Investment Rating - The report maintains an "Accumulate" rating for the company [2][4]. Core Views - The company is expected to achieve a revenue of approximately 6.469 billion RMB in the fiscal year 2024, with a downward adjustment for the fiscal years 2025 and 2026 to 7.188 billion RMB and 7.967 billion RMB respectively [4]. - The adjusted net profit for fiscal year 2024 is projected to be around 2.105 billion RMB, with slight downward adjustments for the following years [4]. - The report highlights that the company has experienced a significant decline in net profit expectations for fiscal year 2024, primarily due to anticipated decreases in tuition fees and potential policy changes affecting international students in Australia [4]. Financial Summary - Revenue growth rates are projected to be 37.00% for 2020, 37.50% for 2021, 29.15% for 2022, and gradually decreasing to 10.83% by 2026 [1]. - The adjusted net profit growth rates are expected to be 28.73% for 2020, 57.13% for 2021, and tapering to 8.95% by 2026 [1]. - The price-to-earnings (PE) ratio is forecasted to decrease from 27.47 in 2020 to 4.77 by 2026, indicating a potential increase in valuation attractiveness over time [1].

Investment Rating - The report maintains a **Buy** rating for FIT Hon Teng with a target price of **HK$4.25**, representing a **64.8% upside** from the current price of HK$2.58 [3][13] Core Views - FIT Hon Teng's **3Q24 revenue and net profit** grew by **1% and 24% YoY**, respectively, driven by improved product mix, cost control, and operational efficiency [1][2] - The company's **net profit margin (NPM)** recovered to **5.8% in 3Q24**, up from 1.1% and 2.0% in 1Q24 and 2Q24, respectively, supported by high-margin AI server products [1][2] - The **GB200 AI server products** are expected to start **small-volume shipments in 4Q24**, with mass production anticipated in **1Q25**, driving revenue growth in connectors, cooling, and power-related products [2][3] - The report forecasts **FY24E revenue and net profit growth** of **12% and 42% YoY**, respectively, with further improvements in operating efficiency and margins [2][13] Financial Performance - **FY24E revenue** is projected at **$4,677 million**, a **11.5% YoY increase**, while **FY25E revenue** is expected to grow **30.8% YoY** to **$6,117 million** [4][9] - **FY24E net profit** is estimated at **$183.5 million**, a **41.6% YoY increase**, with **FY25E net profit** expected to grow **62.8% YoY** to **$298.7 million** [4][9] - The **gross profit margin (GPM)** is expected to improve to **21% in FY24E**, up from **19% in FY23**, driven by better product mix and cost control [9][16] - **Operating profit margin (OPM)** is forecasted to increase to **7.0% in FY24E**, compared to **6.3% in FY23**, with further improvement to **7.7% in FY25E** [9][16] AI Server Opportunity - The **GB200/GB300 AI server revenue** is estimated to reach **$885.9 million** in a bull case scenario, with **$422.4 million** in a base case and **$191.3 million** in a bear case [11] - Key components contributing to AI server revenue include **connectors/cables**, **power/thermal solutions**, and **NVLink copper cables/connectors**, with FIT Hon Teng holding a **20% share** in connectors/cables and **5% in power/thermal solutions** [11] - The **HGX/MGX AI server revenue** is projected at **$76.7 million** in a bull case, with **$61.9 million** in a base case and **$47.0 million** in a bear case [12] Valuation - The target price of **HK$4.25** is based on a **13x FY25E P/E**, reflecting the company's growth potential and margin recovery [13] - The current share price implies a **12.9x FY24E P/E** and **7.9x FY25E P/E**, which is considered attractive given the company's growth prospects [13][14] - The **ROE** is expected to improve to **10.8% in FY25E**, up from **7.3% in FY24E**, driven by higher profitability and operational efficiency [4][20] Catalysts - Key catalysts include the **mass production of GB200 server products**, progress in the **Auto Kabel acquisition**, updates on **AirPods production in Vietnam/India**, and further **margin improvements** [3][13]

