Investment Rating - The investment rating for the company is "Accumulate" [2][15]. Core Views - The clinical data for Tyk2 (ICP-488) in treating moderate to severe plaque psoriasis is excellent, showing significant efficacy and safety [5][6]. - The company is advancing its chronic disease pipeline rapidly, with promising developments in hematological malignancies and autoimmune diseases [6]. Summary by Sections Clinical Data - Tyk2 (ICP-488) has demonstrated superior efficacy in Phase II clinical trials for moderate to severe plaque psoriasis, achieving multiple efficacy endpoints with good tolerability and safety [6]. - The PASI75 improvement values for ICP-488 at doses of 6mg and 9mg once daily were 65.7% and 67.0%, respectively, while PASI90 values were 36.4% and 50.0% [6][11]. - Compared to BMS's treatment, ICP-488 shows better efficacy in a shorter observation period [6][11]. Pipeline Progress - The company is making significant progress with its innovative pipeline, including the expected approval of Tafasitamab for r/r DLBCL in 2025 and the initiation of Phase III trials for ICP332 in Alzheimer's disease [6]. - ICP-723 for advanced solid tumors is also advancing rapidly, with an NDA submission expected in Q1 2025 [6]. Financial Overview - The projected revenue for 2024 is 1,043 million RMB, with a growth rate of 30% compared to the previous year [10]. - The net profit is expected to improve gradually, with estimates of -594 million RMB in 2024 and -266 million RMB in 2025 [10].

Investment Rating - The report assigns a "Buy" rating for the stock with a 6-month target price of HKD 10.75, representing a significant upside from the current price of HKD 5.58 [3] Core Business and Strategy - The company focuses on high-margin diagnostic and diagnostic upgrade products, leveraging its X-431 product line which represents advanced domestic diagnostic technology [3] - It has established connections with over 300 million vehicles globally through diagnostic devices, holding a 70% market share in China and generating 800,000 daily diagnostic reports [3] - The company is transitioning to a light-asset model, cutting low-margin product lines and focusing on R&D, brand building, and flexible production adjustments [3] - It is expanding into the new energy vehicle (NEV) market with products like SDS, EVS, and AAS, covering the entire lifecycle of NEVs with over 90% customer satisfaction [3] Financial Performance and Growth Drivers - H1 2024 gross margin increased by 7 percentage points to 47%, driven by higher overseas and software revenue contributions [4] - Overseas revenue surged 90% YoY to CNY 629 million in H1 2024, accounting for 63% of total revenue, up from 42% in 2022 and 45% in 2023 [4] - Software revenue grew 49% YoY in 2023 to CNY 127 million, with paid software customers increasing by 106% and software upgrades by 72% [5] - The company expects net profit to reach CNY 300 million in 2024 and CNY 390 million in 2025, with a current PE ratio of 6x and 5x respectively [6] Market Position and Competitive Advantages - The company is a pioneer in the automotive aftermarket, with over 30 years of experience and a comprehensive product portfolio covering diagnostics, maintenance, and lifting equipment [12] - It has a strong R&D team with hundreds of patents and a global presence, including R&D centers in the US, Germany, Japan, and South Korea [12] - The company has transitioned into the vehicle networking space with its golo series, establishing a leading position in the industry [13] - It is exploring the commercial value of automotive big data and has built a blockchain-based automotive data ecosystem [14][16] Industry Trends and Opportunities - The automotive aftermarket is benefiting from the increasing NEV penetration and the corresponding demand for diagnostic and maintenance services [3] - The US aftermarket is dominated by independent repair shops, which account for 70% of the