Investment Rating - The report maintains a "Buy" rating for Tencent Holdings (700 HK) with a target price of HK$520.00, implying a 37% upside from the current price of HK$380.00 [1][2] Core Views - Tencent is well-positioned for sustained strong performance in 2025, driven by robust growth in its gaming and advertising segments [7] - The company's gaming revenue is expected to grow by 16% YoY in 4Q24 and 8% YoY in 2025, supported by evergreen titles and new releases like *Dungeon & Fighter Mobile* [8] - Advertising revenue is projected to grow 15% YoY in 4Q24 and 2025, with video ads and WeChat Channels gaining market share [9] - Fintech and business services revenue is forecasted to grow 5% YoY in 2025, driven by economic recovery and new tools like WeChat Mini Shops [9] Financial Performance - Tencent's adjusted operating profit margin is expected to expand to 34.7% in 4Q24 and 37.9% in 2025, supported by a shift towards higher-margin businesses [10] - The company's adjusted net profit margin is projected to rise to 30.3% in 4Q24 and 34.1% in 2025 [10] - Revenue is forecasted to grow 9% YoY in 4Q24 and 8% YoY in 2025, with net income reaching RMB 240.9 billion in 2025 [20][21] Gaming Segment - Domestic gaming revenue is expected to grow 16% YoY in 4Q24, driven by strong performance of *Dungeon & Fighter Mobile* and deferred revenue of over RMB 100 billion [8] - International gaming revenue is projected to grow 17% YoY in 4Q24, supported by the release of *Path of Exile 2* and contributions from Supercell's *Brawl Stars* [8] - Tencent's gaming pipeline includes titles like *Honor of Kings World* and *Valorant Mobile*, set for release in 2025 [17] Advertising Segment - Social advertising revenue is expected to grow 16% YoY in 4Q24, while media advertising revenue is forecasted to grow 4% YoY [9] - WeChat Channels and video ads are gaining market share, contributing to the segment's outperformance [9] Valuation - The SOTP valuation for Tencent is HK$5.4 trillion, with the gaming segment valued at HK$1.6 trillion (18x 2025E P/E) and the advertising segment at HK$1.2 trillion (18x 2025E P/E) [23][24] - The target price of HK$520.00 is based on a 19x 2025E P/E multiple [10][23] Peer Comparison - Tencent's 2025E P/E of 14.0x is lower than global gaming peers like EA (17.0x) and Take-Two (21.3x) [25] - The company's 2025E P/S of 4.7x is higher than cloud service peers like Alibaba (1.4x) and Baidu (1.5x) [25]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its future growth potential in the high-end beauty market [5][10]. Core Insights - The company is positioned as a leading high-end beauty brand in China, with significant growth opportunities ahead. It has established a strong market presence and is expected to benefit from the rising demand for premium beauty products [12][19]. - The beauty market in China is projected to grow steadily, with high-end skincare and makeup segments expected to outperform mass-market categories. The compound annual growth rate (CAGR) for high-end skincare and makeup is forecasted at 9.6% and 10.8%, respectively, from 2023 to 2028 [35][36]. Financial Performance and Projections - The company is expected to achieve revenue of 40.5 billion, 53.1 billion, and 67.0 billion RMB for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of 40.4%, 31.0%, and 26.2% [6][10]. - The projected net profit for the same years is 9.4 billion, 12.8 billion, and 16.0 billion RMB, with growth rates of 42.2%, 35.6%, and 25.1% [6][10]. - The current price-to-earnings (P/E) ratios are estimated at 28, 21, and 16 for the years 2024, 2025, and 2026, respectively [6][10]. Market Position and Competitive Advantage - The