Investment Rating - The report maintains a "Buy" rating for China Property & Casualty Insurance (02328) [1] Core Views - China Property & Casualty Insurance achieved steady growth in premium income and continued optimization in cost control during H1 2024 [1] - The company's market share remained leading in the property insurance market, despite a slight decline of 0.3pct YoY to 34.0% [2] - The comprehensive cost ratio was maintained at a good level of 96.2%, with effective cost control measures in place [2] - The company's investment income improved QoQ, with a stable solvency position [2] Business Performance - In H1 2024, the company achieved original insurance premium income of RMB 311.996 billion, up 3.7% YoY [2] - Insurance service income reached RMB 235.841 billion, up 5.1% YoY, driven by growth in motor vehicle insurance (RMB 145.157 billion, +5.3% YoY), accident and health insurance (RMB 24.751 billion, +7.5% YoY), and liability insurance (RMB 18.339 billion, +8.4% YoY) [2] - Net profit attributable to shareholders was RMB 18.491 billion, down 8.7% YoY, mainly due to high-frequency natural disasters impacting non-auto insurance profitability [2] Cost Control - The comprehensive cost ratio for auto insurance was 96.4%, down 0.3pct YoY, with a comprehensive loss ratio of 71.2% (+1.5pct YoY) and a comprehensive expense ratio of 25.2% (-1.8pct YoY) [2] - Non-auto insurance had a comprehensive cost ratio of 95.8%, up 1.5pct YoY, with agricultural insurance showing improvement at 89.0% (-2.0pct YoY) due to business structure optimization [2] Investment Performance - Investment income in H1 2024 was RMB 13.971 billion, down 7.8% YoY, with an annualized total investment yield of 4.4% (-0.8pct YoY but +1.2pct QoQ) [2] - Investment assets totaled RMB 641.834 billion, up 6.8% YoY, with fixed-income assets at RMB 387.962 billion (+10.9% from the beginning of the year) and equity investment assets at RMB 154.936 billion (-2.2% YoY) [2] Financial Projections - Revenue is expected to grow by 5.50%, 6.15%, and 6.32% YoY in 2024, 2025, and 2026, respectively [3] - Net profit attributable to shareholders is projected to grow by 7.63%, 9.17%, and 12.41% YoY in 2024, 2025, and 2026, respectively [3] - EPS is forecasted to be RMB 1.19, RMB 1.30, and RMB 1.46 in 2024, 2025, and 2026, respectively [3] Valuation - The stock's PE ratio is estimated at 7.82x, 7.17x, and 6.37x for 2024, 2025, and 2026, respectively, based on the closing price as of September 17 [3]

Investment Rating - The report initiates coverage with an OUTPERFORM rating for CLP Holdings [3][31]. Core Views - CLP Holdings is a century-old energy operator rooted in Hong Kong, with diversified operations across the Asia Pacific region [5]. - The company has shown significant profit recovery in 2023, with a net profit of HK$6.655 billion, reflecting a 620.2% year-on-year increase [7][10]. - The company aims to achieve a net-zero power generation target by 2050, aligning with Hong Kong's climate action goals [18]. Summary by Sections 1. Company Overview - CLP Holdings is one of the largest private power companies in the Asia Pacific, with operations in Hong Kong, mainland China, Australia, India, Taiwan, and Thailand [5]. - The company operates a diverse generation portfolio, including coal, gas, nuclear, wind, hydro, and solar power [5]. 2. Financial Performance - Revenue has fluctuated from HK$85.689 billion in 2019 to HK$97.169 billion in 2023, with a CAGR of approximately 0.4% [7]. - The company’s operating profit before fair value changes was HK$101.27 billion in 2023, with Hong Kong contributing 76% [10]. - The company maintained a stable dividend policy, with a dividend yield of 4.81% in 2023 [14]. 3. Market Position - CLP Holdings is one of the two major electricity suppliers in Hong Kong, providing power to over 2.79 million customers [5]. - The company’s operations are regulated under a scheme that guarantees a return on investment, ensuring stable revenue streams [20]. 4. Renewable Energy Transition - The company is committed to expanding its renewable energy portfolio, with significant growth potential in mainland China, Australia, and India [26]. - CLP Holdings plans to phase out fossil fuel assets and increase renewable energy capacity, aiming for a reduction in greenhouse gas emissions intensity by 2030 [29]. 5. Future Outlook - The report forecasts revenues of HK$902.66 billion, HK$938.67 billion, and HK$985.31 billion for 2024-2026, with net profits projected at HK$69.41 billion, HK$73.38 billion, and HK$75.63 billion respectively [31].

Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook for its stock performance [2][3]. Core Insights - The company is a global leader in aluminum production with a comprehensive integrated supply chain, including bauxite mining, alumina production, electrolytic aluminum, and deep processing of aluminum products [2][14]. - The company achieved a revenue of 73.59 billion RMB in H1 2024, representing a year-on-year increase of 12.0%, and a net profit of 9.16 billion RMB, up 272.7% year-on-year, driven by rising aluminum prices and decreasing raw material costs [2][19]. - The domestic supply of bauxite is tightening, leading to increased reliance on imports, which enhances the resource attributes at the mining level and benefits the company due to its overseas resource layout [2][27]. - The electrolytic aluminum production capacity is nearing its ceiling, with limited supply growth expected, while demand from new energy vehicles and the power sector is anticipated to provide a boost, leading to a favorable long-term supply-demand balance [2][26]. - The company maintains a high dividend payout ratio, with a cumulative dividend of 38.17 billion RMB since its listing in 2011 and an average payout ratio of 47.2% over the past five years [2][24]. Summary by Sections 1. High Elasticity and High Dividends, Leading Integrated Layout in Electrolytic Aluminum - The company has a global leading position in electrolytic aluminum production with a complete integrated supply chain [2][14]. - In H1 2024, the company’s revenue and net profit saw significant increases, attributed to favorable market conditions [2][19]. - The company has consistently maintained a high dividend payout, reflecting its stable financial performance [2][24]. 2. Electrolytic Aluminum Industry: Capacity Approaching Ceiling, Tightening Supply at the Mining Level - The domestic supply of bauxite is becoming increasingly constrained, leading to a higher dependency on imports [2][27]. - The report highlights the limited growth in electrolytic aluminum supply due to capacity constraints and the anticipated demand from emerging sectors [2][26]. 3. Advantages of Integrated Layout, Full Release of Profit Elasticity - The company’s strategic overseas resource layout positions it well to benefit from rising bauxite prices [2][27]. - The report projects continued growth in the company’s profitability due to its cost advantages and market positioning [2][3]. 4. Profit Forecast and Valuation - The report forecasts net profits of 19 billion RMB, 20.2 billion RMB, and 21.4 billion RMB for 2024, 2025, and 2026, respectively, with a corresponding PE ratio of 6x [2][3].

