Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$6.95, representing a 24% increase from the previous target price of HK$5.61 [1][7]. Core Insights - The company's brand, Xtep, has shown a month-to-date (MTD) revenue growth of over 10% in October, indicating a strong performance that is expected to meet the annual guidance [4][6]. - For the fiscal year 2024, the overall revenue and net profit attributable to the parent company are projected to grow by 1.5% and 21.3%, reaching RMB 14.56 billion and RMB 1.25 billion, respectively [6][9]. - The report highlights that the company's inventory and discount levels are healthy, with expectations for continued improvement in gross margin [5][6]. Financial Projections - The revenue forecast for 2024 has been adjusted to RMB 14.56 billion, reflecting a 3.6% decrease from previous estimates, while the net profit forecast has been adjusted to RMB 1.25 billion, a decrease of 3.0% [9]. - The earnings per share (EPS) for 2024 is projected at RMB 0.47, with subsequent years showing growth to RMB 0.53 in 2025 and RMB 0.59 in 2026 [8][9]. - The report anticipates a gross margin improvement of 2.1 percentage points to 44.2% for 2024, alongside a net profit margin increase of 1.4 percentage points to 8.6% [6][9].

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company's net profit for the first three quarters increased by 38.0% year-on-year to 26.75 billion yuan, primarily driven by a significant rise in total investment income due to a recovery in the capital market [3][4] - The underwriting performance was under pressure due to the impact of major disasters, with the combined cost ratio rising to 98.2%, higher than expected [4][5] - The company is expected to continue its high-quality transformation, optimizing its business structure and improving risk identification capabilities [6] Summary by Sections Market Data - Closing price (HKD): 12.20 - H-share market value (billion HKD): 2,713.62 - 52-week high/low (HKD): 14.12/8.55 [2] Financial Performance - Insurance service income for the first three quarters increased by 5.3% year-on-year to 364.31 billion yuan [4] - The combined cost ratio for non-auto insurance increased by 2.3 percentage points to 108.3% in Q3 2024, leading to a significant underwriting loss [5] - The company’s total investment return rate for the first three quarters was 4.4%, an increase of 1.7 percentage points year-on-year [5] Profit Forecast - The profit forecast for 2024-2026 has been raised to 32.67 billion, 34.84 billion, and 38.03 billion yuan respectively [6][7] - The company’s price-to-book ratio for 2024E is 0.97x, indicating a relatively safe valuation cushion [6]

