Investment Rating - The report maintains a "Buy" rating for the US and Hong Kong stocks of BeiGene, with target prices adjusted to $255 and HK$153 respectively. The A-share rating is downgraded to "Hold" with a target price of RMB 181 [1][3][7]. Core Insights - The report highlights that BeiGene's total revenue for Q3 2024 reached $1.002 billion, representing a year-over-year increase of 28.2% and a quarter-over-quarter increase of 7.8%. Product revenue was $993 million, up 66.9% year-over-year and 7.8% quarter-over-quarter, slightly below expectations due to lower-than-expected sales of Zanubrutinib in the US [1][3][4]. - The global sales of Zanubrutinib in Q3 2024 amounted to $690 million, a 93.0% increase year-over-year and an 8.3% increase quarter-over-quarter. US sales were $504 million, up 86.5% year-over-year, while European sales surged by 217.2% year-over-year to $97.3 million [1][3][4]. - The report notes a temporary decline in gross margin due to accelerated depreciation from new production lines, with an overall product gross margin of 82.8% in Q3 2024 [1][3][4]. Financial Performance Summary - For Q3 2024, the adjusted non-GAAP operating profit was $65.63 million, an improvement from $48.46 million in Q2 2023. The net loss for the quarter was $121 million, which aligns with expectations but is lower than previous forecasts due to slightly lower revenue gross margins and higher R&D expenses [1][3][4]. - The report projects a slight reduction in revenue forecasts for 2024, with net losses adjusted to $740 million for 2024 and $350 million for 2025, while estimating a near breakeven point by 2026 [3][4]. R&D Pipeline Progress - The report indicates that BeiGene's R&D pipeline is progressing well, with key focus areas including BCL2, BTK CDAC, and CDK4 inhibitors. The BCL2 project has enrolled over 1,300 patients, with several trials expected to complete enrollment by early 2025 [2][3][4]. - The company anticipates that by the end of 2024, a total of 12 solid tumor products will enter clinical trials, with 8 already initiated this year [2].

Investment Rating - The report maintains a "Buy" rating for Zai Lab (ZLAB.US/9688.HK) and slightly lowers the target price to $55 for US shares and HK$43 for Hong Kong shares [1][4]. Core Insights - In Q3 2024, Zai Lab's net loss significantly narrowed to $41.67 million, a decrease of 39.7% year-over-year and 48.1% quarter-over-quarter, primarily due to lower-than-expected selling and administrative expenses [1]. - Product revenue for Q3 2024 reached $101.8 million, representing a 47% year-over-year increase and a 1.7% quarter-over-quarter increase, aligning with consensus expectations [1]. - The gross margin for product sales was stable at 64.1%, with a slight decrease of 0.8 percentage points quarter-over-quarter [1]. - The company continues to see strong growth in Efgartigimod, with Q3 2024 revenue of $27.3 million, a remarkable increase of 458% year-over-year and 17.6% quarter-over-quarter [1]. - Zai Lab has achieved approximately 65% market potential coverage for Efgartigimod, with around 10,000 myasthenia gravis patients having used the drug, and a stable monthly addition of about 1,000 new patients [1]. Financial Summary - The report projects a narrowing of net loss to $260 million for 2024, with slight adjustments to the 2025 and 2026 net loss and profit forecasts based on updated financial information [1][4]. - Revenue forecasts for 2024, 2025, and 2026 are $402 million, $651 million, and $995 million respectively, with year-over-year growth rates of 50.6%, 62.2%, and 52.8% [4][5]. - The report anticipates that Zai Lab will continue to expand its product pipeline, with several key drugs expected to be commercialized in China by the end of 2024 and early 2025 [1][4]. Market Expectations - The current stock price for Zai Lab is $29.0, with a potential upside of 90% to the target price of $55.0 [2]. - The stock has a 52-week price range of $13.4 to $36.6, and the total market capitalization is approximately $2.885 billion [2]. - For the Hong Kong shares, the current price is HK$23.4, with a potential upside of 84% to the target price of HK$43.0 [3].

