Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company's net profit for the first three quarters of 2024 reached 26.75 billion, a year-on-year increase of 38%, showing significant improvement compared to a decline of 8.7% in the first half of the year [4]. - The total investment income was 27.498 billion, an increase of 11.358 billion year-on-year, with an annualized total investment return rate of 4.4%, up by 1.7 percentage points [4]. - The insurance service revenue for the first three quarters was 364.306 billion, growing by 5.3% year-on-year, with a slight improvement from 5.1% in the first half [4]. - The comprehensive cost ratio for the first three quarters was 98.2%, up by 0.3 percentage points year-on-year, with the non-auto insurance cost ratio at 100.5%, indicating underwriting losses [5]. - The core solvency ratio stood at 201.6%, exceeding industry peers and regulatory requirements, providing a strong foundation for future dividend capabilities [5]. - The company is expected to benefit from improved asset-liability dynamics and valuation upside despite short-term pressures from natural disasters and market fluctuations [5]. Summary by Sections Financial Performance - Net profit for Q1-Q3 2024: 26.75 billion, +38% YoY [4] - Total investment income: 27.498 billion, +11.358 billion YoY [4] - Insurance service revenue: 364.306 billion, +5.3% YoY [4] Cost and Solvency - Comprehensive cost ratio: 98.2%, +0.3 percentage points YoY [5] - Core solvency ratio: 201.6%, above industry standards [5] Market Outlook - Positive outlook on asset-liability improvements and valuation growth potential [5]

Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported a steady growth in revenue, with the main brand showing a single-digit year-on-year increase, while the Saucony brand experienced over 50% growth. The revenue performance aligns with expectations [3]. - Inventory levels remain healthy, with a stock-to-sales ratio of approximately 4 months, consistent with the previous quarter. The discount level is at 75%, which is considered healthy, indicating that the overall discount and inventory levels are leading the industry [4]. - Looking ahead, the company is expected to perform well in Q4 with a favorable consumption trend in October, and the professional sports brand Saucony is anticipated to continue its high growth, contributing positively to performance. Despite short-term consumer pressure, the separation of KP is expected to enhance earnings [4]. Summary by Sections Retail Data - The company released its Q3 retail data, indicating that the main brand's revenue grew in single digits year-on-year, while Saucony's revenue grew by over 50%, meeting expectations [3]. Inventory and Discounts - The inventory remains healthy with a stock-to-sales ratio of about 4 months, and the discount level is at 75%, which is considered a healthy benchmark in the industry [4]. Future Outlook - The company is projected to achieve net profits of 1.275 billion, 1.462 billion, and 1.620 billion yuan for the years 2024, 2025, and 2026 respectively, reflecting year-on-year growth rates of 24%, 15%, and 11%. The current price corresponds to P/E ratios of 11, 10, and 9 times for the respective years [4][6].

Investment Rating - The report maintains a "Buy" rating for CNOOC Services with a target price of HKD 9.17 [3]. Core Views - The company's Q3 performance was slightly pressured due to the suspension of orders from the Middle East and typhoon impacts, but the overall growth trajectory remains positive supported by strong industry demand [2]. - Revenue for the first three quarters of 2024 reached CNY 33.661 billion, a year-on-year increase of 14.1%, while net profit attributable to shareholders was CNY 2.445 billion, up 7.5% year-on-year [3]. - The drilling platform utilization rate has declined, but the ship and geophysical exploration segments have seen year-on-year growth in operational volume [3]. - The company has secured contracts for two of the four suspended drilling platforms, with operations expected to resume in Q3 and Q4 [3]. Summary by Sections Financial Performance - In Q3 2024, the company achieved revenue of CNY 11.133 billion, a year-on-year increase of 4.7% but a quarter-on-quarter decrease of 10.1%. Net profit for Q3 was CNY 0.852 billion, down 8.8% year-on-year and 10.9% quarter-on-quarter [3]. - The drilling segment operated for 13,166 days in the first three quarters, a slight decrease of 0.5% year-on-year, with self-elevating platforms increasing by 2.0% to 10,595 days [3]. Market Outlook - The global oilfield services market is projected to grow by 7.1% in 2024, with strong investment growth in offshore oil and gas development expected to continue [3]. - The company anticipates improved utilization rates for drilling platforms as the impact of typhoons diminishes and new contracts are secured [3].

