M N 9 Apr 2024 CMB International Global Markets | Equity Research | Company Update Akeso (9926 HK) Promising Ph3 data of cadonilimab in 1L GC  Promising Ph3 data of cadonilimab in 1L GC, especially for patients with Target Price HK$59.61 low PD-L1 expression. The interim Ph3 (NCT05008783) data of (Previous TP HK$59.61) cadonilimab in 1L GC was recently released at the AACR meeting (link). With Up/Downside 27.8% a median follow-up of 18.7 months, cadonilimab + chemo (XELOX) extended Current Price HK$46.65 t ...

M N 9 Apr 2024 CMB International Global Markets | Equity Research | Company Update Yunkang Group (2325 HK) Back to normal growth Target Price HK$13.78 Yunkang Group reported 2023 revenue of RMB891.5mn, down by 76.3% YoY, (Previous TP HK$16.01) primarily due to the sharp decline of diagnostic testing demand for COVID-19 Up/Downside 24.3% in China. The blended gross margin improved to 36.5% in 2023 (+1.7 ppts), Current Price HK$11.08 mainly due to enhanced operation efficiency and effective cost control. The ...

M N 8 Apr 2024 CMB International Global Markets | Equity Research | Company Update Haidilao (6862 HK) Looking for expansion opportunities with downside protection We think Haidilao’s downside is protected by its dividend (5.6% FY24E yield and Target Price HK$21.52 the 90% payout ratio should sustain into the future), while the upside is highly (Previous TP HK$24.76) dependent on its speed of store expansion (which is still very slow but we tend Up/Downside 25.1% to think it will accelerate once the franchis ...

M N 8 Apr 2024 CMB International Global Markets | Equity Research | Company Update China Life (2628 HK) 4Q net loss markedly narrowed; VNB grew in low-teens despite revised EV assumptions China Life disclosed full-year results with net profit attributable to shareholders Target Price HK$13.70 amounted to RMB 46.2bn (-30.7% YoY), equivalent to RMB 10.6bn net profit in (Previous TP HK$17.81) 4Q23 (-4.7% YoY), significantly narrowed from -103.8% YoY to a net loss of RMB Up/Downside 47.2% 610mn in 3Q23 (IFRS-ba ...

M N 8 Apr 2024 CMB International Global Markets | Equity Research | Company Update Haier Smart Home (6690 HK) Resilient FY24E guidance and decent dividend 4Q23 results were in line but the dividend raise was a bright spot. We do Target Price HK$31.24 appreciate the resilience of Haier’s business, esp. when macro-level demand in (Previous TP HK$30.91) China was weak. Going forward, we are confident that FY24E guidance will be Up/Downside 21.8% achieved, thanks to the steady growth for Casarte, ramp-up of Hai ...

M N 5 Apr 2024 CMB International Global Markets | Equity Research | Company Update GAC Group (2238 HK) PHEV could be a new catalyst We estimate GAC Group (GAC)’s net profit to rise 22% YoY to RMB5.4bn in Target Price HK$5.50 FY24E, as Aion’s upscale attempt, cost reduction and overseas expansion could (Previous TP HK$6.00) help narrow its loss. We are of the view that Aion needs quality growth in FY24E Up/Downside 73.0% to lay out foundation for long-term development. We project Trumpchi’s PHEV Current Pric ...

Investment Rating - The report maintains a BUY rating on Nayuki (2150 HK) but cuts the target price to HK$ 3.43 [2][4] Core View - The report highlights that franchising and cost-cutting are key to Nayuki's strategy, despite a cautious outlook on the catering sector due to weakening macro demand and increased competition [2] - Nayuki's high cash level (over 75% of its market cap) and potential income from franchising are key reasons for the BUY rating [2] - The report expects a mixed FY24E outlook with pressure on topline growth but some room for margin improvement [2] Store Expansion and Performance - Nayuki's SSSG for Jan/Feb/Mar 2024 were -29%/-34%/-30%, worse than the 7% drop in 2H23, driven by a drop in both ASP and volume [2] - The store expansion plan for FY24E is conservative, with ~200 new self-operated stores and ~150 closures, resulting in a net increase of only a handful of stores [2] - For franchising, around 80 stores were opened in FY23, and the target for FY24E is 200-400 franchised stores, with a long-term goal of 2,000-3,000 new stores [2] Financial Projections - Revenue growth for FY24E is forecasted at 14%, driven by a 3% increase in store counts (excluding franchise), a 6% increase in sales per store, and ramp-up of RTD and franchising business [2] - Net profit margin for FY24E is expected to improve to around 1.1%, supported by stable GP margin, cost control, and cautious investment in the RTD business [2] - The report cuts FY24E/25E net profit by 87%/72% due to slower self-operated store expansion and falling sales per store [2] Valuation and Market Performance - Nayuki is currently trading at 0.7x FY24E P/S and 20x FY25E P/E, with a target price of HK$ 3.43, representing a 31.3% upside from the current price of HK$ 2.61 [2][4] - The valuation method has been changed from 20x FY24E P/E to 1.0x FY24E P/S, applying a ~20% discount to peers' average of 1.2x [2] Historical Performance - FY23 revenue increased by 20% YoY to RMB 5.2bn, with net profit turning positive to RMB 13mn, but NP margin remained low at 0.3% [6] - In 2H23, sales growth slowed to 14%, and NP margin turned negative to -2.1%, driven by a sharp drop in ASP and volume [6] Earnings Revision - The report significantly revises down FY24E revenue and net profit estimates, with revenue now forecasted at RMB 5,877mn (-28.2% from previous estimates) and net profit at RMB 63.7mn (-86.9% from previous estimates) [7] Peer Comparison - Nayuki's valuation is compared to peers in the Greater China catering sector, with a 12-month target price of HK$ 3.43, representing a 31% upside [12]

M N 5 Apr 2024 CMB International Global Markets | Equity Research | Company Update Atour Lifestyle (ATAT US) Prudent guidance but QoQ recovery is likely 4Q23 results were a slight beat but the FY24E guidance is slightly disappointed. Target Price US$23.68 However, we are not that pessimistic because: 1) sequential improvement is (Previous TP US$23.93) likely (high base in 1H), 2) OCC rate is still the best among its peers implying Up/Downside 24.7% further market share gains, and 3) PMI has started to impro ...

| RESEARCH 5 Apr, 2024 EEKA Fashion | 03709.HK COMPANY UPDATE Stable development with new catalysts H F NGO, Brian, CFA STOCK RATING TARGET PRICE SENIOR ANALYST BUY HK$ 16.78 brianngo@westbullsec.com.hk EEKA Fashion (03709.HK) reported a YoY 22.1% growth in revenue to RMB 6.9bn, and its gross +852 3896 2965 margin slightly surged to 75.3%, leading to a YoY 121.8% increment in the bottom-line. The Group 2701 – 2703, 27/F, Infinitus Plaza, 199 Des Voeux Rd also announced a dividend of HKD 0.7/share, amounting ...

M N 2 Apr 2024 CMB International Global Markets | Equity Research | Company Update RemeGen (9995 HK) Awaiting the fruition of overseas BD collaborations RemeGen recorded RMB1.08bn of revenue in FY23, including RMB1.05bn from Target Price HK$41.72 product sales (+42% YoY), contributed equally by RC18 and RC48. In FY23, (Previous TP HK$57.65) GP margin (vs product sales) increased to 76.9% (vs 63.4% in FY22). Selling Up/Downside 53.7% expense ratio (vs product sales) increased from 60% in FY22 to 74% in FY23, ...