Investment Rating - The report maintains an "Outperform" rating for Kunlun Energy (135 HK) with a target price of 8.11 HKD/share [6][9] Core Views - Kunlun Energy achieved a comprehensive improvement in revenue and profit in H1 2024, driven by growth in natural gas sales volume and continuous optimization of sales structure [2][6] - The company plans to increase its dividend payout ratio to 45% in 2025, reflecting confidence in its financial stability and growth prospects [2][6] Financial Performance - Revenue in H1 2024 reached 92.922 billion yuan, a 10.5% YoY increase, with pre-tax profit growing 6.74% YoY to 7.249 billion yuan [2][6] - Net profit attributable to the parent company increased by 2.6% YoY to 3.305 billion yuan, and the company announced its first mid-term dividend of 16.41 yuan per share [2][6] Natural Gas Business - Natural gas sales volume in H1 2024 grew 10.6% YoY to 264.38 billion cubic meters, with retail gas volume increasing 10.3% YoY to 163.02 billion cubic meters [2][7] - Industrial and commercial gas sales accounted for a larger share of retail gas sales, increasing by 4.6 percentage points YoY, driven by growth in "three new" industrial users (new energy vehicles, lithium batteries, photovoltaic products) [2][7] - The company added 449,000 new users, bringing the total to 16.053 million, further solidifying its leading position in the terminal market [2][7] LPG and LNG Business - LPG business achieved a 32.6% YoY increase in pre-tax profit to 561 million yuan, despite a 0.4% YoY decline in sales volume, due to operational efficiency improvements [8] - LNG processing and storage business saw a 22.9% YoY increase in pre-tax profit to 1.648 billion yuan, with LNG gasification and loading volume growing 5.9% YoY to 77.70 billion cubic meters [8] - The average load rate of LNG plants increased by 19.5 percentage points YoY to 58.4%, with self-produced and sold volume growing 11.5% YoY [8] Exploration and Production Business - Exploration and production business faced pressure, with revenue declining 85.5% YoY to 88 million yuan due to the expiration of exploration contracts for Liaohe and Peru oilfields [8] - Crude oil sales decreased by 16.5% YoY to 4.04 million barrels, although the average crude oil price increased by 2.15 USD/barrel to 67.77 USD/barrel [8] Valuation and Forecast - The report forecasts Kunlun Energy's main business revenue for FY24-26 at 189.98/202.59/215.16 billion yuan, with net profit attributable to the parent company at 5.666/6.077/6.497 billion yuan [9] - The target price is set at 8.11 HKD/share, reflecting the company's stable operations and continuous optimization of its sales structure [9]

Investment Rating - The report maintains a "Buy" rating for Anta Sports (2020 HK) with a target price of HKD 119 8, implying a potential upside of 19 7% from the current price of HKD 100 1 [2][3] Core Views - Anta Sports' 3Q24 sales performance fell short of market expectations, with both Anta and Fila brands underperforming Anta brand sales grew by mid-single digits, while Fila sales declined by low-single digits [2] - Despite the weak 3Q24 performance, the company has not revised its full-year 2024 sales guidance, with management expressing confidence in achieving the targets due to strong sales during the National Day holiday [2] - The report highlights Anta's continued brand strength, driven by store upgrades and expansion into new e-commerce channels like Douyin, as well as its multi-brand strategy [2] Financial Performance and Forecasts - Revenue for 2024E is projected at RMB 69 369 million, representing an 11 2% YoY growth, while core net profit is forecasted at RMB 12 064 million, up 17 9% YoY [3][5] - Gross margin is expected to improve slightly to 62 8% in 2024E, with operating margin projected at 24 0% [5] - The report slightly revised down the 2024E revenue and profit forecasts due to a more conservative outlook for 4Q24 [2] Brand Performance - Anta brand's 3Q24 sales grew by mid-single digits, outperforming domestic competitors, while Fila's sales declined by low-single digits, with its core product line remaining flat [2] - Descente and Kolon maintained strong growth momentum in 3Q24, continuing their high growth rates from the first half of the year [2] - Inventory levels remained healthy, with Anta brand at 4-5x and Fila close to 5x, allowing stable retail discounts [2] Market and Industry Context - The report notes that Anta Sports remains one of the fastest-growing brands in China's sportswear industry, benefiting from its multi-brand strategy and strong brand positioning [2] - The company's performance during the National Day holiday was driven by its new offline store formats, such as Anta Champion stores and Super Anta, which capitalized on the surge in tourism and