Investment Rating - The report maintains a "Buy" rating for Yum China (YUMC.US/9987.HK) with a target price of HKD 479.7 for the Hong Kong-listed shares and USD 61.5 for the US-listed shares [2][3] Core Views - Yum China's 3Q24 operating profit growth exceeded expectations due to cost reduction and efficiency improvements [2] - The company's flexible operational strategies and strong management capabilities are driving improved same-store sales and continued cost optimization [2] - Yum China plans to increase shareholder returns from USD 3 billion to USD 4.5 billion for 2024-2026, which is expected to boost market sentiment [2] Same-Store Sales Outlook - Same-store sales are expected to trend positively in 2025, with KFC likely to return to positive same-store sales growth and Pizza Hut narrowing its decline [2] - KFC's average check is expected to remain stable, while Pizza Hut's average check may face downward pressure due to the increasing proportion of WOW stores [2] Cost Optimization and Efficiency - Despite declining average checks, restaurant-level margins remained flat YoY in 3Q24, and operating margins expanded by 1.0ppt [2] - The company expects cost optimization efforts to continue, though the marginal benefits may weaken in 2025 [2] - Management aims to maintain the administrative expense ratio below 5% in the medium to long term [2] Franchise Expansion - Yum China plans to accelerate franchise development, with franchise stores expected to account for 40%-50% of KFC's net new openings and 20%-30% of Pizza Hut's net new openings [2] - The franchise model is seen as complementary to company-owned stores, helping to expand into new markets and regions [2] - Franchise stores are expected to achieve operating margins comparable to company-owned stores, with strict controls in place to ensure operational quality and food safety [2] Financial Performance and Forecasts - Revenue is projected to grow from USD 11,352 million in 2024E to USD 13,041 million in 2026E, with net income attributable to shareholders increasing from USD 919 million to USD 1,059 million over the same period [6] - The company's EV/EBITDA multiple is expected to decline from 9.9x in 2024E to 8.4x in 2026E, reflecting improved profitability and efficiency [6] Market Sentiment and Valuation - The report highlights a potential upside of 27.3% for Yum China's US-listed shares and 24.3% for its Hong Kong-listed shares based on the target prices [3][4] - The company's market capitalization stands at USD 8,386 million, with a 3-month average daily trading volume of USD 144.9 million [3]

Investment Rating - The report maintains a "Buy" rating for China General Nuclear Power (1816.HK) with a target price of HKD 3.80, corresponding to a 2024 earnings valuation of 15.8 times [1][4]. Core Views - The report highlights a steady performance in the third quarter, with a year-on-year increase in electricity generation of 4.97%, reaching 166.89 billion kWh, and a revenue increase of 4.06% to CNY 62.37 billion [1][2]. - The company is expected to maintain stable growth in electricity generation and performance, driven by new approved nuclear units [1][2]. - The report notes that the average market transaction price for electricity remained stable, with a slight decrease of approximately 1 cent to CNY 0.39 per kWh [2]. - The approval of new nuclear projects and the steady progress of ongoing projects are seen as positive growth drivers, with the company currently having 16 nuclear units under construction [2][4]. Financial Summary - For FY 2024, the projected revenue is CNY 88.28 billion, reflecting a growth rate of 6.95%, with net profit expected to reach CNY 12.06 billion, a growth rate of 12.46% [3][7]. - The gross profit margin is projected to improve to 36.62% in FY 2024, with a net profit margin of 13.66% [3][9]. - The report indicates a stable increase in cash flow from operating activities, with net cash flow expected to reach CNY 33.12 billion in FY 2023 [8].

Investment Rating - The investment rating for BYD Electronics is "Buy" (maintained) [1] Core Views - The company has shown significant quarter-on-quarter improvement in performance and is expected to achieve growth through multiple avenues, including consumer electronics, automotive electronics, and AI [3][2] - The acquisition of Jabil has introduced financial costs and impairments, but the overall market demand in consumer electronics and automotive sectors is expected to drive revenue growth [3] Financial Forecasts and Valuation - Total revenue is projected to increase from 107.92 billion CNY in 2022 to 191.65 billion CNY by 2026, reflecting a compound annual growth rate (CAGR) of approximately 20.49% to 11.00% [1] - Net profit attributable to shareholders is expected to rise from 1.86 billion CNY in 2022 to 7.63 billion CNY by 2026, with a notable increase of 117.56% in 2023 [1][3] - The latest diluted EPS is forecasted to grow from 0.82 CNY in 2022 to 3.39 CNY in 2026, indicating strong earnings growth potential [1] - The P/E ratio is projected to decrease from 37.86 in 2022 to 9.22 by 2026, suggesting an attractive valuation as earnings grow [1] Business Segments and Growth Drivers - The consumer electronics segment is expected to benefit from new product launches and the integration of AI technologies, with significant contributions from tablet and smartphone sales [3] - The automotive electronics segment is poised for growth due to the parent company's increasing vehicle sales and the introduction of advanced features such as smart cockpit systems and sensors [3] - The AI segment is anticipated to expand as global demand for AI computing power rises, with collaborations with NVIDIA to develop comprehensive AI solutions [3]