market, providing a significant opportunity for the company's diagnostic products [41] - In China, the aftermarket is shifting from 4S shops to third-party repair shops, with NEV adoption driving industry reshuffling and creating new opportunities [44][45] - The industry is trending towards intelligence, new energy, and connectivity, with the company well-positioned to benefit from these trends [47][48] Product Evolution and Innovation - The company has streamlined its product portfolio, reducing hardware products by 74.36% and focusing on high-margin software and services [28] - It has launched the X-431 EV MAX, a comprehensive diagnostic device for NEVs, and is building a "sales + service + car management" ecosystem for NEVs [29] - The company's super remote diagnosis system leverages 5G technology to enable remote vehicle diagnostics, reducing costs and improving efficiency for repair shops [35] - Its diagnostic products cover over 95% of NEV models, with advanced features like battery pack analysis and fault code reading [34]

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 82.00 [2][7][10] Core Insights - In Q3 2024, the company delivered 7 aircraft, bringing the total owned aircraft to 430, a slight increase from 429 in Q2 2024. The company aims to actively seek opportunities for sale-leaseback and financing leases to expand capital expenditures [3][4] - The company sold 6 owned aircraft in Q3 2024, maintaining a stable utilization rate of 99% for its owned fleet. The average age of the fleet is 5.0 years, with an average remaining lease term of 7.8 years [4] - The company issued a 7-year USD 500 million bond at an interest rate of 4.625%, reflecting a decrease in financing costs compared to over 5% in the first half of the year [3][5] - The company slightly adjusted its net profit forecasts for 2024, 2025, and 2026 to USD 750 million, USD 705 million, and USD 780 million respectively, with a core net profit expectation of USD 570 million for 2024 [3][5] Financial Summary - The company reported revenues of USD 2.365 billion for 2024E, a decrease of 3.91% compared to 2023. The net profit attributable to the parent company is projected at USD 749.89 million for 2024E, a slight decrease of 1.83% [6][17] - The expected EPS for 2024E is USD 1.08, with a PE ratio of 7.44 and a PB ratio of 0.90 [6][17] - The forecasted ROE for 2024E is 12.52%, with a dividend yield of 4.55% [6][17] Market Context - The global air travel demand continues to recover, with a year-on-year increase of 8.6% in revenue passenger kilometers (RPK) as of August, which is expected to improve the profitability of airlines [5] - The ongoing Boeing workers' strike has intensified supply chain pressures, potentially leading to increased aircraft rental rates and values, while also affecting aircraft deliveries [4][5]

Investment Rating - The report maintains a "Buy" rating for Meituan-W (3690 HK) with a target price of HKD 235.6, up from the previous target of HKD 169.0 [2][7] Core Views - Policy tailwinds and consumption recovery are expected to boost Meituan's growth, with stronger profit elasticity anticipated [2] - Meituan's local life services leadership is expected to benefit from improved market confidence and operational efficiency [2] - The report forecasts 3Q24 revenue of RMB 92.1 billion (+21% YoY) and non-IFRS net profit of RMB 11.2 billion (+96% YoY) [2] - For 2024-2026, the report projects revenues of RMB 327.3/382.2/442.1 billion and non-IFRS net profits of RMB 40.2/58.8/75.2 billion [2] Business Segment Analysis Food Delivery Business - Meituan's food delivery business continues to deepen supply-side reforms, with 120 million users for its "Pinhaofan" service as of August 2024 [3] - New models like "satellite stores" and "collection stores" are helping merchants reduce costs and improve efficiency [3] - 3Q24 delivery orders are expected to reach 7.1 billion (+15% YoY), with food delivery orders at 6.1 billion (+12% YoY) [3] - Unit economics (UE) for food delivery is projected to improve to RMB 1.32 (from RMB 1.1 in 3Q23) [3] In-store Business - In-store GTV is expected to grow 30% YoY in 3Q24, driven by increased online penetration and category expansion [4] - Revenue from in-store services is projected to increase 23% YoY in 3Q24 [4] - Operating profit margin (OPM) for in-store business is forecasted at 36% for 3Q24 [4] New Initiatives - New business revenue is expected to grow 26% YoY in 3Q24 [5] - Meituan's self-operated Xiaoxiang supermarket is focusing on high-quality growth, with losses narrowing sequentially [5] - Overall operating loss for new businesses is projected to narrow to RMB 1.8 billion in 3Q24 [5] Financial Projections - Revenue growth is forecasted at 18.3%, 16.8%, and 15.7% for 2024-2026 respectively [6] - Net profit attributable to parent company is expected to grow 118.7%, 54.6%, and 31.2% for 2024-2026 [6] - ROE is projected to improve from 17.5% in 2024 to 21.8% in 2026 [6] - PE ratios are estimated at 26.4x, 18.1x, and 14.1x for 2024-2026 [2] Valuation - The target price of HKD 235.6 is based on a SOTP model, with valuations for different business segments [9][10] - Food delivery: HKD 125.0 (22x 2025E PE) - In-store: HKD 90.8 (24x 2025E PE) - New initiatives: HKD 19.8 (1.2x 2025E PS)

Investment Rating - The report maintains a "Buy" rating for Anta Sports with a target price of HKD 117.98, up from the previous target of HKD 93.5 [2][7][11]. Core Views - Anta Sports demonstrated resilient operational performance in Q3 2024, with a steady revenue growth despite short-term disruptions caused by weather and macroeconomic factors. The Anta brand achieved a mid-single-digit year-on-year growth in retail sales, while the Fila brand experienced a low single-digit decline [2][3]. - The report emphasizes the strong operational resilience of Anta as a market leader, maintaining its earnings per share (EPS) estimates for 2024-2026 at RMB 4.27, 4.88, and 5.51 respectively. The target price is based on a projected price-to-earnings (PE) ratio of 22.0x for 2025, reflecting the company's significant advantages in market share, revenue scale, and brand strength [2][11]. Summary by Sections Q3 2024 Performance - Anta brand retail sales showed a mid-single-digit year-on-year growth, while Fila brand retail sales declined by a low single-digit percentage. Other brands, including Descente and Kolon, saw retail sales growth of 45-50% [2][4]. - The operational disruptions in Q3 were attributed to external factors such as typhoons and high temperatures, but Anta's performance remained industry-leading [2][3]. Brand Analysis - Anta's main brand is expected to continue its growth trajectory, with online sales projected to exceed 20% year-on-year growth for the full year 2024. The company is effectively expanding its market reach through new store formats targeting specific customer segments [3][4]. - Fila's performance has been impacted by external market conditions, but its operational health remains manageable, with retail discounts stable and inventory turnover ratios healthy [4][5]. Other Brands - Other brands under Anta are experiencing rapid growth, particularly in outdoor apparel, with Descente and Kolon showing significant year-on-year increases in sales [5][9]. - The report anticipates that the retail environment will remain challenging in the fourth quarter, but effective cost control and product-channel strategies will support overall performance and profitability [5][9]. Financial Projections - Revenue projections for Anta Sports are set at RMB 69.97 billion for 2024, with expected year-on-year growth of 12.21%. Net profit is projected to reach RMB 13.25 billion, reflecting a growth rate of 29.42% [6][9][10]. - The report outlines a consistent growth trend in EPS, with estimates of RMB 4.27 for 2024, RMB 4.88 for 2025, and RMB 5.51 for 2026, indicating strong profitability [10][15].