consumption [2] Valuation and Target Price - The target price of HKD 119 8 is based on a 22x 2025E P/E multiple, reflecting improved market sentiment and liquidity in Hong Kong, as well as expectations for further stimulus policies [2] - The report outlines three scenarios for Anta's stock price: optimistic (HKD 149 8), base case (HKD 119 8), and pessimistic (HKD 95 8), with probabilities of 25%, 55%, and 20%, respectively [13]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has shown strong growth in ADAS (Advanced Driver Assistance Systems) laser radar shipments, with a year-on-year increase of 150% in Q3 2024, indicating robust demand and successful cost reduction strategies [2] - The company's robot and other laser radar shipments have also increased significantly, with a projected Q4 shipment nearing 16,000 units, representing a year-on-year growth of approximately 357% [3] - Revenue forecasts for 2024-2026 are set at 22.2 billion, 35.6 billion, and 51.0 billion RMB respectively, with net profits expected to improve from a loss of 5.3 billion RMB in 2024 to a profit of 1.3 billion RMB in 2026 [3] Summary by Sections Revenue and Profit Forecast - Total revenue for 2022 was 530.32 million RMB, with projections of 1,120.15 million RMB for 2023, 2,222.56 million RMB for 2024, 3,559.19 million RMB for 2025, and 5,096.47 million RMB for 2026, reflecting a compound annual growth rate [1] - The company is expected to achieve a net profit of 132.57 million RMB by 2026, after losses in the preceding years [1] Shipment Data - In the first three quarters of 2024, the company shipped a total of 38.2 thousand laser radars, with ADAS laser radar shipments at 36.6 thousand and robots at 1.6 thousand, showing year-on-year increases of 364%, 395%, and 129% respectively [1] - Q3 2024 saw laser radar product shipments of 138.6 thousand units, a year-on-year increase of 140% and a quarter-on-quarter increase of 13% [1] Financial Ratios - The report outlines key financial ratios, including a projected EPS of -1.17 RMB for 2024, improving to 0.29 RMB by 2026 [11] - The company's gross margin is expected to rise from 8.36% in 2023 to 23.78% in 2026, indicating improved profitability [11]

Investment Rating - The report maintains a "Buy" rating for Anta Sports (02020) with a 6-month outlook [2] Core Views - Anta brand product sales grew by mid-single digits YoY in Q3 2024, while FILA brand sales declined by low single digits YoY [2] - All other brands under Anta Sports achieved 45-50% YoY growth in sales [2] - The company opened over 300 new stores during the National Day period, focusing on differentiated store formats [3] Business Strategy - Anta is implementing a differentiated store strategy to cater to diverse consumer needs, moving away from uniform store formats [3] - The company is strengthening its presence in high-end markets and core business districts through flagship stores like "Arena Level" and "Hall of Fame Level" [3] - Anta is targeting niche markets with specialized stores such as "Anta Champion" and "Anta Collection" [3] - For the mass market, Anta launched "Super Anta," a comprehensive sports retail concept offering customized products and unique shopping experiences [3] Store Formats - Anta introduced two distinct store formats: "White Label" and "Black Label" [4] - White Label stores focus on minimalist art and exclusive products, with plans for one flagship store per city [4] - Black Label stores emphasize technology and competitive sports atmosphere, with broader coverage and higher store count compared to White Label [4] Financial Projections - Revenue is projected to reach RMB 70.1 billion in 2024, RMB 78.5 billion in 2025, and RMB 86.8 billion in 2026 [7] - Net profit attributable to shareholders is forecasted at RMB 13.4 billion (including one-time gains) in 2024, RMB 13.2 billion in 2025, and RMB 14.6 billion in 2026 [7] - EPS is expected to be RMB 4.7/share in 2024 and 2025, increasing to RMB 5.2/share in 2026 [7] - The PE ratio is estimated at 15x for 2024 and 2025, and 14x for 2026 [7] Market Performance - Anta Sports' stock price has shown significant volatility, with a 29% decline at its lowest point and a 25% increase at its peak between October 2023 and June 2024 [8]