company is recognized as the only domestic brand among the top ten high-end beauty groups in China, ranking seventh with a market share of 1.8% as of 2023 [19][40]. - The flagship brand, MAOGEPING, is the only domestic brand in the top fifteen high-end beauty brands in China, indicating a strong competitive position in the market [19][40]. - The company has a robust channel strategy, with a balanced contribution from both online and offline sales. As of 2024 H1, offline and online channels contributed 50.9% and 49.1% to total revenue, respectively [45][48]. Growth Strategy - The company plans to utilize the funds raised from its IPO primarily for expanding sales channels and brand building. This includes opening new stores, upgrading existing ones, and enhancing online marketing efforts [32][34]. - The company aims to open approximately 30 new counters annually in China and 2-4 overseas, alongside upgrading 70-100 existing counters each year [11][32]. Product Development and Innovation - The company has a diverse product portfolio with 387 SKUs as of 2024 H1, focusing on high-end makeup and skincare products. The average price of its cushion foundation is notably higher than that of leading domestic competitors, allowing it to avoid the crowded mass-market segment [9][11]. - The company has a strong emphasis on research and development, with an average of 75 new products launched annually from 2021 to 2024 H1 [9][11].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$208.22, representing a potential upside of 76% from the current price of HK$118.20 [3][4]. Core Insights - The company is advancing towards profitability by enhancing its market position and R&D capabilities, with a focus on reducing drug development costs through an internal clinical team [1][2]. - The company has a robust pipeline with significant potential, including key commercial products and a strong internal R&D pipeline consisting of 25 Phase I projects, 8 Phase II projects, and 7 Phase III projects [2][5]. - Financial performance is improving, with expectations of positive GAAP operating profit in 2025, driven by effective cost control and a reduction in reliance on CROs [2][5]. Summary by Sections Investment Rating - The company is rated as "Buy" with a target price of HK$208.22, corresponding to a 5.8x sales multiple for 2025 [3][4]. Market Position and R&D Strength - The company has established a global internal clinical development team of 3,600 members, significantly reducing reliance on CROs from 77% in 2019 to 5% in 2024 [1]. - Strategic focus areas for 2025 include consolidating leadership in hematology, accelerating internal pipeline development, and enhancing financial performance [1]. Pipeline and Product Potential - The key commercial product, Zebutini, is the first BTK inhibitor in the U.S. and shows excellent efficacy in treating blood cancers [2]. - The company’s pipeline includes high-potential early-stage candidates such as CDK4i and panKRASi, which are expected to drive future growth [2]. Financial Performance - In Q2 2024, the company achieved Non-GAAP profitability, and by Q3 2024, it recorded positive operating cash flow for the first time [2]. - The company forecasts a positive GAAP operating profit for the full year of 2025, supported by effective cost management strategies [2][5]. Key Financial Data - Projected revenues are expected to grow from US$2,459 million in 2023 to US$4,904 million in 2025, with a net profit turning positive in 2025 at US$137 million [4][12]. - The company’s gross profit is projected to increase from US$2,080 million in 2023 to US$3,857 million in 2025, indicating strong growth potential [4][12].

