Investment Rating - The report maintains an "Outperform" rating for the company [1] Core Views - The company's main brands, including Tai Er, Song, and Jiu Mao Jiu, have maintained steady expansion, with a high likelihood of achieving the full-year expansion targets [2][4] - The company has adjusted its menu to offer more cost-effective products and optimized costs at both the store and headquarters levels, which could contribute to future growth [9] - The company's PE valuation for 2024 is around 20x, which is at the bottom of its historical range, indicating potential for strong profit elasticity if turnover rates improve [9] Expansion and Performance - As of Q3 2024, Tai Er, Song, and Jiu Mao Jiu had 654, 79, and 72 stores respectively, with Tai Er opening 68 new stores in the first three quarters of 2024 [2][4] - The company adjusted its full-year store opening plan for Tai Er to 93 stores (80 in mainland China and 13 overseas) and for Song to 25 stores, which is considered highly achievable [2][4] - The average customer spending per visit for Tai Er, Song, and Jiu Mao Jiu in Q3 2024 was 69, 97, and 54 yuan respectively, with Song experiencing a larger decline due to increased group dining during the summer [2][4] - The turnover rates for Tai Er, Song, and Jiu Mao Jiu in Q3 2024 were 3.6, 3.0, and 2.8 times respectively, showing marginal improvement compared to Q2 [2][4] - Same-store sales for Tai Er, Song, and Jiu Mao Jiu in Q3 2024 were -18.3%, -32.5%, and -10.3% respectively, indicating a bottoming out of the decline compared to Q2 [2][4] Brand Optimization and Innovation - The company has sold off non-core brands such as "Na Wei Da Shu Shi Da Chu" and "Lai Mei Li" to focus on its core brand portfolio [3][6] - Tai Er has opened over 30 "satellite stores" in cities like Guangzhou, Shenzhen, Shanghai, and Xiamen, with plans to expand further. These stores are compact, focusing on takeout services, and are expected to complement traditional mall stores [3][8] Financial Forecasts - The report revised the company's revenue forecasts for 2024-2026 to 6.315, 7.281, and 8.738 billion yuan respectively, with net profits adjusted to 219, 292, and 384 million yuan [9] - The PE ratios for 2024-2026 are projected at 20x, 15x, and 12x respectively, reflecting the impact of cost pressures and external operating environment challenges [9]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 5.30 [1] Core Views - The company's 1-9M24 revenue was HKD 4.534 billion (-4.7% YoY), with a net profit of HKD 919 million (-2.8% YoY) [2] - The decline in revenue was attributed to stable growth in the large infusion sector but was offset by the impact of centralized procurement on ASP and a one-time impact from a specific product [2] - The net profit margin improved by 0.4 percentage points YoY due to optimized sales expenses [2] - The report expects the company's 2024 net profit to be HKD 1.35 billion, driven by seasonal demand in the large infusion sector and stabilized raw material prices [2] Large Infusion Sector - The large infusion sector generated HKD 2.97 billion in revenue (-1% YoY) in 1-9M24, with a 13.4% YoY increase in sales volume but a 12.7% YoY decline in ASP due to centralized procurement [3] - The sector is expected to grow steadily in 2024, with sales exceeding 2.2 billion bottles/bags, driven by seasonal demand, increased capacity utilization, and the expansion of high-margin products like peritoneal dialysis fluid [3] Raw Material Sector - The raw material sector reported HKD 598 million in revenue (-6.6% YoY) in 1-9M24, with caffeine prices stabilizing and azithromycin expected to see both volume and price increases in 2024 [4] - The ampoule sector saw a significant revenue decline (-30.5% YoY) due to a one-time impact but is expected to recover with HKD 700 million in revenue in 2024 [4] Solid Formulation Sector - The solid formulation sector achieved HKD 339 million in revenue (+5.3% YoY) in 1-9M24, with expected revenue of HKD 500 million in 2024 due to new product approvals and the deepening of the raw material/formulation integration strategy [4] Financial Forecasts and Valuation - The company's 2024/2025/2026 EPS is forecasted to be HKD 0.46/0.53/0.59, with a target price of HKD 5.30 based on a 10x PE ratio for 2025 [5] - Revenue is expected to grow from HKD 6.528 billion in 2024E to HKD 8.386 billion in 2026E, with net profit increasing from HKD 1.354 billion in 2024E to HKD 1.744 billion in 2026E [1][5] - ROE is projected to remain stable around 18.45%-18.84% from 2024E to 2026E [1]

Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Insights - The report highlights that the company has successfully navigated through various phases of the cosmetics industry over the past 20 years, demonstrating resilience and adaptability [5]. - The company is recognized as a leading domestic multi-brand cosmetics enterprise, with significant growth potential driven by its core brand, Han Shu [5][7]. - The report projects revenue growth rates of 56.6%, 75.9%, 27.9%, and 19.1% for the years 2023 to 2026, respectively [1]. Summary by Sections Company Development Overview - The company has evolved through several key phases, including brand inception, television shopping, focused marketing, multi-brand development, and recent shifts towards e-commerce [5][15]. - The founder, Mr. Lv Yixiong, has played a crucial role in the company's strategic direction and market positioning, leveraging insights from market trends and consumer behavior [5][15]. Financial Forecast and Investment Recommendations - The company is expected to achieve revenues of 4,191 million, 7,370 million, 9,425 million, and 11,227 million yuan from 2023 to 2026, respectively [1]. - The projected net profit attributable to shareholders is forecasted to be 461 million, 896 million, 1,161 million, and 1,368 million yuan for the same period [1]. - The report suggests that the company's earnings per share will increase from 1.16 yuan in 2023 to 3.44 yuan in 2026, with corresponding price-to-earnings ratios of 33, 17, 13, and 11 [1]. Brand Performance - Han Shu has become the primary revenue driver, contributing approximately 84% of total revenue in the first half of 2024, up from 32% in 2019 [7][8]. - The company has successfully repositioned its brands to adapt to changing consumer preferences and market dynamics, particularly focusing on online sales channels [5][7]. Market Positioning - The company has established a strong foothold in the domestic cosmetics market, ranking among the top five domestic brands by retail sales from 2015 to 2021 [5]. - The report emphasizes the company's strategic focus on the mid-range price segment, targeting consumers in lower-tier cities, which has differentiated it from international competitors [22].

Investment Rating - The report maintains a "Buy" rating for the company, citing strong performance and growth potential [2][5] Core Views - The company reported a net profit of $100 million for the first nine months of 2024, representing a year-on-year growth of over 335% [5] - Full-year revenue for 2024 is expected to exceed expectations, with a projected growth rate of over 20% [5] - The company's EGO brand has shown strong performance, contributing significantly to profit growth [5] - Online channel revenue is growing rapidly, with Amazon driving significant growth, and is expected to reach double-digit revenue share in 2024 [5] - The company is expanding its distributor network in North America and adjusting distribution policies in Europe, which is expected to improve gross margins [5] - Q3 2024 gross margin is expected to improve year-on-year due to the strong performance of the high-margin EGO brand, production scale recovery, and low raw material costs [5] - Downstream retailer inventories have returned to healthy levels, supporting growth in shipments [5] Financial Projections - Revenue for 2024-2026 is projected to be $1.655 billion, $1.922 billion, and $2.198 billion, respectively, with year-on-year growth rates of 20.4%, 16.1%, and 14.4% [5] - Adjusted net profit for 2024-2026 is expected to be $131 million, $150 million, and $178 million, with year-on-year growth rates of 15.1% and 18.3% for 2025 and 2026, respectively [5] - Gross margin is expected to improve to 32.7% in 2024, compared to 28.1% in 2023 [4][5] - Adjusted net profit margin is projected to be 7.9%, 7.8%, and 8.1% for 2024-2026, respectively [4][5] - ROE is expected to increase to 12.3%, 12.7%, and 13.4% for 2024-2026, respectively [4][5] Market Data - The company's closing price on October 17, 2024, was HKD 21.3, with a total market capitalization of HKD 10.9 billion [3] - Total assets were $1.94 billion, with net assets attributable to the parent company at $982 million [3] - Earnings per share (EPS) for 2024-2026 are projected to be $0.28, $0.32, and $0.38, respectively [4][5] Operational Highlights - The company is focusing on optimizing operational efficiency and controlling management expenses while steadily investing in marketing and R&D [5] - The company's OPE and power tools are benefiting from downstream retailers' restocking cycles, which are expected to align with POS growth rates in Q4 2024 [5] - The EGO brand is expected to outperform industry averages despite weak downstream demand [5]

