Investment Rating - The report maintains a BUY rating for Haidilao with a target price (TP) of HK$ 21.52, reflecting a 25.1% upside from the current price of HK$ 17.20 [2][4][9]. Core Insights - Haidilao's downside is protected by a 5.6% dividend yield for FY24E and a 90% payout ratio, while the upside is linked to the acceleration of store expansion once the franchising model is finalized [2][7]. - The company has shown strong momentum in 2024, with table turnover increasing by over 30% in January-February, despite a slight seasonal retreat in March [2][7]. - Management is targeting a single-digit percentage increase in store counts for FY24E, focusing on a cautious expansion strategy after lessons learned from previous overexpansion [2][7]. Financial Performance - In FY23, Haidilao's revenue increased by 34% YoY to RMB 41.5 billion, and net profit surged by 175% YoY to RMB 4.5 billion, both in line with prior positive profit alerts [7]. - The company has revised its FY24E and FY25E net profit forecasts upward by 12% and 15%, respectively, due to improved table turnover recovery and better sourcing costs [2][8]. - The operating profit margin is expected to increase to 14.6% in FY24E from 14.3% in FY23, driven by a lower breakeven point for table turnover [2][8]. Earnings Summary - Revenue projections for FY24E are set at RMB 47,018 million, with a YoY growth of 13.4% [3][12]. - Net profit for FY24E is estimated at RMB 4,996.6 million, reflecting a 10.6% increase from FY23 [3][12]. - The earnings per share (EPS) for FY24E is projected at RMB 0.89, with a P/E ratio of 16.0x [3][12]. Store Expansion and Strategy - The company currently has 13 stores with signed lease agreements, primarily in tier 2 cities, and plans to refine its franchising model to enhance local knowledge and capital utilization [2][11]. - The total number of restaurants is expected to grow to 1,424 by FY24E, with a focus on maintaining quality over rapid expansion [11].

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 ...

Investment Rating - The report maintains a "BUY" rating for Haier Smart Home with a target price raised to HK$31.24, indicating a potential upside of 21.8% from the current price of HK$25.65 [2][4]. Core Insights - Haier's FY24E guidance is expected to be resilient, supported by steady growth in the Casarte brand, improvements in the Air-conditioning business, and favorable macroeconomic policies [2][6]. - The company has raised its dividend payout ratio to over 45% for FY24E, reflecting a strong commitment to returning value to shareholders amidst a challenging macro environment [2][6]. - Management remains confident in achieving sales growth of mid-single digits to high-single digits (MSD to HSD) and over 10% net profit growth for FY24E [2][6]. Financial Summary - FY23 results showed a 7% YoY increase in sales to RMB261.4 billion and a 14% YoY rise in net profit to RMB16.7 billion, aligning with Bloomberg estimates [6]. - The dividend per share (DPS) increased by 42% YoY to RMB8.04, with a payout ratio significantly up from 36% the previous year [6]. - Revenue projections for FY24E are set at RMB278.9 billion, with expected net profit of RMB19.3 billion, reflecting a 14% growth [3][12]. Growth Drivers - Key growth drivers for FY24E include: 1. Steady sales growth of 10% to 15% for the Casarte brand due to increased presence in high-end markets and repeat orders from members [2]. 2. A ramp-up in the Air-conditioning business, aided by improved operational efficiencies and in-house production [2]. 3. Potential subsidies and favorable policies in the EU market, alongside a rebound in demand in the ANZ market [2]. 4. Continued demand from high-end segments, particularly in the US market [2]. Margin Improvement - Expected improvements in both gross profit (GP) and net profit (NP) margins due to: 1. Centralized sourcing of raw materials and better freight rate negotiations [2]. 2. Increased automation and digitization across global factories [2]. 3. Enhanced product premiumization through high-end brand sales [2]. 4. Targeted marketing strategies and manpower rationalization in the EU market [2]. Earnings Revision - FY24E net profit estimates have been fine-tuned down by 1% to RMB19.1 billion, while FY25E estimates have been adjusted up by 2% to RMB21.8 billion [7]. - Revenue estimates for FY24E have been slightly reduced by 0.8% to RMB278.9 billion, reflecting slower growth in certain segments [7]. Valuation Metrics - The stock is currently trading at 12x FY24E P/E, which is below its 5-year average of 15x, indicating potential undervaluation [2][4]. - The new target price is based on a 14x FY24E P/E, reflecting a positive outlook for the company's performance [2].

Investment Rating - The report maintains a BUY rating for China Life, with a new target price set at HK$13.7, implying a potential upside of 47.2% from the current price of HK$9.31 [2][4][16]. Core Insights - China Life reported a full-year net profit attributable to shareholders of RMB 46.2 billion, a decrease of 30.7% year-over-year, but the net loss in 4Q23 significantly narrowed to RMB 610 million from a loss of RMB 10.6 billion in 3Q23 [2][6]. - The company achieved a low-teen growth in Value of New Business (VNB), increasing by 11.9% year-over-year to RMB 36.9 billion, despite revised Economic Value (EV) assumptions [2][6]. - The insurer's insurance revenue saw a strong rebound, growing by 32.6% in the second half of 2023, supported by a release of RMB 44.1 billion in contractual service margin [2][6]. Summary by Sections Financial Performance - For FY23, China Life's net profit was RMB 46.2 billion, with a net profit of RMB 10.6 billion in 4Q23, reflecting a significant improvement from the previous quarter [2][6]. - The company reported a total investment yield of 2.43% and a net investment yield of 3.70% by the end of 2023, both showing a decline compared to the previous year [2][6]. VNB and EV Growth - The VNB for FY23 was RMB 36.9 billion, reflecting an 11.9% increase year-over-year, while the EV grew by 5.6% to RMB 1.26 trillion [2][6]. - The report indicates that the revisions in EV assumptions had a limited impact on VNB growth, with the long-term investment return revised down to 4.5% [2][6]. Investment Strategy - The report anticipates a positive turnaround in net investment results in 1H24, driven by improved index performances and a higher allocation to bonds [2][6]. - The target price adjustment reflects a new valuation approach based on P/EV and DDM, with the new target price of HK$13.7 implying a P/EV of 0.3x for FY24E [2][6].

