Investment Rating - The report assigns a "Buy" rating for Sinopec Engineering Group (SEG) with a target price of 8 HKD, based on a 12x PE for 2025 [5]. Core Insights - Sinopec Engineering Group is a leading energy and chemical engineering company in China, providing comprehensive solutions across various sectors including oil refining, petrochemicals, and clean energy [12][16]. - The company has demonstrated stable profitability with a gross margin around 10% and a net margin of approximately 5% from 2019 to 2023, alongside a consistent dividend payout ratio of 65% [16][22]. - The domestic market is experiencing a trend of upgrading and transformation in refining, with significant projects underway by major oil companies [3][16]. - The international market, particularly in the MENA region, is witnessing unprecedented growth in oil and gas projects, contributing to a 32.7% increase in overseas orders for SEG [4][16]. Summary by Sections Company Overview - Sinopec Engineering Group, a subsidiary of Sinopec, is a prominent player in the energy and chemical engineering sector, listed in Hong Kong since May 2013 [12][16]. - The company operates 12 subsidiaries, offering a wide range of services including engineering consulting, project management, and construction [12][16]. Industry Landscape - The energy and chemical engineering industry has high barriers to entry due to complex processes, high specialization, and significant capital and technical requirements [2][32]. - SEG's main competitors in the domestic market include China Petroleum Engineering, China Huanqiu Engineering, and China Chemical Engineering [2][29]. Domestic Market Dynamics - The refining sector in China is undergoing structural adjustments, with major projects in ethylene production being implemented by both Sinopec and PetroChina [3][16]. - The coal chemical industry is poised for significant growth, with numerous projects planned through 2025 [3][16]. International Market Opportunities - The MENA region is becoming a focal point for global refining projects, with a total contract value reaching 94 billion USD, significantly higher than previous years [4][16]. - SEG's overseas orders have shown robust growth, continuing from a high growth rate in 2023 [4][16]. Financial Performance and Valuation - The report forecasts net profits for 2024, 2025, and 2026 to be 2.525 billion, 2.757 billion, and 2.943 billion RMB respectively, with corresponding EPS of 0.57, 0.63, and 0.67 RMB [5]. - The company has maintained stable revenue above 50 billion RMB annually from 2019 to 2023, with a notable increase in overseas revenue by 34.1% in 2023 [16][22].

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of HKD 19.35 per share, representing an 11% upside potential [5][16]. Core Insights - The company experienced a 3.5% annual revenue growth, reaching USD 1.55 billion, driven by an 8.2% increase in shipments to 53 million pairs, despite a 4.4% decline in average selling price (ASP) [12][13]. - The company is expanding its production capacity and optimizing its order structure, which is expected to enhance profitability, particularly with new luxury clients and a focus on high-margin products [14][15]. - A significant cash return of USD 180 million is planned for shareholders from 2024 to 2026, with an expected total return per share of 9.7% [16]. Financial Data and Forecast - The company's revenue for 2022 was USD 1.63 billion, with a projected revenue of USD 1.49 billion for 2023, and expected growth to USD 1.64 billion by 2026 [3]. - Net profit is forecasted to grow from USD 141 million in 2023 to USD 205 million by 2026, reflecting a compound annual growth rate (CAGR) of 10.2% [5][9]. - The gross profit margin (GPM) and EBIT margin reached a decade high in 2023, indicating improved operational efficiency [5][16].

Investment Rating - The report does not explicitly state an investment rating for Tencent Holdings [1]. Core Insights - Tencent Cloud has launched the DeepSeek model API, enhancing its competitiveness in AI and cloud computing by providing high-performance services and simplifying development processes [2]. - WeChat's Spring Festival data shows strong demand for digital red envelopes, indicating the growing penetration of WeChat e-commerce in less saturated markets [3]. - WeChat Pay has seen significant growth during the Spring Festival, particularly in cross-border payments, with a 134% year-on-year increase in transaction volume from inbound tourists [4]. - Tencent has announced a new patent for a large language model training method, which improves the model's generalization ability and accuracy, benefiting applications requiring high precision [5]. Summary by Sections Cloud Computing - Tencent Cloud has introduced the DeepSeek model API, becoming the first domestic cloud provider to support this feature along with online search capabilities. This move is expected to attract more enterprises and developers due to its optimized performance and simplified development processes [2]. E-commerce - The WeChat team reported a surge in the use of digital red envelopes during the Spring Festival, with notable growth in gift categories such as snacks and books, indicating a unique competitive advantage in less saturated markets [3]. Payment Services - WeChat Pay experienced a robust performance during the Spring Festival, with over 1 billion custom red envelope designs created by users. The service saw a 134% increase in transaction volume from inbound tourists, particularly in regions like Luxembourg [4]. Artificial Intelligence - Tencent's new patent for a large language model introduces a comparative learning mechanism that enhances the model's ability to distinguish between correct and incorrect expressions, which is crucial for applications like intelligent customer service [5].

