Equity Research Report By-health (300146 CH) Revenue Down on High Base, Profit Dented on Increased Expenses Huatai ResearchInterim Results Review 13 August 2024 | China (Mainland)Food Revenue slid on high base, profit constrained on increased expenses By-health's revenue/attributable net profit (NP)/recurring attributable NP were RMB4,610/890/830mn (-17.6/-42.3/-42.8% yoy) for 1H24 and RMB1,970/160/ 120mn (-20.9/-68.1/-73.5% yoy) for 2Q24. We attribute the temporary strain on earnings primarily to: 1) a hig ...

Investment Rating - The investment rating for Tasly Pharmaceutical is maintained at OVERWEIGHT, with a target price of RMB17.30, indicating a potential upside of 25% from the closing price of RMB13.85 as of August 9, 2024 [3][10][30]. Core Insights - The controlling shareholder of Tasly, Tasly Group, plans to transfer 28% of its share capital (approximately 418 million shares) to CR Sanjiu for a total consideration of around RMB6,212 million. This acquisition is expected to enhance CR Sanjiu's industrial chain and leverage Tasly's expertise in traditional Chinese medicine and innovative pharmaceuticals [3][4]. - Tasly is projected to achieve attributable net profits of RMB1.18 billion, RMB1.31 billion, and RMB1.46 billion for the years 2024, 2025, and 2026, respectively, reflecting year-on-year growth rates of 10%, 11%, and 11% [3][4]. - The report anticipates stable business fundamentals for Tasly in 2024, with steady growth in its traditional Chinese medicine segment and a rally in sales volume for chemical drugs driven by the VBP program [5][6]. Summary by Sections Business Overview - Tasly is recognized as a leader in traditional Chinese medicine prescription drugs and has a strong R&D pipeline with 98 products in development. The company has developed blockbuster products such as Danshen and Yangxue Qingnao [4][5]. Financial Projections - Revenue is expected to grow from RMB8,593 million in 2022 to RMB10,506 million by 2026, with net profit projected to increase from a loss of RMB256.51 million in 2022 to RMB1,460 million in 2026 [8][15]. - The earnings per share (EPS) is forecasted to rise from a loss of RMB0.17 in 2022 to RMB0.98 in 2026 [8][15]. R&D and Innovation - Tasly has consistently invested in R&D, with annual expenses ranging from RMB600 million to RMB900 million since 2018, representing an R&D expense ratio of 5-10%. The company has independently developed over 20 novel TCM products, with several projects expected to submit NDAs starting in 2024-2025 [6][4]. Market Position - The acquisition by CR Sanjiu is expected to reshape Tasly's competitive landscape, integrating management systems and potentially adjusting business practices from 2025 onwards [4][5].

Investment Rating - The investment rating for Wens Foodstuffs is "BUY" with a target price of RMB25.53, indicating a potential upside of 29% from the closing price of RMB19.78 as of August 12, 2024 [2][7]. Core Views - Wens Foodstuffs has experienced a significant rise in meat pig selling prices, with the average price reaching RMB18.95/kg in July, which is above the industry average. The estimated per-head profit for meat pigs is nearly RMB600 [2][3]. - The report anticipates buoyant demand for pigs and broilers in the second half of 2024 due to tight supply dynamics and an approaching peak consumption season, which is expected to sustain earnings growth for Wens [2][4]. - The financial projections for Wens indicate a net profit of RMB10.0 billion in 2024, increasing to RMB13.4 billion in 2025, and RMB13.1 billion in 2026, with a book value per share (BVPS) of RMB6.48, RMB8.29, and RMB10.16 respectively [2][5]. Summary by Sections Financial Performance - Revenue is projected to grow from RMB89.92 billion in 2023 to RMB104.68 billion in 2024, and further to RMB125.67 billion in 2025 [5]. - The net profit is expected to recover from a loss of RMB6.39 billion in 2023 to RMB10.04 billion in 2024, and reach RMB13.36 billion in 2025 [5]. - The diluted EPS is forecasted to improve from -0.96 in 2023 to 1.51 in 2024, and 2.01 in 2025 [5]. Market Dynamics - The report highlights a potential contraction in hog supply in the second half of 2024, which is expected to drive up prices and enhance profitability for Wens [2][4]. - The demand for yellow-feather broilers is projected to increase due to early-stage destocking and seasonal consumption patterns, contributing to a favorable pricing environment [2][4]. Competitive Position - Wens Foodstuffs is noted for its solid cost advantage in hog breeding, which is expected to further enhance its per-head profit margins [2][4]. - The company is likely to continue making progress in breeding, production, and management, which will contribute to a steady decline in breeding costs [3][4].