Investment Rating - The report assigns a "Buy" rating for Tencent Music (1698.HK) as part of its initial coverage [1]. Core Insights - The report highlights continuous optimization of profit margins, with both paid users and ARPU (Average Revenue Per User) showing growth, driving strong performance in the online music subscription business [3][4]. Financial Performance Summary - In Q2 2024, Tencent Music reported revenue of 7.16 billion RMB, a year-over-year decrease of 1.7% but a quarter-over-quarter increase of 5.8%. Operating costs were 4.15 billion RMB, down 13.3% year-over-year and up 3.8% quarter-over-quarter. The IFRS net profit attributable to shareholders was 1.68 billion RMB, up 29.6% year-over-year and 18.3% quarter-over-quarter [3]. - The company achieved a gross margin of 42.0%, an increase of 7.8 percentage points year-over-year, primarily due to strong growth in music subscription and advertising revenues [3]. - As of the end of Q2 2024, the company had cash and cash equivalents totaling 35.03 billion RMB, an increase of 0.85 billion RMB from Q1 2024 [3]. Online Music Business Growth - Online music business revenue reached 5.42 billion RMB in Q2 2024, representing a year-over-year increase of 27.7% and a quarter-over-quarter increase of 8.2%. Subscription revenue was 3.74 billion RMB, up 29.4% year-over-year and 3.3% quarter-over-quarter, driven by growth in paid users and ARPU [4]. - The number of paid users for online music reached 117 million, a year-over-year increase of 17.7% and a quarter-over-quarter increase of 3.1%. The paid user rate was 20.5%, up 3.8 percentage points year-over-year [4]. Social Entertainment Business Adjustments - Social entertainment and other services revenue was 1.74 billion RMB in Q2 2024, down 42.8% year-over-year and 1.4% quarter-over-quarter, primarily due to adjustments in live interaction features and increased market competition [5]. Earnings Forecast and Valuation - The report forecasts revenues of 28.83 billion RMB, 32.00 billion RMB, and 34.95 billion RMB for 2024, 2025, and 2026 respectively. The net profit attributable to shareholders is expected to be 6.34 billion RMB, 7.62 billion RMB, and 8.60 billion RMB for the same years [6][7]. - The adjusted PE ratios are projected to be 21, 18, and 16 for 2024, 2025, and 2026 respectively, indicating a healthy growth outlook for the company [6].

Investment Rating - The investment rating for the company is "Outperform" [1][4][11] Core Views - The company is expected to report a revenue increase of 6% year-over-year for Q2 FY25, with an estimated revenue of 237.2 billion yuan. The adjusted EBITA margin is projected to be 18%, reflecting a year-over-year decline of 1.1 percentage points [3][5][11] - The report anticipates that the company's revenue growth will slightly improve quarter-over-quarter, primarily driven by an acceleration in the revenue growth of Taobao [3][5] - The company is focusing on enhancing user experience, which has led to increased investments, particularly in the 88VIP program, impacting profit margins [3][4][5] Revenue Forecasts - The revenue forecasts for FY2024 to FY2026 have been slightly adjusted to 997.2 billion yuan, 1,091.8 billion yuan, and 1,199.2 billion yuan, respectively, with a reduction of 0.2% for each year [4][11] - The adjusted net profit forecasts for the same period are 149.2 billion yuan, 171.8 billion yuan, and 182.3 billion yuan, with an increase of 1.5% for FY2024 and slight reductions for the following years [4][11] Segment Performance - For Q2 FY25, the expected revenue growth rates for various segments are as follows: Taobao at 1%, International Digital Commerce at 30%, Local Services at 16%, Cainiao at 18%, and Cloud Intelligence at 8% [5][6] - The report highlights that the Taobao GMV growth is expected to be close to the overall market growth, with a significant promotional investment planned for the Double 11 shopping festival [8][11] Valuation - The company is valued using a sum-of-the-parts (SOTP) approach, with Taobao Group assigned a PE ratio of 12-13x for FY2025, Cloud Intelligence at 3x PS, and International Digital Commerce at 1x PS. The target price has been adjusted to 120-127 HKD, indicating an upside potential of 17%-23% from the current price [4][11]

Investment Rating - The report gives a "Buy" rating for the company [6]. Core Insights - The company is expected to achieve significant cost advantages and product enhancements in granular silicon, leading to a rapid increase in profitability and market share [3]. - The company is positioned to lead a new low-carbon cycle in the photovoltaic manufacturing industry, driven by its granular silicon products [4]. - The company has a rich reserve of new technologies, including CCZ and perovskite, which are expected to create new growth drivers [5]. - The company's revenue is projected to recover as industry prices stabilize, with significant growth anticipated in the coming years [6]. Summary by Sections 1. Cost and Product Advantages - Granular silicon shows clear cost advantages and continuous improvement in product parameters, with cash costs expected to drop below 30,000 yuan per ton [3]. - The production process of granular silicon is more efficient, with a conversion rate of 99% and a significant reduction in energy consumption compared to traditional methods [16][18]. 