Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported FY25H1 results showing a revenue of 13.055 billion yuan, down 7.9% year-on-year, and a net profit of 874 million yuan, down 34.7% year-on-year, primarily due to increased promotional efforts and deeper discounts leading to a decline in gross margin [2] - The company continues to enhance its brand matrix, optimize offline stores, and strengthen membership operations, with significant growth in online sales through platforms like Douyin [2][3] - Despite the challenging retail environment, the long-term growth potential in the sports sector remains, supported by stable cash flow and high dividend payouts [3] Financial Performance Summary - FY2023A total revenue was 27.074 billion yuan, with a year-on-year decline of 15.07%. For FY2024A, revenue is projected to increase to 28.950 billion yuan, a growth of 6.93% [1] - The net profit for FY2023A was 1.837 billion yuan, with a year-on-year decrease of 24.93%. The forecast for FY2024A is a net profit of 2.213 billion yuan, reflecting a growth of 20.49% [1] - The latest diluted EPS for FY2023A was 0.30 yuan per share, with projections of 0.36 yuan for FY2024A and a decline to 0.21 yuan for FY2025E [1][11] - The company’s gross margin for FY25H1 was 41.1%, down 3.6 percentage points year-on-year, attributed to increased promotional activities and a higher proportion of lower-margin wholesale sales [3] - The inventory as of FY25H1 was 6.12 billion yuan, an increase of 6.4% year-on-year, with inventory turnover days rising to 145 days [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company is set to enhance its performance through the acquisition of high-quality assets, with a focus on wind and solar energy projects, which are expected to significantly contribute to its profitability in the future [2] - The acquisition involves cash purchases of controlling stakes in eight renewable energy companies, with a total installed capacity of 2.0329 million kilowatts, at a transaction price of 1.686 billion yuan [1][2] - The expected increase in net profit for the company due to the acquisition is approximately 1.46 billion yuan for the year 2024, representing a 3% increase compared to 2023 [2] Summary by Sections Acquisition Details - The company plans to acquire stakes in eight renewable energy companies, with a total installed capacity of 2.0329 million kilowatts, for a price of 1.686 billion yuan [1] - The acquisition is valued at a price-to-book (PB) ratio of approximately 1.13 times, indicating reasonable pricing [1] Financial Performance - As of the first half of 2024, the company has a controlling wind power capacity of 28.35 GW and a photovoltaic capacity of 7.66 GW [2] - The expected net profit from the operational units acquired in the transaction is projected to be 1.41 billion yuan for the first half of 2024 [2] - The company's revenue for 2024 is forecasted to be 40.662 billion yuan, with a net profit of 5.951 billion yuan, reflecting a slight decrease of 4.77% compared to 2023 [3] Market Position and Future Outlook - The company is positioned as a leader in the green energy sector, with significant potential for future asset injections from its controlling shareholder, which holds approximately 40 GW of unlisted renewable energy assets [2] - The recent regulatory changes aimed at optimizing merger and acquisition processes are expected to enhance the company's valuation and market activity [2]

Investment Rating - The report maintains a "Buy" rating for Great Wall Motors [1][2] Core Views - Great Wall Motors' Q3 2024 core earnings align with estimates, and overseas sales growth is expected to support profitability in FY25 [1] - The company plans to launch seven new models in FY25, which may positively impact sales in the Chinese market [1] - The report anticipates a 29% year-on-year increase in overseas sales, targeting 580,000 units in FY25 [1][2] - The net profit for Q3 2024 was RMB 3.4 billion, which was 5.7 billion lower than expected due to unexpected foreign exchange losses and delays in VAT refunds [1][2] Financial Summary - Revenue projections for FY25 have been raised from 1.3 million units to 1.36 million units, with a 3% growth expected in China due to new model launches [2] - The net profit forecast for FY25 has been increased by 7% to RMB 14 billion, while the FY24 net profit estimate has been reduced by 5% [2] - The target price has been adjusted from HKD 14.00 to HKD 17.00, reflecting improved market sentiment [2][4] Performance Metrics - Revenue (in million RMB) is projected to grow from 204,470 in FY24 to 236,000 in FY25, and further to 258,850 in FY26 [3][10] - Net profit is expected to increase from 12,768 in FY24 to 14,023 in FY25, and then to 13,887 in FY26 [3][10] - The gross margin is projected to be 20.0% in FY24, improving to 20.3% in FY25, before slightly declining to 19.7% in FY26 [8][10] Market Position - Great Wall Motors aims to enhance its overseas market presence through local assembly plants and expects stable profit margins in overseas markets despite increasing competition by FY26 [1][2] - The company is focusing on launching new models in the electric vehicle segment, which is seen as crucial for maintaining competitiveness in the evolving automotive landscape [1][2]

