Investment Rating - Buy rating maintained with a target price of HKD 379.22, implying a 28.5% upside from the current price of HKD 295.00 [1][2][6] Core Views - 3Q24 gross margin exceeded expectations at 21.9%, up 3.2 percentage points QoQ, driven by improved auto business margin due to lower lithium carbonate prices, economies of scale, and DMI 5.0 model ramp-up [1] - 3Q24 net profit rose 11.5% YoY and 28.1% QoQ to RMB 11.6 billion, with revenue up 24.0% YoY and 14.2% QoQ to RMB 201.1 billion [1] - Operating expenses surged QoQ, with sales/management/R&D expenses up 27.8%/20.1%/52.0% respectively, hitting record highs due to increased spending on premium models and smart features [1] - 4Q24 sales expected to rise to 1.3-1.5 million units (vs 1.13 million in 3Q24) on seasonal strength and DMI 5.0 model ramp-up, with further margin improvement potential from economies of scale [2] - Premium models and exports yet to contribute meaningfully, with Denza Z9 GT starting deliveries in September and Fangchengbao's Leopard 8 not yet launched [2] - Overseas sales impacted by EU tariffs in 3Q24, but new market entries (Vietnam, Pakistan, Tunisia) and upcoming overseas plant production expected to boost export volumes [2] Financial Forecasts - 2024-26E net profit forecasts raised by 14%/19.4%/23.3% to reflect higher sales volume and margin improvement from premium models and exports [2] - 2024E revenue forecast at RMB 764.8 billion (+27.0% YoY), with net profit of RMB 41.1 billion (+36.9% YoY) [3] - 2025E revenue forecast at RMB 905.4 billion (+18.4% YoY), with net profit of RMB 52.4 billion (+27.4% YoY) [3] - 2026E revenue forecast at RMB 1,056.9 billion (+16.7% YoY), with net profit of RMB 64.5 billion (+23.1% YoY) [3] - Gross margin expected to improve from 20.5% in 2024E to 21.4% in 2026E, with net margin rising from 5.4% to 6.1% over the same period [8] Industry Context - BYD maintains strong position in sub-RMB 200k passenger vehicle market with vertical supply chain and high-margin advantages [2] - Increasing focus on premium models (Denza, Fangchengbao) and smart features through partnerships (e.g., Huawei) [2] - Overseas expansion ongoing with new market entries and local production, though near-term headwinds from EU tariffs [2]

Investment Rating - The investment rating for the company is maintained as "Buy-A" with a target price of HKD 142.58 [6]. Core Insights - The company reported strong Q3 2024 results with revenue of CNY 42.9 billion, exceeding previous guidance, representing a year-on-year increase of 24% and a quarter-on-quarter increase of 35%. Net profit reached CNY 2.8 billion, a slight year-on-year increase of 0.3% and a significant quarter-on-quarter increase of 156% [1][2]. - The automotive business generated revenue of CNY 41.3 billion in Q3 2024, up 23% year-on-year and 36% quarter-on-quarter, with a delivery volume of 153,000 vehicles, marking a 45% year-on-year increase and a 41% quarter-on-quarter increase [1][2]. - The company has a robust cash reserve of CNY 106.5 billion as of the end of Q3 2024, with a significant improvement in cash flow, reporting a net cash flow from operating activities of CNY 11 billion, up CNY 11.4 billion from the previous quarter [4]. Summary by Sections Financial Performance - Q3 2024 operating profit reached CNY 3.4 billion, a 47% year-on-year increase and a 634% quarter-on-quarter increase, marking a historical high. The profit per vehicle was CNY 18,000, showing a year-on-year decrease of CNY 800 and a quarter-on-quarter increase of CNY 800 [3]. - The automotive business gross margin was 20.9%, down 0.3 percentage points year-on-year but up 2.2 percentage points quarter-on-quarter, attributed to increased sales volume and a higher proportion of the AD MAX version [2]. Research and Development - R&D expenses for Q3 2024 were CNY 2.6 billion, down 8.2% year-on-year and 14.6% quarter-on-quarter, with an R&D expense ratio of 6.0%, a decrease of 3.5 percentage points quarter-on-quarter [2]. Sales and Management Expenses - Sales, general, and administrative expenses totaled CNY 3.4 billion, up 32% year-on-year and 19% quarter-on-quarter, with a sales expense ratio of 7.8%, down 1.1 percentage points quarter-on-quarter [2]. Future Outlook - For Q4 2024, the company expects to deliver between 160,000 to 170,000 vehicles, generating revenue of CNY 43.2 billion to CNY 45.9 billion. The total expected deliveries for the year are between 502,000 to 512,000 vehicles, with total revenue projected at CNY 143.4 billion to CNY 146.1 billion [5][8].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [3][11]. Core Insights - The company is positioned as a leading player in the traditional Chinese medicine healthcare service sector, with a dual strategy of organic growth and external expansion. Revenue projections for 2024-2026 are estimated at 3.056 billion, 3.990 billion, and 5.189 billion CNY, respectively, with adjusted net profits of 400 million, 536 million, and 713 million CNY [3][4]. - The company has established six strategic directions for sustainable high-quality development, including prioritizing physician supply in major medical cities, expanding in provincial capitals, developing a self-pay business system, and pursuing systematic overseas expansion [2][3]. Financial Summary - Revenue growth rates are projected at 31.5% for 2024, 30.6% for 2025, and 30.1% for 2026, with adjusted net profit growth rates of 34.6%, 44.6%, and 39.0% for the same years [1][3]. - The company's return on equity (ROE) is expected to increase from 10.9% in 2023 to 18.8% by 2026, reflecting improved profitability [1][3]. - The price-to-earnings (P/E) ratio is projected to decrease from 33.2 in 2023 to 12.3 by 2026, indicating a potentially attractive valuation as earnings grow [1][3].