Investment Rating - The report maintains a "BUY" rating for FIT Hon Teng with a target price of HK$4.25, indicating a potential upside of 64.8% from the current price of HK$2.58 [3][10][11]. Core Insights - FIT Hon Teng reported a 3Q24 revenue growth of 1% and net profit growth of 24% year-over-year, aligning with prior guidance. The company achieved a net profit margin recovery to 5.8% in 3Q24, significantly improved from 1.1% in 1Q24 and 2.0% in 2Q24, driven by higher-margin AI server products and better expense control [1][5]. - The outlook for 4Q24E is positive, with expectations for the GB200 AI server products to begin small volume shipments and mass production starting in 1Q25E. The report anticipates a revenue rebound of 12% and net profit growth of 42% year-over-year for FY24E [1][10]. Financial Performance Summary - For 3Q24, revenue was reported at US$1,174 million, with a net profit of US$68 million, reflecting a year-over-year growth of 0.8% and 23.9% respectively. For the first nine months of 2024, revenue and net profit grew by 9.9% and 118.8% year-over-year [5][13]. - The forecast for FY24E includes revenue of US$4,677 million and net profit of US$183 million, with respective year-over-year growth rates of 11.5% and 41.8% [6][13]. Earnings Forecasts - The report projects revenue growth for FY25E to reach US$6,117 million, representing a 30.8% increase year-over-year, and net profit is expected to grow to US$298 million, a 62.8% increase [6][13]. - The company is expected to maintain a gross profit margin of 20.6% and an operating margin of 7.0% for FY24E, with improvements anticipated in subsequent years [15]. Market Position and Strategy - FIT Hon Teng is positioned to benefit from the rollout of GB200 server products and ongoing mergers and acquisitions in the mobility sector. The report highlights the importance of product qualifications and updates on various projects, including AirPods production in Vietnam and India [1][10]. - The company's strategy includes a focus on high-margin AI server products, which are expected to drive significant revenue growth in the coming quarters [1][8].

Investment Rating - Buy (First-time rating) with a target price of HKD 40.53 [2][4] Core Investment Thesis - The company is a leader in the packaged water and sugar-free tea industries, benefiting from rising health consciousness among consumers. Its flagship products, natural water and Oriental Leaf, have driven strong financial performance, with revenue and profit CAGR of 23% and 32% respectively from 2020 to 2023 [3] - The launch of "Green Water" has mitigated the impact of negative publicity on the company's core water business, with short-term pressure on gross margins expected to ease over the medium to long term [3] - The sugar-free tea market, led by Oriental Leaf, has significant growth potential, with penetration rates expected to rise to 50%-60% in the future [3] - The company is well-positioned to capture opportunities in emerging categories such as sports drinks and ready-to-drink coffee, leveraging its platform advantages [3] Financial Projections - Revenue is expected to grow from CNY 44.98 billion in 2024 to CNY 60.53 billion in 2026, with a CAGR of 14.9% [6] - Net profit attributable to shareholders is projected to increase from CNY 11.88 billion in 2024 to CNY 16.54 billion in 2026, with a CAGR of 18% [6] - The company's PE ratio is forecasted to decline from 27x in 2024 to 20x in 2026, reflecting strong earnings growth [4] Packaged Water Business - The packaged water industry is driven by health-conscious trends and expanding consumption scenarios, with long-term growth potential [12] - The company holds a leading market share in packaged water, with a 17.4% volume share and 23.6% value share in 2023 [21] - The launch of "Green Water" has impacted gross margins, but the company's strong brand and channel advantages are expected to stabilize market share and margins over time [36][37] Tea Beverage Business - The sugar-free tea market is poised for significant growth, with Oriental Leaf expected to double in size due to rising health awareness and favorable industry trends [3] - The company's tea beverage business has a strong competitive edge, with a leading gross margin and a well-established brand and supply chain [49][50] - Oriental Leaf's market share is expected to remain stable, supported by product innovation and competitive pricing [55] Other Beverage Categories - The company is focusing on high-growth segments such as sports drinks and ready-to-drink coffee, leveraging its platform advantages to capture market share [3] - The functional beverage and juice categories have shown steady growth, with the company outperforming industry averages [56] - The company is streamlining its product portfolio to improve efficiency and profitability, with a focus on zero-sugar and natural products [57][58] Industry Trends - The packaged water industry is expected to continue growing, driven by increasing per capita consumption and health-conscious trends [12][13] - The sugar-free tea market is projected to expand significantly, with penetration rates expected to rise to 50%-60% in the coming years [3][46] - Emerging categories such as ready-to-drink coffee and functional beverages present new growth opportunities for the company [57][58]