Investment Rating - The investment rating for China Pacific Insurance (02328.HK) is "Buy" (maintained) [1] Core Views - The report highlights that the profit growth is driven by investment gains, with the company's performance nearing the upper end of its previously announced profit forecast of 20% to 40% [1] - The company achieved an insurance service revenue of CNY 364.31 billion for the first nine months of 2024, representing a year-on-year growth of 5.3% [1] - Net profit for the same period reached CNY 26.75 billion, a significant increase of 38.0% year-on-year, primarily due to a recovery in the stock market boosting fair value changes [1] Summary by Sections Earnings Forecast and Valuation - Insurance service revenue (CNY million): - 2022A: 424,355 - 2023A: 457,203 - 2024E: 494,002 - 2025E: 529,798 - 2026E: 569,764 - Year-on-year growth rates: - 2022A: 6.9% - 2023A: 7.7% - 2024E: 8.0% - 2025E: 7.2% - 2026E: 7.5% - Net profit attributable to shareholders (CNY million): - 2022A: 29,163 - 2023A: 24,585 - 2024E: 29,641 - 2025E: 32,330 - 2026E: 34,478 - Year-on-year growth rates: - 2022A: 30.4% - 2023A: -15.7% - 2024E: 20.6% - 2025E: 9.1% - 2026E: 6.6% - Return on equity (ROE): - 2022A: 13.4% - 2023A: 10.8% - 2024E: 12.1% - 2025E: 12.0% - 2026E: 11.8% - Price-to-book ratio (P/B): - 2022A: 1.20 - 2023A: 1.08 - 2024E: 0.98 - 2025E: 0.90 - 2026E: 0.83 [1] Performance Analysis - The company reported a cumulative ROE of 11.1% for the first nine months of 2024, an increase of 2.3 percentage points year-on-year [1] - The total investment return rate improved significantly from 2.7% in 9M23 to 4.4% in 9M24, which was a key factor in the net profit improvement [1] - The company experienced a decline in underwriting profit, with a total underwriting profit down 12.7% year-on-year [1] Business Segments - The cumulative comprehensive cost ratio (COR) for auto insurance was 96.8% for 9M24, showing a slight improvement due to effective cost control [1] - Non-auto insurance faced challenges with a COR of 100.5% for 9M24, primarily due to increased claims from natural disasters [1] - The report notes that the company is focusing on high-quality development and implementing a new business model combining insurance, risk reduction services, and technology [1]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 3.52 HKD based on a 15x PE valuation for FY25 [2][7]. Core Views - The company reported FY25H1 revenue of 13.055 billion, a year-on-year decline of 7.9%, and a net profit attributable to shareholders of 870 million, down 34.6%, which was below market expectations [1]. - The company plans a cash dividend of 860 million, with a payout ratio of 97.85% [1]. - The main brand and other brands saw revenue declines of 8.1% and 6.5% respectively, while retail and wholesale business revenues fell by 8.9% and 2.2% year-on-year [1]. - The company has increased its store sales area and is focusing on live streaming from stores, with 5,813 stores as of FY25H1, a net decrease of 331 stores since the beginning of the fiscal year [1]. - The gross margin for FY25H1 decreased by 3.7 percentage points to 41.1%, attributed to increased inventory and promotional efforts due to weak sales [1]. - Inventory turnover days increased to 145 days, up 7 days year-on-year, while operating cash flow remained healthy at 2.61 billion [1]. Financial Summary - The company adjusted its earnings forecast for FY25-26, predicting earnings per share of 0.22, 0.26, and 0.30 for FY25-27, down from previous estimates of 0.39 and 0.42 for FY25-26 [2][7]. - The projected revenue for FY25 is 26.747 billion, with a year-on-year decline of 7.6%, and a recovery expected in FY26 with a growth of 5.9% [6][8]. - The gross margin is expected to be 38.0% in FY25, improving to 40.0% by FY27 [6][8].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 185.5 HKD per share, corresponding to a market capitalization of 540.2 billion HKD [2][4][7]. Core Insights - The company is expected to achieve a revenue of 259.6 billion CNY in Q3 2024, representing a growth of 4.8%, and an adjusted net profit of 11 billion CNY, reflecting a 3.2% increase, continuing a stable recovery trend [1][2]. - The Gross Merchandise Volume (GMV) is anticipated to grow at a high single-digit rate, outperforming the overall retail market, with third-party (3P) growth expected to exceed first-party (1P) growth [1]. - The "Trade-in" policy has shown significant benefits, with an increase in demand for home appliances due to high temperatures and the policy's implementation, leading to a positive growth rate for the electrical category [1][2]. Financial Summary - The company’s projected revenues for 2024-2026 are 1,134.4 billion CNY, 1,208.7 billion CNY, and 1,284.7 billion CNY, respectively, with adjusted net profits of 41.8 billion CNY, 43.1 billion CNY, and 44.7 billion CNY [2][3][7]. - The retail segment is expected to generate 222.9 billion CNY in revenue for Q3 2024, with an operating profit of 11.1 billion CNY, resulting in a profit margin of 4.96% [1][9]. - The logistics segment is projected to achieve a revenue of 44.3 billion CNY in Q3 2024, reflecting a growth of 6.4% [1][9]. Revenue Breakdown - Product revenue is expected to reach 203.5 billion CNY in Q3 2024, with the electrical category projected to generate 122.8 billion CNY and daily necessities expected to reach 80.7 billion CNY [1][8]. - Service revenue is anticipated to be 56.1 billion CNY, benefiting from the acceleration of 3P business [1][8]. Market Performance - The company’s stock has shown a relative performance of -1.64% over the past week, but a significant increase of 66.16% over the past year [4][9].

