Investment Rating - The report maintains an "OUTPERFORM" rating for China Resources Gas with a target price of HK$37.94, up from the previous target [3][10]. Core Insights - The company has experienced steady growth in gas sales driven by residential and commercial users, with total retail gas sales volume increasing by 5.3% year-on-year to 20.9 billion cubic meters in the first half of 2024 [8][9]. - Revenue for the first half of 2024 reached HK$20.08 billion, a 7.7% increase from the previous year, while operating profit rose by 18.3% to HK$5.56 billion [7][9]. - The integrated energy business has shown comprehensive growth, enhancing revenue and profitability through diversification into kitchen appliances, insurance, and home products [9][10]. Financial Summary - The company reported a net profit of HK$3.46 billion for the first half of 2024, a decrease of 2.5% year-on-year, with gross margin at 18.6% and operating profit margin at 10.7% [7][8]. - For FY24-26, the main operating revenue is adjusted to HK$102.65 billion, HK$108.36 billion, and HK$114.39 billion, with corresponding net profits of HK$5.43 billion, HK$5.70 billion, and HK$5.98 billion [10]

Investment Rating - The investment rating for JD Group is maintained as "Buy" with a target price expected to yield over 20% return within 6 months [1]. Core Views - The macroeconomic environment is showing steady recovery, and the "trade-in" subsidy policy is expected to drive a recovery in core categories for JD Group [1]. - For Q3 2024, JD Group's revenue is projected to increase by 4.7% year-on-year to 259.5 billion yuan, supported by policy-driven consumer sentiment and growth in key product categories [1]. - The company is expected to achieve a non-GAAP net profit of 8.17 billion yuan in Q3 2024, with a slight decline in profit margin due to increased platform investments and subsidies [1]. Summary by Relevant Sections Macroeconomic Environment - From January to August 2024, retail sales of consumer goods showed a steady recovery, reaching 312,452 billion yuan, a year-on-year increase of 3.4% [1]. - Online retail sales reached 96,352 billion yuan, growing by 8.9% year-on-year, with physical goods online retail sales increasing by 8.1% [1]. Company Performance - JD Group's self-operated business has strong barriers, and the construction of the POP ecosystem is progressing steadily, enhancing user experience and stimulating consumer demand [1]. - The number of third-party merchants on JD's platform exceeded one million by Q1 2024, with a significant increase in new merchants in Q2 [1]. Future Outlook - The company expects revenue for 2024-2026 to be 1,132.1 billion, 1,233.3 billion, and 1,318.3 billion yuan respectively, with year-on-year growth rates of 4.4%, 8.9%, and 6.9% [1]. - Long-term prospects are positive due to the synergy between 1P and 3P strategies, supply chain capabilities, and the application of AI models to reduce costs and increase efficiency [1].

Investment Rating - The investment rating for Lenovo Group (00992) is "Buy" (maintained) [1] Core Views - Lenovo Group has officially launched its personal AI entity, AI Now, which aims to provide a seamless AI experience across multiple devices and ecosystems. This AI entity is built on the Meta Llama model and is designed to enhance the functionality and personalization of PCs [4] - The company has announced a deep collaboration with NVIDIA to accelerate the application of AI, including the launch of the world's coolest liquid-cooled AI server, ThinkSystem SC777, and the development of AI computing platforms for autonomous driving [4][3] - Lenovo's financial performance is expected to improve as AI functionalities penetrate the PC market, with projected revenues of $62.73 billion and $71.13 billion for FY2025 and FY2026, respectively [6] Financial Summary - Total shares outstanding: 1,240,465.93 thousand [1] - Current price: HKD 10.90, with a 52-week price range of HKD 7.62 to HKD 12.26 [4] - Market capitalization: HKD 135,210.79 million [4] - Revenue projections: FY2025 estimated at $62.73 billion, FY2026 at $71.13 billion, with year-on-year growth rates of 10.3% and 13.4% respectively [6] - Net profit projections: FY2025 estimated at $1.24 billion, FY2026 at $1.87 billion, with year-on-year growth rates of 22.3% and 51.5% respectively [6] - EPS projections: FY2025 at $0.10, FY2026 at $0.15 [6] - P/E ratios: FY2025 at 14.08X, FY2026 at 9.29X [6]