Investment Rating - The report maintains a BUY rating for Tencent with a target price of HK$525.0, representing a 30% upside from the current price of HK$403.80 [3][7]. Core Insights - Tencent's total revenue for 3Q24 increased by 8% YoY to RMB167.2 billion, aligning with consensus estimates. Non-IFRS operating profit grew by 19% YoY to RMB61.3 billion, also in line with expectations. The company anticipates continued earnings growth in 4Q24, driven by accelerating game revenue and resilient marketing performance [1][2]. - Game revenue growth accelerated in the second half of 2024, with a 13% YoY increase to RMB51.8 billion in 3Q24. Domestic game revenue rose by 14% YoY, primarily due to strong performance from DnF Mobile, while international game revenue grew by 9% YoY [1][2]. - Marketing services revenue showed solid momentum, increasing by 17% YoY to RMB30.0 billion in 3Q24, driven by strong demand for Video Accounts, Mini Programs, and Weixin Search [1][2]. - The Fintech and Business Services (FBS) segment experienced a 2% YoY revenue growth to RMB53.1 billion in 3Q24, reflecting a deceleration due to soft consumption sentiment [1][2]. Financial Summary - For FY24E, Tencent's revenue is projected to reach RMB655.999 billion, with an adjusted net profit of RMB224.394 billion and an adjusted EPS of RMB23.17 [2][4][17]. - Gross margin is expected to improve from 48.1% in FY23A to 53.2% in FY24E, with operating margin increasing from 32.0% to 32.8% [2][4][17]. - The adjusted net profit forecast for FY25E is RMB241.929 billion, with an adjusted EPS of RMB24.98 [2][4][17]. Valuation Breakdown - The SOTP-derived target price of HK$525.0 includes valuations for various segments: HK$202.9 for online games, HK$30.4 for SNS, HK$102.6 for marketing services, HK$84.5 for fintech, HK$22.6 for cloud, and HK$68.8 for strategic investments [7][8][9][10][11]. - The valuation reflects Tencent's strong market position and growth potential across its diverse business segments [7][8][9][10][11]. Peer Comparison - Tencent's valuation metrics are competitive within the online games and advertising sectors, with an average PE of 18x for online games and 19x for marketing services compared to its peers [13][14]. - The report highlights Tencent's leadership in the digital payment market and its potential for growth in fintech, supported by a premium valuation compared to industry averages [10][14].

Investment Rating - The report maintains a **BUY** rating for FIT Hon Teng (6088 HK) with a new target price of **HK$4.38**, representing a **40% upside** from the current price of HK$3.14 [2][16] Core View - The report is optimistic about FIT Hon Teng's growth prospects, driven by strong **3-year guidance (2025-27)** with a **20% revenue CAGR** and **GPM/OPM targets of 22%/8% by FY27E** [2] - Key growth drivers include **AI server/networking** (GB200 ramp-up, product portfolio expansion), **Auto-Kabel Group integration**, and **AirPods production capacity expansion** in India [2] - The company's **3Q24 results** were in-line with expectations, showing **accelerated margin recovery** with **GPM at 21.7%** and **OPM at 8.2%**, despite weakness in the EV segment [3] Financial Performance - For **FY24E**, the report estimates **revenue growth of 9% YoY** and **net profit growth of 43% YoY**, driven by **high single-digit revenue growth** and **GPM of 20%+** [3] - The company's **FY25-27E guidance** includes a **20% revenue CAGR**, with **GPM/OPM targets of 22%/8%**, supported by growth in **AI server, mobility, and audio products** [4] - **FY25E revenue** is projected at **US$5,896 million**, with **net profit of US$308.1 million**, representing a **67.2% YoY growth** [6] Valuation - The stock is trading at **9.3x/7.1x FY25/26E P/E**, which is considered attractive given the **67%/31% EPS growth** projected for FY25/26E [5] - The new target price of **HK$4.38** is based on a **13x FY25E P/E**, reflecting confidence in the company's **"3+3 Strategy"** and **profitability recovery** [16] Growth Drivers - **AI Server/Networking**: FIT Hon Teng is expected to benefit from **GB200 AI server component orders**, with **power busbar and CDU liquid cooling connectors** starting delivery in **4Q24E** [4] - **Auto-Kabel Integration**: The integration of Auto-Kabel is expected to close soon, contributing **meaningful revenue in FY25E** [4] - **AirPods Production**: The first production line in India is on track for **mass production in early FY25E**, with a second line to begin construction in **1H25E** [4] Revenue Breakdown - **Networking revenue** is expected to grow **59% YoY in FY24E**, driven by **AI server and traditional server growth** [11] - **Mobility revenue** is projected to grow **56% YoY in FY24E**, supported by **EV business and Voltaira contributions** [11] - **AirPods revenue** is expected to reach **US$591.6 million in FY25E**, growing significantly from **US$233.75 million in FY24E** [11] Scenario Analysis - The report provides a **bull, base, and bear scenario** for FIT's **AI server revenue in 2025**, with **total NVDA AI server revenue** ranging from **US$238.3 million (bear)** to **US$962.6 million (bull)** [13][14][15]