Investment Rating - The report maintains a "Buy" rating for Postal Savings Bank of China (01658.HK) [5] Core Views - The bank's revenue for the first three quarters reached 260.3 billion yuan, a slight increase of 0.1% year-on-year, while net profit attributable to shareholders was 75.8 billion yuan, up 0.2% year-on-year, marking the first positive profit growth of the year [1] - The bank's asset quality remains stable, with a non-performing loan ratio of 0.86%, slightly up by 2 basis points from the previous quarter [2] - The bank's total assets reached 16.7 trillion yuan, growing by 6.5% year-to-date, with loans amounting to 8.8 trillion yuan, an increase of 7.7% year-to-date [3] Summary by Sections Performance - Net interest income increased by 1.5% year-on-year, with a net interest margin of 1.89%, slightly down by 2 basis points [1] - Fee and commission income decreased by 12.7% year-on-year due to the "reporting and operation integration" policy, impacting insurance agency income [1] - Other non-interest income rose by 0.5%, with total investment income and other gains amounting to 23.9 billion yuan, a year-on-year increase of 0.9% [1] - The cost-to-income ratio improved to 60.0%, up by approximately 0.8 percentage points year-on-year [1] Asset Quality - As of September, the non-performing loan ratio was 0.86%, with a slight increase in the attention ratio to 0.91% and overdue ratio to 1.11% [2] - The bank made provisions for impairment losses totaling 19 billion yuan, a decrease of 10.4% year-on-year [2] - The provision coverage ratio stands at 302%, down 24 percentage points from the previous quarter [2] Asset and Liability Management - Total assets reached 16.7 trillion yuan, with a loan balance of 8.8 trillion yuan, reflecting a steady growth [3] - Deposits amounted to 15 trillion yuan, up 7.5% year-to-date, with a significant increase in personal deposits contributing to the growth [3] Investment Recommendation - The report suggests that the bank's performance is showing signs of recovery, with expectations for stable growth throughout the year [3] - The bank is positioned as a "growth-oriented" state-owned bank with significant development potential, supported by a low loan-to-deposit ratio and strong asset quality [3]

Investment Rating - The report maintains a "Neutral" rating for WuXi AppTec (2359 HK) with a target price raised to HKD 48.00 [3][11]. Core Insights - WuXi AppTec's revenue for the first three quarters of 2024 decreased by 6.2% year-on-year to RMB 27.70 billion, but excluding COVID-19 project revenue, it increased by 4.6% [1]. - The company's net profit attributable to shareholders fell by 19.1% year-on-year to RMB 6.53 billion, with Non-IFRS adjusted net profit down 10.1% to RMB 6.68 billion, although the decline was less severe than in the first half of the year [1]. - The chemical business showed signs of recovery in the third quarter, leading to slightly better-than-expected performance [1]. - The TIDES business revenue surged by 71.0% year-on-year in the first three quarters, driven by increased demand for weight-loss drug development [1]. Financial Summary - Total revenue for 2022 was RMB 39.36 billion, with a projected revenue of RMB 40.13 billion for 2024, and expected growth to RMB 49.35 billion by 2026 [2][8]. - Shareholder net profit for 2022 was RMB 8.81 billion, with a forecast of RMB 9.98 billion for 2024 and RMB 11.94 billion for 2026 [2][8]. - The company’s earnings per share (EPS) is projected to be RMB 3.43 in 2024, increasing to RMB 4.11 by 2026 [2][8]. Revenue Forecasts - The revenue forecast for the chemical business in 2024 has been raised to RMB 29.17 billion, with expectations of double-digit growth in 2025-2026 [1]. - TIDES business revenue is expected to grow by 60% year-on-year to RMB 5.21 billion in 2024, with further increases projected for 2025 and 2026 [1]. Market and Legislative Environment - The U.S. Biologics Bill is unlikely to be legislated within the year, but uncertainties remain as both the House and Senate versions have passed [1].