Investment Rating - Buy rating maintained for Anta Sports (2020 HK) [6] Core Views - Anta Sports reported Q4 and full-year 2024 retail sales performance with Anta and FILA brands showing high single-digit growth in Q4 while other brands grew 50%-55% [2][4] - Full-year retail sales for Anta and FILA brands grew by high single-digit and mid single-digit respectively with other brands growing 40%-45% [2][4] - Anta brand's Q4 retail sales grew by high single-digit (mid single-digit in Q3) with healthy inventory levels and slightly deeper discounts [7] - FILA brand's Q4 retail sales exceeded expectations with high single-digit growth driven by strong performance across its mainline children's and trendy sub-brands [7] - Descente and Kolon continued high growth rates becoming the third growth pillar for the group [7] - Anta Sports' 2024-2026 net profit attributable to shareholders is expected to be 12 0/138/154 billion yuan representing year-on-year growth of 18%/15%/11% respectively [7] - Current price corresponds to PE ratios of 17/14/13X for 2024-2026 indicating relatively low valuation [7] Financial Forecasts - Anta Sports' operating income is projected to grow from 62 356 million yuan in 2023 to 85 117 million yuan in 2026 with year-on-year growth rates of 16 23%/12 63%/10 29%/9 89% [9] - Net profit attributable to shareholders is expected to increase from 10 236 million yuan in 2023 to 15 394 65 million yuan in 2026 with year-on-year growth rates of 34 86%/33 04%/1 46%/11 42% [9] - EPS is forecasted to rise from 3 63 yuan/share in 2023 to 5 45 yuan/share in 2026 [9]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The main brand of the company shows steady growth, with a high single-digit year-on-year increase in Q4 retail sales, and discounts ranging from 70% to 75%. The inventory turnover ratio is approximately 4 months, with an overall year-on-year increase in retail sales for the year [2][4]. - The subsidiary brand, Saucony, experienced a remarkable performance with a year-on-year sales increase of approximately 50% in Q4 and over 60% for the entire year [2][4]. - The company maintains a healthy inventory and discount level, leading the industry. The inventory turnover ratio remains stable compared to Q3 2024, and the discount levels are considered healthy [5][7]. Summary by Sections Retail Performance - The main brand's Q4 sales growth is driven by pre-holiday sales, particularly during the Golden Week and Double Eleven shopping festival. E-commerce channels are expected to outperform offline channels due to holiday promotions, while offline sales may face pressure from weak foot traffic [5][6]. Inventory and Discount Management - The inventory turnover ratio is around 4 months, indicating a healthy inventory level. The discount range of 70% to 75% is viewed as sustainable and healthy for the industry [5][6]. Future Outlook - The company is expected to continue benefiting from healthy inventory and discount levels, with projections for net profit growth of 24%, 17%, and 13% for the years 2024, 2025, and 2026, respectively. The corresponding price-to-earnings ratios are projected to be 11, 9, and 8 times [5][9].

Investment Rating - The investment rating for the company is "Buy" and is maintained [5] Core Views - The company focuses on self-research to create cost advantages, resulting in an excellent price-performance ratio, with products covering a price range of 50,000 to 200,000 CNY. It is expected that the revenue for 2024 will not be less than 30.5 billion CNY, with an annual gross margin of no less than 8%. The company achieved a positive net profit in Q4 2024, one year ahead of its target for quarterly profitability [1][3][6] Summary by Relevant Sections Event Description - The company announced that it achieved a positive net profit in Q4 2024, one year ahead of its target for quarterly profitability [3] Financial Performance - The company expects to achieve sales of 294,000 units in 2024, a year-on-year increase of 103.8%. Revenue is projected to be no less than 30.5 billion CNY, a year-on-year increase of no less than 80%. The annual gross margin is expected to be no less than 8%, an increase of over 7.5 percentage points year-on-year. In Q4 2024, sales are expected to reach 121,000 units, a year-on-year increase of 118.4% and a quarter-on-quarter increase of 40.3%. Revenue for Q4 is projected to be no less than 11.79 billion CNY, a year-on-year increase of over 123.5% and a quarter-on-quarter increase of over 19.6% [6][7] Growth Drivers - The significant improvement in profitability in Q4 is attributed to three main factors: (1) Average monthly sales exceeded 40,000 units, with a quarter-on-quarter increase of over 40%. (2) The product structure continues to optimize, with high-priced C-series models accounting for over 77% of sales in Q4. (3) The company is continuously improving cost management and operational efficiency [6][7] Future Outlook - The company is expected to enter a strong new car cycle globally, with plans to launch 2-3 new products each year over the next three years. In 2025, three models from the B series are planned for launch, with prices ranging from 100,000 to 150,000 CNY. The company is also expanding its domestic and international sales channels, with a total of 860 stores in China and 339 stores in Europe by the end of October 2024 [6][7]