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of HKD 6.65, corresponding to a 12x price-to-earnings ratio for 2025 [4][15]. Core Insights - The main brand's turnover showed improvement in Q4 2024, with a year-on-year growth of over 30% and a healthy inventory turnover of four months. Retail discounts improved to 70-75% in Q4 2024 compared to 70% in Q4 2023 [4][11]. - Saucony's revenue is expected to exceed 1 billion RMB, with a 50% year-on-year growth in Q4 2024 and a 60% increase for the entire year. The brand became profitable in 2023 and is expected to see further profitability improvements with full ownership from January 2024 [4][12]. - The company is expanding its product offerings and upgrading its channels, including new concept stores in major cities and a diverse product range that includes shoes and apparel [4][13]. - The main brand and Saucony have solidified their positions in the marathon shoe market, with the main brand achieving a wear rate of 22.4% in the Shanghai Marathon, surpassing international brands [4][14]. - The company is optimistic about its running product matrix and anticipates a second growth curve with Saucony's profitability. Estimated net profits for 2024 and 2025 are projected at 1.26 billion RMB and 1.39 billion RMB, respectively [4][15]. Financial Data and Forecast - The company's revenue is projected to grow from 14,346 million RMB in 2023 to 18,331 million RMB by 2026, with a compound annual growth rate of approximately 11.64% [3][8]. - Net profit is expected to increase from 1,044 million RMB in 2023 to 1,564 million RMB in 2026, reflecting a year-on-year growth rate of 12.25% [3][8]. - The gross margin is forecasted to improve gradually from 42.17% in 2023 to 43.25% in 2026, indicating enhanced operational efficiency [3][8].

Investment Rating - The investment rating for the company is "Buy" with a target price not specified, maintaining the rating for the next six months [7]. Core Insights - The company reported a total revenue of 2.187 billion RMB for FY25H1, a year-on-year decrease of 21.79%, with a net profit attributable to shareholders of -0.097 billion RMB, compared to 0.249 billion RMB in the same period last year. Excluding the financial impact of the sale of "Yuhui Tongxing," the net profit from continuing operations was 0.033 billion RMB [1]. - The company continues to implement a multi-platform strategy to enhance brand awareness and influence, achieving a total net revenue of 2.2 billion RMB from its continuing operations (self-operated products and live e-commerce) in FY25H1, a year-on-year decrease of 9.3%. The GMV for self-operated products and live e-commerce reached 4.8 billion RMB, down 16.2% year-on-year [2]. - The company has launched 600 SKUs of self-operated products in FY25H1, expanding its product line to more categories, with self-operated products accounting for approximately 37% of total GMV [4]. - The company is focusing on product quality and exploring new live streaming methods to tap into untapped markets, emphasizing high repurchase rates, high quality, and cost-effectiveness [6]. Summary by Sections Financial Performance - FY25H1 total revenue was 2.187 billion RMB, down 21.79% year-on-year; net profit attributable to shareholders was -0.097 billion RMB, compared to 0.249 billion RMB in the previous year [1]. - The company expects revenues for FY25-27 to be 4.1 billion RMB, 5.6 billion RMB, and 7.6 billion RMB respectively, with adjusted net profits of 0.18 billion RMB, 0.27 billion RMB, and 0.41 billion RMB [12]. Business Strategy - The company is enhancing its multi-channel strategy, with significant contributions from platforms like Douyin, where the GMV from self-operated and third-party products reached 0.5 billion orders [2]. - The company has developed a comprehensive app strategy, covering various categories to meet diverse consumer needs, and is actively increasing membership and engagement through marketing activities [3]. Product Development - The company has expanded its product categories beyond fresh food and snacks to include health products, pet food, and new-style clothing, achieving competitive performance [4]. - The company plans to increase its focus on essential household products like rice, flour, and cooking oil to better serve family consumption needs [11].

Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [5]. Core Insights - The core education business continues to show significant growth, with FY25 Q2 revenue reaching $1.04 billion, a year-on-year increase of 19.4%. Excluding self-operated products and live e-commerce, revenue grew by 31% [1]. - The company reported a strong performance in overseas exam preparation and consulting services, with revenue growth of 21% and 31% respectively. Domestic exam preparation for adults and university students saw a revenue increase of 34.9% [1]. - New educational initiatives maintained robust growth, with a revenue increase of 42.6%. Non-subject tutoring services were launched in approximately 60 cities, attracting around 994,000 registrations this quarter [1]. - The company is focused on improving service quality and operational efficiency while balancing sustainable growth and profitability [1]. Financial Performance Summary - For FY25 H1, the company reported revenue of $2.47 billion, a 25.6% increase year-on-year. Operating profit was $310 million, up 37.9%, while net profit attributable to shareholders was $280 million, reflecting a 41.9% increase [2]. - The Non-GAAP operating profit for FY25 H1 was $330 million, a 10.8% increase, and the Non-GAAP net profit was $300 million, up 25.4% [2]. - The company recorded a Non-GAAP operating profit margin of 3.2% for FY25 Q2, an increase of 12 basis points year-on-year [3]. Future Outlook - The company expects FY25 Q3 revenue (excluding self-operated products and live e-commerce) to be between $1.01 billion and $1.03 billion, representing a year-on-year growth of approximately 18% to 21% [4]. Adjusted Earnings Forecast - The report adjusts revenue forecasts for FY25-27 to $5.2 billion, $6.3 billion, and $7.5 billion respectively. The adjusted net profit forecasts for FY25-27 are $500 million, $620 million, and $750 million respectively [5].

Investment Rating - The report assigns an "Accumulate" rating for the company with a target price of HKD 19.60, based on the current price of HKD 17.62 [2][8]. Core Insights - The company is a global leader in footwear development and manufacturing, with over 30 years of experience in the footwear OEM industry, focusing on expanding product categories and developing high-quality clients [5][11]. - The company has a strong commitment to shareholder returns, maintaining a high dividend payout ratio of over 70% annually, except in 2020, and plans to distribute additional cash through share buybacks and special dividends [5][21]. - The company has successfully optimized its customer and product category mix, leading to improved operational efficiency and production capacity expansion [6][7]. Summary by Sections 1. Company Overview - The company has established itself as a trusted partner for leading global brands, including Nike and Balenciaga, and has launched its own brand, Stella Luna [11][12]. - The management team possesses extensive industry experience, which aids in the company's sustained focus on business development [12]. 2. Customer and Product Optimization - The company has invested over USD 40 million annually in R&D since 2020, with a high R&D expenditure-to-revenue ratio of 2.68% in 2023, surpassing competitors [6][25]. - The revenue distribution among product categories has shifted, with fashion and sports products increasing their share, while casual products have decreased [29][34]. 3. Operational Efficiency - The company has successfully reduced labor costs as a percentage of revenue, achieving a labor cost ratio of 9.8% in 2023, down from 11.5% in 2021 [7][43]. - The gross margin has improved significantly, reaching 25.8% in 2024H1, driven by better product mix and production efficiency [20][43]. 4. Market Demand and Competitive Landscape - Demand for footwear is stabilizing, with reduced inventory pressure observed in the U.S. apparel market since mid-2023 [44]. - The concentration of suppliers for major brands like Nike has increased, indicating a more favorable competitive landscape for companies with strong production capabilities [50]. 5. Financial Forecast and Valuation - Revenue projections for 2024-2026 are USD 16.2 billion, USD 17.6 billion, and USD 19.2 billion, respectively, with corresponding net profits of USD 1.7 billion, USD 1.9 billion, and USD 2.1 billion [8][52]. - The target market capitalization is set at USD 2.1 billion, with a target price of USD 2.52, reflecting a valuation based on a 11x PE ratio for 2025 [55].