Investment Rating - Maintain BUY rating for Great Wall Motor with a target price raised from HK$14.00 to HK$17.00, indicating an upside potential of 18.2% from the current price of HK$14.38 [2][3]. Core Insights - Great Wall Motor's 3Q24 core earnings were in line with estimates, with revenue about 5% higher than previous forecasts, although net profit was impacted by unexpected foreign exchange losses and VAT refund delays [2]. - The company is expected to achieve overseas sales growth of 29% YoY in FY25E, supported by new models and increased local content [2]. - A decline in sales volume in China is anticipated for FY24E, but the introduction of seven new models in FY25E could revitalize sales [2]. Financial Performance Summary - Revenue is projected to grow from RMB 173,212 million in FY23A to RMB 204,470 million in FY24E, reflecting an 18.0% YoY growth [1]. - Net profit is expected to rebound significantly from RMB 7,021.6 million in FY23A to RMB 12,768.3 million in FY24E, marking an 81.8% increase [1]. - The company's gross margin is projected to stabilize around 20.0% in FY24E, with a slight narrowing expected in FY26E due to increased competition in overseas markets [2]. Earnings Revisions - FY25E net profit forecast has been revised up by 7% to RMB 14 billion, while FY24E net profit has been cut by 5% due to the earnings miss in 3Q24 [2][5]. - Sales volume forecast for FY25E has been increased from 1.3 million units to 1.36 million units, indicating a 3% growth in China [2]. Valuation Metrics - The P/E ratio is projected to decrease from 16.5x in FY23A to 9.1x in FY24E, reflecting improved earnings expectations [1][7]. - The dividend yield is expected to rise from 2.2% in FY23A to 3.9% in FY24E, indicating a more attractive return for investors [1][7].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 15 HKD, indicating an expected relative return of over 20% within the next six months [1]. Core Insights - The company has reported better-than-expected earnings, with a projected net profit growth of 140-145% year-on-year for Q1-Q3 2024, amounting to approximately 330-340 million USD [1]. - The growth in net profit is attributed to the normalization of the global footwear market and a significant increase in demand for the company's shoe products from brand clients [1]. - The company is balancing demand with order scheduling and has implemented an orderly overtime plan to support net profit growth, alongside steady capacity increases throughout the year [1]. Summary by Sections Financial Performance - The company’s manufacturing revenue growth for the first nine months of 2024 shows a positive trend, with monthly growth rates of 13%, -12%, 0%, +3%, +8%, +3%, +22%, +21%, and +27% [1]. - The report indicates that after previous years of pandemic and inventory destocking, the leading footwear supply chain is regaining its growth momentum [1]. Market Position - Adidas has raised its full-year revenue guidance, which is expected to benefit the company as a key supplier in Adidas' footwear supply chain [1]. - The report expresses optimism regarding Adidas' recovery, suggesting that the improved guidance reinforces the operational cycle of major brands and restores growth momentum [1]. Earnings Forecast - Based on the performance in Q1-Q3 2024, the earnings forecast has been revised upwards, with expected revenues of 8.65 billion USD, 9.645 billion USD, and 10.935 billion USD for FY24-26 [1]. - The projected net profits for these years are 430 million USD, 480 million USD, and 530 million USD, respectively, which are higher than previous estimates [1]. - The expected EPS for FY24-26 is revised to 0.27 USD, 0.30 USD, and 0.33 USD per share, with corresponding PE ratios of 7X, 6X, and 6X [1].