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 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 for Atour Lifestyle (ATAT US) with a target price of US$ 23.68, reflecting a potential upside of 24.7% from the current price of US$ 18.98 [4][12]. Core Insights - The 4Q23 results slightly exceeded expectations, but the FY24E guidance was somewhat disappointing. However, there is optimism for sequential improvement due to a high base in the first half of the year, a strong occupancy rate compared to peers, and an improving PMI starting March 2024 [2][7]. - Revenue per available room (RevPAR) showed a year-to-date decline but improved quarter-over-quarter, with management targeting a flat recovery rate for FY24E [2][7]. - The company plans to open 360 new hotels in FY24E, aligning with previous expectations, and has a robust pipeline of 617 managed hotels under development [2][7]. Financial Summary - FY23 revenue reached RMB 4.7 billion, a 106.2% year-over-year increase, while net profit attributable rose by 651% to RMB 739 million [7][11]. - For FY24E, revenue is projected at RMB 5.96 billion, with a 27.8% year-over-year growth, and net profit is expected to reach RMB 1.16 billion, reflecting a 57.7% increase [3][9]. - The report indicates a slight improvement in adjusted net profit margin for FY24E, with a target of 19.5% [8][9]. Valuation Metrics - The current valuation stands at a P/E of 16x for FY24E, which is considered not demanding given the projected 3-year sales and net profit CAGR of 26% and 41%, respectively [2][4]. - The target price is based on a 20x FY24E P/E, rolled over from a previous 30x FY23E P/E, compared to peers' median of 18x [2][4]. Growth Initiatives - The company is focusing on increasing corporate customer enrollments, enhancing product offerings, and targeting robust retail sales growth, particularly through Tmall and Douyin channels [2][7]. - Management anticipates a small improvement in net profit margin due to better operational expense control and a stronger-than-expected retail sales performance [2][7].

| 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 ...

Investment Rating - The report maintains a "BUY" rating for RemeGen, with a revised target price of HK$41.72, down from HK$57.65, indicating a potential upside of 53.7% from the current price of HK$27.15 [5][3]. Core Insights - RemeGen recorded revenue of RMB1.08 billion in FY23, with product sales contributing RMB1.05 billion, reflecting a 42% year-over-year increase. The gross profit margin improved to 76.9% from 63.4% in FY22. However, the company reported a wider attributable net loss of RMB1.51 billion in FY23 compared to RMB999 million in FY22 [3][11]. - The company anticipates a significant ramp-up in sales for FY24, targeting at least a 50% year-over-year increase in product sales, driven by strong performance of RC18 and RC48, an expanded salesforce, and inclusion in numerous top-grade hospitals [3][9]. - RemeGen is progressing with the global development of RC18, with the first stage of its Phase 3 trial completed. The company is considering whether to unblind the study results, which could serve as a catalyst for further development and potential out-licensing deals [3][10]. - The report highlights the potential for overseas business development collaborations, particularly for RC18 and RC88, which has received fast track designation from the FDA. These collaborations are expected to be crucial for RemeGen's growth trajectory [3][10]. Financial Summary - In FY23, RemeGen's revenue was RMB1,076 million, with a gross profit of RMB823 million, resulting in a gross margin of 76.5%. The company incurred operating expenses of RMB2,334 million, leading to an operating loss of RMB1,488 million [11][13]. - For FY24, the revenue is projected to reach RMB1,601 million, with a gross profit of RMB1,225 million, maintaining a gross margin of 76.5% [11][10]. - The net profit for FY24 is expected to be a loss of RMB1,451 million, improving to a loss of RMB1,070 million in FY25, and further narrowing to a loss of RMB362 million in FY26 [11][10].

Investment Rating - Maintain BUY rating with a target price of HK$13.00, implying a 39.2% upside from the current price of HK$9.34 [2][3][4] Core Views - The Tank brand, pick-up trucks, and exports are expected to support Great Wall Motor's earnings in FY24E, with projected sales volume increasing by 10% YoY to 1.35 million units and net profit rising by 13% YoY to RMB 7.9 billion [2][3] - PHEVs are identified as key to the company's electrification strategy, while BEV sales volume is projected to decline YoY in FY24E due to a lack of competitive products [2][3] Financial Summary - Revenue is projected to grow from RMB 173.2 billion in FY23A to RMB 197.2 billion in FY24E, representing a 13.8% YoY growth [3][6] - Net profit is expected to increase from RMB 7.0 billion in FY23A to RMB 7.9 billion in FY24E, reflecting a 13.0% YoY growth [3][6] - Gross profit margin (GPM) is revised up by 0.4 percentage points to 18.6% for FY24E, driven by better-than-expected margins from PHEVs [2][3] Sales and Profitability - 1Q24E net profit is projected to be approximately RMB 1.6 billion, with a net profit per vehicle of RMB 5,800, which is 6% higher than in 4Q23 [2][3] - The company’s GPM for 4Q23 is estimated to be around 21%, indicating stable profitability despite a 25% QoQ sales volume decline [2][3] Market Position and Strategy - Great Wall Motor's success in off-road style SUVs has positively impacted PHEV sales and margins, although challenges remain in transitioning to BEVs [2][3] - The upcoming Beijing Auto Show is anticipated to be a positive catalyst for share price, particularly with the debut of new PHEV models [2][3]