Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 48.96, equivalent to 14 times the expected EV/EBITDA for 2025 [1]. Core Views - The company's Q3 2024 performance met expectations, with a net revenue increase of 10.5% year-on-year, although it decreased by 2.3% quarter-on-quarter [1]. - The introduction of smart gaming tables and the launch of new products are expected to help the company regain market share, which is estimated to exceed 20% [1][2]. - The company has a strong balance sheet and management execution capabilities, contributing to confidence in its long-term development [1]. Financial Summary - Total net revenue for 2022 was HKD 11,474 million, with a significant increase to HKD 35,683.6 million in 2023, and projected revenues of HKD 43,358.2 million for 2024 [2]. - EBITDA for 2023 was HKD 9,955 million, with forecasts of HKD 12,278.2 million for 2024 and HKD 14,220.4 million for 2025, indicating a growth trend [2]. - Net profit for 2023 was HKD 6,828 million, with projections of HKD 9,166.4 million for 2024 and HKD 10,301.6 million for 2025, reflecting a positive outlook [2]. Operational Highlights - The company's EBITDA margin is expected to improve, with rates projected at 28.3% for 2024 and 29.9% for 2025 [2]. - The occupancy rates for the "Galaxy Macau™" and StarWorld Hotel were reported at 98% and 100%, respectively, indicating strong demand [1]. - The company plans to continue expanding its offerings, including the development of new hotel brands and entertainment facilities [1].

Investment Rating - The investment rating for the company is "Buy" and is maintained [6][8]. Core Views - The company achieved a revenue of 42.87 billion CNY in Q3 2024, representing a year-on-year increase of 23.6%, and a net profit attributable to shareholders of 2.81 billion CNY, a slight decrease of 0.3% year-on-year [3][4]. - In Q3 2024, the company sold 153,000 vehicles, with an average selling price of approximately 270,000 CNY, marking a year-on-year increase in sales volume of 45.4% and a quarter-on-quarter increase of 40.8% [3][4]. - The L6 model accounted for nearly 50% of total sales, with a monthly average sales volume of 51,000 units [3][4]. - The gross margin improved to 21.5% in Q3, driven by economies of scale, with vehicle gross margin at 20.9% [4]. - The company expects Q4 2024 deliveries to be between 160,000 and 170,000 units, representing a year-on-year growth of 21.4% to 29.0% [4][6]. Summary by Sections Financial Performance - Q3 2024 revenue was 42.87 billion CNY, with vehicle sales revenue of 41.32 billion CNY, showing a year-on-year increase of 22.9% [3][4]. - The net profit (GAAP) for Q3 was 2.81 billion CNY, while the non-GAAP net profit was 3.84 billion CNY, reflecting a year-on-year increase of 10.6% [4][6]. Sales and Production - The company sold 153,000 vehicles in Q3 2024, with the L6 model contributing 75,000 units, L7 at 34,000 units, L8 at 19,000 units, L9 at 22,000 units, and MEGA at 2,000 units [3][4]. - The average selling price decreased by 49,000 CNY year-on-year and by 9,000 CNY quarter-on-quarter [3][4]. Future Outlook - The company has a clear product roadmap with plans for new models and an expanding retail network, aiming to increase retail centers to 800 by the end of the year [5][6]. - Projected net profits for 2024-2026 are 8.1 billion, 14.68 billion, and 20.08 billion CNY respectively, with corresponding PE ratios of 23.1X, 12.8X, and 9.3X [6].

