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, ...

◼ Unable to achieve breakeven / monetize the new games or social networking APPs Newborn Town (09911.HK) 52-Week Range HK$ 1.33 – 2.76 | RESEARCH Target Price (Previous TP) HK$ 3.31 (HK$ 3.78) Market cap. (HKD, bn) HK$ 3.1 Revenue 3,307.8 4,190.7 4,542.0 4,880.5 Gross Margin 52.1% 51.3% 51.1% 50.9% EPS 0.447 0.377 0.396 0.419 Absolute 45.0% 37.4% 26.7% 55.4% 3 Apr, 2024 Strong outlook, but vague on details BUY Strong performance of Sugo, TopTop and other APPs offset the sluggish contribution from Mico: The ...

M N 3 Apr 2024 CMB International Global Markets | Equity Research | Company Update Great Wall Motor (2333 HK) PHEVs key to FY24; Earnings likely still resilient Target Price HK$13.00 Maintain BUY. We are of the view that the Tank brand, pick-up trucks and exports (Previous TP HK$13.00) will continue to support Great Wall’s earnings in FY24E. Great Wall’s success in Up/Downside 39.2% the off-road style SUVs has helped its PHEV sales volume and brought higher- Current Price HK$9.34 than-expected margins, alth ...

M N 2 Apr 2024 CMB International Global Markets | Equity Research | Company Update Jinxin Fertility (1951 HK) Impressive business rebound in 2023 Target Price HK$4.43 Jinxin Fertility (Jinxin) reported 2023 revenue of RMB2,789mn, up 18.0% YoY. (Previous TP HK$7.35) Non-IFRS adjusted net profit grew substantially by 72.0% YoY to RMB472mn. Up/Downside 82.3% Revenue was in line with our forecast while non-IFRS adjusted net income Current Price HK$2.43 slightly missed our forecast by 5.7%, which was mainly attr ...

Investment Rating - The report maintains a "BUY" rating for Xiaomi with a new SOTP-based target price of HK$22.19, reflecting a 49% upside from the current price of HK$14.94 [1][15]. Core Insights - Xiaomi's SU7 Series electric sedans launched on March 28, 2024, with competitive pricing and strong initial pre-orders, indicating positive market reception. The pre-orders reached 50,000 units in the first 27 minutes and 89,000 units within 24 hours, surpassing market expectations [1][2]. - The report highlights Xiaomi's unique "Human-car-home" ecosystem as a major competitive advantage over other EV brands, which is expected to drive future growth [1][2]. - Adjustments to revenue forecasts reflect expected EV shipments of 80,000, 150,000, and 200,000 units for FY24, FY25, and FY26, respectively [1][2]. Financial Summary - Revenue for FY24 is projected at RMB 321,495 million, with a year-on-year growth of 18.6%. The adjusted net profit is estimated at RMB 17,321 million, reflecting a decline of 10.1% year-on-year [4][10]. - The report indicates a gross margin of 19.0% for FY24, with an operating margin of 4.8% and an adjusted net margin of 5.4% [10][11]. - The earnings per share (EPS) for FY24 is projected at RMB 0.70, with subsequent years showing gradual increases [4][10]. Valuation Methodology - The valuation is based on a sum-of-the-parts (SOTP) approach, assigning different price-to-earnings (P/E) multiples to Xiaomi's various business segments: 13x for smartphones, 10x for AIoT, and 15x for internet services. The EV business is valued at 0.75x FY25E price-to-sales (P/S) [15][16]. - The total valuation for Xiaomi is estimated at RMB 508,115 million, leading to a target price of HK$22.19 [16].

Investment Rating - Maintain BUY rating with a new target price (TTM) of HK$11.9, implying 1.0x FY24E P/B [2][7] Core Views - PICC P&C reported a solid underwriting combined ratio (CoR) of 97.8%, 0.3pct lower than the estimate, driven by better-than-expected non-auto CoR at 99.1% [2] - The company is expected to sustain a payout ratio of over 40% in the next two years, with a dividend yield of 5.7% in FY24E [2][7] - The auto segment met guidance with a CoR of 96.9%, while non-auto outperformed, particularly in individual A&H, which achieved RMB1.0bn underwriting profits [2] - The company's long-term auto premium growth is adjusted to 5%, with NEV profitability expected to improve [2] Financial Performance - Net profit for FY23A was RMB24.6bn, with EPS of RMB1.11, and is expected to grow to RMB30.0bn in FY24E [4] - The combined ratio is forecasted to improve from 97.8% in FY23A to 96.9% by FY26E [4] - ROE is expected to recover from 10.8% in FY23A to 12.6% by FY26E [4] Valuation - The stock is currently trading at 0.84x FY24 P/B, with a target valuation of HK$11.9 based on P/B-ROE [7][8] - Key valuation assumptions include a long-term growth rate of 3%, a revised long-term ROE of 12.8%, and a cost of equity of 9.7% [7] Dividend Policy - The company raised DPS by 2.3% YoY to RMB0.489 per share in 2023, maintaining a payout ratio of 44.2% [2] - Management guided to maintain a robust payout ratio of over 40% in the next two years [2] Segment Performance - Auto premiums grew by 5.3% YoY to RMB285.6bn, with a conversion rate of 98.8% [2] - Non-auto individual A&H achieved RMB43.7bn in insurance revenue, growing 23.8% YoY, with a CoR of 97.7% [2] Future Outlook - The company expects a lift in auto comprehensive loss ratio and a contraction in comprehensive expense ratio to 70.6%/26.1% in FY24E [2] - NEV profitability is anticipated to improve, with NEV CoR expected to drop below 100% [2]

M N 2 Apr 2024 CMB International Global Markets | Equity Research | Company Update Joinn Laboratories (6127 HK) Recovery could be not earlier than 1H24 Target Price HK$14.41 Joinn reported 2023 revenue of RMB2,376mn, up 4.8% YoY, and attributable (Previous TP HK$21.18) net income of RMB338mn, down 66.9% YoY. The decelerated revenue growth Up/Downside 57.1% was due to subdued R&D activities in Chinese pharmaceutical industry, leading Current Price HK$9.17 to heightened competition and lower pricing. The decl ...