Investment Rating - The report maintains a "Buy" rating for Yum China, indicating a positive outlook for the company's stock performance [5]. Core Views - Yum China demonstrated strong operational efficiency and cost control, with a Q3 restaurant profit margin of 17%, stable year-on-year [2]. - The company plans to increase its shareholder return by 50% from $3 billion to $4.5 billion for the years 2024-2026, with a target of returning $1.5 billion to shareholders in 2024 [4]. - The company is focusing on expanding its franchise model, aiming to increase the proportion of franchise stores from 15-20% to 40-50% in the coming years [3]. Financial Performance - In Q3 2024, Yum China reported revenues of $3.07 billion, a year-on-year increase of 5%, with a system sales growth of 4% [1]. - The operating profit for Q3 was $371 million, reflecting a year-on-year increase of 15%, with an operating profit margin of 12.1% [1]. - The GAAP net profit attributable to shareholders was $297 million, up 22% year-on-year, while the Non-GAAP net profit also stood at $297 million, marking a 20% increase [1]. Store Expansion and Market Strategy - The company opened 438 new stores in Q3, with 145 being franchise stores, representing 33% of the new openings [3]. - As of Q3 2024, Yum China had a total of 15,861 stores, with KFC and Pizza Hut accounting for 11,283 and 3,606 stores, respectively [3]. - The company is leveraging favorable raw material prices and operational efficiency projects to maintain stable profit margins despite pressures on same-store sales [2]. Earnings Forecast - The forecast for net profit attributable to shareholders for FY2024-2026 is $902 million, $978 million, and $1.05 billion, respectively, with corresponding EPS of $2.37, $2.57, and $2.76 [4][9]. - The report projects a P/E ratio of 21, 19, and 18 for FY2024, FY2025, and FY2026, respectively, based on the closing price on November 5 [4][9].

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Investment Rating - The investment rating for the company is downgraded to "Neutral" [4][3]. Core Insights - The company has experienced a decline in both revenue and net profit for the first half of the fiscal year 2025, with a revenue drop of 7.9% year-on-year to 13.05 billion RMB, slightly below market expectations. The gross margin decreased by 3.6 percentage points to 41.1% due to increased discount rates and a higher proportion of lower-margin wholesale channels [1][3]. - The company maintains a high dividend payout ratio, with an interim dividend of 0.14 RMB per share, resulting in a payout ratio of 99.4%, and an average payout ratio exceeding 100% over the past three years [1][3]. - The total number of stores decreased by over 300, with 5,813 stores in operation by the end of the first half of fiscal year 2025, a year-on-year decrease of 396 stores. However, the quality of membership continues to improve, with a total membership of 81 million, reflecting a 10.8% year-on-year growth [2][3]. - The company is actively expanding its brand partnerships to capture future growth potential, including collaborations with high-end brands in the trail running segment and digital operation platforms [2][3]. Financial Summary - For the fiscal year ending February 29, 2025, the company is projected to have a revenue of 26.58 billion RMB, a decrease of 8.1% year-on-year. The net profit is expected to be 1.472 billion RMB, down 33.4% year-on-year [6][10]. - The earnings per share (EPS) for 2025 is estimated at 0.24 RMB, with a significant adjustment of -42.2% from previous forecasts [6][10]. - The company’s price-to-earnings (P/E) ratio is projected to be 10.3 times for 2025, reflecting a downward adjustment from previous estimates [6][10].

Investment Rating - The investment rating for the company is downgraded to Neutral with a target price of HKD 3.06, indicating a potential upside of 14.1% from the current closing price of HKD 2.68 [1][4][3]. Core Insights - The company experienced a decline in both revenue and net profit for the first half of the fiscal year 2025, with revenue dropping by 7.9% year-on-year to RMB 13.05 billion, slightly below market expectations. The gross margin decreased by 3.6 percentage points to 41.1%, primarily due to increased discount rates and a higher proportion of lower-margin wholesale channels [1][3]. - The company maintained a high dividend payout ratio, with an interim dividend of RMB 0.14 per share, resulting in a payout ratio of 99.4%, and an average payout ratio exceeding 100% over the past three years [1][5]. - The total number of stores decreased by 396 year-on-year to 5,813, with a 1.9% decline in total sales area compared to the previous year. However, the average sales area per store increased by 4.8% [2]. - The company has enhanced its membership quality, with a total membership count reaching 81 million, reflecting a 10.8% year-on-year growth. The contribution of repeat members to overall sales remains stable at 60-70% [2]. Financial Summary - For the fiscal years ending February 29, the projected revenues are as follows: RMB 26.58 billion for 2025E (down 8.1% year-on-year), RMB 27.57 billion for 2026E (up 3.7%), and RMB 29.11 billion for 2027E (up 5.6%) [5][9]. - The net profit is expected to be RMB 1.47 billion for 2025E (down 33.4% year-on-year), RMB 1.67 billion for 2026E (up 13.6%), and RMB 1.85 billion for 2027E (up 10.6%) [5][9]. - The earnings per share (EPS) forecast for 2025E is RMB 0.24, with a significant downward adjustment of 42.2% from previous estimates [5][9].