Investment Rating - Buy (First Coverage) [2] Core Views - The company is a leading Biopharma in China, transitioning successfully from Biotech to Biopharma with 11 approved products and a robust pipeline in oncology, immunology, metabolism, and ophthalmology [2] - The oncology segment is a key driver, with a strategy combining IO (Immuno-Oncology) and ADC (Antibody-Drug Conjugate) to solidify its leadership position [2] - Non-oncology pipelines, particularly in cardiovascular, metabolic, and autoimmune diseases, are expected to open new growth curves [3] - The company's revenue is projected to grow significantly, with 2024-2026 revenue estimates of 8.094 billion, 11.327 billion, and 14.551 billion RMB, respectively, representing a CAGR of 30.43%, 39.94%, and 28.46% [3][6] Oncology Segment - The company's PD-1 inhibitor, Sintilimab, is the only PD-1 drug in China that covers first-line treatment for five major cancer types and is included in the national medical insurance [2] - The company is advancing its IO+ADC strategy with promising candidates like IBI363 (PD-1/IL-2), IBI343 (CLDN18.2 ADC), and IBI389 (CLDN18.2/CD3 bispecific antibody), which show potential in overcoming immune resistance and treating cold tumors [2] - IBI363, a PD-1/IL-2 bispecific fusion protein, has shown promising efficacy and safety in clinical trials, particularly in treating immune-resistant non-small cell lung cancer (NSCLC) and melanoma [23][29][34] Non-Oncology Segment - The company's GLP-1R/GCGR dual-target drug, Mazdutide, is a key growth driver, with NDA submissions for obesity and type 2 diabetes in 2024 [3] - In the autoimmune space, the IL-23p19 inhibitor, IBI112, has shown potential as a best-in-class drug for psoriasis, with its NDA submitted in September 2024 [3] - In ophthalmology, IBI311 (IGF-1R) for thyroid eye disease (TED) has submitted its NDA in May 2024, giving the company a first-mover advantage [3] Financial Projections and Valuation - The company's revenue is expected to grow from 8.094 billion RMB in 2024 to 14.551 billion RMB in 2026, with a DCF-based valuation of 93.9 billion RMB, equivalent to 101.5 billion HKD [3][6] - The company is projected to achieve profitability by 2025, driven by its diversified product portfolio and operational efficiency improvements [6][8] Key Catalysts - The commercialization of Mazdutide in 2025 is expected to be a significant growth driver, leveraging the large market potential for GLP-1 drugs in China [3][8] - The advancement of IBI363 in clinical trials and its potential for global expansion could further enhance the company's oncology portfolio [2][29] - The company's focus on operational efficiency and commercialization capabilities is expected to drive sustained growth [6][8]

Investment Rating - The report assigns a "Recommend" rating for the company, marking it as the first coverage [1] Core Views - The company is a leading domestic ERP provider, accelerating its cloud transformation and narrowing losses, with breakeven expected soon [1] - The company's cloud transformation has shown initial results, with revenue growth stabilizing and losses narrowing [9] - The company is leveraging AI and domestic substitution trends to drive ERP upgrades, accelerating the transition to the EBC era [17] - The company's cloud-native products and services are well-positioned to capture new opportunities in overseas markets [34] Company Overview - The company is a leading ERP provider in China, transitioning from financial software to ERP and now to SaaS cloud services [1] - Revenue grew from RMB 1.547 billion in 2014 to RMB 5.679 billion in 2023, with a 9-year CAGR of 15.5% [1] - The company's cloud business accounted for 79.33% of total revenue in 2023, up from 56.72% in 2020 [11] - The company's cloud subscription ARR grew from RMB 630 million in 2019 to RMB 2.86 billion in 2023, with a 5-year CAGR of 45.97% [12] Cloud Transformation - The company's cloud transformation began in 2014, with cloud revenue surpassing traditional ERP revenue in 2020 [11] - Cloud revenue reached RMB 4.505 billion in 2023, accounting for 79.33% of total revenue, with a 7-year CAGR of 35.6% [11] - The company's cloud subscription ARR reached RMB 3.15 billion in H1 2024, up 24.2% YoY [12] - The company's core cloud products, such as Kingdee Cloud·Star and Kingdee Cloud·Star River, have renewal rates above 90% [12] AI and EBC Era - The company is leveraging AI to upgrade traditional ERP systems, accelerating the transition to the EBC era [17] - The company's EBC platform, built on cloud-native and modular architectures, supports enterprise digital transformation [28] - The company's self-developed AI model, Cosmic, enhances ERP systems with better integration, automation, and security [32] Market Opportunities - The company is well-positioned to benefit from domestic substitution trends and the growing demand for industrial software [21] - The company's cloud products are gaining traction in overseas markets, with revenue from international operations growing 8.2% YoY in H1 2024 [43] - The