Investment Rating - The report assigns a **Buy** rating to Horizon Robotics-W (09660 HK) with a target price of HKD 3 72 [1] Core Views - Horizon Robotics is positioned to benefit from the global intelligent driving market which is expected to grow to a trillion-level market size The company provides cost-effective integrated hardware and software solutions to OEMs and Tier 1 suppliers making it well-positioned to capitalize on the trend of intelligent driving technology penetration into lower-tier markets [4][6] - The company's valuation is based on projected revenues of RMB 2 375 billion RMB 3 561 billion and RMB 5 954 billion for 2024 2025 and 2026 respectively with corresponding PS ratios of 19 1x 12 7x and 7 6x [6] Industry Overview - The global intelligent driving market is expected to grow significantly with the adoption of end-to-end autonomous driving technology The market size for advanced driver-assistance systems (ADAS) and high-level autonomous driving solutions is projected to increase from RMB 619 billion in 2023 to RMB 10 172 billion by 2030 with a CAGR of 49% [9] - End-to-end autonomous driving which uses neural network models to replace traditional modular designs is expected to drive the market forward with significant improvements in data processing efficiency and deployment lightweighting [9] Company Analysis - Horizon Robotics has established itself as a leading provider of intelligent driving solutions in China with a 35 9% market share in the domestic OEM ADAS solutions market in the first half of 2024 [75] - The company's hardware and software integrated solutions cover a wide range of applications from low to high-end autonomous driving with products like Horizon Mono Horizon Pilot and Horizon SuperDrive [20] - Horizon Robotics has a strong R&D team with over 1 500 employees in intelligent driving hardware and software development and has accumulated more than 1 900 global intellectual property rights [23] Financial Performance - Horizon Robotics' revenue has shown rapid growth with revenues of RMB 4 67 billion RMB 9 06 billion RMB 15 52 billion and RMB 9 35 billion for 2021 2022 2023 and the first half of 2024 respectively [29] - Despite being in a loss-making phase the company's net loss has been narrowing with net losses of RMB 20 64 billion RMB 87 20 billion RMB 67 39 billion and RMB 50 98 billion for the same periods [31] Competitive Landscape - Horizon Robotics is competing with global leaders like NVIDIA and Tesla in the intelligent driving domain control chip market In 2024 Horizon's Journey 5 and Journey 3 chips achieved market shares of 5 4% and 2 5% respectively in China [66] - The company's Journey 6P chip with a computing power of 560 TOPS surpasses NVIDIA's Orin-X and Tesla's FSD 4 0 in performance positioning Horizon as a strong competitor in the high-end market [73] Future Outlook - Horizon Robotics is expected to benefit from the trend of high-end intelligent driving technology penetrating into the mid-tier market particularly in vehicles priced below RMB 200 000 The company's cost-effective solutions are well-suited for this segment [83] - The company's Horizon SuperDrive solution combined with the Journey 6 chip offers a high-performance intelligent driving system that is expected to drive future growth [85]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Insights - The company is positioned as a global IP retail store, leveraging "IP + retail" to unlock overseas growth potential [1] - The emotional consumption era is on the rise, with the IP retail industry experiencing upward momentum [1] - The company has a strong competitive edge through efficient supply chain management, robust IP operation capabilities, and scale advantages [2] Summary by Sections Company Overview - The company, established in 2013, has developed a comprehensive supply chain system and is now a leading player in the domestic household goods retail sector [15] - The company operates two brands: MINISO, focusing on household