E operating cash flow is projected at RMB 35.017 billion, up from RMB 22.342 billion in 2023A [2] - 2025E operating cash flow is expected to be RMB 21.025 billion [2]

Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company's performance continues to decline, with a slight revenue increase but a significant drop in profitability. For the three months ending September 30, 2024, the unaudited consolidated revenue was approximately RMB 5.154 billion, a 3.1% increase from RMB 4.998 billion in the same period of 2023. However, the gross profit decreased by 12.7% to RMB 1.289 billion from RMB 1.476 billion in the previous year, and the net profit attributable to shareholders fell by 37.3% to RMB 0.357 billion from RMB 0.570 billion [3]. - The decline in performance is primarily attributed to the mining equipment sector, which has faced significant setbacks due to falling coal prices, leading to reduced purchasing intentions from coal enterprises. The company’s revenue from tunneling machines and comprehensive mining equipment has also decreased year-on-year [3]. - New business ventures, including the oil equipment business acquired in 2023, have not met expectations and are currently incurring losses, further dragging down overall performance [3]. Financial Summary - Revenue projections for 2024 and 2025 are estimated at RMB 21.324 billion and RMB 23.229 billion, respectively, reflecting year-on-year growth rates of 5.16% and 8.93% [3]. - The net profit attributable to shareholders is projected to be RMB 1.956 billion in 2024 and RMB 2.231 billion in 2025, with growth rates of 1.38% and 14.09% respectively [3]. - Key financial metrics indicate a net profit margin of 9.17% for 2024, increasing to 10.04% by 2026 [5]. Key Financial Indicators - The company’s revenue for 2023 is reported at RMB 20.278 billion, with a growth rate of 30.52%. The EBITDA for the same year is RMB 2.846 billion, with a projected increase to RMB 3.108 billion in 2024 [4][5]. - The return on equity (ROE) is expected to be 15.24% in 2024, slightly decreasing from 15.94% in 2023 [5]. - The company’s total assets are projected to grow from RMB 34.963 billion in 2023 to RMB 50.266 billion by 2026 [4]. Market Context - The mining equipment market outlook remains uncertain, with the company’s growth heavily reliant on the performance of its mining vehicle products and new product launches [3]. - The report highlights the challenges faced by the coal mining sector, which is expected to continue impacting the company’s performance in the short term [3].

Investment Rating - The report maintains a "Buy" rating for JD Group-SW (9618.HK) [4] Core Insights - JD Group's revenue for Q3 2024 grew by 5.12% year-on-year, with Non-GAAP net profit increasing by 23.85% [1] - The company has announced a new share repurchase plan, benefiting from government subsidies for appliance upgrades [3] - The gross margin continues to improve, with a 1.65 percentage point increase in Q3 2024 [2] Summary by Sections Financial Performance - For the first three quarters of 2024, JD Group achieved revenue of 811.83 billion yuan, a year-on-year increase of 4.27%, and a GAAP net profit of 31.505 billion yuan, up 51.63% [1] - In Q3 2024, the company reported revenue of 260.39 billion yuan, a 5.12% increase year-on-year, and a GAAP net profit of 11.731 billion yuan, up 47.82% [1] Gross Margin and Expenses - The overall gross margin for the first three quarters of 2024 was 16.11%, an increase of 1.18 percentage points year-on-year [2] - The expense ratio for the first three quarters was 12.62%, up 0.34 percentage points year-on-year [2] Share Repurchase and Market Strategy - JD Group repurchased 31 million Class A ordinary shares for a total of 390 million USD in Q3 2024, with a total of 255.3 million shares repurchased for 3.6 billion USD as of September 30, 2024 [3] - The new repurchase plan allows for up to 5 billion USD in share buybacks over the next 36 months [3] Profit Forecast - The profit forecasts for Non-GAAP net profit for 2024, 2025, and 2026 have been raised by 4%, 3%, and 3% respectively, to 45.25 billion yuan, 51.63 billion yuan, and 56.36 billion yuan [4]