Investment Rating - The report recommends a "Buy" rating for China Biopharmaceuticals (1177.HK) for the first time [2][5]. Core Views - China Biopharmaceuticals is a leading player in the Chinese pharmaceutical industry, with expected continuous improvement in profit margins. The company reported a revenue of 26.199 billion yuan in 2023, a decrease of 8.97%, primarily due to the sale of its stake in Zhengda Qingdao and the impact of medical anti-corruption measures. However, the revenue from continuing operations showed a slight increase of 0.7% year-on-year [3][5]. - The company is advancing its innovation and internationalization strategies across four core business segments: oncology, liver disease, respiratory, and surgical/pain management. The R&D expenditure in 2023 was 4.403 billion yuan, accounting for approximately 16.8% of revenue, with over 77% of this investment directed towards innovative and biological drugs [3][5][19]. Summary by Sections Company Overview - China Biopharmaceuticals is a key player in the Chinese pharmaceutical sector, with a stable shareholding structure and absolute control over its core subsidiaries. The company is part of the Charoen Pokphand Group, which has a strong global presence [10][13]. Financial Performance - The company’s revenue for 2023 was 26.199 billion yuan, reflecting a decline of 8.97%. However, the first half of 2024 saw a revenue increase of 11.1%, reaching 15.874 billion yuan, indicating a return to positive growth [3][15]. - The adjusted net profit for the first half of 2024 was 1.540 billion yuan, up 14.0% year-on-year, signaling a potential turning point in profitability [3][15]. Business Segments - The oncology segment is expected to drive significant growth, with key products like Anlotinib and innovative therapies showing strong market potential. The company anticipates that Anlotinib will achieve a peak sales target of 10 billion yuan [21]. - The liver disease segment is also promising, with products like Magnesium Isoglycyrrhizinate expected to synergize with oncology offerings. The company has several products in late-stage clinical trials for NASH [19][21]. - The respiratory segment is positioned for growth, with inhaled formulations like Budesonide showing strong sales potential. The company has multiple innovative candidates in late-stage clinical trials [19][21]. - The surgical/pain management segment is supported by products like Flurbiprofen Gel, which is expected to contribute to revenue growth [19][21]. R&D and Innovation - The company is committed to expanding its R&D efforts, with a focus on innovative drugs. In 2023, R&D expenses reached 4.403 billion yuan, with a significant portion allocated to innovative drug development [19][21]. - The company plans to launch over 10 innovative products in the next three years, further enhancing its competitive position in the market [19][21].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [4]. Core Insights - The company, Shangmei Co., is a leading multi-brand beauty group in China, with its main brand, Han Shu, gaining significant traction due to high cost-performance products and the short video trend. The company is expected to maintain high growth due to its efficient organizational operations and supply chain capabilities [4][5]. Financial Performance - The company reported a significant turnaround in 2023, with revenue reaching 4.19 billion HKD, a year-on-year increase of 56.8%. The net profit for the same year was 461 million HKD, up 213.5% [21][22]. - For 2024, the projected net profits are 899 million HKD, 1.18 billion HKD, and 1.45 billion HKD for 2024, 2025, and 2026 respectively, with corresponding EPS of 2.26, 2.97, and 3.63 HKD [4][21]. Brand Strategy - The company employs a "2+2+2" brand strategy, focusing on two brands each in skincare, maternal and infant care, and hair care. The main brand, Han Shu, targets the anti-aging market, while other brands like Red Elephant and One Leaf cater to different segments [14][15][16]. Growth Drivers - Han Shu's product line, particularly the "Waist Series," is expected to drive growth, with a strong emphasis on high cost-performance and effective marketing strategies [6][30]. - The company has successfully leveraged platforms like Douyin (TikTok) for marketing, achieving a GMV of 34.44 billion HKD in 2024H1, surpassing the total for 2023 [21][30]. Supply Chain and Operational Efficiency - The company has established a robust supply chain with both domestic and overseas manufacturing capabilities, ensuring stable production and pricing control [5][19]. - The organizational structure is designed for high efficiency, with brand managers given significant autonomy, which has proven effective in responding to market trends [5][19]. Market Position - Han Shu has become a top player in the beauty market, particularly on Douyin, where it has consistently ranked first in beauty sales [30][37]. - The company is well-positioned to benefit from the growing demand for affordable skincare products, especially among younger consumers [34][36].