Investment Rating - The report maintains a "BUY" rating for Haier Smart Home and raises the target price to HK$ 36.41, reflecting a 22.2% upside from the current price of HK$ 29.80 [1][4]. Core Insights - Haier's 3Q24 results were in line with expectations, with a 1% YoY sales increase to RMB 67.3 billion and a 13% YoY net profit growth to RMB 4.7 billion. The company is expected to see a decent pickup in 4Q24 due to favorable macroeconomic conditions and internal efficiency improvements [1][6]. - The management has set a net profit growth target of 15% per annum, supported by various cost-saving initiatives and operational efficiency gains [1][6]. - The report highlights significant sales growth drivers, including improved sales trends in China, strong demand for the Casarte brand, and positive developments in the US and European markets [1][6]. Financial Summary - Revenue is projected to grow from RMB 271.8 billion in FY24E to RMB 304.8 billion in FY26E, with a CAGR of 5.4% [2][11]. - Net profit is expected to increase from RMB 19.8 billion in FY24E to RMB 24.5 billion in FY26E, reflecting a strong growth trajectory [2][11]. - The report revises FY24E/25E/26E net profit forecasts upward by 1%/3%/2% to account for efficiency gains and cost savings [1][7]. Operational Efficiency - Haier is implementing a series of reforms aimed at enhancing operational efficiency, including digitalization efforts and structural changes in procurement and R&D processes [1][6]. - The acquisition of Goodday, a logistics provider, is expected to yield significant synergies, including a 20-30% reduction in inventory levels and a 10% decrease in total logistics costs [1][6]. Market Position - Haier's stock is currently trading at 13x/11x FY24E/FY25E P/E, which is below its 5-year average of 15x, indicating potential undervaluation [1][4]. - The company is focusing on expanding its direct-to-consumer (DTC) business model and enhancing brand equity through value-added products and services [1][6].

Investment Rating - Investment Rating: Buy (Maintained) [1] Core Views - The company's net profit attributable to shareholders for the first three quarters of 2024 reached 26.75 billion yuan, a year-on-year increase of 38%, aligning with expectations. The underwriting profit and total investment income were 6.44 billion yuan and 27.5 billion yuan, respectively, showing a year-on-year decrease of 13% and an increase of 70%. The Q3 net profit attributable to shareholders was 8.26 billion yuan, turning from a loss of 870 million yuan in Q3 2023, but down 35% quarter-on-quarter. The comprehensive cost ratio (COR) for the first three quarters increased by 0.8 percentage points to 98.2%, up from 96.2% in H1 2024. Due to improvements driven by the equity market, profit forecasts for 2024-2026 have been raised to 36.5 billion, 36.8 billion, and 38.9 billion yuan, respectively, with corresponding EPS of 1.6, 1.7, and 1.7 yuan [3][4][5]. Summary by Sections Financial Performance - The company's insurance service revenue for the first three quarters of 2024 was 364.3 billion yuan, a year-on-year increase of 5.3%. The revenue from auto insurance and non-auto insurance was 219.5 billion yuan and 144.8 billion yuan, respectively, with year-on-year growth of 4.7% and 6.1%. The comprehensive cost ratio for the first three quarters increased to 98.2%, with Q3 COR reaching 102%, influenced by natural disasters leading to higher claims [4][5]. Investment Income - Total investment income for the first three quarters of 2024 was 27.5 billion yuan, a year-on-year increase of 70%, with Q3 showing a remarkable increase of 1261%. The annualized total investment return rate was 5.9%, up 2.3 percentage points year-on-year, primarily benefiting from significant improvements in the equity market [5]. Market Position and Outlook - The company is a leader in the property insurance industry, with a competitive advantage. The current dividend yield is 4.39%, and the current stock price corresponds to P/E ratios of 6.8, 6.8, and 6.4 for 2024-2026, and P/B ratios of 1.0, 0.9, and 0.8, respectively. The report maintains a "Buy" rating based on these metrics [3][4].