goods, and TOP TOY, targeting the trendy toy market [20] Industry Analysis - The IP retail sector is in its growth phase, with significant potential for expansion as China's per capita IP retail consumption is only about 1/4 of the global average [34] - The emotional consumption trend is gaining traction, with increasing consumer interest in IP-related products [40] Competitive Advantages - The company excels in supply chain efficiency, IP operation capabilities, and has a significant scale advantage with over 7,186 stores globally [2][60] - The company has established partnerships with over 150 top IPs, enhancing its product offerings and market presence [60] Market Expectations - The report anticipates better-than-market expectations for same-store sales in both domestic and overseas markets, driven by refined IP operations and targeted product categories [3][66] - The company is expected to continue expanding its store network, particularly in overseas markets, which will support same-store sales growth [3][67] Financial Projections - Revenue forecasts for 2024-2026 are projected at 172 billion, 213 billion, and 256 billion respectively, with year-on-year growth rates of 24.3%, 23.9%, and 20.2% [5] - Adjusted net profit is expected to reach 28.0 billion, 35.8 billion, and 43.7 billion for the same period, reflecting growth rates of 19%, 28%, and 22% [5]

Investment Rating - Tencent Holdings maintains a "Buy" rating [4] Core Views - The inclusion of Tencent in the 1260H list by the US Department of Defense has limited direct impact on the company's operations [2] - The 1260H list does not authorize any direct restrictions on the listed companies, but indirect effects in financing and supply chain areas should be monitored [2] - There is a possibility that Tencent could be added to the NS-CMIC list, which would restrict US entities from trading its securities [3] - Tencent may face supply chain challenges due to potential classification as a "military end-user" under US export control regulations [3] - Historical precedents suggest that Tencent could potentially be removed from the 1260H list through appeals, as seen with Xiaomi in 2021 [3] Financial Projections and Valuation - Revenue is projected to grow from CNY 609,015 million in 2023 to CNY 795,437 million in 2026, with a CAGR of 9.24% [6] - Net profit attributable to the parent company is expected to increase from CNY 115,216 million in 2023 to CNY 216,284 million in 2026, with a CAGR of 23.45% [6] - Earnings per share (EPS) are forecasted to rise from CNY 12.19 in 2023 to CNY 23.45 in 2026 [6] - The P/E ratio is expected to decline from 22.65x in 2023 to 16.41x in 2026, indicating improving valuation metrics [6] Financial Ratios and Performance - Gross margin is projected to improve from 48.13% in 2023 to 55.18% in 2026 [12] - Return on Equity (ROE) is expected to increase from 14.25% in 2023 to 17.78% in 2024, before slightly declining to 16.33% in 2026 [12] - The debt-to-asset ratio is forecasted to decrease from 44.61% in 2023 to 38.12% in 2026, reflecting a stronger balance sheet [12] - The current ratio is expected to improve from 1.47 in 2023 to 2.43 in 2026, indicating better liquidity [12] Market and Industry Context - Tencent's stock price closed at HKD 409.40, with a 12-month price range of HKD 257.97 to HKD 482.40 [7] - The company's market capitalization stands at HKD 3,724.8 billion [7] - Tencent's performance is compared to the Hang Seng Tech Index, with a recent underperformance of -17.00% [9]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company is expected to see significant revenue growth driven by the launch of new content and seasonal events in its self-developed life simulation game "Heart Town" [5] - The company maintains its profit forecasts for 2024-2026, projecting net profits of 783 million, 1.137 billion, and 1.246 billion yuan respectively, with corresponding EPS of 1.6, 2.3, and 2.5 yuan [5] - The current stock price corresponds to P/E ratios of 13.5, 9.3, and 8.5 for the years 2024, 2025, and 2026 respectively, indicating a favorable valuation [5] Financial Summary and Valuation Metrics - Revenue for 2022 was 3.431 billion yuan, with a projected increase to 6.005 billion yuan in 2024, representing a year-over-year growth of 77.2% [8] - The company reported a net loss of 554 million yuan in 2022, but is expected to achieve a net profit of 783 million yuan in 2024, marking a significant turnaround [8] - Gross margin is projected to improve from 53.5% in 2022 to 65.2% by 2026, indicating enhanced profitability [8] - The return on equity (ROE) is expected to be 31.4% in 2024, reflecting strong operational efficiency [8]