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 32.00, indicating a potential upside of 19.63% from the current stock price of HKD 26.75 [1][3]. Core Insights - The company's revenue for Q3 2024 reached USD 2.17 billion, representing a year-on-year growth of 34.0% and a quarter-on-quarter increase of 14.2%, aligning with market expectations [1]. - The production capacity utilization rate has improved to 90.4%, up 13.3 percentage points year-on-year and 5.2 percentage points quarter-on-quarter [1]. - The average selling price (ASP) of wafers reached USD 966, showing a slight year-on-year increase of 0.5% and a quarter-on-quarter rise of 15.5% [1]. - The company anticipates a revenue increase of 0%-2% for Q4 2024, projecting revenue between USD 2.17 billion and USD 2.21 billion, which is above market consensus [1]. - The AI sector is expected to be a major growth driver in the coming year, with domestic substitution demand gradually being released [1]. Summary by Sections Financial Performance - Q3 2024 operating profit was USD 170 million, a year-on-year increase of 94.4%, while net profit attributable to shareholders grew by 58.3% to USD 150 million, with a net profit margin of 6.9% [1]. - The company’s gross margin improved by 6.6 percentage points to 20.5% quarter-on-quarter [1]. - The projected revenue for 2025 is expected to grow by 28.1% year-on-year, reaching USD 8.1 billion [1]. Capacity and Demand - The company plans to add an average of 50,000 pieces of 12-inch wafer capacity annually, with new orders primarily coming from AI edge products [1]. - The total monthly capacity is expected to reach 920,000 equivalent 8-inch wafers by 2025 [1]. Market Position - The company currently holds a 5.5% share in the global wafer foundry market, which is projected to increase to 8.0% by the end of the year [1]. - The report highlights that one-third of the supply chain is expected to complete domestic substitution in the long term [1].

Investment Rating - The report assigns a "Buy" rating for Tencent Holdings with a target price of 540 HKD, indicating a potential upside of 33.9% from the last closing price [1][19]. Core Insights - Tencent's Q3 2024 performance exceeded market expectations, with revenue reaching 167.2 billion RMB, a year-on-year increase of 8% and a quarter-on-quarter increase of 4%. Net profit attributable to shareholders was 54 billion RMB, reflecting a significant year-on-year growth of 47% [1][2]. - The report highlights the effectiveness of Tencent's evergreen game strategy and the promising future of WeChat's small shop initiative, which is expected to enhance the company's e-commerce capabilities [1][14]. Revenue Overview - In Q3 2024, Tencent's revenue from value-added services was 82.7 billion RMB, up 9% year-on-year. Social network revenue grew by 4% to 29.7 billion RMB, driven by music subscription services and mobile game sales [2][3]. - The gaming segment reported domestic revenue of 32.7 billion RMB, a 14% increase year-on-year, primarily due to the success of "Honor of Kings" and "Peacekeeper Elite" [3][8]. - International gaming revenue reached 13.3 billion RMB, marking a 9% year-on-year increase, supported by titles like "PUBG MOBILE" [3][8]. Advertising and Marketing Services - The advertising business upgraded to marketing services, generating 30 billion RMB in Q3 2024, a 17% increase year-on-year, benefiting from growth in video accounts and WeChat search revenues [3][17]. - The report notes that the advertising loading rate is currently below industry standards but has significant growth potential as Tencent enhances its advertising technology [3][17]. Financial Technology and Enterprise Services - Financial technology and enterprise services revenue was 53 billion RMB, reflecting a 2% year-on-year increase. The growth in wealth management services offset declines in payment revenues [3][4]. - The gross margin for financial technology and enterprise services improved to 48%, driven by increased efficiency in cloud services and technology service fees [4]. Game Development Strategy - Tencent's focus on evergreen games aims to maintain player engagement and revenue over the long term. Key titles include "Honor of Kings" and "Peacekeeper Elite," which continue to show strong performance [8][9]. - The report emphasizes the importance of community interaction and continuous content updates in sustaining the success of these games [8][9]. E-commerce Initiatives - WeChat's small shop initiative is highlighted as a critical component of Tencent's e-commerce strategy, with expectations for significant growth as infrastructure and features are enhanced [14][15]. - The report indicates that the integration of WeChat's small shop with the broader ecosystem will facilitate better customer engagement and sales conversion [14][15]. Future Outlook - The report maintains a positive long-term outlook for Tencent's various business segments, anticipating continued robust growth driven by strategic initiatives and market expansion [19].