2. Low-Carbon Initiatives - The company is effectively driving down carbon emissions in the photovoltaic industry, with low-carbon product advantages becoming increasingly recognized [4]. - The implementation of the CBAM policy is expected to enhance the value of low-carbon products, benefiting the company [59]. 3. Technological Advancements - The company has developed advanced technologies such as CCZ and perovskite, which are expected to enhance production efficiency and product quality [5][64]. - The CCZ technology is particularly noted for its ability to improve production efficiency and meet the demands of high-efficiency N-type batteries [64]. 4. Financial Projections - Revenue forecasts for 2024, 2025, and 2026 are 18.462 billion, 26.291 billion, and 33.716 billion yuan respectively, with corresponding net profits of -2.060 billion, 1.282 billion, and 3.657 billion yuan [6][75]. - The company is expected to see a significant recovery in profitability as industry conditions improve and cost advantages materialize [53][75].

Investment Rating - Tencent Holdings (00700 HK) maintains an "Outperform" rating [2][4][13] Core Views - Tencent is expected to achieve revenue of RMB 1684 billion in 2024Q3, a 9% YoY growth, with adjusted net profit attributable to shareholders of RMB 555 billion, up 24% YoY [3][5] - The company's advertising business is expected to grow 16% YoY, driven by video account traffic and the launch of the advertising system 3 0 [3][5] - The gaming business is projected to grow 13% YoY, with domestic games up 15% and overseas games up 9% [3][7] - Financial technology and enterprise services are expected to grow 3% YoY, impacted by macroeconomic conditions [3][5] Business Segment Analysis Gaming - Domestic gaming revenue is expected to grow 15% YoY, with key games like "Peace Elite" and "Naruto Mobile" showing strong performance [7] - Overseas gaming revenue is projected to grow 9% YoY, with "Brawl Stars" maintaining a strong position [7] - "DNF Mobile" saw a decline in user numbers but remains a top performer in the iOS bestseller rankings [7][8] Advertising - Advertising revenue is expected to grow 16% YoY, supported by video account traffic and the launch of the advertising system 3 0 [3][10] - WeChat Mini Stores have activated full-domain traffic, potentially accelerating video account growth [10] - AI-powered advertising is expected to improve CTR by 5-10% [10] Financial Technology & Enterprise Services - Revenue is expected to grow 3% YoY, with payment services impacted by macroeconomic conditions [3][11] - High-margin businesses like wealth management are growing healthily [4] Financial Forecasts - Adjusted net profit for 2024-2026 is forecasted at RMB 2198/2482/2729 billion, with a slight downward revision of 1% for each year [4][13] - Target price is set at HKD 471-528, based on a 16-18x PE ratio for 2025 [4][13] Key Financial Metrics - 2024Q3 revenue is expected to reach RMB 1684 billion, with a gross margin of 53% and a Non-IFRS net margin of 33% [6] - Adjusted EPS for 2024-2026 is projected at RMB 24 05/26 23/28 03 [16]

Investment Rating - The report assigns a rating of "Buy" for Anta Sports [2][4]. Core Views - Q3 performance was impacted by external factors, with the main brand and FILA experiencing pressure on revenue, but discount inventory remains healthy. The sales performance during the National Day holiday was outstanding, and attention is drawn to future promotional sales [4]. - Due to the overall pressure on revenue in Q3, the net profit forecasts for 2024-2026 have been revised down to 13.6 billion, 13.9 billion, and 15.7 billion RMB respectively, with corresponding PE ratios of 19, 19, and 17 times [4]. - The report highlights that the main brand and FILA's revenue growth was below internal expectations, while other brands showed strong performance. The company is making steady progress in opening new store formats, reflecting strong market insight and operational capabilities [4]. Summary by Sections Q3 Performance - Q3 revenue growth for the main brand and FILA was in the low single digits, while other brands grew by 45-50%. The main brand's performance was slightly above industry standards, particularly in direct sales [4]. - The company plans to open 50 new stores by the end of the year, indicating a focus on innovative store formats [4]. National Day Sales - Sales during the National Day holiday were strong, with both customer traffic and sales conversion rates performing well. The inventory discount levels remained healthy, suggesting a positive outlook for Q4 sales [4]. Financial Projections - The report projects revenue growth rates of 10.8%, 11.3%, and 11.5% for 2024, 2025, and 2026 respectively, with net profit growth rates of 33.1%, 1.8%, and 13.1% for the same years [6].