Investment Rating - The report maintains a "Buy" rating for Leap Motor (9863.HK) and raises the target price to HKD 43.2, indicating a potential upside of 27% [1][5]. Core Insights - Leap Motor's Q3 automotive sales saw significant growth, with a notable improvement in gross margin. The company anticipates reaching a sales target of 500,000 new energy vehicles next year, driven by new models and overseas sales growth [1][2]. - The current price-to-sales ratio for Leap Motor is 0.9x, which is considered attractive compared to other comparable new energy vehicle manufacturers [1][3]. Summary by Sections Financial Performance - In Q3, Leap Motor achieved revenue of RMB 9.86 billion, a year-on-year increase of 74% and a quarter-on-quarter increase of 84%. The gross margin for Q3 was 8.1%, up 6.9 percentage points year-on-year and 5.3 percentage points quarter-on-quarter [2][8]. - The company expects continued improvement in gross margin in Q4, potentially exceeding the annual target of 5% [2][3]. Sales and Production Outlook - Leap Motor's sales target for next year is set at 500,000 units, with a gross margin target of 10%. The average selling price of vehicles is expected to improve due to increased sales of the C16 model [3][9]. - The company plans to launch three new B-series models next year, with the B10 expected to start deliveries in April [3][4]. Valuation - The valuation is based on a sum-of-the-parts approach, applying a price-to-sales ratio of 0.9x for automotive sales and 2.0x for services and other income, leading to a target price of HKD 43.2 [3][10]. - The report highlights that Leap Motor's historical average price-to-sales ratio since its listing is 0.9x, indicating that the current valuation is in line with historical performance [11].

Investment Rating - The report maintains a "Buy" rating for Geely Automobile [4][10]. Core Views - Geely Automobile is actively transforming into the new energy vehicle (NEV) sector, with three major brands targeting different market segments. The company is transitioning from a technology investment phase to a product output phase, with a robust new car launch plan that includes nine key NEV models across various price ranges [8][14]. - The report forecasts significant sales growth for Geely, projecting total sales of 2.143 million and 2.782 million vehicles for 2024 and 2025, respectively, representing year-on-year growth of 30.0% and 29.8% [2][10]. Summary by Sections 1. Introduction: Sales Potential from New Car Plans - Geely's three brands—Galaxy, Lynk & Co, and Zeekr—are positioned for the NEV market, focusing on cost-effectiveness, personalization, and high-end smart electric vehicles [14]. - The company aims to cover a wide price range with new models, enhancing its market presence [14]. 2. New Car Plans Progressing Smoothly 2.1 Galaxy Brand: Expanding Market Coverage - The Galaxy E5 and Star Wish models have been launched, targeting the A-class SUV and A0-class sedan markets, with competitive pricing [6][29]. - The Galaxy E5 achieved sales of 12,230 units in its first month, indicating strong market acceptance [6][21]. 2.2 Zeekr Brand: Accelerating Model Matrix Expansion - Zeekr has increased its new car release cadence, with models like Zeekr 009 and Zeekr X contributing to a sales increase from 72,000 units in 2022 to 119,000 units in 2023, a growth of 65.0% [6][10]. - Future models like Zeekr 7X and Zeekr MIX are expected to further enhance sales [6]. 2.3 Lynk & Co Brand: Transitioning to NEV - Lynk & Co has launched its first native NEV architecture, with significant sales growth in 2023 and 2024 [6][10]. - The brand's NEV sales reached 96,000 units in the first eight months of 2024, a year-on-year increase of 449.6% [6][10]. 3. Profit Forecast and Investment Recommendations - The report projects total sales for Geely from 2024 to 2026 to be 2.143 million, 2.782 million, and 3.280 million vehicles, with corresponding revenues of 239.03 billion, 325.52 billion, and 395.69 billion yuan [10]. - The expected earnings per share (EPS) for the same period are 1.63, 1.26, and 1.64 yuan, with a three-year compound annual growth rate (CAGR) of 45.8% [10].

