Investment Rating - Maintain BUY rating with a target price of HK$52.00, implying a 51.2% upside from the current price of HK$34.40 [2][3]. Core Insights - The first-quarter results for Ping An show resilience in core lines, with Life VNB increasing by 20.7% YoY to RMB12.9 billion, surpassing market consensus and previous estimates [2]. - The growth in VNB is attributed to a significant rise in VNB margin, which increased by 6.5 percentage points YoY to 22.8%, despite sluggish sales in the 2024 jumpstart period [2]. - Group OPAT decreased by 3.0% YoY to RMB38.7 billion, but this is a significant improvement from a decline of 19.7% YoY by the end of 2023 [2]. - Life & Health OPAT turned positive with a growth of 2.2% YoY to RMB27.3 billion, contributing to a 0.3% YoY OPAT growth across the three core segments: Ping An Life & Health, P&C, and PAB [2]. - Asset management returned to profitability with a net profit of RMB910 million in 1Q24, compared to a loss of RMB20.7 billion by the end of 2023 [2]. Summary by Sections Life Insurance - Life VNB rose by 20.7% YoY to RMB12.9 billion in 1Q24, driven by a VNB margin increase to 22.8% [2][16]. - The number of life insurance agents decreased by 4.0% YoY to 0.33 million, but the productivity per agent increased by 56.4% YoY [2][16]. Property & Casualty (P&C) Insurance - P&C insurance revenue grew by 5.7% YoY to RMB80.6 billion, with a combined ratio (CoR) of 99.6%, reflecting a 0.9 percentage point increase [2][16]. - Underwriting profit in P&C declined by 67.5% YoY to RMB323 million, attributed to increased claims from catastrophes [2][16]. Asset Management - The asset management segment reported a net profit of RMB910 million in 1Q24, a recovery from a significant loss in the previous year [2][16]. Financial Projections - FY24-26E EPS revised down to RMB6.42, RMB7.05, and RMB7.61, respectively, from previous estimates of RMB6.94, RMB7.87, and RMB8.62 [2][3]. - The stock is currently trading at FY24 0.47x P/EV and 0.71x P/B, with potential upside driven by improved market sentiment and rising investment yields [2][3].

Investment Rating - The report maintains a BUY rating for New Oriental with a target price of US$102.50, revised from the previous target of US$104.50, indicating a potential upside of 33.0% from the current price of US$77.08 [2][3]. Core Insights - New Oriental's total net revenue for 3QFY24 increased by 60.1% year-over-year (YoY) to US$1,207 million, surpassing the consensus estimate of US$1,098 million by 10% [2]. - Non-GAAP net income rose by 9.8% YoY to US$105 million, although it fell short of the consensus estimate of US$132 million due to investments in East Buy and rapid capacity expansion affecting margin growth [2]. - The company expects total revenue for 4QFY24 to grow by 28-31% YoY, projecting revenue between US$1,102 million and US$1,127 million, compared to the consensus estimate of US$1,096 million [2]. Financial Performance Summary - For FY24E, total revenue is forecasted at US$4,293 million, with adjusted net profit expected to reach US$456.1 million [6]. - The revenue growth forecast for FY25E and FY26E has been increased by 8-10%, while earnings forecasts for the same periods have been trimmed by 3-6% due to the impact of capacity expansion on margins [2][6]. - The educational business segment showed strong momentum, with overseas test prep and study consulting revenue growing by 52.6% and 25.7% YoY, respectively, contributing approximately 21% to total revenue [2]. Capacity Expansion and Strategic Initiatives - New Oriental's capacity expansion accelerated, with the number of schools and learning centers increasing by 28% YoY to 911 as of the end of 3QFY24 [2]. - The company has raised its capacity expansion plan for FY24, now expecting a 30% YoY increase, up from the previous estimate of 20% [2]. - Investments in East Buy are aimed at enhancing private label product development and supply chain management, which is expected to drive customer base expansion and user engagement [2]. Valuation Methodology - The report employs a sum-of-the-parts (SOTP) valuation, attributing US$91.6 million to the educational and consulting business, US$6.8 million to East Buy, and US$4.2 million to the tourism business, reflecting their respective growth prospects and market positions [7][8].

M N 25 Apr 2024 CMB International Global Markets | Equity Research | Company Update Great Wall Motor (2333 HK) 1Q24 NP beat provides room for transformation Target Price HK$14.00 Maintain BUY. Great Wall’s 1Q24 net profit of RMB3.2bn beat investors’ prior (Previous TP HK$13.00) forecast, which has increased our confidence in its profitability in FY24E. We Up/Downside 24.8% raise our FY24E net profit forecast by 25% to RMB9.9bn. We believe Great Wall Current Price HK$11.22 still needs a high-volume NEV in th ...

25 Apr 2024 Earnings Summary CMB International Global Markets | Equity Research | Company Update Zhejiang Dingli (603338 CH) 4Q23 & 1Q24 earnings in line; Staying positive on overseas growth Zhejiang Dingli (Dingli)'s net profit in 2023 grew 49% YoY to RMB1.87bn, in line with the pre-announced profit of RMB1.86bn in Jan. In 1Q24, the adjusted net profit (excluding fair value loss of RMB101mn) grew 27% YoY to RMB404mn, which is in line with our expectation. During the post results call, management revealed t ...