Investment Rating - The report maintains a "Buy" rating for the company [2][4]. Core Views - The company reported a revenue of $6.075 billion for the first three quarters of 2024, a year-on-year increase of 1.5%, with a gross margin of 24.2% and a net profit attributable to shareholders of $332 million, reflecting a significant year-on-year increase of 140.9% [2]. - The manufacturing segment showed strong performance with a revenue of $4.136 billion, up 9.0% year-on-year, driven by increased demand for footwear products [2]. - The retail segment faced challenges with a revenue decline of 11.6% year-on-year, but effective cost control measures helped improve profitability [2]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of $2.060 billion, a 12.5% increase year-on-year, with a gross margin of 24.1% [2]. - The net profit for Q3 2024 was $147 million, up 172.3% year-on-year [2]. - The overall net profit margin for the first three quarters was 5.5%, an increase of 3.2 percentage points year-on-year [2]. Manufacturing Business - The manufacturing business maintained a high capacity utilization rate of 92%, significantly up from 76% in the previous year [2]. - The footwear shipment volume increased by 16.2% year-on-year, although the average selling price decreased by 6.8% to $20.24 per pair [2]. - The net profit attributable to shareholders from the manufacturing segment was $302 million for the first three quarters, reflecting a year-on-year increase of 174.2% [2]. Retail Business - The retail segment's revenue was 139.84 billion RMB, down 9.5% year-on-year, with a notable decline in foot traffic in physical stores [2]. - The gross margin for the retail business improved to 34.0%, a year-on-year increase of 0.9 percentage points [2]. - The operating profit margin for the retail segment was 3.7%, up 0.4 percentage points year-on-year [2]. Future Projections - The company expects revenues of $8.441 billion, $8.834 billion, and $9.256 billion for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 7.0%, 4.7%, and 4.8% [2]. - Projected net profits for the same years are $448 million, $482 million, and $535 million, with growth rates of 63.0%, 7.6%, and 11.0% [2]. - The price-to-earnings ratio (P/E) is projected to be 8, 8, and 7 for the next three years, indicating a favorable valuation [2].

Investment Rating - The investment rating for the company is "Outperform" [1] Core Views - The company reported a revenue of $8.708 billion for the first three quarters of 2024, representing a year-on-year growth of 3% [4] - Adjusted net profit for the same period was $796 million, up 8% year-on-year [4] - In Q3 2024, revenue reached $3.071 billion, a 5% increase year-on-year, with adjusted net profit growing by 20% to $297 million [4] - The diluted EPS for Q3 2024 was $0.77, reflecting a 33% increase compared to the previous year [4] Revenue and Profitability - The company’s same-store sales improved sequentially, with overall sales growth of 4%, 6% for KFC, and 2% for Pizza Hut [4] - The same-store sales declined by 3%, 2%, and 6% for overall, KFC, and Pizza Hut respectively, indicating a recovery to approximately 88% of 2019 levels, an improvement of about 1 percentage point from Q2 [4] - KFC and Pizza Hut's order volumes increased by 1% and 4%, while average transaction prices decreased by 3% and 9% respectively [4] Store Expansion and Performance - As of Q3 2024, the total number of restaurants reached 15,861, with net additions of 1,189 stores in the first three quarters [4] - KFC had 11,283 stores, with net additions of 352 in Q3, while Pizza Hut had 3,606 stores, with 102 net additions [4] - The proportion of new stores in lower-tier cities was 58% for KFC and 60% for Pizza Hut, with franchise stores accounting for 27% and 7% respectively [4] Digitalization and Shareholder Returns - The company is advancing digitalization and delivery services, with over 510 million combined members for KFC and Pizza Hut, and member sales accounting for 64% of total sales [4] - Digital orders contributed $2.61 billion, representing 90% of restaurant revenue [4] - Delivery sales grew by 18% year-on-year, making up approximately 40% of restaurant revenue [4] - The shareholder return plan has been increased by 50%, targeting $4.5 billion from 2024 to 2026 [4] Cost Control and Efficiency - The company has successfully reduced costs, with employee costs, property rents, and other operating expenses decreasing as a percentage of restaurant revenue [4] - The cost of materials and consumables accounted for 31.7% of restaurant revenue, up 0.6 percentage points year-on-year [4] - Employee costs represented 25.1% of restaurant revenue, down 0.2 percentage points year-on-year [4] Financial Forecast and Valuation - The company is expected to achieve net profits of $901 million, $963 million, and $1.048 billion for 2024, 2025, and 2026 respectively, with growth rates of 8.9%, 6.9%, and 8.9% [4] - The estimated reasonable value range for the stock is between HKD 354.0 and HKD 432.7 per share based on a PE ratio of 18-22 times for 2025 [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 45, corresponding to a market capitalization of HKD 595 billion, based on a 1x 2025 estimated price-to-sales ratio [4][5]. Core Insights - The company achieved impressive sales performance in Q3, delivering 86,165 vehicles, representing a year-on-year growth of 94% and a quarter-on-quarter growth of 62%. Revenue for Q3 increased by 74.3% to RMB 9.86 billion, driven by the introduction of higher-priced models and improved cost management [1][2]. - The gross margin for Q3 significantly exceeded expectations, rising to 8.1%, a year-on-year increase of 6.9 percentage points, with gross profit doubling to approximately RMB 800 million [1][3]. - The company is expected to exceed its annual sales target of 250,000 vehicles, with Q4 sales projected to surpass 110,000 units due to ongoing trade-in policies and new model launches [2][3]. Summary by Sections Sales Performance - In Q3, approximately 78.3% of the vehicles sold were from the C series, indicating an improved product mix. Monthly sales have shown consistent growth, with October sales reaching 38,177 units [2]. - The company plans to launch three new B series models in 2025, which are expected to contribute significantly to sales growth [2]. Production Capacity - The current production capacity at the Jinhua factory is nearly maxed out at around 40,000 units per month. A new factory in Hangzhou is under construction, aiming for production in the first half of 2025, with plans for a third factory to be operational by late 2025 or early 2026 [2][3]. Financial Projections - The company anticipates achieving a gross margin of over 5% for the full year, with Q1-Q3 gross margin averaging 4.8%. Projections for 2025 suggest an average gross margin of around 9% [3][4]. - Revenue forecasts for 2024-2026 are estimated at RMB 32.24 billion, RMB 55.05 billion, and RMB 81.72 billion, respectively, with net profit margins expected to improve from -9% in 2024 to 2% in 2026 [4][10]. Market Expansion - The company has set an overseas sales target of 8,000 to 12,000 units for 2024, with plans for localized production in Europe by the end of 2025. The establishment of 339 dealerships in Europe has already surpassed initial targets [3][4].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a revenue of approximately HKD 91.793 billion for the first three quarters of 2024, representing a year-on-year growth of 12.04% [3]. - The net profit for the same period was approximately HKD 13.036 billion, an increase of 12.77% year-on-year [3]. - The company has a robust order backlog of HKD 418.26 billion, ensuring stable performance growth [3]. - The operating profit for Q3 was approximately HKD 4.466 billion, reflecting a year-on-year growth of 17.77% [3]. - The new signed contracts reached HKD 167.99 billion in the first three quarters of 2024, marking a year-on-year increase of 19.7% [4]. - The Hong Kong government has set ambitious infrastructure goals, which are expected to drive future growth in the market [4]. - The company is expanding its MiC (Modular Integrated Construction) business in mainland China, achieving coverage in major cities [5]. - The projected dividend yield for 2024 is approximately 5.4%, highlighting the company's dividend attributes [5]. Summary by Sections Financial Performance - Revenue for the first three quarters of 2024 was approximately HKD 91.793 billion, with a growth of 12.04% year-on-year [3]. - Net profit for the same period was approximately HKD 13.036 billion, an increase of 12.77% year-on-year [3]. - Q3 operating profit was approximately HKD 4.466 billion, reflecting a growth of 17.77% year-on-year [3]. Order and Project Pipeline - The company has an order backlog of HKD 418.26 billion, ensuring stable performance growth [3]. - New signed contracts in the first three quarters of 2024 reached HKD 167.99 billion, a year-on-year increase of 19.7% [4]. - The successful bid for the Hong Kong New Territories West reclamation project, with a total contract value of HKD 61.1 billion, contributed to the new order growth [4]. Market Outlook - The Hong Kong government's infrastructure goals, including the development of the Northern Metropolis, are expected to create significant opportunities for the company [4]. - The company is expanding its MiC business, achieving coverage in major cities such as Beijing, Guangzhou, and Shanghai [5]. - The projected dividend yield of approximately 5.4% for 2024 indicates a strong dividend profile for investors [5].