Investment Rating - The report maintains a "Buy" rating for Hong Teng Precision (6088.HK) [1] Core Views - Strong demand for AI is driving high growth in network infrastructure revenue, with a focus on backplane connections and optical module certification progress [1] - The company expects stable revenue growth over the next three years, with a compound annual growth rate (CAGR) of 20% anticipated from 2024 to 2027 [1] - The automotive business revenue is below guidance due to overall industry weakness, while network infrastructure revenue is expected to maintain high double-digit growth [1] Summary by Sections Financial Performance - In Q3 2024, the company reported a net profit of $170 million, a year-on-year increase of 1% [1] - Revenue guidance for the full year aligns with market expectations, with a projected revenue growth of 8% [1] - The company’s gross profit margin improved to 21.7%, a decrease of 0.6 percentage points year-on-year [1] Business Segments - Revenue from network infrastructure grew by 65.98% year-on-year, while the automotive segment saw a decline of 11.15% [1] - The company anticipates that the revenue contribution from AI, EV, and audio segments will continue to grow, with expected contributions of 30% and 40% from network infrastructure [1] Future Outlook - The company is focusing on three main business areas: 5G AIoT, EV, and audio, which are expected to drive revenue growth [1] - New products in optical and power solutions are set to be delivered in Q4 2024, with significant sales growth anticipated [1] - The company is also expanding its electric vehicle charging station production in Saudi Arabia through a joint venture [1] Profitability and Valuation - The report forecasts net profits of $176 million, $271 million, and $376 million for 2024, 2025, and 2026 respectively, reflecting a strong growth trajectory [2] - The expected earnings per share (EPS) for 2024 is projected at $0.024, with a price-to-earnings (P/E) ratio of 12 [2][3]

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][10]. Core Viewpoints - The company reported a slight revenue decline of approximately 1.2% year-on-year for the first three quarters of 2024, while the net profit attributable to the parent company increased by about 5.1% year-on-year. The healthcare business is showing steady development [2][3]. - The forecast for net profit attributable to the parent company for 2024-2026 is projected to be 2.108 billion, 2.281 billion, and 2.481 billion respectively, with year-on-year growth rates of 4.3%, 8.2%, and 8.8%. The current stock price corresponds to a PE ratio of 4.1, 3.8, and 3.5 times for the respective years [2][10]. - The company has significant potential for value reconstruction in its healthcare business, and its valuation is considered cost-effective, justifying the "Outperform the Market" rating [2][10]. Revenue and Profitability - For the first half of 2024, the company achieved a revenue of 6.543 billion (a decrease of 2.9%), with healthcare business revenue of 3.888 billion, representing a year-on-year increase of 3.6%, accounting for 59.4% of total revenue. The net profit for the first half was 1.252 billion, up 4.8%, with the healthcare business contributing 271 million, a growth of 16.3% [3][4]. - The overall operational status of the healthcare institutions is good, with outpatient and emergency visits increasing by approximately 4.9% and total discharges rising by about 6.7%. The average length of hospital stay has decreased to 9.8 days, and bed occupancy rates remain high at around 90% [7]. Financial Performance - The financial business generated a total income of 2.667 billion in the first half of 2024, a year-on-year decline of 10.7%. The average yield on interest-earning assets was 6.70%, with an average cost of interest-bearing liabilities at 3.84%, resulting in a net interest margin of 3.42% [4][6]. - The gross profit margin for the first half of 2024 was 34.6%, reflecting a 0.5 percentage point increase, attributed to a stable proportion of comprehensive medical income and an increase in the proportion of higher-margin equipment management business [7][9]. Valuation Metrics - The company’s valuation metrics indicate a PE ratio of 4.1 for 2024, 3.8 for 2025, and 3.5 for 2026, suggesting a favorable valuation compared to peers [10]. - The company has completed acquisitions of Shandong University of Traditional Chinese Medicine Affiliated Eye Hospital and Shandong Qingniao Ruantong, enhancing its operational capabilities [7].

证券研究报告 纺织服饰 | 服装家纺 港股|首次覆盖报告 hyzqdatemark 2024 年 11 月 13 日 证券分析师 羽绒服饰头部国牌，聚焦核心主业持续快速发展。公司成立于 1976 年，前期以代工 业务为主；自 1995 年起不断蕴育出波司登、雪中飞、冰洁等羽绒品牌，进入快速增 长阶段；2018 年，公司提出"聚焦主航道，收缩多元化"战略，将发展重心移向主 品牌。公司高管团队均具备丰富经验，带领公司在近年中实现营收及利润稳增长， 并不断在国际舞台展示创新产品，巩固公司品牌形象。 丁一 SAC：S1350524040003 dingyi@huayuanstock.com | --- | --- | |------------------------------------|-----------| | | | | 基本数据 收盘价（港元） | 4.28 | | 一年内最高/最低（港 元） | 5.14/3.05 | | 总市值（百万港元） | 47,487.74 | | 流通市值（百万港元） | 47,487.74 | | 资产负债率（%） 资料来源：聚源数据 | 46.38 | 波司登(0399 ...