Investment Rating - The report maintains a "Buy" rating for China Pacific Insurance (02328) [2][4][7] Core Views - In the first three quarters of 2024, China Pacific Insurance achieved original insurance premium income of 428.33 billion yuan, a year-on-year increase of 4.6% - The net profit reached 26.75 billion yuan, reflecting a significant year-on-year growth of 38.0% - The comprehensive cost ratio (COR) was 98.2%, up 0.3 percentage points year-on-year, indicating a slight increase in costs [2][6][7] Summary by Relevant Sections Financial Performance - The company reported a net profit of 26.75 billion yuan for the first three quarters of 2024, which is a 38.0% increase compared to the previous year - The total investment income for the same period was 27.498 billion yuan, showing a year-on-year increase of 70.4% with an annualized investment return rate of 5.9% [6][7] Cost Analysis - The overall COR for the first three quarters was 98.2%, with the COR for auto insurance at 96.8% (down 0.6 percentage points) and for non-auto insurance at 100.5% (up 1.9 percentage points) - The company aims to achieve a target COR of around 97% for auto insurance and below 100% for non-auto insurance by the end of the year [6][7] Future Outlook - The report forecasts net profits for 2024-2026 to be 33.9 billion, 35.7 billion, and 39.8 billion yuan respectively, with growth rates of 38%, 6%, and 11% [7]

Investment Rating - The investment rating for the company is "Outperform the Market" [3][9]. Core Views - The company is experiencing asset valuation recovery and profit improvement, with a 5.5% year-on-year increase in insurance service revenue for the first three quarters of 2024, totaling 364.31 billion yuan [1]. - The underwriting profitability remains healthy, with a reported underwriting profit of 6.44 billion yuan and a combined ratio (COR) of 98.2% [1]. - The net profit for the first half of the year reached 26.75 billion yuan, reflecting a 38.0% year-on-year increase, driven by a recovery in the capital market and stable interest rates [1]. - The auto insurance segment shows steady growth, with a 4.7% increase in insurance service revenue, amounting to 219.51 billion yuan [1]. - Non-auto insurance business has also maintained good growth, achieving 144.80 billion yuan in insurance service revenue, but faced underwriting losses of 0.68 billion yuan due to frequent natural disasters [1]. - The company is enhancing its asset allocation strategy, increasing the proportion of FVOCI equity assets by 10.8% year-on-year, leading to a significant improvement in investment income [1]. Financial Forecasts - The projected operating revenue for 2024 is 504.48 billion yuan, with a growth rate of 6.59% [2][7]. - The expected net profit for 2024 is 29.52 billion yuan, representing a 20.08% increase compared to 2023 [2][7]. - The diluted earnings per share (EPS) for 2024 is forecasted to be 1.33 yuan [2][7]. - The price-to-book (PB) ratio is expected to be 1.04 for 2024, decreasing to 0.90 by 2026 [2][7].

Investment Rating - The report maintains a "Buy" rating for China Pacific Insurance (2328.HK) with a current price of HKD 12.20 [2] Core Views - The company achieved a net profit of CNY 26.75 billion, representing a year-on-year growth of 38% [2][5] - Total operating revenue for the first three quarters of 2024 reached CNY 392.27 billion, an increase of 7.9% year-on-year [2] - The company continues to optimize its business structure, with non-auto insurance service revenue growing by 6.1% year-on-year [3] Summary by Sections Financial Performance - Insurance service revenue for the first three quarters was CNY 364.31 billion, up 5.3% year-on-year, with auto insurance revenue at CNY 219.51 billion, growing 4.7% [2][3] - The comprehensive cost ratio (COR) increased by 0.3 percentage points to 98.2%, primarily due to natural disasters impacting non-auto insurance profitability [4] - Total investment income reached CNY 27.5 billion, a significant increase of 70.4% year-on-year, driven by a recovery in equity markets [5] Business Strategy and Outlook - The company is focusing on a new business model integrating "insurance + risk reduction services + technology," enhancing its competitive edge in the market [6] - The market share in the property insurance sector reached 32.8%, maintaining its industry leadership [6] - Future net profit estimates for 2024-2026 have been revised upwards to CNY 33.1 billion, CNY 36.9 billion, and CNY 41.3 billion respectively, reflecting strong growth potential [6][9]