Investment Rating - The report maintains an "Accumulate" rating for the company [5][3]. Core Views - The revenue for the first three quarters of 2024 reached 698 million, representing a year-on-year growth of 29.9%. Product revenue grew by 45.0%, with a gross margin of 86.0%, driven primarily by the high-margin product, Orelabrutinib [5][3]. - The net loss narrowed to 285 million, a reduction of 254 million year-on-year, attributed to cost control measures [5]. - The company has a strong cash reserve of approximately 7.8 billion, indicating robust liquidity [5]. - The revenue forecast for 2024-2026 has been revised upwards to 989 million, 1.33 billion, and 1.81 billion respectively, from previous estimates of 963 million, 1.316 billion, and 1.781 billion [5]. Summary by Sections Revenue and Growth - Orelabrutinib's revenue for Q1-Q3 2024 was 693 million, with a year-on-year increase of 30%. The quarterly breakdown shows revenues of 164 million, 254 million, and 276 million, with year-on-year growth rates of 9%, 49%, and 76% respectively [5]. - The inclusion of the exclusive indication for MZL in the medical insurance system has led to accelerated sales growth [5]. Pipeline Development - The company is progressing well in its pipeline, with several innovative products expected to launch in the next 1-3 years. The domestic ITP Phase III registration clinical trial for Orelabrutinib is expected to complete enrollment by Q1 2025 [5]. - The company has also initiated international Phase III clinical trials for PPMS and plans to start SPMS trials in H1 2025 [5]. - The BLA for Tafasitamab for r/r DLBCL has been accepted, with approval expected in 2025 [5]. Financial Performance - The financial summary indicates a significant increase in operating income from 1.04 billion in 2023 to projected figures of 989 million, 1.33 billion, and 1.81 billion for 2024, 2025, and 2026 respectively [7]. - The gross profit is expected to rise from 610 million in 2023 to 856 million in 2024, with net losses projected to decrease over the next few years [7].

Investment Rating - The report maintains a "Buy" rating for China Water Affairs (855 HK) with a target price of HKD 6.10, reflecting a potential upside of 29.1% from the current price of HKD 4.73 [3][11]. Core Insights - The company has adjusted its development strategy following the suspension of its plan to spin off its water supply and pipeline drinking water businesses, focusing on strengthening operational management to reduce capital expenditures. This shift is expected to lead to a decline in non-cash construction revenue contributions from the water supply and pipeline drinking water segments [1]. - The company has initiated price adjustment applications for over 20 water supply projects, which represent about one-third of its total water supply capacity. The price adjustments are anticipated to start reflecting in FY26 [2]. - The reduction in cash outflows for investment activities during FY25-27, along with favorable financing conditions due to declining domestic and international interest rates, is expected to provide the company with more room to increase its dividend payout ratio [2]. Financial Summary - Revenue is projected to decline from HKD 12,859 million in FY24 to HKD 11,044 million in FY25, with a further decrease to HKD 10,991 million in FY26 and HKD 10,642 million in FY27, reflecting growth rates of 9.6%, -14.1%, -0.5%, and -3.2% respectively [5]. - Shareholder net profit is expected to decrease from HKD 1,534 million in FY24 to HKD 1,319 million in FY25, with slight recoveries to HKD 1,328 million in FY26 and HKD 1,307 million in FY27, showing growth rates of -17.4%, -14.0%, and 0.7% respectively [5]. - The earnings per share (EPS) is forecasted to be HKD 0.94 in FY25, HKD 0.81 in FY26, and HKD 0.80 in FY27 [5][6]. Adjustments to Forecasts - The report has revised down the forecasts for shareholder net profit by 16.6% for FY25 and 23.3% for FY26, while introducing a new forecast for FY27 [2][6]. - The target price has been adjusted from HKD 6.30 to HKD 6.10, reflecting the updated market conditions and risk assessments [2].