Investment Rating - The report assigns a "Buy" rating to China Biologic Products (1177 HK) with a target price of HK$4.80, indicating a potential upside of 36.8% from the current price of HK$3.51 [4]. Core Insights - The company reported a strong performance in Q3 2024, with revenue increasing by 14.3% year-on-year to RMB 5.47 billion, driven by the rapid growth of biosimilars and new products [1]. - Adjusted net profit surged by 58.0% to RMB 600 million, exceeding expectations [1]. - Management maintains a double-digit revenue growth guidance for the full year, with specific sales expectations for 2024 including RMB 2 billion from biosimilars and over RMB 500 million from Yilishu [1]. - The company is set to acquire control of Haorunbo (688656 CH), marking its entry into the immunodiagnostics sector, with a planned acquisition of up to 55.00% of the shares [2]. - The acquisition price is set at RMB 33.74 per share, representing a 5% premium over the last trading day before suspension [2]. Summary by Sections Q3 Performance - Q3 2024 revenue reached RMB 5.47 billion, a 14.3% increase year-on-year, attributed to the growth of biosimilars and new product launches [1]. - Adjusted net profit rose by 58.0% to RMB 600 million, surpassing expectations [1]. Future Growth Prospects - The company expects biosimilars to generate RMB 2 billion in sales in 2024, with specific products like Bevacizumab and Trastuzumab projected to contribute RMB 700-800 million and around RMB 500 million, respectively [1]. - New product launches in 2025 are anticipated to further enhance revenue, with the first-year sales of the biosimilar Pertuzumab expected to exceed RMB 800 million [1]. Acquisition Strategy - The acquisition of Haorunbo will provide China Biologic Products with control over a company focused on immunodiagnostics, enhancing its product portfolio in respiratory and autoimmune disease areas [2]. - Haorunbo reported revenues of RMB 394 million and a net profit of RMB 43.3 million in 2023, with commitments from original shareholders for future profit guarantees [2].

Investment Rating - The report maintains a "Buy" rating for Weichai Power (2338 HK) with a target price of HKD 18.60, indicating a potential upside of 57.9% from the current price of HKD 11.78 [1][3][8]. Core Insights - Weichai Power's gross margin improved against the trend in Q3 2024, with a gross margin of 22.1%, exceeding expectations due to a decline in raw material prices. Despite a decrease in revenue and net profit, the performance was better than the overall heavy truck wholesale sales decline [1][2]. - The report highlights a recovery in logistics demand for heavy trucks in Q4 2024, driven by new policies supporting the replacement of old vehicles, particularly in major cities like Shanghai and Beijing [2][3]. - The valuation remains attractive, with projected P/E ratios of 7.8x for 2024 and 6.8x for 2025, alongside dividend yields of 7.2% and 7.9% respectively [3][5]. Financial Summary - For the fiscal year ending December 31, 2024, Weichai Power is expected to generate revenue of RMB 235.46 billion, a year-on-year growth of 10.1%. Net profit is projected at RMB 11.84 billion, reflecting a growth of 31.3% [5][9]. - The report outlines a significant increase in net profit from RMB 9.01 billion in 2023 to RMB 11.84 billion in 2024, with earnings per share expected to rise from RMB 1.05 to RMB 1.38 [5][9]. - The company’s gross profit margin is anticipated to improve from 18.7% in 2022 to 21.1% in 2024, indicating enhanced operational efficiency [9].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised from HKD 25 to HKD 32, indicating a potential upside of 16.6% [1][2][4]. Core Insights - The company has shown robust earnings performance, with a significant year-on-year increase in net profit of 65.5% for the first three quarters, aligning with prior earnings forecasts [1]. - The new business value has increased by 37.9% year-on-year, with a new business value rate of 20.1%, up by 6.2 percentage points compared to the previous year [1][2]. - The individual insurance channel's quality continues to improve, with a 3.3% increase in premium scale, primarily driven by new business contributions from agents [1][2]. Financial Performance Summary - For the fiscal year ending December 31, 2022, the company reported total revenue of RMB 332,140 million, with a projected revenue of RMB 405,133 million for 2024, reflecting a year-on-year growth of 25.1% [3][9]. - The net profit for 2022 was RMB 37,381 million, with an expected increase to RMB 46,099 million in 2024, indicating a growth rate of 69.1% [3][9]. - The earnings per share (EPS) is projected to