Investment Rating - The report assigns a "Buy" rating to Huazhu Group-S (01179) for the next 6 months [1] Financial Performance - Q2 2024 revenue reached RMB 6.15 billion, up 11.2% YoY [1] - Net profit attributable to shareholders was RMB 1.1 billion, increasing 5.1% YoY [1] - Operating profit margin improved to 25.6%, up 0.6 percentage points YoY [1] - Domestic hotel revenue grew 11.1% YoY to RMB 4.8 billion [1] - Deutsche Hospitality revenue increased 11.6% YoY to RMB 1.3 billion [1] - Direct-operated revenue rose 2.5% YoY to RMB 3.7 billion [1] - Franchise revenue surged 25.8% YoY to RMB 2.3 billion [1] Operational Metrics - Domestic RevPAR declined 2.0% YoY to RMB 244, with recovery rate at 118.4% compared to 2019 levels [1] - Domestic ADR decreased 3.0% YoY to RMB 296, representing 125% of 2019 levels [1] - Domestic occupancy rate improved 0.7 percentage points YoY to 82.6%, reaching 95.1% of 2019 levels [1] - Deutsche Hospitality RevPAR increased 4.5% YoY to €82, with recovery rate improving 17.2 percentage points to 115% [1] Expansion Strategy - Opened 572 new hotels in Q2 2024, including 567 domestic properties [1] - Achieved 64% of annual new hotel target in H1 2024 [1] - Total domestic hotel count reached 10,150, with 136 international properties [1] - Raised full-year new hotel guidance to 2,200 from previous 1,800 [1] Valuation and Outlook - Forecasts net profit of RMB 4.0/4.6/4.9 billion for 2024-2026 [1] - Current PE ratios stand at 24x/21x/20x for 2024-2026 [1] - Expects Q3 2024 revenue growth of 2%-5% [1] Industry Analysis - The company operates in the non-essential consumer sector, specifically tourism and leisure facilities [1] - Huazhu Group demonstrates leading scale advantages and operational efficiency in the hotel industry [1]

Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company is set to become a key platform for hydropower asset integration under the National Energy Investment Group, with significant potential for valuation support due to the higher valuation of hydropower assets in the A-share market compared to the Hong Kong market [4][5]. - The company has shown a strong recovery in operational performance, with a 51.50% year-on-year increase in profit attributable to equity holders, reaching 2.802 billion yuan in the first half of the year [4]. - A special dividend of 0.05 yuan per share has been announced to celebrate the company's 20th anniversary, alongside a commitment to a minimum 50% payout ratio, enhancing the investment appeal [4]. Summary by Sections Asset Restructuring - The company plans to inject its controlling stakes in subsidiaries, including Wuling Power and Guodian Investment Guangxi Changzhou Hydropower, into Far East Environmental Protection, establishing it as a hydropower asset integration platform for Guodian Investment [4]. - The restructuring is expected to solidify the company's position as a comprehensive clean energy flagship platform, with further hydropower assets likely to be injected in the future [4]. Financial Performance - The company achieved a profit of 2.802 billion yuan in the first half of the year, marking a 51.50% increase year-on-year, driven by improved coal prices and steady growth in clean energy business [4]. - The operational performance is expected to continue its recovery, supported by high growth in hydropower and easing pressure on thermal power generation [4]. Future Outlook - The company is projected to achieve profits of 5.004 billion, 6.046 billion, and 7.157 billion yuan for the years 2024 to 2026, with corresponding EPS of 0.40 yuan, 0.49 yuan, and 0.58 yuan, indicating strong growth potential [5]. - The report emphasizes the company's attractive valuation with PE ratios of 8.63, 7.14, and 6.03 for the same period, suggesting a favorable investment opportunity [5].