Investment Rating - The report maintains a "Buy" rating for Smoore International (06969) with a target price of 12.54 HKD [1] Core Views - The company reported steady revenue growth in Q3 2024, achieving a revenue of 32.86 billion HKD, a year-on-year increase of 14.1% and a quarter-on-quarter increase of 16.5% [1] - The company's proprietary brand business is experiencing rapid growth, while the closed-system product business is gradually recovering [1] - The decline in net profit is attributed to increased R&D and management expenses, with net profit for Q3 2024 at 3.79 billion HKD, down 22.5% year-on-year but up 10.2% quarter-on-quarter [1] Summary by Relevant Sections Financial Performance - For the first three quarters of 2024, the company achieved a total revenue of 83.23 billion HKD, a 4.0% increase year-on-year, with a net profit of 10.62 billion HKD, down 11.9% year-on-year [1] - In Q3 2024, the revenue was 32.86 billion HKD, with a year-on-year increase of 14.1% and a quarter-on-quarter increase of 16.5% [1] Business Segments - The revenue from proprietary brand business reached 11.16 billion HKD, showing a significant year-on-year growth of 71.9% [1] - The company is expected to continue benefiting from the growth of both proprietary open and closed-system products due to increasing regulatory pressures in the European electronic vaporization market [1] R&D and Future Outlook - The company is increasing its R&D investments, focusing on non-combustible products and medical vaporization products, which are anticipated to become new revenue and profit growth points [1] - The company has completed the development and production of several devices for asthma and COPD medications, with research results gaining industry recognition [1]

Investment Rating - The report maintains a "Buy" rating for Bosideng (03998) with a target price of 4.96 HKD, indicating a positive outlook for the stock over the next six months [1]. Core Insights - Bosideng has strategically invested in the international luxury down jacket brand Moose Knuckles, positioning itself as a key investor while the controlling shareholder remains the private equity firm CVC Capital Partners. This investment is seen as a significant step in expanding Bosideng's international business footprint [1]. - The Moose Knuckles brand is recognized for its high-quality materials and craftsmanship, with a focus on stylish and functional designs. The collaboration with Bosideng is expected to drive growth in the Asian market and enhance brand innovation [1]. - Bosideng is optimistic about the sales performance of its lightweight down jackets, which are being redefined to combine fashion with functionality, appealing to modern consumer preferences [1]. Summary by Sections Investment Rating - The report maintains a "Buy" rating for Bosideng with a target price of 4.96 HKD [1]. Company Overview - Bosideng has become a key investor in Moose Knuckles, a luxury down jacket brand headquartered in Montreal, Canada, which is expanding its retail presence globally [1]. - Moose Knuckles operates over 36 stores in more than 30 countries, including China, North America, and Europe, and collaborates with renowned retailers for distribution [1]. Financial Projections - The report projects Bosideng's revenue for FY25-27 to be 26.5 billion RMB, 30.1 billion RMB, and 34.1 billion RMB, respectively, with net profits of 3.6 billion RMB, 4.1 billion RMB, and 4.6 billion RMB for the same periods [2]. - Earnings per share (EPS) are expected to be 0.33 RMB, 0.37 RMB, and 0.42 RMB, with price-to-earnings (PE) ratios of 13, 11, and 10 times [2].

Investment Rating - The report initiates coverage on Ascentage Pharma (6855 HK) with an "Outperform" rating and a target price of 48.0 HKD per share [6] Core Views - Ascentage Pharma is a global biopharmaceutical company focused on developing first-in-class and best-in-class drugs, particularly in oncology, with 9 small molecule drugs in clinical development [3] - The company's core products, Olverembatinib (BCR-ABL TKI) and Lisaftoclax (BCL-2), are expected to achieve risk-adjusted global sales of 17.67 billion RMB by 2033 [4] - Ascentage Pharma has made significant progress in global expansion, with key products advancing in global registration clinical trials in both China and the US [3] Product Pipeline and Market Potential - Olverembatinib, the first and only third-generation BCR-ABL inhibitor approved in China, is expected to generate risk-adjusted global sales of 10.85 billion RMB by 2033, with 9.48 billion RMB from overseas markets [4] - Lisaftoclax, a potential second global BCL-2 inhibitor, is projected to achieve risk-adjusted global sales of 6.82 billion RMB by 2033, with 6.25 billion RMB from overseas markets [4] - The company's pipeline includes multiple first-in-class potential targets, with ongoing exploration in hematologic malignancies, solid tumors, and non-oncology indications [4] Financial and Strategic Developments - Ascentage Pharma achieved its first semi-annual profit in H1 2024, with revenue reaching 820 million RMB, a 477% YoY increase, driven by licensing income [10] - The company secured a significant partnership