company has established a presence in Southeast Asia, with new offices in Singapore, Vietnam, and Thailand [43] Financial Projections - The company's revenue is expected to grow from RMB 6.642 billion in 2024 to RMB 9.418 billion in 2026, with a CAGR of 18.07% [2] - Net profit is expected to turn positive in 2025, reaching RMB 276 million in 2026, with a YoY growth of 408.9% [2] - Cloud revenue is projected to grow from RMB 5.455 billion in 2024 to RMB 8.218 billion in 2026, with a CAGR of 22.16% [45] Product Portfolio - The company offers a diverse range of cloud products, including Kingdee Cloud·Star River for large enterprises, Kingdee Cloud·Star for mid-sized enterprises, and Kingdee Cloud·Star Light for small businesses [34] - Kingdee Cloud·Star River, the company's flagship product for large enterprises, achieved revenue of RMB 546 million in H1 2024, up 38.9% YoY [35] - Kingdee Cloud·Star, targeting mid-sized enterprises, generated revenue of RMB 1.054 billion in H1 2024, up 14.3% YoY [35] - Kingdee Cloud·Star Light, aimed at small businesses, saw revenue grow 70.8% YoY in H1 2024 [35]

Investment Rating - The report maintains a "Buy" rating for Longyuan Power (916 HK) with a target price of HKD 8.35, indicating a potential upside of 32.8% from the current price of HKD 6.29 [11]. Core Views - The report anticipates a weaker net profit for the third quarter, projecting a year-on-year decline of 22% to RMB 4.7 billion, which aligns with market expectations [2]. - There was a significant rebound in wind power generation in September, with a year-on-year increase of 29%, primarily due to improved wind speeds in coastal areas [1]. - The overall power generation for the third quarter is expected to rise by 6% year-on-year, driven by a 42% increase in solar power generation, while thermal power generation is projected to decline by 14% due to project sales [1][2]. - The report highlights that operational improvements and progress in acquisitions are key factors for valuation enhancement, with an upward adjustment of the valuation standard to 10.5 times the 2025 earnings [2]. Financial Summary - For the fiscal year ending December 31, 2023, the expected revenue is RMB 37.638 billion, a decrease of 5.6% year-on-year, while net profit is projected at RMB 6.355 billion, reflecting a 26.4% increase [3][12]. - The earnings per share (EPS) for 2024 is estimated at RMB 0.65, down 11.8% year-on-year, with a forecasted recovery in subsequent years, expecting EPS to rise to RMB 0.97 by 2026 [3][12]. - The report projects a gradual increase in installed capacity, with wind power expected to reach 30,754 MW by 2024 and 41,254 MW by 2026 [7][12]. - The report also notes a decline in the operating profit margin by approximately 6 percentage points due to falling on-grid electricity prices for wind and solar [2].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 3.38 [4] Core Views - The company is in the final stage of its capacity expansion phase, with capital expenditures expected to slow down significantly by FY2026 [4] - The company's total designed capacity is projected to increase by 370 million tons to 25.37 million tons by FY2025, driven by expansions in Guangxi and Hubei [4] - The company's cost pressure is expected to ease due to the decline in overseas hardwood pulp prices, and paper prices are anticipated to stabilize and rise in the second half of the year [4] - The company's revenue is forecasted to grow by 9.1%, 6.9%, and 6.6% in FY2025, FY2026, and FY2027, respectively, with net profit expected to increase by 66.7%, 30.4%, and 24.6% over the same period [4] Financial Performance - FY2024 revenue increased by 4.9% YoY to RMB 59.5 billion, with net profit turning positive to RMB 751 million [5] - Sales volume for FY2024 grew by 18.3% YoY to 19.6 million tons, driven by strong performance in cardboard sales [5] - Average selling price in H2 FY2024 decreased by RMB 64/ton to RMB 2,997/ton, with mixed performance across product categories [5] - The company's fiber raw material capacity increased by 520,000 tons to 5.14 million tons, with further expansions expected in Guangxi and Hubei [5] - FY2024 operating cash flow was negative RMB 794 million, primarily due to a significant increase in bank acceptance bills [5] Financial Projections - Revenue is projected to reach RMB 64.9 billion, RMB 69.3 billion, and RMB 73.9 billion in FY2025, FY2026, and FY2027, respectively [6] - Net profit is expected to grow to RMB 1.26 billion, RMB 1.66 billion, and RMB 2.08 billion over the same period [6] - Gross margin is forecasted to improve from 9.6% in FY2024 to 10.6% by FY2027, with net margin increasing from 1.3% to 2.9% [6] - ROE is expected to rise from 1.5% in FY2024 to 4.0% by FY2027 [6] Balance Sheet and Cash Flow - Total assets are projected to grow from RMB 138.4 billion in FY2024 to RMB 166.7 billion by FY2027 [8] - Cash and cash equivalents are expected to increase from RMB 10.7 billion in FY2024 to RMB 20.6 billion by FY2027 [8] - Operating cash flow is forecasted to turn positive in FY2025, reaching RMB 9.35 billion, and continue to grow in subsequent years [11] - Capital expenditures are expected to decline significantly from FY2026 onwards, supporting debt repayment [4]