M N 24 Apr 2024 CMB International Global Markets | Equity Research | Company Update Li Ning (2331 HK) Healthy outlook after a beat in retail discounts Li Ning may not be our top pick in the sportswear sector. But thanks to potential Target Price HK$22.17 sequential acceleration in sales growth and decent margin improvement (better (Previous TP HK$24.86) discounts and operating leverage), we are still positive on Li Ning and maintain Up/Downside 19.9% BUY with TP of HK$ 22.17, based on 15x FY24E P/E. Current ...

Investment Rating - Reiterate BUY with a SOTP-based target price of HK$22 19 [2][10] Core Views - Xiaomi's SU7 sales target of 100k units in 2024 and 10k monthly deliveries in June exceeded market expectations [2] - SU7 gross profit margin (GPM) target of 5-10% in 2024 is above expectations, with breakeven expected at 300-400k sales per year [2] - Xiaomi's unique "Human-car-home" ecosystem is a major competitive edge over peers [2] - Near-term catalysts include the Beijing Auto Show (25-27 Apr), 1Q24 results in May, and 10k SU7 monthly shipments in June [2] SU7 Sales and Expansion - SU7 non-refundable orders reached 70k, with a higher share of the high-end SU7 MAX model [2] - Xiaomi aims to expand its smart driving team to 1 5k/2k by 2024/25 from 1k currently [2] - EV sales/service centers are targeted to cover 46/82 cities by the end of 2024 [2] 2024 Guidance - Revenue guidance of RMB300bn for core business, with RMB24bn in R&D expenses (including RMB11-12bn for EV-related) [2] - Smartphone shipments target an increase of 15-20mn in 2024 compared to 146mn in 2023 [2] - 1Q24 smartphone shipments grew 34% YoY to 40 8mn [2] Financial Forecasts - FY24E revenue is projected at RMB321 495mn, with an 18 6% YoY growth [3] - Adjusted net profit for FY24E is estimated at RMB17 321mn, a 10 1% YoY decline [3] - FY24E EPS is forecasted at RMB0 70, with a P/E ratio of 21 5x [3] Valuation - SOTP-based valuation assigns 13x/10x/15x FY24E P/E to smartphone/AIoT/internet businesses, and 0 75x FY25E P/S to the EV business [10] - The target price of HK$22 19 implies a 37 2% upside from the current price of HK$16 18 [3][10] Peer Comparison - Xiaomi's FY24E P/E of 20 7x is higher than peers like BYD (8 8x) and Sunny Optical (25 9x) [12] - The company's market cap stands at HK$329 133 6mn, with a 3-month average turnover of HK$1 534 9mn [4] Financial Performance - FY23 revenue declined 3 2% YoY to RMB270 970mn, while adjusted net profit increased 126 3% YoY to RMB19 272 8mn [3] - FY23 ROE improved to 11 3%, up from 1 8% in FY22 [3] - FY24E gross profit margin is expected to be 19 0%, slightly lower than FY23's 21 2% [3]

M N 24 Apr 2024 CMB International Global Markets | Equity Research | Company Update Jiangsu Hengli (601100 CH) 4Q23 & 1Q24 earnings not exciting; but more positive drivers to come Target Price RMB64.00 Hengli’s net profit in 2023 was +7% YoY to RMB2.5bn, which is -5%/+3% versus (Previous TP RMB83.00) our/consensus estimates. Net profit in 1Q24 dropped 4% YoY to RMB602mn, Up/Downside 24.9% due to weak demand for excavators’ hydraulic components and an increased Current Price RMB51.24 expense ratio. We trim o ...

M N 24 Apr 2024 CMB International Global Markets | Equity Research | Company Update InnoLight (300308 CH) 1Q24 results set stage for accelerated growth in 2024 Innolight has recently released results for FY23 and 1Q24, exceeding both our Target Price RMB183.00 and market’s expectations. For FY23, the company's revenue grew by 11.2% (Previous TP RMB136.00) YoY to RMB10.7bn, with net profit soaring by 77.6% YoY to RMB2.2bn. 1Q saw Up/Downside 15.6% even more impressive growth, with revenue up by 163.6% YoY to ...

M N 22 Apr 2024 CMB International Global Markets | Equity Research | Company Update Netflix (NFLX US) Guiding higher OPM despite disclosure change Target Price US$644.50 Netflix reported upbeat 1Q24 results (topline/bottom line 1%/17% above (Previous TP US$613.30) consensus) and guided its FY24E OPM again, but stock price pulled back for Up/Downside 16.1% moderate FY24E revenue guidance and removal of subs & ARM disclosures Current Price US$555.04 from 1Q25. We think the market has overreacted, as: 1) mgmt. ...

M N 22 Apr 2024 CMB International Global Markets | Equity Research | Company Update Bosideng (3998 HK) From winter clothing to all seasons clothing We think the guidance raise is a key moment for the company, as the success Target Price HK$5.34 that Bosdieng has achieved in the sun-protective product series shows that it is (Previous TP HK$3.86) capable of generating sales in all seasons (other than just fall and winter). Also, Up/Downside 23.5% despite our raises in estimates and TP, we still think our num ...