Investment Rating - The report assigns an "Accumulate" rating to the company [2][10]. Core Views - The company shows resilience in new business growth despite concerns over revenue deceleration due to a low base. Profit margins are expected to gradually recover in Q3 and Q4 as the pace of capacity expansion slows [1][2]. Summary by Sections Financial Performance - For FY25Q1, the company reported revenue of $1.435 billion, a 30.5% increase year-over-year. The education segment generated $1.278 billion, up 33.5%, aligning with market expectations [2]. - Non-GAAP operating profit was $300 million, reflecting a 23% increase, with a profit margin of 20.9%, down 1.3 percentage points. The education segment's operating profit was $303 million, up 58.4%, with a profit margin of 24%, an increase of 2 percentage points [2]. - Non-GAAP net profit reached $265 million, a 40% increase, with a profit margin of 18.4%, up 1.2 percentage points [2]. Business Segments - The growth rates for various business segments in FY25Q1 were as follows: exam preparation +19%, consulting +21%, domestic university training +30%, and new businesses +50%. Concerns arose from a slight downward adjustment in the growth rates of high-end study abroad services and high school 1v1 tutoring [2]. - The company maintains its expectation of a 30% revenue growth rate and a 1 percentage point increase in profit margin for the education segment for the full year [2]. Future Outlook - The company plans to expand its network with a capacity growth target of 20-25% for the year. The pace of new store openings is expected to stabilize, which should lead to a gradual recovery in profit margins in Q3 and Q4 [2]. - The guidance for FY25Q2 indicates education segment revenue between $851 million and $872 million, representing a year-over-year growth of 25-28%, which is below the market's expectation of 30% [2].

Investment Rating - The report gives a "Buy" rating for the company, indicating it is expected to benefit from the recovery in the industry and the ongoing high-end strategy [2][80]. Core Viewpoints - China Resources Beer has established itself as the largest beer company in China, with a significant focus on high-end products through its "3+3+3" strategy initiated in 2017 [1][15]. - The company has diversified into the liquor sector, enhancing its brand power and market presence through strategic acquisitions [1][23]. - The beer industry is stabilizing in volume while prices are expected to increase, particularly in the high-end segment, which presents substantial growth opportunities [1][2]. - The competitive landscape is characterized by a high concentration of market share among the top five companies, with a CR5 of 92% in 2023 [1][46]. Summary by Sections Company Overview - China Resources Beer was founded in 1993 and has rapidly grown to become the largest beer producer in China, with beer sales reaching 11.15 million kiloliters in 2023 [1]. - The company has undergone several phases of development, including a focus on high-end product offerings and operational efficiency improvements since 2017 [1][15]. Beer Industry Analysis - The beer production peaked in 2013 and has stabilized since 2018, with expectations for future production to remain steady due to demographic trends [1][2]. - The high-end market segment is projected to continue expanding, particularly in the 6-10 RMB price range, which is seen as having the most growth potential [1][2]. - The competitive landscape is dominated by a few key players, with the top five companies holding a significant market share, indicating a concentrated market structure [1][46]. Brand and Product Strategy - The company has developed a "4+4" high-end brand matrix, combining local and international brands to cater to diverse consumer segments [1][15]. - The product portfolio covers all price ranges, with a strong emphasis on high-end products that have shown significant sales growth [1][59]. - The company has successfully launched several key products aimed at younger consumers, enhancing its market appeal [1][63]. Financial Performance and Projections - In 2023, the company reported revenues of 38.93 billion RMB, a year-on-year increase of 10.4%, with beer and liquor revenues contributing 36.86 billion and 2.07 billion RMB, respectively [1][3]. - The forecast for net profit from 2024 to 2026 is expected to grow steadily, with projected figures of 5.28 billion, 5.87 billion, and 6.38 billion RMB, respectively [2][80]. - The company is anticipated to maintain a strong gross margin, benefiting from cost reductions in raw materials and operational efficiencies [2][76].