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1][2][5]. Core Insights - The company is backed by Luye Pharma, showcasing strong capabilities in research, production, and commercialization of large molecules, including biosimilars and innovative antibodies [1][4][8]. - The biosimilar segment is positioned for rapid growth, with several products already approved in China and plans for international expansion [1][15]. - The innovative drug pipeline includes promising candidates such as BA1106 and BA1302, which have significant market potential [3][4][12]. Summary by Sections Company Overview - The company was established in 2013 and is indirectly 67.28% owned by Luye Pharma Group, with a well-balanced executive team experienced in production, research, and commercialization [1][4][8]. Biosimilars - The company has a leading position in the biosimilar market, with products like Bevacizumab and Dexamethasone approved in China, and plans for international clinical trials [1][15]. - The biosimilar products are ranked favorably in both Chinese and U.S. markets, indicating strong commercial prospects [15]. Innovative Drugs - The innovative drug pipeline includes BA2101, a long-acting IL4R monoclonal antibody, and BA1106, a novel anti-CD25 monoclonal antibody, both of which are in advanced clinical stages [4][12]. - The company has successfully established partnerships for its innovative drugs, enhancing its market presence [12]. Financial Projections - Revenue forecasts for 2024-2026 are projected at 720 million, 1.02 billion, and 1.49 billion RMB, respectively, with net profits expected to turn positive by 2024 [1][5][12]. - The company has recently achieved its first profit, demonstrating improved cost efficiency and operational effectiveness [12].

Investment Rating - The investment rating for China Pacific Insurance (02328.HK) is "Outperform the Market" [1][2][9]. Core Views - The rapid growth in electric vehicle sales has significantly boosted the demand for electric vehicle insurance, although challenges such as high premiums and underwriting losses persist due to changes in owner demographics, high repair barriers, and insufficient data [2][9]. - China Pacific Insurance is leveraging its market position to build a comprehensive risk protection system for electric vehicles, achieving notable advantages in data reserves, marketing models, product offerings, and claims services [2][9]. - The company expects that as the electric vehicle industry matures and renewal rates improve, the loss ratio will stabilize, positively impacting the overall combined ratio (COR) [2][9]. Summary by Sections Electric Vehicle Insurance Development Status - The number of electric vehicles in China has surged from 1.11 million in 2020 to 7.13 million by September 2024, with a compound annual growth rate (CAGR) of 59% [3]. - China Pacific Insurance has seen a continuous growth in the number of electric vehicle policies, maintaining a growth rate of around 60% from 2020 to 2023, with a compound annual growth rate of premiums at 86.4% from 2021 to 2023, significantly outpacing the industry average [3]. Challenges in Electric Vehicle Insurance - The current claims ratio for electric vehicles is approximately 1.4 times that of traditional fuel vehicles, with occurrence rates about 2.5 times higher, leading to lower underwriting profitability [4][5]. - Factors contributing to high claims include a higher proportion of operational vehicles, a younger customer base with less driving experience, and high repair costs due to limited repair channels and expensive parts [5][6]. Competitive Advantages of China Pacific Insurance - The company has established a specialized team for electric vehicle pricing, utilizing extensive global data to enhance risk identification and pricing strategies [7]. - It has developed a comprehensive service network covering all urban and rural areas in China, ensuring robust post-sale support [7]. - The claims process is optimized through a dedicated team of electric vehicle claims experts and partnerships with over 660 repair facilities [7]. Future Outlook - As the electric vehicle market matures, the loss ratio and claims are expected to improve, aided by increased customer conversion and renewal rates, which will enhance data accumulation for better risk modeling and pricing [8][9].