Investment Rating - The report maintains a "Buy" rating for Yum China (9987 HK) [3] Core Views - Yum China's Q3 2024 revenue reached $3 07 billion, up 5% YoY (or 4% at constant exchange rates), with net profit attributable to shareholders increasing by 22% YoY (or 21% at constant exchange rates) [1] - The company's same-store sales decline narrowed sequentially, with KFC and Pizza Hut showing improvements in customer traffic and pricing strategies [1][12] - Yum China has accelerated its store expansion, adding 1 217 net new stores in the first three quarters of 2024, with Q3 alone adding 438 stores [2][14] - The company has raised its shareholder return plan for 2024-2026 from $3 billion to $4 5 billion, reflecting a 50% increase [2][20] Store Operations and Efficiency - Yum China's restaurant-level margin remained stable at 17 0% in Q3 2024, with KFC and Pizza Hut margins at 18 3% and 12 8%, respectively [2][18] - The company has improved operational efficiency, with salary and employee benefits as a percentage of restaurant revenue decreasing by 0 2 percentage points YoY [2] - Yum China is focusing on cost optimization, with rent and other costs as a percentage of restaurant revenue decreasing by 0 4 percentage points YoY [2] Strategic Transformation - Yum China is increasing the proportion of franchised stores, with KFC and Pizza Hut aiming for 40%-50% and 20%-30% of new stores to be franchised, respectively [3][23] - The company has introduced new store models, including KFC Town Mini stores and Pizza Hut WOW stores, which have lower investment thresholds and better unit economics [3][29] - K Coffee, a high-value coffee brand, has expanded rapidly from 100 stores in March to approximately 500 stores, with plans to reach 600 stores by the end of 2024 [3][32] Financial Projections - The report raises Yum China's net profit forecasts for 2024-2026 to $895 million, $957 million, and $1 051 billion, respectively, reflecting upward revisions of 4%, 3%, and 2% [3] - The current stock price implies a forward P/E ratio of 21x, 19x, and 18x for 2024-2026, respectively [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][2] Core Views - The report highlights the excellent results from the Phase III clinical trial of Pimicotinib (ABSK021) for the indication of tenosynovial giant cell tumor, indicating strong efficacy and safety [1] - The company has entered into an exclusive licensing agreement with Merck for Pimicotinib, which is expected to enhance commercialization prospects [2] - Revenue forecasts for 2024 and 2025 have been revised upwards to 547 million and 636 million CNY respectively, with a projected net profit of 3 million and 28 million CNY for the same years [2] Summary by Sections Clinical Trial Results - The Phase III trial of Pimicotinib showed an overall response rate (ORR) of 54.0% compared to 3.2% in the placebo group, with a best ORR of 85.0% and a median treatment duration of 20 months [1] - The drug demonstrated good tolerability with a low rate of treatment discontinuation due to adverse events [1] Financial Projections - The company's revenue estimates for 2024 and 2025 have been increased significantly due to the promising trial results and the licensing agreement with Merck [2] - The projected net profit for 2026 is estimated at 1.3 million CNY [2] Pipeline Development - The report mentions ongoing clinical trials for other drug candidates, including ABSK011 and ABSK043, indicating a robust pipeline and continued research and development efforts [1]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company's operational performance is stable overall, with expectations for improved performance in 2024 [1] - Sales in October showed a significant improvement, with a total sales amount of 116 billion RMB, a month-on-month increase of 65.5% [1] - The company has maintained a moderate land acquisition strategy, acquiring 7 plots of land in key cities, with a total land price of 9.2 billion RMB [1] Summary by Sections Sales Performance - For the period from January to October 2024, the company achieved a cumulative sales amount of 75 billion RMB, a year-on-year decrease of 38.5% [1] - The sales area was 4.12 million square meters, down 39% year-on-year, while the average sales price was 18,211 RMB per square meter, up 0.8% year-on-year [1] Subsidiary Performance - In the first half of 2024, the company reported revenue of 21.98 billion RMB, a year-on-year decline of 18%, but the net profit attributable to shareholders increased by 133.3% to 1.01 billion RMB [2] - The subsidiary Shanghai Jinmao Investment Management Group significantly contributed to the company's performance, with a net profit of 1.95 billion RMB in the first three quarters, a year-on-year increase of 260.5% [2] Financial Health - As of mid-2024, the company maintained a healthy financial position with a debt-to-asset ratio of 67.7% and a net debt ratio of 77.4% [3] - The company issued medium-term notes totaling 5 billion RMB at a low interest rate of 2.8%, highlighting its credit advantage [3] Earnings Forecast and Valuation - The earnings forecast for 2024-2026 has been revised upwards to 1.61 billion RMB, 1.79 billion RMB, and 2.50 billion RMB respectively [3] - The current stock price corresponds to a PE ratio of 8.9, 8.0, and 5.7 for the years 2024-2026, indicating a favorable valuation [3]