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The new vehicle cycle is expected to significantly boost sales in 2024, with a projected total sales volume of 2.169 million units, representing a year-on-year growth of 27.4% [7] - The earnings per share (EPS) forecasts for 2024-2026 are adjusted to 1.43, 1.08, and 1.29 yuan respectively, with a target price set at 16.20 yuan (RMB) or 17.60 HKD [2][5] Financial Performance Summary - **Revenue Forecasts**: - 2022: 147,965 million yuan - 2023: 179,204 million yuan (21.1% YoY growth) - 2024: 224,632 million yuan (25.4% YoY growth) - 2025: 269,476 million yuan (20.0% YoY growth) - 2026: 316,008 million yuan (17.3% YoY growth) [4][10] - **Net Profit Forecasts**: - 2022: 5,260 million yuan - 2023: 5,308 million yuan (0.9% YoY growth) - 2024: 14,442 million yuan (172.1% YoY growth) - 2025: 10,884 million yuan (-24.6% YoY growth) - 2026: 12,948 million yuan (19.0% YoY growth) [4][10] - **Profitability Ratios**: - Gross Margin: - 2022: 14.1% - 2023: 15.3% - 2024: 15.6% - 2025: 15.6% - 2026: 15.6% [4][10] - Net Margin: - 2022: 3.6% - 2023: 3.0% - 2024: 6.4% - 2025: 4.0% - 2026: 4.1% [4][10] - **Valuation Ratios**: - Price-to-Earnings (P/E) Ratio: - 2022: 23.8 - 2023: 23.5 - 2024: 8.7 - 2025: 11.5 - 2026: 9.7 [4][10] Sales Performance Summary - In December 2024, the total sales volume reached 210,100 units, a year-on-year increase of 43.3% [7] - The company exceeded its annual sales target for 2024, achieving a cumulative sales volume of 1,669,000 units [7] - The sales of new energy vehicles in December 2024 reached 111,200 units, marking a year-on-year growth of 93.1% [7]

Investment Rating - The investment rating for Sinofert Holdings is "Outperform" with an expected relative return exceeding 10% over the next 12-18 months [15]. Core Views - The profit attributable to shareholders for 2024 is projected to be between RMB 1.01 billion and RMB 1.11 billion, with a solid growth forecast when excluding certain impairments [2][4]. - The company is steadily advancing its "Bio+" strategy, focusing on technological innovation and enhancing operational management, which has led to significant growth in bio-fertilizer production and sales [2][5][6]. - Sinofert aims to be a leader in bio-fertilizer and soil health innovation, with a strong emphasis on brand development and product differentiation [5][6][7]. Summary by Sections Financial Performance - The expected profit attributable to shareholders for 2024 is RMB 1.01-1.11 billion, with a potential adjusted profit of RMB 11.8-12.8 billion when excluding impairments [2][4]. - The growth in operating results is attributed to the successful implementation of the "Bio+" strategy and improvements in operational efficiency [2][4]. Business Strategy - The "Bio+" strategy is central to the company's growth, focusing on becoming a leader in bio-fertilizers and soil health [5][6]. - The company has launched new products under this strategy, which have contributed to significant revenue growth [5][6]. Research and Development - Sinofert is enhancing its R&D capabilities, tackling key technologies and promoting the transformation of new products [6]. - In the first half of 2024, the company achieved a transformation of 886,000 tonnes of R&D results, indicating strong progress in product development [6]. Synergies and Collaborations - As a subsidiary of Syngenta Group, Sinofert leverages synergies in plant protection and production, enhancing its product competitiveness [7]. - Collaborative projects with Syngenta have led to the development of advanced technologies and increased revenue from synergistic activities [7].

Investment Rating - The report maintains a "Recommended" rating for the company [3][4]. Core Insights - The company has received exclusive patent approval for recombinant human type IV collagen, which is expected to significantly enhance its medical beauty business prospects [1][2]. - The recombinant human type IV collagen exhibits outstanding efficacy in skin repair and soothing, with proven biological activities such as enhancing barrier-related proteins and inhibiting inflammatory factors [1][2]. - The company is actively expanding its application of recombinant human type IV collagen, solidifying its position as a global leader in recombinant collagen [2]. - The company's medical beauty products have received priority approval, indicating strong growth potential for its recombinant collagen-related business [3]. - The company is expected to achieve adjusted net profits of 2.13 billion, 2.70 billion, and 3.24 billion RMB for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 45.1%, 26.6%, and 20.1% [3][4]. Financial Forecast - Revenue is projected to grow from 3.52 billion RMB in 2023 to 8.76 billion RMB in 2026, with growth rates of 49.0%, 50.6%, 33.6%, and 23.6% for the respective years [4][6]. - Adjusted net profit is forecasted to increase from 1.47 billion RMB in 2023 to 3.24 billion RMB in 2026, with growth rates of 39%, 45%, 27%, and 20% [4][6]. - The earnings per share (EPS) based on adjusted net profit is expected to rise from 1.42 RMB in 2024 to 3.13 RMB in 2026 [4][6].