Investment Rating - The report assigns an **Overweight** rating to the company, with a target price of RMB 10 [1][3] Core Views - The company is positioned as a leading player in the global kitchenware market, leveraging its product development capabilities, brand strength, and flexible supply chain [2][3] - The company has achieved rapid revenue and profit growth, with revenue increasing from RMB 675 million in 2021 to RMB 1,583 million in 2023, representing a CAGR of 53.1% [3][4] - Adjusted net profit grew from RMB 32 million in 2021 to RMB 243 million in 2023, with a CAGR of 177% [3][4] - The company's gross margin improved from 18.7% in 2021 to 35.7% in 2023, and further to 41.6% in Q1 2024 [3][4] Business Model and Strategy - The company operates primarily through a **DTC (Direct-to-Consumer)** model, with Amazon, Walmart, and Tmall being its key sales platforms, accounting for over 85% of revenue [3][42] - The company has a diversified product portfolio, with over 2,500 SKUs covering cookware, kitchenware, and drinkware [29][38] - The company has transitioned from OEM to ODM and finally to its own brand, CAROTE, which now accounts for 90% of its revenue [3][36] - The company has a flexible, asset-light supply chain model, similar to SHEIN, which allows for rapid product turnover and cost efficiency [4][29] Market Position and Competitive Advantages - The company ranks among the top five in the online cookware market in key regions, including China (4th), the US (2nd), Western Europe (3rd), Southeast Asia (2nd), and Japan (3rd) [4][29] - The company has a strong presence in the US market, which accounted for 60% of its revenue in Q1 2024, followed by China at 19% [3][46] - The company's product development capabilities are a key competitive advantage, with an average development cycle of 50 days for core cookware products, significantly faster than industry standards [32][37] Financial Performance - Revenue is expected to grow from RMB 2,232 million in 2024 to RMB 4,020 million in 2026, with a CAGR of 33% [19][20] - Net profit is projected to increase from RMB 350 million in 2024 to RMB 643 million in 2026, with a CAGR of 35% [19][20] - The company's ROE improved significantly from 44.9% in 2021 to 166.8% in Q1 2024, driven by higher profitability and asset turnover [55][56] Industry Overview - The global kitchenware market is expected to grow from USD 107 billion in 2023 to USD 120.5 billion in 2028, with a CAGR of 2.4% [4][63] - Cookware, kitchenware, and drinkware are the main segments, with cookware accounting for 28.9% of the market in 2023 [4][63] - The US, China, and Western Europe are the largest markets, accounting for 16.7%, 25.5%, and 22.8% of the global cookware market, respectively [68][69] Risks and Challenges - The company faces risks related to third-party platform operations, international trade friction, and increasing industry competition [4] - The company's reliance on Amazon and other e-commerce platforms exposes it to potential changes in platform policies and fees [4][42]

Investment Rating - The report maintains a "Buy" rating for China Pacific Insurance (02328.HK) [1] Core Views - The report emphasizes the need for a developmental mindset to address the challenges of transforming and upgrading the new energy vehicle insurance sector [3] - It highlights the increasing penetration of new energy vehicles and the expected growth in insurance premiums, projecting that by 2025, the premium scale for new energy vehicle insurance will reach 194.7 billion, accounting for approximately 20.1% of total vehicle insurance premiums [2][3] - The report outlines the company's proactive approach in implementing green insurance innovations and developing a comprehensive risk management model that covers the entire lifecycle of vehicles [3] Summary by Relevant Sections Earnings Forecast and Valuation - Insurance service revenue is projected to grow from 424.4 billion in 2022 to 569.8 billion by 2026, with a compound annual growth rate (CAGR) of approximately 7.5% [1] - The net profit attributable to shareholders is expected to increase from 29.2 billion in 2022 to 34.5 billion by 2026, reflecting a recovery after a decline in 2023 [1] - The return on equity (ROE) is forecasted to stabilize around 12% in the coming years [1] New Energy Vehicle Insurance Insights - The report identifies that the claims ratio for new energy vehicle insurance is significantly higher, approximately 2.5 times that of traditional fuel vehicles, due to factors such as high operational vehicle ratios and a younger customer demographic [2][3] - It notes that the company has achieved underwriting profitability for new energy household commercial insurance as of January to October 2024, indicating a positive trend in the sector [3] Strategic Initiatives - The company is focusing on new products, technologies, and business models to better meet the needs of vehicle owners and adapt to industry trends [3] - The report discusses the company's commitment to enhancing its capabilities in pricing, operations, innovation, and risk management to support the growth of new energy vehicle insurance [3]