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2] Core Insights - Tencent's gaming revenue is increasingly driven by international markets, with overseas revenue growing significantly, accounting for 30% of total gaming revenue in 2023 [2][4] - The report emphasizes the importance of operational changes and strategic adjustments in Tencent's gaming subsidiaries, particularly Supercell, to enhance monetization and user engagement [4][5] - The gaming industry is experiencing a shift towards service-oriented models (GaaS), which Tencent is well-positioned to leverage due to its extensive experience in game monetization [19][20] Summary by Sections 01 Overview of Tencent's Overseas Gaming and Market - Tencent's gaming revenue is heavily reliant on overseas markets, with a notable increase in the share of international revenue from 15% in 2019 to 30% in 2023 [2][4] - The company has adopted a strategy of acquiring subsidiaries and collaborating on game development to enhance its presence in international markets [9][11] 02 Supercell and Riot Games Organizational Adjustments - Supercell, a key component of Tencent's overseas gaming strategy, has seen a revenue increase of 70% in the first half of 2024, driven by successful game launches and operational changes [27][28] - Riot Games is focusing on core titles like "League of Legends" and "Valorant," with organizational restructuring aimed at improving player experience and operational efficiency [35][37] 03 Insights on Tencent's Gaming Operations - Tencent is actively restructuring its gaming operations to enhance monetization strategies, including the introduction of new game features and community engagement initiatives [4][5] - The company is also focusing on the importance of high-quality game development and operational management to maintain user interest and revenue growth [4][5] 04 Valuation Insights for Overseas Game Companies - The report discusses the stable valuation of mature overseas gaming companies, highlighting that firms with strong IP and diverse game portfolios maintain stable valuations even during periods of slow revenue growth [4][5] - Tencent's extensive investment in overseas gaming companies has resulted in a rich IP portfolio and significant operational experience, positioning it favorably in the market [4][5] 05 Investment Recommendations - The report recommends maintaining a focus on Tencent's strong competitive position in the global gaming market, particularly as it continues to innovate and adapt its gaming portfolio [5] - Projected revenue growth for Tencent's gaming segment is expected to accelerate in the second half of 2024 and into 2025, driven by successful game launches and operational improvements [5]

Investment Rating - The investment rating for Anta Sports (02020.HK) is "Buy" (maintained) [1] Core Views - The report indicates that Anta Sports experienced a slight miss in revenue expectations due to unfavorable conditions in Q3, but there are expectations for sales improvement in Q4 [1][3] - The company is recognized as a leading multi-brand sportswear player in China, with ongoing improvements in store operations, product positioning, and brand strategy [3] Summary by Relevant Sections Revenue and Profit Forecast - Total revenue for 2022 was 53.651 billion RMB, with projections of 62.356 billion RMB for 2023, 68.637 billion RMB for 2024, 75.773 billion RMB for 2025, and 83.703 billion RMB for 2026, reflecting a growth rate of 8.76%, 16.23%, 10.07%, 10.40%, and 10.47% respectively [2] - Net profit attributable to shareholders was 7.590 billion RMB in 2022, expected to rise to 10.236 billion RMB in 2023, 13.473 billion RMB in 2024, 13.482 billion RMB in 2025, and 15.189 billion RMB in 2026, with growth rates of -1.68%, 34.86%, 31.62%, 0.07%, and 12.67% respectively [2] Brand Performance - Anta brand retail revenue grew in the mid-single digits year-on-year in Q3 2024, with both adult and children's segments showing similar growth [3] - FILA brand revenue declined in the low single digits year-on-year in Q3 2024, with expectations for better performance in bulk orders compared to children's and trendy brands [3] - Other brands saw a significant revenue increase of 45-50% year-on-year in Q3 2024, with Descente and KOLON growing by 35-40% and 65-70% respectively [3] Operational Insights - Anta brand maintained a healthy inventory turnover ratio of less than five months, with discounts remaining stable [3] - The company has adapted to the challenging consumer environment by innovating in channels and products, such as launching new store formats and cost-effective running shoes [3] Financial Ratios and Valuation - The report adjusts the net profit forecasts for 2024-2026 to 13.472 billion RMB, 13.482 billion RMB, and 15.189 billion RMB respectively, with corresponding P/E ratios of 14, 14, and 13 [3][12] - Key financial ratios for 2024E include an EPS of 4.76 RMB, ROE of 20.72%, and a debt-to-equity ratio of 27.71% [12]