Investment Rating - The report gives a "Recommend" rating for the company, considering its leading position in the domestic wafer foundry industry and the gradual recovery of downstream demand [1][4] Core Views - The company adheres to the "Specialty IC + Power Devices" strategy, focusing on the development of specialty process technologies, serving markets such as consumer electronics, communications, computers, industrial, and automotive [1] - With the gradual recovery of consumer electronics demand, the semiconductor industry cycle is expected to reach an inflection point, and the company's capacity utilization rate has improved significantly [1] - The company's gross margin is expected to continue to recover, driven by price increases and the full production of its Wuxi facility [1] - The domestic wafer foundry market is accelerating, with the localization of wafer manufacturing becoming a priority due to supply chain security concerns [1] - The company is a global leader in specialty process wafer foundry, with a comprehensive coverage of specialty process platforms and a focus on mature nodes [1] Company Overview - The company is a global leader in specialty process wafer foundry, offering a wide range of process platforms including embedded/non-volatile memory, power devices, analog and power management, and logic and RF [1][6] - The company has 3 8-inch and 1 12-inch wafer fabs, with another 12-inch fab under construction, and plans to invest $2 billion annually in equipment from 2024 to 2026 [1] - The company's revenue in H1 2024 was $939 million, a YoY decrease of 25.7%, with a net profit of $38 million, a YoY decrease of 83.3% [1] - The company's capacity utilization rate in Q2 2024 was 97.9%, a QoQ increase of 6.2 percentage points [1] Industry Trends - The global pure-play wafer foundry market has grown significantly, with the Chinese market expanding from RMB 39.1 billion in 2018 to RMB 77.1 billion in 2022, with a CAGR of 8.5% [1] - The proportion of mature process capacity in China is expected to increase from 29% in 2022 to 33% in 2027, driven by policy support and subsidies [1][28] - The power device market is booming, with global market size expected to grow from $17.5 billion in 2020 to $26.2 billion in 2026, with a CAGR of 6.96% [30] - The MCU market in China is growing faster than the global market, with a CAGR of 8.29% from 2015 to 2020, compared to the global CAGR of 5.34% [37] Financial Projections - The company's revenue is expected to be $2.254 billion, $2.556 billion, and $3.098 billion in 2024, 2025, and 2026, respectively, with net profits of $102 million, $195 million, and $302 million [1][2] - The corresponding PE ratios are 52x, 27x, and 17x, and PB ratios are 0.8x, 0.8x, and 0.8x for 2024, 2025, and 2026, respectively [1][2] Strategic Focus - The company is focusing on mature nodes, with its 8-inch fabs covering nodes from 0.35µm to 90nm, and its 12-inch fabs covering nodes from 90nm to 55nm [1][50] - The company is expanding its 12-inch capacity, with the Wuxi fab expected to reach full production capacity of 94,500 wafers per month by the end of 2023 [19] - The company is also building a new 12-inch fab, which is expected to start production by the end of 2024, with a planned capacity of 83,000 wafers per month [19] Competitive Advantages - The company has a comprehensive coverage of specialty process platforms, including embedded/non-volatile memory, power devices, analog and power management, and logic and RF [1][6] - The company has a strong R&D capability, with 1,285 R&D personnel, accounting for 18.72% of the total workforce, and has accumulated 8,969 patents [23] - The company has a stable customer base, with 92.3% of its revenue coming from system companies and fabless design companies in 2023 [8]