Equity Research Report Jafron Biomedical (300529 CH) Earnings Grew Strongly in 2024 Huatai ResearchInterim Results Review 13 August 2024 | China (Mainland)Medical Devices Earnings growth continued to pace up in 2Q24; maintain BUY Jafron Biomedical (Jafron) registered 1H24 revenue/attributable net profit (NP) of RMB1,496/553mn (up 47.8/99.1% yoy) and 2Q24 revenue/attributable NP of RMB751/268mn (up 70.9/230.6% yoy), which further picked up from the growth rates in 1Q24 (revenue/attributable NP: up 30/44.9% y ...

Investment Rating - The investment rating for Canmax Technologies is maintained at OVERWEIGHT with a target price of RMB 17.94, reflecting an expected upside of 8% from the closing price of RMB 16.59 as of August 9, 2024 [7][8]. Core Insights - Canmax Technologies reported a significant decline in its financial performance for 1H24, with attributable net profit down 39.26% year-on-year to RMB 835 million, and revenue down 44.09% year-on-year to RMB 3,713 million [2][3]. - The decline in revenue is primarily attributed to a substantial decrease in lithium ore prices, with the average selling price of lithium hydroxide falling 73.8% year-on-year to RMB 92,300 per tonne [3][5]. - Despite the challenges, Canmax's revenue decline was less severe than the drop in lithium ore prices, largely due to capacity expansion efforts [3]. Financial Performance - For 1H24, Canmax's revenue from lithium-ion battery materials decreased by 47.08% year-on-year to RMB 3,316 million, with a gross profit margin of 17.91%, down 12.59 percentage points year-on-year [3]. - The company's projected book value per share (BVPS) for 2024, 2025, and 2026 is RMB 15.74, RMB 17.07, and RMB 19.24 respectively [2]. - The financial outlook shows a recovery in revenue expected in 2025 and 2026, with projected revenues of RMB 11,602 million and RMB 17,671 million respectively [6]. Industry Dynamics - The lithium ore market is currently experiencing oversupply, leading to continued price declines in 1H24, although there are signs of potential capacity cuts from major producers [5]. - The report suggests that while lithium ore prices are expected to remain on a downward trend, the pace of supply-side de-capacity should be monitored as it may lead to improved supply-demand dynamics in the future [5].

Equity Research Report Fixed Income Reviewing Bond Market Volatility in Terms of Financial Security Huatai Research 13 August 2024 | China (Mainland) Weekly Analyst SAC No. S0570518110002 SFC No. AMB145 +(86) 10.6321.1166 Our core views The financial system exhibits pro-cyclical characteristics, and central bank regulation plays a crucial role in maintaining financial stability and policy credibility. However, given the current economic fundamentals and the pace of fiscal efforts, the PBoC is unlikely to ma ...

9 August 2024 | 2:58PM EDT Energy, Utilities & Mining Pulse: Investors Asking: How to Navigate Summer Volatility? The past two weeks have been highly volatile in the markets and across our Natural Resources coverage. As such, we ask our senior analyst team to reflect on where investors are positioned and general sentiment in their respective sector.The team additionally highlights a stock that has underperformed their expectations where they would be more positive from here. We additionally ask the team to ...

11 August 2024 | 7:15PM HKT _ Navigating China Internet: Key investor focuses into Tencent & Alibaba prints & what to watch out for With Tencent and Alibaba kicking off the China Internet results season amongst the mega-caps on Weds and Thurs (after HK market close) respectively, we expect broadly in-line 2Q prints, where we estimate Tencent adj. operating profit to grow 33% yoy on accelerating growth and Alibaba's group EBITA to decline 11% yoy on core businesses investments (mostly in-line with sell-side ...

9 August 2024 | 8:07PM EDT _ Healthcare Pulse: Reflecting On 2Q24 Earnings Amid An Uncertain Macro... Investor sentiment; market color; sector themes; charts to | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------- ...

9 August 2024 | 10:10AM BST _ Ferrous Tracker: Drop in Steel Output Hits Iron Ore Consumption n The Platts 62%Fe iron ore index (CFR China) returned to $99.3/t yesterday (8th August), down 4% from last Friday. n With little change in both supply and stocks, we view declining Chinese iron ore consumption as being the key factor driving prices lower. Mysteel's sample of 247 steel mills showed a 2% WoW drop in consumption of imported iron ore, reflecting a similar decline in hot metal output. n Meanwhile, flat ...

Mol Augus China's 3D Journey | Asia Pacific How Fiscal Reforms Could Affect the Economy Beijing pledges to ease local government funding pressures with fiscal reforms. However, the proposed tax hikes could make reflation more challenging. We analyze the economic impact of different reform paths. The rise of 3D challenges has eroded local governments' ability to support growth... In China, local govt shoulders >85% of fiscal spending. However, resurgent secular 3D challenges (debt, demographics, deflation) f ...

Mol Augus Global Macro Strategy | North America The White House and the Dollar Policies proposed by the Republican presidential campaign would likely boost USD. A potential Republican administration may attempt to offset USD strength, but in the near term, we expect USD and the likelihood of a Republican White House to be positively correlated. We expect the US dollar to gain if the Republican Party is increasingly seen as likely to win the US presidency. While former President Trump has spoken against doll ...

12 August 2024 | 6:31AM HKT China: Three things in China Three quick highlights from China: ■ Nuances of the July trade data: On the surface, China's July exports missed expectations (7.0% yoy vs. 9.5% Bloomberg consensus) and China's July imports surprised to the upside (7.2% yoy vs. 3.2% Bloomberg consensus). However, the import strength may be related to more working days, and the export miss does not necessarily imply lower export volume. In June, export value increased 8.6% yoy but export volume jumped ...