Investment Rating - The report maintains a BUY rating for BYD with a target price of HK$262.00, indicating a potential upside of 21.1% from the current price of HK$216.40 [3][7]. Core Insights - Despite a net profit of RMB 4.6 billion in 1Q24 falling short of prior forecasts due to significant R&D spending of RMB 10.6 billion, BYD is still expected to meet the FY24E net profit forecast of RMB 33 billion [7]. - The report highlights that BYD's gross profit margin (GPM) in 1Q24 was better than expected, suggesting that price cuts implemented in February 2024 could be offset by cost reductions from suppliers [7]. - The forecast for FY24 sales volume growth of 20% remains achievable, supported by recent stimulus measures and overseas expansion [7]. Financial Summary - Revenue projections for FY24E are set at RMB 700,048 million, with expected growth to RMB 800,518 million in FY25E and RMB 884,971 million in FY26E [5][10]. - Net profit estimates for FY24E are RMB 33,109 million, increasing to RMB 40,173 million in FY25E and RMB 45,095 million in FY26E [5][10]. - The gross margin is projected to be 20.1% for FY24E, slightly decreasing to 19.5% in FY25E and 19.3% in FY26E [5][10]. Earnings and Valuation - The report indicates that BYD's earnings quality has not been prioritized in 1Q24, with expectations for more disciplined management of SG&A and R&D expenses in upcoming quarters [7]. - The net profit per vehicle in 1Q24 was RMB 7,300, which is lower than the previous quarter, reflecting the impact of price cuts on profitability [7]. - The report maintains FY24-25E net profit estimates largely unchanged while revising up both GPM and SG&A [7].

29 Apr 2024 CMB International Global Markets | Equity Research | Company Update Alphabet (GOOG US) 1Q24 earnings beat on efficiency gain; GenAI development on track Alphabet announced 1Q24 results: total revenue grew by 15% YoY to US$80.5bn, in line with consensus estimate; GAAP net income was up 57% YoY to US$23.7bn, 21% ahead of consensus estimate, thanks to Alphabet's organization optimization which leads to greater velocity and efficiency. The company further raised its shareholder return, announcing a ...

29 Apr 2024 CMB International Global Markets | Equity Research | Company Update GAC Group (2238 HK) In-line 1Q24 earnings GAC Group (GAC)'s 1Q24 results were largely in line with our prior estimates and we maintain our FY24E net profit forecast of RMB5.4bn. We are more conservative than management about Aion's sales volume and profitability, as we believe that Aion needs quality growth (brand upscale, overseas expansion etc.) in FY24E to lay out foundation for long-term development. We are of the view that ...

M N 29 Apr 2024 CMB International Global Markets | Equity Research | Company Update SANY Heavy (600031 CH) 2023 net profit a miss; 1Q24 still weak; Stay on the sidelines Target Price RMB14.80 SANY Heavy (SANY)’s net profit in 2023 came in at RMB4.53bn (+6% YoY), (Previous TP RMB12.30) which is 12% below both our and consensus estimates. In addition, net profit in Up/Downside (7.7%) 1Q24 only grew 5% YoY to RMB1.58bn due to a lack of revenue growth (-1% Current Price RMB16.04 YoY). We are still concerned abo ...

M N 29 Apr 2024 CMB International Global Markets | Equity Research | Company Update Tigermed (300347 CH) Meaningful demand recovery in 1Q24 Target Price RMB66.82 Tigermed reported 1Q24 revenue of RMB1,660mn, down 8.0% YoY, and (Previous TP RMB68.57) attributable recurring net income of RMB303mn, down 20.5% YoY, which was Up/Downside 15.8% mainly due to the substantially reduced gains on fair value changes and Current Price RMB57.70 investment changes (RMB8mn in 1Q24 vs RMB198mn in 1Q23). 1Q24 revenue / attr ...

