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].

Investment Rating - The report maintains a "Buy" rating for JD Logistics (2618 HK) with a target price raised to HKD 18.00, indicating a potential upside of 20.6% from the current closing price of HKD 14.92 [1][4][7]. Core Insights - JD Logistics reported a strong performance in Q3, exceeding market expectations, with a projected net profit of over RMB 2 billion for Q4, corresponding to a profit margin of over 4% [1][2]. - The company is expected to enter a relatively stable profit margin phase in 2025, with a projected adjusted net profit of RMB 7.9 billion for 2024, reflecting a 30% increase from previous estimates [2][3]. - The report highlights the company's cost reduction strategies, including product upgrades, network optimization, and increased automation, which have significantly improved profitability [1][2]. Financial Performance Summary - For Q3 2024, JD Logistics achieved a revenue of RMB 44.4 billion, a year-on-year increase of 7%, with a gross profit margin improvement of nearly 4 percentage points to 12% [1][5]. - The adjusted net profit for Q3 was RMB 2.6 billion, approximately double the previous year, resulting in a net profit margin of 5.8%, the highest quarterly level since the company went public [1][3]. - The report projects total revenue for 2024 to reach RMB 180.83 billion, with a profit margin of 4.4% [2][9]. Earnings Forecast Changes - The adjusted net profit forecast for 2024 has been increased to RMB 7.9 billion, with a profit margin of 4.4%, and for 2025, the adjusted net profit is projected at RMB 7.9 billion [3][9]. - Revenue estimates for 2024 and 2025 have been slightly adjusted, with 2024 revenue expected at RMB 180.83 billion and 2025 at RMB 193.08 billion [3][9]. Market Position and Valuation - JD Logistics' market capitalization is approximately HKD 98.86 billion, with a year-to-date stock price increase of 52.56% [4][5]. - The stock has a 52-week high of HKD 16.34 and a low of HKD 6.80, indicating significant volatility and growth potential [4][5].

Investment Rating - The report assigns a "Buy" rating for the company with a target price of HKD 18.3, indicating a potential upside of 20.8% from the last closing price of HKD 15.18 [4]. Core Insights - The company reported a 20.7% year-on-year decline in adjusted net profit for the first half of 2024, with total revenue increasing by 1.0% to HKD 8.57 billion. Excluding COVID-19 impacts, non-COVID revenue grew by 7.7% [1]. - The decrease in profit is attributed to a reduction in high-margin revenue from the R&D segment and the ramp-up phase of overseas factories, leading to a 2.8 percentage point drop in gross margin to 39.1% [1]. - The company has a strong cash position with net cash of HKD 7.37 billion and reported a free cash flow of -HKD 600 million for the first half of 2024 [1]. Summary by Sections Financial Performance - For the first half of 2024, the company’s revenue was HKD 8.57 billion, with a gross profit margin of 39.1%, down from the previous year [1]. - Adjusted net profit decreased by 20.7% to HKD 2.25 billion, with an adjusted profit margin of 26.2% [1]. - The company’s total project count increased by 61 to 742, showcasing its competitiveness in the R&D sector [2]. Project Pipeline - The company has 359 preclinical projects and 311 early-stage clinical projects, indicating a slowdown in the pipeline flow from preclinical to clinical stages [2]. - The XDC project segment saw significant growth, with revenue increasing by 88.1% to HKD 1.61 billion, contributing 18.8% to total revenue [2]. - The company’s WuXiBody platform projects increased to 50, reflecting recognition from major international firms [2]. Market and Policy Impact - A recent U.S. legislative proposal could potentially impact about 2% of the company’s total projects, introducing uncertainty into future operations [2]. - The company has initiated a share buyback program, repurchasing approximately 130 million shares at a cost of about HKD 1.94 billion [2]. Valuation Metrics - The report projects revenue growth from HKD 17.03 billion in 2023 to HKD 22.24 billion by 2026, with a compound annual growth rate (CAGR) of 11.2% [3]. - The forecasted earnings per share (EPS) is expected to decline from HKD 0.82 in 2023 to HKD 0.75 in 2024, before recovering to HKD 0.97 by 2026 [3]. - The company’s price-to-earnings (P/E) ratio is projected to be 16.8 in 2024, reflecting a valuation adjustment due to the anticipated profit decline [3].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [6]. Core Insights - The company achieved profitability for the first time since its listing, with a significant increase in gross profit margin and a strong performance in its gaming and advertising segments [1][2]. - The gaming revenue reached 1.82 billion HKD in Q3 2024, representing a year-on-year growth of 84%, driven by the success of the game "Three Kingdoms: Strategy of the World" [1]. - Advertising revenue also saw a robust increase of 28% year-on-year, totaling 2.09 billion HKD in Q3 2024, supported by enhanced capabilities in the e-commerce sector [1]. Financial Performance Summary - In Q3 2024, the company reported revenue of 7.31 billion HKD, a year-on-year increase of 16%, and a Non-GAAP net profit of 236 million HKD, marking a turnaround from losses [1]. - The gross profit margin improved to 34.9%, up 9.88 percentage points year-on-year, with gross profit increasing by 76% to 2.55 billion HKD [1]. - The company plans to repurchase up to 200 million USD of its publicly traded securities over the next 24 months, enhancing shareholder returns [1]. User Engagement and Community Development - The company reported an average of 107 million daily active users in Q3 2024, a 4% increase year-on-year, with an average usage time of 106 minutes per day, up 6% [1]. - Monthly interactions within the community reached 19.3 billion, reflecting a 14% year-on-year growth, indicating a healthy ecosystem [1]. Future Projections - Revenue forecasts for 2024, 2025, and 2026 are projected at 26.74 billion HKD, 31.21 billion HKD, and 34.76 billion HKD, respectively [2]. - Non-GAAP net profits are expected to improve significantly, with projections of -0.07 billion HKD in 2024, 2.24 billion HKD in 2025, and 3.76 billion HKD in 2026 [2].