Equity Research Report Economics Strong China export growth: merchandise trade or supply chain reconfiguration? Huatai Research 13 August 2024 | China (Mainland) In-depth In January-July 2024 (7M24), China's export value in USD terms rose by 4% yoy, and yoy growth in export value in RMB terms (6.7%) and that in export volume (c. 15%) notably outpaced that in domestic demand. Meanwhile, contributions made by external demand to GDP and corporate profit growth continued to increase on a high base last year, wi ...

Equity Research Report Macro Views Export Volume Growth Remained High in July Huatai Research 8 August 2024 | China (Mainland) Eva Yl Analyst SAC No. S0570520100005 SFC No. AMH263 evayi@htsc.com +(852) 3658 6000 Comment on China's trade data for July 2024 According to General Administration of Customs of China (GACC), for July 2024, China's yoy export growth in USD terms fell from 8.6% in June to 7%, falling below Bloomberg consensus estimate of 9.5%; yoy import growth in USD terms rallied from -2.3% in Jun ...

Equity Research Report Strategy Midstream Capital/Traded Goods, New Infrastructure Outperformed Huatai Research 13 August 2024 | China (Mainland) Monthly Midstream capital/traded goods, new infrastructure outperformed According to our model, in July 2024, the business climate of all sectors and all non-financial sectors in the A-share market picked up slightly, while some still saw increased sales volume but decreased selling prices, with demand yet to improve, consistent with China's July PMI data. Specifi ...

CSC Research Daily Highlights August 13, 2024 Research Department China Securities Co., Ltd This compilation is an abndged translation of the corresponding Chinese reports Please refer to the important statement on the last page Daily Highlights * This complation is distributed by China Securities Co., Ltd. in the People's Republic of China (for the purposes of this Report only, excluding Hong Kong, Macao and Taiwan), and subject to applicable laws and regulations, this compliation may be distributed by Chi ...

Global Investme GOAL: Asset Allocation Summertime Sadness; Neutral 3m and looking t August 2024 Christian Mueller-Glissmann, CFA Andrea Ferrario Global Strategist Global Strategist Goldman Sachs International Goldman Sachs International 44-20-7774-1714 chrisban musiler-gliss 44-20 7552-4353 androa.forrado@gs.se Investors should consider this report as only at single factor in making that investment decision. For Rog AC certification and other important disclosures; so or go to www.gs.com/research/hedge.html ...

9 August 2024 | 11:07AM HKT China: CPI inflation increased in July on higher food prices Bottom line: China's headline CPI inflation increased to +0.5% yoy in July from +0.2% yoy in June, while headline PPI inflation was flat at -0.8% yoy in July. Food price inflation rose across the board in July due to a decrease in supply from adverse weather. Both non-food price inflation and core inflation edged down in July, indicating continued weakness of domestic demand. PPI inflation in upstream sectors rose modes ...

Equity Research Report Strategy Market Dynamics Post Carry Trade Reversal Huatai Research 13 August 2024 | China (Mainland) Weekly Market to remain volatile in short run, with focus on high-low rotation Weak M1 data in yoy terms, low expectations for the long-term credit cycle, and foreign capital outflow due to election trading have rapidly driven up market risk premiums since June. Strengthened expectations for Fed rate cuts and RMB appreciation have unlocked room for domestic monetary policy, in our view ...