Investment Rating - The report assigns a stock rating of NR (Not Rated) for CDOT (00334.HK) [27]. Core Insights - The company experienced a significant year-on-year revenue increase of 57.3% to RMB 931.7 million in 2024 Q1, driven by strong sales of tablet display modules and other display modules, which offset a decline in smartphone module sales [2]. - The gross margin for CDOT in FY 2023 dropped to 6.5%, primarily due to a change in product mix, which may continue to affect profitability [41]. - The company has seen a recovery in sales volume, particularly in the second half of 2023, with non-laminated and laminated module sales volumes reaching 4.1 million and 38.7 million respectively [7]. Summary by Relevant Sections Revenue and Profitability - CDOT reported RMB 2.6 billion in revenue for FY 2023, reflecting a year-on-year decline of 8.4% and a significant drop of 55.1% in the first half of 2023 [7]. - The company achieved a net profit of RMB 13.1 million and an operating profit of RMB 19.0 million in FY 2023, reversing from a loss in the first half of 2023 [20]. Sales Performance - The sales volume of tablet display modules and other display modules in 2024 Q1 reached 0.7 million and 1.1 million, representing increases of 22.7 times and 87.8 times compared to 2023 Q1 [11]. - The ASP (Average Selling Price) of non-laminated and laminated modules increased to RMB 28.5 and RMB 70.4 in 2023 Q4, marking a rebound from previous lows [15]. Market Dynamics - The order book from a major smartphone manufacturer remained stable, contributing significantly to revenue stability in 2024 Q1 [36]. - The company’s strategy includes leveraging support from CSOT to customize panel sizes, enhancing its ability to meet customer demands and expand into the tablet market [40]. Future Outlook - The report indicates that while there has been operational improvement, low gross margins remain a concern, limiting the company's ability to withstand market fluctuations [42]. - The company is expected to see further contributions from the tablet and smart home device segments, potentially driving ASP increases in 2024 [17][19].

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Meta reported 1Q24 results: total revenue grew by 27% YoY to US$36.5bn, in line with consensus estimate of US$36.2bn; net income was up 117% YoY to US$12.4bn, also in line with consensus estimate (US$12.2bn). For 2Q24, management guides total revenue to increase by 14-22% YoY to US$36.5- 39.0bn (vs. consensus estimate of US$38.3bn), with growth rate normalizing as the base effect wanes. Looking ahead, Meta expects to start a multi-year investment cycle to build full-scale AI capabilities and enhance monetiz ...

Investment Rating - The report maintains a BUY rating for Vesync with a target price of HK$ 6.79, based on a P/E of 11x for FY24E, reflecting a potential upside of 57% from the current price of HK$ 4.33 [2][5][15]. Core Insights - Despite slow sales growth in 1Q24, the end-demand remains healthy, supported by a strong sell-out growth and low inventory levels in the Amazon channel. The company expects orders growth to normalize in the upcoming quarters [2][8]. - The management has reiterated its FY24E guidance of over 20% sales growth and over 10% net profit margin, which aligns with the analyst's conservative positive outlook [2][8]. - The report highlights that Vesync's gross sales growth was only 1% in 1Q24, attributed to supply issues and reduced orders from Amazon, while non-Amazon channels saw a significant growth of 38% [2][8]. Financial Summary - Revenue is projected to grow from US$ 585 million in FY23 to US$ 675 million in FY24, representing a year-over-year growth of 15.3% [3][14]. - Net profit is expected to increase from US$ 77.4 million in FY23 to US$ 91.4 million in FY24, with a net profit margin improvement from 13.2% to 13.5% [3][14]. - The gross profit margin is anticipated to stabilize at 46.0% in FY24, slightly down from 46.9% in FY23, while the operating profit margin is expected to be around 15.3% [3][14]. Growth Outlook - The report projects a compound annual growth rate (CAGR) of 13% for sales and 16% for net profit from FY23 to FY26E, indicating robust growth potential [2][8]. - Specific brands under Vesync, such as Levoit and Cosori, are expected to achieve sales growth of 15% in FY24E, driven by new product launches and category expansions [8][10]. Valuation Metrics - The current valuation of Vesync at 7x FY24E P/E is considered attractive compared to its historical average of 12x, suggesting a favorable investment opportunity [2][5][15]. - The report notes that the average inventory days for major retailers have decreased, indicating improved channel inventory health, which bodes well for future sales [8][10].

M N 26 Apr 2024 CMB International Global Markets | Equity Research | Company Update Luxshare (002475 CH) FY23 in-line with better-than-feared 1H24 earnings guidance; Solid outlook ahead Target Price RMB46.61 Luxshare posted FY23 revenue/NP growth of 8%/20% YoY, largely in-line with (Previous TP RMB46.96) pre-announcement of 20-25% YoY, while 1H24E earnings guidance of 20-25% Up/Downside 63.3% YoY (implying 2Q24E 18%-27% YoY) is above market expectations. We believe Current Price RMB28.54 the strong 1H24 out ...