Investment Rating - Buy (Maintained Rating) [2] Core Views - The report highlights the positive signals from British American Tobacco's (BAT) capital market communication day, where BAT reiterated its goal to become a smoke-free company by 2035 and shared updates on its new tobacco-related products [2] - The report emphasizes the growth potential in the compliant vaping market, particularly in the US, where regulatory actions against illegal products are expected to drive market expansion [3] - The report also notes the upcoming launch of BAT's new heated tobacco product, Glo Hilo, which is expected to target the high-end market and contribute to the company's growth [3] Market Analysis Vaping Market - The vaping market is expected to see significant growth, with BAT projecting that the number of vaping users will reach 110 million by 2030 [3] - The trend is shifting from disposable vaping products back to rechargeable closed-system products, which are regaining growth momentum [3] - In the US, illegal flavored products account for 70% of the vaping market, but regulatory actions in states like Louisiana have led to a 28% increase in the legal vaping market and a 91% reduction in illegal disposable product channels [3] Heated Tobacco Products (HNB) - BAT sees significant opportunities to improve its market position in the HNB category and plans to launch a breakthrough product, Glo Hilo, by the end of the year [3] - Glo Hilo is positioned as a high-end product and is expected to be further promoted in key markets by 2025 [3] - BAT has submitted a PMTA application for Glo products in the US, aiming to enter the market at an appropriate time [3] Financial Performance and Projections Revenue and Profit - The company's revenue is projected to grow from RMB 11,957 million in 2024E to RMB 16,659 million in 2026E, with a revenue growth rate of 7.06% in 2024E, 14.26% in 2025E, and 21.93% in 2026E [5] - Net profit attributable to the parent company is expected to increase from RMB 1,348 million in 2024E to RMB 2,289 million in 2026E, with a growth rate of 28.60% in 2025E and 32.09% in 2026E [5] Earnings Per Share (EPS) - EPS is projected to be RMB 0.22 in 2024E, RMB 0.28 in 2025E, and RMB 0.37 in 2026E [5] Valuation Metrics - The current stock price corresponds to a P/E ratio of 46x for 2024E, 36x for 2025E, and 27x for 2026E [5] - ROE (Return on Equity) is expected to improve from 5.92% in 2024E to 8.55% in 2026E [5] Industry Trends - The report highlights the tightening regulatory environment in the US, with the FDA and the Department of Justice forming a joint enforcement team to crack down on illegal products [3] - The FDA is also gradually approving more compliant products, such as menthol products, which could further drive market growth [3] - The European market is increasing regulation on disposable vaping products, which is expected to optimize the product structure and improve the company's profit margins [3]

Investment Rating - The report maintains a "Hold" rating for the company [2][21]. Core Views - The company is expected to see a revenue growth rebound in Q3 due to the nationwide trade-in subsidy policy, with projected revenue of RMB 258.2 billion, representing a year-on-year increase of 4.2% [2][3]. - The company is adjusting its target price to HKD 155 / USD 40, corresponding to a P/E of 10.4x for 2024E and 10.0x for 2025E [2][3]. - The company is anticipated to benefit from the extended Double Eleven shopping event and increased discount efforts, which may further enhance revenue growth in Q4 [2][3]. Financial Projections - Projected operating revenue for 2024E is RMB 1,130,955 million, a slight increase of 0.16% from the previous forecast [3]. - Projected gross profit for 2024E is RMB 173,994 million, with a gross margin of 15.4% [3]. - Projected net profit attributable to shareholders for 2024E is RMB 34,564 million, with a net profit margin of 3.1% [3]. - Adjusted net profit for 2024E is projected at RMB 41,349 million, with an adjusted net profit margin of 3.7% [3]. Market Context - The company is expected to experience high single-digit growth in GMV, driven by the trade-in subsidy policy and strong performance in the daily necessities category, particularly in supermarkets [2][3]. - The report highlights the competitive landscape and potential challenges in user growth and profit margins, which could impact overall performance [2][3].

Investment Rating - The report assigns a "Buy" rating for the company [2]. Core Views - The company is expected to achieve a revenue growth exceeding 20% for the full year, driven by strong terminal sales performance and improved operational efficiency [2][3]. - The net profit for the first three quarters of 2024 is projected to be approximately $100 million, reflecting a year-on-year increase of over 300% compared to $2.3 million in the same period last year [2]. Summary by Sections Earnings Performance - The company has ended its destocking cycle, which has contributed to profit growth through scale recovery and cost control [2]. - Key factors supporting profit growth include strong terminal sales of EGO, the end of the destocking cycle, optimized operational expenses, and improved gross margins due to enhanced operational efficiency [2]. Outlook - Based on the growth momentum observed in the first nine months of 2024, the company is confident in achieving its revenue growth target of over 20% for the full year [2]. - The earnings forecast has been adjusted, with expected revenues for 2024-2026 projected at $1.68 billion, $2.02 billion, and $2.36 billion, respectively. The net profit attributable to the parent company is expected to be $134 million, $170 million, and $204 million for the same period [2][3]. Financial Summary - The company reported total revenue of $1.37 billion in 2023, with a year-on-year decline of 30.89%. However, a recovery is anticipated with a projected revenue of $1.68 billion in 2024, reflecting a growth of 22.19% [3][4]. - The gross margin is expected to improve to 32.08% in 2024, up from 28.14% in 2023 [3][4].

