◼ 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 ...

M N 2 Apr 2024 CMB International Global Markets | Equity Research | Company Update Xiaomi (1810 HK) Xiaomi EV SU7’s pricing and pre-order above expectations; Raise TP to HK$22.19 Target Price HK$22.19 Xiaomi officially launched its SU 7 Series electric sedans on 28 Mar, which are (Previous TP HK$20.25) priced at RMB 215.9k/245.9k/299.9k for SU7/SU7 Pro/SU7 Max models. Its Up/Downside 48.6% competitive pricing strategy was well-received by the market, and the initial pre- Current Price HK$14.94 orders of 50k ...

M N 2 Apr 2024 CMB International Global Markets | Equity Research | Company Update PICC P&C (2328 HK) Non-auto CoR better than expected; sustain 40%+ payout in next two years PICC P&C reported solid underwriting combined ratio (CoR) at 97.8%, 0.3pct Target Price HK$11.90 lower than our estimate (98.1%), primarily driven by better-than-expected non- (Previous TP HK$11.70) auto CoR at 99.1%, 0.7pct lower than our forecast (99.8%, link). Within the non- Up/Downside 15.3% auto segment, both individual and corpo ...

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 ...

M N 2 Apr 2024 CMB International Global Markets | Equity Research | Company Update Tigermed (300347 CH) Expect business rebound in 2024E Target Price RMB68.57 Tigermed reported 2023 revenue of RMB7,384mn, up 4.2% YoY, and attributable (Previous TP RMB80.31) recurring net income of RMB1,477mn, down 4.1% YoY. Revenue/ attributable Up/Downside 29.1% recurring net income missed our forecast by 2.9%/ 12.1%, respectively, mainly Current Price RMB53.10 due to shrinking COVID vaccine revenue, slowdown in global R&D ...

M N 29 Mar 2024 CMB International Global Markets | Equity Research | Company Update SANY International (631 HK) Solar power business remains major investor concern during site visit Target Price HK$8.00 We attended SANYI’s 2023 post-results meeting together with >70 investors and analysts in the Company’s production base in Zhuhai on 28 Mar. During the (Previous TP HK$15.40) meeting, most of the questions were related to the solar power business. Given Up/Downside 59.0% SANYI’s determination to invest in so ...

M N 29 Mar 2024 CMB International Global Markets | Equity Research | Company Update BYDE (285 HK) Reiterate BUY on multiple growth drivers in 2024 Target Price HK$46.51 Reiterate BUY and raise TP to HK$46.51 (61% upside) to reflect a strong (Previous TP HK$45.86) outlook and multiple growth drivers in 2024: 1) Android high-end demand Up/Downside 61.2% recovery (e.g. Huawei, Xiaomi); 2) Jabil sales synergy and strong ramp in 2H24; Current Price HK$28.85 3) Apple’s share gain with sales contribution rising to ...

Investment Rating - Maintain BUY with a new target price of HK$22.0 [2][6] Core Viewpoints - ZhongAn reported a significant turnaround in FY23, with net profit attributable to shareholders reaching RMB4.1bn, compared to a net loss of RMB1.1bn in FY22 [2] - Excluding the one-off gain from the disposal of ZA International (RMB3.78bn), the insurer recorded a net profit of RMB294mn, in line with consensus [2] - The company's growth is driven by its digital lifestyle ecosystem, technology export, and ZA Bank's breakeven progress [2][6] Domestic P&C Insurance - Domestic P&C insurance premiums grew by 33.1% YoY in 2H23, driven by digital lifestyle-related products such as e-commerce cargo insurance, travel insurance, and pet insurance [2] - The underwriting combined ratio (CoR) rose 1.0ppt to 95.2% in 2023, but underwriting profit (UWP) increased by 1.7% YoY to RMB1.3bn due to higher insurance revenue (+24.2% YoY) [2] - The health segment saw a 130.6% YoY increase in gross written premiums (GWP) for critical illness insurance, reaching RMB1.3bn in 2023 [2] Technology Export - Revenue from domestic technology export surged 73% YoY to RMB504mn in 2023, benefiting from the Digital China initiative [2] ZA Bank Performance - ZA Bank's net revenue increased by 42.9% YoY to RMB366mn in 2023, with a net interest margin (NIM) expansion of 10bps to 1.94% [2] - The bank launched US-stock trading in January 2024, which is expected to attract tech-savvy customers and improve retention [2] Proprietary Channels - Premiums from proprietary channels grew 31.0% YoY to RMB7.6bn, accounting for 26% of total GWP [2] - In the Health ecosystem, GWP from proprietary channels increased by 45.0% YoY to RMB4.4bn, representing 44.5% of total Health GWP [2] - The number of paid customers rose 14.8% to 11.43mn, with premiums per user increasing by 14.4% YoY to RMB670 [2] Financial Projections - FY24-26E net profit is projected at RMB434mn, RMB547mn, and RMB678mn, respectively [3] - The underwriting combined ratio (CoR) is expected to remain stable at 95.8%/96.0%/96.0% for FY24-26E, with underwriting profits projected at RMB1.38bn/RMB1.56bn/RMB1.77bn [6] Valuation - The stock is trading at FY24E 0.9x P/B and FY24E 0.5x P/S [5] - The fair value is based on a FY24E P/B of 1.46x, implying a 20-year growth rate of 8% [6]