Investment Rating - The investment rating for the company is "Buy" with a maintained rating [1][2]. Core Views - The company has shown steady revenue growth in 2024H1, with a revenue of 1.32 billion RMB, representing a year-on-year increase of 6%. Gross profit reached 967 million RMB, up 8% year-on-year, primarily driven by successful applications of artificial intelligence (AI) technology [1]. - However, net profit for 2024H1 was 143 million RMB, down 31% year-on-year, mainly due to a significant increase in sales and marketing expenses, which rose from 461 million RMB in the same period last year to 507 million RMB [1]. - The company is expected to benefit from its investments in brand promotion and quality traffic acquisition, leading to anticipated revenue and net profit growth in the second half of the year [1]. - The BaaS financial industry cloud segment has shown impressive performance, with revenue of 589 million RMB in 2024H1, a year-on-year increase of 20%, driven by a 23% increase in asset transaction volume to 26.15 billion RMB [1]. - Continuous technological updates, including the integration of intelligent voice applications with large models, are expected to maintain the company's competitive edge and support steady revenue growth in the future [1]. Summary by Sections Financial Performance - 2024H1 revenue: 1.32 billion RMB, +6% YoY - 2024H1 gross profit: 967 million RMB, +8% YoY - 2024H1 net profit: 143 million RMB, -31% YoY - Sales and marketing expenses: 507 million RMB, up from 461 million RMB [1]. Business Segments - BaaS financial industry cloud revenue: 589 million RMB, +20% YoY - Asset transaction volume: 26.15 billion RMB, +23% YoY [1]. Technological Advancements - Successful integration of intelligent voice applications with large models, achieving interaction latency under 500 milliseconds - Development of the first commercial version of intelligent voice interaction hardware for diverse applications [1].

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company announced a strategic investment in the international luxury down jacket brand Moose Knuckles, expanding its international business and enhancing its brand portfolio [4] - Recent seasonal sales have been strong, with product innovations such as "Light Warm Goose Down" and "Stack Change" series receiving positive feedback [4] - The company is optimizing its store structure and expanding into incremental markets, particularly focusing on strategic cities with low store penetration [4] - A strategic cooperation agreement with Harbin has been signed to jointly promote the creation of a winter apparel brand IP [4] - The company has over 40 years of experience in the down jacket industry, with a solid foundation and strong consumer recognition, and is expanding into outdoor and functional apparel sectors [4] Financial Performance - FY24 revenue is projected at 232.1 billion yuan, a 38.4% year-on-year increase [7] - FY24 net profit attributable to the parent company is expected to be 3.07 billion yuan, a 43.7% year-on-year increase [7] - Gross margin for FY24 is 59.6%, slightly up by 0.1 percentage points [8] - Net profit margin for FY24 is 13.2%, up by 0.5 percentage points [8] Strategic Investments and Innovations - The strategic investment in Moose Knuckles aims to fill the gap in the luxury trendy down jacket market [4] - Product innovations include the "Stack Change" series, which offers multi-functional designs for different scenarios, and the VERTEX series, which enhances the high-end outdoor product line [4] - The company has upgraded its Puff series in collaboration with the Italian brand MSGM, improving both warmth and fashion appeal [4] Market Expansion and Channel Optimization - The company is deepening channel stratification and focusing on top-tier stores as experimental hubs [4] - Strategic incremental markets, such as Jiamusi in Heilongjiang, are being targeted for new store openings and upgrades [4] - The cooperation with Harbin aims to leverage the city's winter tourism boom to boost sales and brand visibility [4] Future Outlook - The company is expected to maintain steady growth, with projected net profits of 3.63 billion, 4.19 billion, and 4.78 billion yuan for FY24-26, respectively [4] - The PE ratios for FY24-26 are estimated at 13x, 11x, and 10x, respectively [4]