Investment Rating - The report initiates coverage on GDS Holdings with a "Recommend" rating [2][3] Core Views - GDS Holdings is a global leader in data center services, with a strong presence in China and expanding into Southeast Asia and Northeast Asia [2] - The company's revenue has shown steady growth, with overseas business surging by 494% YoY in 2023 [2] - The domestic market for data centers in China is growing due to increasing demand for computing power and digital transformation [2] - Southeast Asia's data center market has significant growth potential, driven by rapid expansion in the digital economy and AI technology [2] - The company is expected to achieve revenues of 114.2/135.8/160.1 billion RMB in 2024-2026, with EBITDA of 48.6/55.5/64.5 billion RMB [2] Company Overview - GDS Holdings has transitioned from a service-oriented model to a resource-driven model since 2009, expanding its data center coverage across key regions in China and internationally [2][6] - The company has a robust portfolio of self-developed and third-party data centers, with a total net floor area of 565,062 square meters as of December 31, 2023 [9] - GDS Holdings uses a VIE structure for its operations in mainland China and directly controls its subsidiaries in Southeast Asia and Northeast Asia [10] Financial Performance - In 2023, GDS Holdings reported total revenue of 9,957 billion RMB, with a 6.8% YoY growth [2][15] - The company's overseas business revenue reached 223 billion RMB in 2023, with a 494% YoY increase [15] - EBITDA margin improved to 24.7% in the first half of 2024, indicating a recovery in profitability [19] Market Trends - China's data center market is experiencing a clusterization trend, with deployments shifting from central to peripheral areas and from east to west [25][26] - The Southeast Asian digital economy is expanding rapidly, with a projected growth rate of 15.8% over the next five years, surpassing the US and EU [36] - AI technology is driving increased demand for data centers in Southeast Asia, with the AI market expected to grow at a CAGR of 28.53% from 2024 to 2030 [42] Strategic Initiatives - GDS Holdings is focusing on green data center solutions, aiming to achieve carbon neutrality by 2030 [34] - The company is accelerating its overseas expansion, particularly in Southeast Asia, with new data center projects in Malaysia and Indonesia [48] - GDS Holdings has partnered with overseas power companies to ensure stable electricity supply and is exploring fuel cell power solutions [49] Valuation and Forecast - The company's EV/EBITDA is projected to be 14/12/10x for 2024-2026, with a revenue CAGR of 14.7%/18.9%/17.9% [2][54] - GDS Holdings is expected to increase its operational area to 67/80/87 million square meters by 2026, with a corresponding rise in revenue [50]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported steady and rapid growth in revenue for Q3 2024, with a strong product matrix [3] - Online sales continue to outperform offline sales, with e-commerce revenue growing over 20% year-on-year [3] - The company has successfully expanded its offline store count and area, contributing to improved store efficiency [3] - New product launches have enhanced brand competitiveness, with several innovative products introduced in recent months [3] - The company is expected to achieve net profits of 1.13 billion, 1.33 billion, and 1.55 billion RMB for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 7, 6, and 5 [3] Revenue and Profit Forecast - Total revenue is projected to grow from 8.52 billion RMB in 2023 to 10.03 billion RMB in 2024, reflecting a year-on-year growth of 17.72% [2] - Net profit is expected to increase from 961.43 million RMB in 2023 to 1,131.34 million RMB in 2024, with a growth rate of 17.67% [2] - The latest diluted EPS is forecasted to rise from 0.46 RMB in 2023 to 0.55 RMB in 2024 [2] Market Performance - The company's stock closed at 4.12 HKD, with a market capitalization of approximately 8.52 billion HKD [6] - The price-to-book ratio stands at 0.91, indicating potential undervaluation [6] Financial Ratios - The company maintains a healthy debt-to-asset ratio of 27.10% [7] - The return on equity (ROE) is projected to improve from 10.59% in 2023 to 11.82% in 2026 [12]