G MN 12 Apr 2024 CMB International Global Markets | Equity Research | Company Update FIT Hon Teng (6088 HK) Recent sell-off looks overdone; AirPods production in Vietnam on track in 1H24E Target Price HK$2.42 We hosted a NDR call with FIT Hon Teng (FIT)’s mgmt. yesterday (11 Apr). (Previous TP HK$2.42) Share price has been weak recently, partly due to investor concerns on Apple’s Up/Downside 12.6% TWS order ramp-up and allocation, in our view. Mgmt. stated that first Current Price HK$2.15 production line of ...

CMB International Global Markets | Equity Research | Company Update Expect solid earnings growth and enhancing shareholder return in FY24 | --- | --- | --- | --- | --- | --- | |------------------------------|-----------|-----------|-----------|-----------|-----------| | Earnings Summary (YE 31 Dec) | FY22A | FY23A | FY24E | FY25E | FY26E | | Revenue (RMB mn) | 554,552 | 609,015 | 655,548 | 707,635 | 751,260 | | YoY growth (%) | (1.0) | 9.8 | 7.6 | 7.9 | 6.2 | | Gross margin (%) | 43.1 | 48.1 | 49.9 | 51.1 | ...

An ta Sports | 2020.HK Rating BUY Maintain Multi-branded strategy drives quality growth Target price HK$128.8 C Cuu rr rr ee nn t price HK$85.15 Upside: +51.3% Curren ◼ FY23 results above e xpectation: Company Update Anta announced FY23 results on 26th Mar with revenue and net profit arrived at 15 Apr 2024 RMB62.4bn and RMB10,236m, up 16.2%/34.9% YoY. The strong earnings growth was mainly driven by higher store productivity, disciplined retail discount and higher interest Hugo Suen income. And they declared ...

11 Apr 2024 Earnings Summary CMB International Global Markets | Equity Research | Company Update Q-Tech (1478 HK) 1Q24 shipment rebound on track; Auto & IoT as next growth drivers We recently spoke to Q-Tech's mgmt. and we maintain our positive view on high-end Android recovery to drive ASP/shipment upside in FY24E. Q-tech also expected GPM improvement in 1H24E thanks to better product mix and easing competition. For 1Q24, Q-Tech posted impressive growth of 23%/179% YoY in mobile/non-mobile CCM shipment, th ...

11 Apr 2024 Renewed agreement with Blizzard; expect games revenue growth to reaccelerate in 2H24E NetEase on 10 Apr announced the renewal of publishing agreement with Blizzard Entertainment to bring Blizzard game titles back to China. Popular titles such as World of Warcraft, Hearthstone, and Diablo will return to the Chinese market sequentially starting in summer 2024. NetEase also reached an agreement with Microsoft to bring NetEase titles to Xbox and other platforms. We expect the return of Blizzard game ...

M N 11 Apr 2024 CMB International Global Markets | Equity Research | Company Update Baidu (BIDU US) Expect mild ads revenue growth in 1Q24 Target Price US$183.20 We expect Baidu Core to deliver mild ads revenue growth in 1Q24, driven by (Previous TP US$186.20) solid performance in travel and e-commerce verticals, but partly offset by the Up/Downside 77.8% soft performance in offline verticals which are in tune with macro activity levels. Current Price US$103.05 Baidu remains committed to investing in gen-AI ...

Investment Rating - Maintain BUY rating with a target price of US$131.9 per ADS [1][7] Core Views - Alibaba is expected to deliver in-line-with-consensus revenue growth for 4QFY24, with estimated revenue of RMB221.4bn, up 6% YoY [1] - The company is focusing on long-term growth through investments in international business, cloud, and Taobao and Tmall (T&T) Group, despite short-term margin pressure [1] - Alibaba is committed to improving shareholder return through loss reduction in non-core businesses, enhanced share buyback, and dividend payout [1] - The strategic move to drive an integrated group strategy is expected to enhance long-term value [1] Financial Performance - For 4QFY24, group-level adjusted EBITA is forecasted to decline 5% YoY to RMB24.0bn, with an adjusted EBITA margin of 10.8% [1] - T&T Group's adjusted EBITA is expected to decline 1.5% YoY to RMB38.5bn, implying a margin of 42.1% [1] - Customer management revenue growth is forecasted at 3% YoY in 4QFY24, driven by 7% YoY GMV growth from T&T GMV [1] Revenue and Profit Forecasts - Revenue for FY24E is estimated at RMB940.7bn, with FY25E and FY26E revenues projected at RMB1,027.6bn and RMB1,117.5bn, respectively [2][4] - Adjusted net profit for FY24E is forecasted at RMB155.5bn, with FY25E and FY26E projections at RMB158.2bn and RMB175.2bn, respectively [4] - Gross margin for FY24E is estimated at 37.8%, with FY25E and FY26E margins projected at 38.0% [4] Valuation and Shareholder Return - The SOTP-based target price is US$131.9 per ADS, translating into 15.7x FY24E P/E [7] - Alibaba is enhancing shareholder return through an integrated group strategy, including investments in international business and cloud infrastructure [1] - The next key event for shareholder return will likely be the announcement of annual fiscal year dividends in May [1] Segment Valuation - Taobao and Tmall Group is valued at US$59.1 per ADS, based on 7.0x FY24E EV/adjusted EBITA [8] - Cloud Intelligence Group is valued at US$24.4 per ADS, based on a 4.2x EV/S multiple on FY24E revenue [8] - Cainiao is valued at US$2.6 per ADS, based on the latest valuation given by Alibaba to repurchase Cainiao shares from minority shareholders [8] Financial Summary - Revenue for FY24E is projected at RMB940.7bn, with gross profit of RMB356.0bn [4] - Operating profit for FY24E is forecasted at RMB113.7bn, with net profit of RMB89.9bn [13] - Adjusted net profit for FY24E is estimated at RMB155.5bn, with an adjusted net profit margin of 16.5% [4]

M N 11 Apr 2024 CMB International Global Markets | Equity Research | Company Update GigaCloud (GCT US) Improving fundamentals with BaaS initiatives Target Price US$46.00 After short-term stock price volatility on insider filings, we suggest investors to (Previous TP US$43.00) refocus on GigaCloud (GCT)’s strong organic growth and fundamentals Up/Downside 45.6% improvement. We expect GCT to deliver another eye-catching 1Q24E, with topline accelerating to +96% YoY (5% above high-end of guidance) and bottom Cu ...

CMB International Global Markets | Equity Research | Company Update We recently spoke with TK Group (TK)'s mgmt. post FY23 earnings, and mgmt. reiterated positive view on order restocking, new client wins, capacity ramp-up in Vietnam/Huizhou and business opportunities in automotive/ medical device/ecigarette. Following a challenging 2023, we expect TK's net profit to grow 38%/19% YoY in FY24/25E, backed by order wins from VR/e-cigarette/medical device, mobile & wearable/communications business recovery, and ...

M N 10 Apr 2024 CMB International Global Markets | Equity Research | Company Update Tongcheng Travel (780 HK) Continued outperformance during Qingming Target Price HK$26.10 The three-day Qingming Festival holiday embraced booming demand, with (Previous TP HK$26.10) domestic tourist trips +11.5% and tourism revenue +12.7% (both vs. the Up/Downside 23.7% 2019 level), according to the Ministry of Culture and Tourism. Tongcheng Current Price HK$21.10 Travel (TC) kept its strong momentum during the Qingming Fest ...