rise from RMB 3.89 in 2022 to RMB 4.79 in 2024, representing a significant increase [3][9]. Business Segment Insights - The property and casualty insurance segment saw a premium income growth of 7.7%, with a combined cost ratio of 98.7%, which is stable year-on-year but has increased by 1.6 percentage points compared to the first half of the year [2][5]. - Investment income has significantly increased, with total investment income rising to a rate of 4.7%, up by 2.3 percentage points year-on-year, primarily due to higher stock investment returns [2][5]. Valuation Metrics - The company’s price-to-earnings (P/E) ratio is projected to be 5.2 for 2024, indicating a favorable valuation compared to its historical performance [3][9]. - The price-to-embedded value (P/EV) is expected to be 0.4 in 2024, suggesting that the stock is undervalued relative to its embedded value [3][9].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised from HKD 20.5 to HKD 30.5, indicating a potential upside of 18.2% from the current closing price of HKD 25.80 [1][2][3]. Core Insights - The company has demonstrated significant earnings resilience, with a net profit growth of 116.7% year-on-year for the first three quarters, slightly exceeding the previously forecasted range of 95-115% [1][2]. - The new business value growth rate of 79.2% year-on-year is leading among peers, reflecting strong performance in the insurance sector [2]. - Investment income has seen a notable increase, with a total investment return rate of 6.8%, up 4.5 percentage points year-on-year, outperforming industry peers [2]. - The company is optimizing its premium structure, although it still relies heavily on bank insurance channels, with a 1.9% year-on-year increase in premium income [1][2]. Financial Performance Summary - For 2024, the company is projected to achieve a net profit of RMB 26,044 million, representing a 198.9% increase compared to 2023 [5][10]. - The total revenue for 2024 is estimated at RMB 140,014 million, reflecting a significant recovery from a 33.8% decline in 2023 [5][10]. - The company’s investment assets are expected to grow by 20.2% in 2024, contributing to overall financial stability [11]. - The report highlights a projected return on average equity (ROAE) of 25.2% for 2024, indicating strong profitability [11]. Business Metrics - The company’s new business value is expected to reach RMB 5,680 million in 2024, with a year-on-year growth rate of 87.8% [7][11]. - The insurance service revenue is projected to decline slightly by 3.0% in 2024, but investment income is expected to rebound significantly [6][10]. - The company’s market capitalization is approximately HKD 135.4 billion, with a daily trading volume of 16.92 million shares [4].

Investment Rating - The report maintains a "Neutral" rating for the company, Datang New Energy (1798 HK), with a target price of HKD 1.92, indicating a potential downside of 13.9% from the current price of HKD 2.23 [2][8]. Core Views - The company's Q3 earnings were impacted by weak wind power generation, resulting in a 46% year-on-year decline in profit to RMB 110 million. The total profit for the first three quarters decreased by 17% year-on-year to RMB 1.87 billion, reaching 77% of the annual forecast [1][2]. - The total power generation in Q3 saw a year-on-year decline of 1.6%, with wind power generation decreasing by 4.8% and photovoltaic generation increasing by 33.1%. The weak earnings were primarily due to lower wind speeds this year [1][2]. - The company's net debt-to-equity ratio improved to 133% in the first three quarters, down from 150% at the end of 2023, with expectations for a further decline to 143% by the end of 2024 [2][5]. Summary by Sections Financial Performance - Q3 total revenue slightly decreased by 1% year-on-year to RMB 2.46 billion, while gross profit fell by 24.5% to RMB 520 million, leading to a gross margin drop of 17 percentage points to 21% [1][4]. - The company's net profit for Q3 was RMB 161 million, down 45.6% year-on-year, and the nine-month net profit was RMB 1.87 billion, a decrease of 17% [4][5]. Capacity and Generation Forecast - The report maintains forecasts for new wind and solar installations at 1.8 GW, 2.1 GW, and 2.5 GW for the years 2024, 2025, and 2026, respectively [2][5]. - The expected total installed capacity by the end of 2024 is projected to be 15,418 MW, with wind power capacity at 12,981 MW and solar capacity at 2,438 MW [5]. Valuation - The current valuation is approximately 7 times the 2025 earnings per share, slightly above the reasonable level, with the report indicating that valuation improvements are outpacing earnings recovery [2][6].