Investment Rating - The report assigns an "Accumulate" rating to Yihai International [5] Core Viewpoints - Yihai International has successfully reduced its reliance on related party revenue, with third-party revenue accounting for 66% in H1 2024, indicating a shift towards independent growth [1][29] - The company is expanding its product lines, leveraging the Haidilao brand for hot pot base and developing sub-brands for diversified offerings, achieving a CAGR of 20% for hot pot seasonings and 68% for convenience foods from 2017 to 2023 [2][20] - Organizational reforms and market penetration strategies are enhancing operational efficiency and driving overseas market growth, with a CAGR of 37.4% in overseas business from 2017 to 2023 [3] Summary by Sections 1. Traditional Hot Pot Seasoning Leader, Expanding into Compound and Convenience Foods - Yihai International, established in 2005, is the largest supplier of mid-to-high-end hot pot seasonings in China, originally a supplier for Haidilao [12] - The company has diversified its product offerings, with hot pot seasonings, compound seasonings, and convenience foods contributing to stable revenue growth [20] - The revenue structure is stabilizing, with hot pot seasonings, compound seasonings, and convenience foods accounting for 67%, 10%, and 23% of total revenue in 2023, respectively [20] 2. Low Barriers and Intensifying Competition in the Market - The hot pot seasoning market is experiencing a compound annual growth rate (CAGR) of 12% from 2019 to 2023, driven by the popularity of hot pot dining [35] - The market is characterized by low technical barriers and intense competition, leading to a long-tail distribution of brands and significant product homogeneity [35] 3. Yihai's Advantages: Leveraging Haidilao Brand and Operational Efficiency - The company benefits from a concentrated shareholding structure, with key stakeholders having extensive experience in the food industry, enhancing management stability [30][32] - Yihai International is utilizing the operational expertise gained from Haidilao to improve its own management and operational efficiency [32] 4. Profit Forecast and Valuation - The projected revenue for Yihai International for 2024, 2025, and 2026 is estimated at 67.79 billion, 76.63 billion, and 85.65 billion RMB, respectively, with corresponding net profits of 8.25 billion, 9.64 billion, and 10.89 billion RMB [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company achieved a record monthly delivery of 38,177 vehicles in October, representing a year-on-year growth of 109.7% and a month-on-month increase of 13.1%. The total cumulative sales from January to October reached 211,000 vehicles, up 97.2% year-on-year [4][5]. - The company is in a strong new vehicle cycle with plans to launch 2-3 new products annually over the next three years, including the B10 model debuting at the Paris Auto Show. The T03 and C10 models have already been launched overseas [5][6]. - The company is expanding its marketing network under the "1+N" model, with 474 sales stores and 328 service stores covering 187 cities as of June 2024. It is also increasing investment in intelligent driving technology [5][6]. - The partnership with Stellantis aims to leverage global resources for efficient overseas expansion, with projected sales of 300,000, 500,000, and 750,000 vehicles for the years 2024 to 2026 respectively [6]. Summary by Sections Sales Performance - October deliveries reached 38,177 vehicles, marking a historical high with a year-on-year growth of 109.7% and a month-on-month growth of 13.1%. The single-month orders exceeded 42,000 vehicles, indicating strong demand [4][5]. Product Development - The company is set to launch multiple new models, including three B-series vehicles priced between 100,000 to 150,000 RMB by 2025. The T03 and C10 models are already available in international markets [5][6]. Market Expansion - The company is enhancing its marketing and service network, with significant growth in sales and service locations. The focus on intelligent driving technology is expected to bolster future sales [5][6]. Strategic Partnerships - The collaboration with Stellantis is designed to facilitate a low-investment, rapid expansion into global markets, with a focus on high profitability per vehicle sold [6].