Investment Rating - The report maintains a "Buy" rating for Tianli International Holdings (01773) with a target price of HKD 4.72, indicating a positive outlook for the company's stock performance over the next six months [1]. Core Insights - Tianli International has issued 9.4 million stock options with an exercise price of HKD 4.72, which is higher than the current market price of HKD 4.55, signaling confidence in the company's future growth and market value [1]. - The company is in a rapid growth phase, focusing on talent retention and motivation as key drivers for its development in the education sector [1]. - Recent achievements in academic competitions highlight the effectiveness of Tianli's educational strategies, with multiple schools under its umbrella receiving top awards [1]. Summary by Sections Investment Rating - Current Price: HKD 4.71 - 6-Month Rating: Buy (maintained) - Target Price: HKD 4.72 [1] Company Performance - The issuance of stock options at a price above the current market price reflects the company's commitment to its future growth and shareholder confidence [1]. - The company has a total market capitalization of HKD 9,964.73 million and a total share capital of 2,115.65 million shares [1]. Competitive Achievements - Tianli's students have excelled in national academic competitions, with over 60 students winning provincial-level first prizes in recent years [1]. - The company has developed a comprehensive training and selection system for top talent, integrating various educational stages to enhance student performance [1].

Investment Rating - The investment rating for the company is "Buy" with a target price of 47.5 HKD, maintaining the rating for the next six months [1]. Core Insights - The company reported a revenue of 1.44 billion USD for FY25Q1, representing a 31% year-on-year increase. Excluding the revenue from Dongfang Zhenxuan's self-operated products and live e-commerce, the revenue growth was 34% [1]. - The company achieved a net profit of 250 million USD, up 48% year-on-year, with a Non-GAAP net profit of 260 million USD, reflecting a 40% increase [1][2]. - The company continues to focus on enhancing service quality and operational efficiency to improve profitability while balancing growth and sustainability [1]. Financial Performance - The operating profit for the quarter was 290 million USD, a 43% increase year-on-year, with a Non-GAAP operating profit of 300 million USD, up 23% [1]. - The company reported a GAAP operating profit margin of 23.7%, an increase of 370 basis points year-on-year, while the Non-GAAP operating profit margin was 24.4%, up 220 basis points [2]. - The company generated a net operating cash flow of 183.2 million USD for the quarter, with total cash and cash equivalents amounting to approximately 4.9 billion USD at the end of the quarter [2]. Growth Projections - The company maintains its revenue forecasts for FY25-27, expecting revenues of 5.2 billion, 6.4 billion, and 7.5 billion USD respectively, with adjusted net profits of 560 million, 770 million, and 1.06 billion USD for the same periods [2].

Investment Rating - The report assigns a rating of "Accumulate (downgraded)" for the company [1] Core Views - The company reported a revenue of 13.1 billion RMB for FY25H1, a decrease of 8% year-on-year, with the main brand contributing 11.4 billion RMB, also down 8% [1] - The retail revenue accounted for 10.9 billion RMB, representing 84% of total revenue, down 9% year-on-year [1] - The net profit attributable to shareholders was 870 million RMB, a decline of 35% year-on-year [1] - The company continues to enhance its online presence through live streaming and social media, with significant growth in sales on platforms like Douyin [1][3] - The company is expanding its brand partnerships and diversifying its product offerings, particularly in the outdoor sports segment [3][4] Summary by Sections Financial Performance - For FY25H1, the company reported total revenue of 13.1 billion RMB, down 8% year-on-year, with net profit of 870 million RMB, down 35% [1] - The company plans to adjust its revenue forecasts for FY25-27 to 26.9 billion RMB, 30.5 billion RMB, and 33.8 billion RMB respectively [4] Retail Strategy - The company is focusing on optimizing its store network by closing underperforming stores and enhancing the efficiency of existing ones [2] - As of FY25H1, the company had 5,813 stores, a reduction of 331 stores compared to the previous period [1] Brand Expansion - The company has initiated partnerships with brands like HOKA ONE ONE and KAILAS, and is the exclusive operator for the Canadian brand norda in China [3] - The collaboration with Fanatics aims to expand the commercialization of sports IP in the Greater China region [4]