with Takeda, receiving a $100 million option fee and $75 million equity investment, with potential milestone payments totaling $1.2 billion [10] - Ascentage Pharma has filed for a US IPO in 2024, aiming to further expand its financing channels [10] Clinical Progress and Regulatory Milestones - Olverembatinib's global Phase III registration clinical trial for CML patients resistant to two or more TKIs has been approved by the FDA, with NDA submission expected by 2026 [17] - Lisaftoclax's Phase II registration clinical trial for R/R CLL/SLL in China has been completed, with NDA submission expected in 2024 [12] - The company is conducting over 40 Phase I/II clinical trials globally, with 8 registration trials, including 2 approved by the FDA [11] Market and Competitive Landscape - The global BCR-ABL inhibitor market exceeds $6 billion, with Olverembatinib showing potential as a best-in-class product due to its efficacy and safety profile [17] - Lisaftoclax is positioned as a potential best-in-class BCL-2 inhibitor, with advantages in efficacy, safety, and dosing convenience compared to existing therapies [40] - Ascentage Pharma's focus on first-in-class targets and its global clinical strategy position it well to capture significant market share in both China and international markets [13]

Investment Rating - The report initiates coverage with a "Buy" rating for Miniso [5]. Core Insights - Miniso is positioned as a leading IP-driven retail brand, focusing on global expansion and innovative product offerings, with a significant market share in both domestic and international markets [2][3]. - The company has established a strong presence with over 7,063 stores globally by mid-2024, leveraging its dual-brand strategy with Miniso and TOP TOY [2][11]. - Financial projections indicate robust revenue growth, with expected revenues of RMB 165.72 billion, RMB 190.31 billion, and RMB 211.61 billion for 2024, 2025, and 2026 respectively, reflecting growth rates of 20%, 15%, and 11% [3][4]. Summary by Sections 1. Company Overview - Miniso has achieved a global market share of 6.7% and 11.4% in the self-owned brand retail market, leading the industry [2][11]. - The company operates two main brands: Miniso, which offers a wide range of household products, and TOP TOY, focusing on trendy toys [12][31]. 2. Market Dynamics - The global self-owned brand retail market is projected to grow significantly, with Miniso capitalizing on this trend through its innovative product offerings and competitive pricing [25][28]. - The trend towards personalized and high-quality products is driving the growth of the household goods market, which is expected to reach RMB 5.1 trillion in 2023 [25][28]. 3. Financial Performance - Miniso's revenue for FY2024 is projected to increase by 34% to RMB 153.91 billion, with overseas revenue expected to grow by 44.45% to RMB 55.21 billion [20][22]. - The company has seen a consistent improvement in gross margins, with an overall gross margin of 43.1% anticipated for FY2024 [20][22]. 4. Competitive Landscape - The competitive landscape in the self-owned brand retail market is fragmented, with Miniso leading with a market share of 11.4% in China [36]. - In the trendy toy market, TOP TOY has quickly captured a 1.1% market share, ranking seventh in the industry [31][36].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company has shown significant improvement in profitability, with a 165.4% year-over-year increase in adjusted net profit for H1 2024, driven by substantial growth in subscription revenue from online music services [3][5]. - The company has successfully increased its paid user base, leading to a 26.6% year-over-year growth in online music revenue, with subscription sales accounting for 83.8% of this revenue [4][5]. - The company has adopted a cautious approach to its social entertainment business, resulting in a 19.9% year-over-year decline in revenue from this segment, focusing instead on enhancing the core music user experience [5]. Financial Performance Summary - For H1 2024, the company reported revenues of 4.07 billion RMB, a 4.1% increase year-over-year, with operating costs decreasing by 10.14% to 2.65 billion RMB [3]. - The adjusted net profit for H1 2024 reached 0.88 billion RMB, reflecting a significant improvement in profitability metrics [3]. - The gross margin improved to 35.0%, up 10.3 percentage points year-over-year, attributed to a reduction in content service costs [3]. User Growth and Market Position - The company has maintained a daily active user (DAU) to monthly active user (MAU) ratio above 30%, indicating strong user engagement [4]. - As of H1 2024, the platform has over 732,000 registered independent musicians, contributing to a diverse music library of approximately 3.6 million tracks [4]. Revenue Forecast and Valuation - Revenue projections for 2024-2026 are estimated at 8.29 billion RMB, 8.89 billion RMB, and 9.43 billion RMB, respectively, with adjusted net profits expected to reach 1.30 billion RMB, 1.48 billion RMB, and 1.66 billion RMB [6][7]. - The report anticipates a gradual release of operating leverage, enhancing profitability over the long term [5].