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 ...

M N 19 Apr 2024 CMB International Global Markets | Equity Research | Company Update Xtep (1368 HK) Steady recovery shall continue with high yield 1Q24 operating numbers were in line with both market and our expectation. But Target Price HK$6.31 we have started to see retail sales growth acceleration since late-Mar 2024, after (Previous TP HK$6.31) the launches of more entry-level or value-for-money products like the 360X Up/Downside 41.4% running shoes. With that and the boost from e-commerce channel, we be ...

h 股 c r 票 a e s e R 研 y [Table_Title] Peter Shao 邵俊樨 究 tiu Company Report: China Power International (02380 HK) (852) 2509 5464 q E 公司报告： 中国电力 (02380 HK) peter.shao@gtjas.com.hk 17 April 2024 S[Ttarbolen_Sgu mFmYa2ry4] Earnings Outlook, "Buy"  2023 earnings missed. CPID (the "Company") reported 2023 earnings of 公 tr o RMB2,660 mn, missing our expectation, primarily due to asset amortisation of [RTaabtlien_gR:a nk] Buy p e RMB650 mn and loss of RMB 826 mn booked by the hydro segment, both Maintained 司 R 报 y ...

Sunny Optical | 2382.HK Rating BUY Maintain Short term pain, long term gain Target Price HKD 49.37 From: HK$74.94 Current price HKD 37.45 Upside:+31.8% FY23 result a miss, de -spec and interest cost weigh on earnings Company Update S unny’s FY23 result disappoints market, with revenue and net income came in at RMB31,681mn/1,099mn respectively (-4.6%/-54.3%Yoy). Sunny’s topline was ~2% below Bloomberg consensus and our estimates, 18 April 2024 while net income arrived at the low-end of the profit warning ale ...

M N 18 Apr 2024 CMB International Global Markets | Equity Research | Company Update Anta Sports (2020 HK) An inline 1Q24 plus an improving outlook Retail sales growth in 1Q24 was slow, but it was widely expected. We see Target Price HK$101.73 FY24E growth supported by: 1) healthy momentum in late Mar, 2) an exciting (Previous TP HK$101.73) product launch pipeline, 3) further segmentation by Anta in terms of products Up/Downside 24.7% and store format, and 4) gradual improvement in retail discounts (rather C ...