Investment Rating - The report maintains a "Buy" rating for New Oriental [5][11]. Core Views - New Oriental's revenue for the first quarter of FY25 is expected to reach USD 1.462 billion, representing a year-on-year increase of 32.9%, with a non-GAAP net profit of USD 277 million, up 46.4% year-on-year [4][7]. - The strong growth in the education business is driven by the rapid expansion of non-academic training, overseas study test preparation, and high school subject training [8][9]. - The company is expected to open over 50 new learning centers in FY25, increasing the total to over 1,075, a growth of approximately 35.6% year-on-year [9][11]. - The e-commerce segment is projected to contribute about USD 220 million in revenue for the first quarter, accounting for 15% of total revenue, which is a decrease from 19% in the previous quarter [10][11]. Financial Data and Profit Forecast - Revenue projections for New Oriental are as follows: - FY23: USD 2.998 billion - FY24: USD 4.314 billion - FY25: USD 5.438 billion - FY26: USD 6.916 billion - FY27: USD 8.844 billion - Non-GAAP net profit forecasts are: - FY25: USD 493 million - FY26: USD 672 million - FY27: USD 891 million [6][13]. - The report anticipates a non-GAAP operating profit margin of 24.3% for the education business in FY25, an increase of 2 percentage points year-on-year [11][12].

Investment Rating - The report maintains a "Buy" rating for China Software International (0354.HK) [2][3] Core Views - China Software International is collaborating with Huawei and the government to create an "AI New Triangle," aiming to build a comprehensive AI ecosystem that enhances productivity [2] - The company is committed to a full-stack AI layout, integrating computing power, large models, AIGC products, and applications [2] - The strategic partnership with Huawei is expected to drive stable business growth through the "1+3 strategy," leveraging Huawei Cloud as the foundation and focusing on AIGC, HarmonyOS, and ERP [2] Summary by Sections Company Overview - The "AI New Triangle" consists of China Software International, Huawei, and the government, each playing a distinct role in the ecosystem [2] - China Software International acts as the organizer, utilizing its software service expertise and collaboration with Huawei to support AI ecosystem development [2] AI Strategy - The company is focusing on a full-stack AI approach, which includes: 1. Computing Power: Deep collaboration with Huawei on computing power centers and operations [2] 2. Large Models: Strategic partnerships with various large model vendors to enhance service precision and efficiency [2] 3. AIGC Products: Development of AI Agent products for government markets, with successful collaborations in multiple provinces [2] 4. AI Applications: Expansion into energy, power, and financial sectors, with notable projects and partnerships [2] Financial Forecasts - The report projects net profits of 724 million RMB, 867 million RMB, and 1,032 million RMB for 2024, 2025, and 2026 respectively [3] - Revenue is expected to grow from 17,252 million RMB in 2024 to 20,998 million RMB by 2026, reflecting a steady increase [3] Market Data - The total market capitalization of China Software International is approximately 229.12 billion HKD, with a current share price of 8.38 HKD [4][3] - The company has a strong trading volume, with a turnover rate of 76.2% over the past three months [4]

石药集团（1093） 更新报告 集采致短期承压增速放缓，新产品陆续获批未来可期 买入 2024 年 10 月 4 日 高小迪 852-25321960 上半年收入增速不达预期：2024 年上半年公司营收 162.8 亿元（同比 +1.3%，下同），毛利 116.5 亿元（+3.7%），毛利率 71.6%（+1.7pts）。基 于财务报表所示股东应占溢利 20.2 亿元（+1.8%），归母净利率 18.5% （+0.1pts）。分板块看，成药板块录得收入 135.5 亿元（+4.8%），Q2 收入 环比出现明显萎缩；虽然维 C 原料产品价格缓慢回升，但需求回落，板块收 入上半年同比仍下降 5.4%，得 9.8 亿元；抗生素原料板块忧郁海外需求减 少，收入 8.7 亿元（-6.4%）；由于咖啡因产品价格下跌，功能食品板块收入 8.8 亿元（-25.2%）。 明复乐助力神经领域维持增长，恩必普院外市场开发空间广阔：成药板块 中，神经领域实现收入 52.36 亿元（+15.0%）。明复乐获批脑梗适应症，为 神经领域增长注入充足动力。相比心梗适应症，脑梗适应症能够更快速地放 量。恩必普 DoT 受医院医疗模式限制，尚未 ...