Investment Rating - The report maintains a "Buy" rating for Tencent (700.HK) and raises the target price to HKD 500, indicating a potential upside of 24% from the current price of HKD 403.80 [7][11][19]. Core Insights - Tencent's 3Q24 revenue reached RMB 167.2 billion, a year-on-year increase of 8.0%, aligning with market expectations. Adjusted net profit rose by 33% year-on-year to RMB 59.8 billion, exceeding market expectations by 10% [5][6]. - Domestic gaming revenue rebounded with a 14% year-on-year growth to RMB 37.3 billion, driven by flagship games like "Honor of Kings" and "Peacekeeper Elite." International gaming revenue also grew by 9% year-on-year to RMB 14.5 billion, supported by strong performances from "PUBG MOBILE" and "Brawl Stars" [6][7]. - The WeChat ecosystem continues to evolve, with advertising revenue increasing by 17% year-on-year to RMB 30 billion, primarily driven by video accounts and mini-programs. Financial technology and enterprise services revenue grew by 2% year-on-year to RMB 53.1 billion, although it fell short of expectations [7][8]. Financial Performance Summary - For FY24E, Tencent's revenue is projected to reach RMB 655.5 billion, with adjusted net profit expected to be RMB 212.5 billion, reflecting a growth rate of 34.8% [9][12]. - The gross margin improved by 3.6 percentage points year-on-year to 53.1%, while the adjusted net profit margin increased to 35.8%, showing improvements both year-on-year and quarter-on-quarter [5][6]. - Deferred revenue grew by 22% year-on-year, indicating strong future growth potential in gaming [6][7]. Market Position and Outlook - The report highlights Tencent's strong competitive position in the domestic gaming market and the ongoing enhancements in its WeChat ecosystem, which are expected to drive future growth [6][7]. - The target price adjustment reflects a positive outlook on Tencent's profitability and ongoing share buybacks, which are anticipated to provide strong support for the stock price [7][8].

Investment Rating - The report assigns an "Outperform" rating to the company, indicating a positive outlook on its future performance [4] Core Views - The company is a leading domestic AI technology service provider, leveraging large language models, NLP, deep machine learning, and cloud computing to offer Model-as-a-Service (MaaS) and Business-as-a-Service (BaaS) solutions [1] - MaaS focuses on decision-making AI, helping businesses digitize their KYC and KYP processes, while BaaS uses generative AI for intelligent customer interaction and transaction facilitation [1] - The company's services are widely applied across industries such as banking, consumer finance, insurance, e-commerce, automotive, logistics, and energy [1] Financial Performance - In 2023, the company achieved revenue of approximately RMB 2.68 billion, a 31% YoY increase, with MaaS revenue at RMB 891 million (17% YoY growth) and BaaS revenue at RMB 1.79 billion (38% YoY growth) [2] - The company maintained a high gross margin of 73% in 2023, with operating profit reaching RMB 347 million, a 48% YoY increase [4] - In H1 2024, revenue grew 6% YoY to RMB 1.32 billion, with BaaS revenue increasing 11% YoY to RMB 900 million, while MaaS revenue declined 2% YoY to RMB 421 million [4] Business Segments - MaaS is the company's core business, generating stable cash flow through model output and evaluation services, with over 7,000 clients and 165 core clients in H1 2024 [6] - BaaS is the company's second growth curve, utilizing generative AI for intelligent marketing and operations, supporting over 50 million daily intelligent voice communications with a semantic understanding accuracy rate exceeding 97% [7] - BaaS financial cloud revenue grew 20% YoY in H1 2024, while BaaS insurance cloud revenue declined 3% YoY [4] Market Potential - The company is expanding its BaaS model into new sectors such as healthcare, with plans to deploy multi-modal AvatarGPT in non-financial retail scenarios like hotels, malls, and airports [8] - The company expects BaaS to facilitate transactions exceeding RMB 200 billion, with increasing bargaining power as user data and profiles expand [8] Share Repurchase - The company expanded its share repurchase plan to HKD 375 million, demonstrating confidence in its business prospects and commitment to creating shareholder value [10] Valuation and Forecast - The report forecasts 2024-2026 revenue of RMB 2.89 billion, RMB 3.26 billion, and RMB 3.76 billion, with YoY growth rates of 7.92%, 12.56%, and 15.48%, respectively [11] - Net profit is expected to be RMB 291 million, RMB 387 million, and RMB 495 million for 2024-2026, with EPS of RMB 0.59, RMB 0.79, and RMB 1.01 [11] - The company's 2025E PE is estimated at 18-20x, with a fair value range of HKD 15.44-17.15 [11]