PresentationHello, everyone, and welcome to today's RHI Magnesita November Trading Update Call. My name is Seb, and I'll be the operator for your call today. [Operator Instructions] I will now hand over to Stefan Borgas to begin the call. Please go ahead.Stefan BorgasCEO & Executive Director Thank you very much, Seb. Good morning, ladies and gentlemen. Thank you for joining RHI Magnesita's 10-month trading update. Ian and I will lead you through what happened during the quarter, over the course of the next ...

Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Insights - The company has confirmed a bottom recovery with three consecutive quarters of profit growth, achieving a revenue of 2.58 billion yuan in the first three quarters, a year-on-year increase of 4.1%, and a net profit attributable to the parent company of 90 million yuan, a year-on-year increase of 19.7% [8] - Sales of functional materials have seen rapid growth, contributing significantly to revenue, with sales volumes for high-performance water reducers, efficient water reducers, and functional materials increasing by 9.8% and 38.6% respectively [8] - The company has strong technical capabilities and advantages in major engineering projects, having participated in significant national projects, which is expected to continue driving order growth and profit recovery [8] Financial Data and Profit Forecast - Total revenue is projected to be 3.69 billion yuan in 2025, with a year-on-year growth rate of 3.9% [6] - The net profit attributable to the parent company is expected to reach 185 million yuan in 2025, reflecting a significant year-on-year increase of 93.0% [6] - The report has adjusted profit forecasts downwards for 2025-2027, with expected net profits of 185 million, 253 million, and 295 million yuan respectively [8]

Core Viewpoint - 招银国际's report indicates that 滔搏 (06110) slightly exceeded expectations for the first half of the fiscal year ending August 2025, benefiting from resilient gross margins [1] Group 1: Financial Performance - The company showed a slight performance improvement in the first half of 2025, attributed to strong gross margin resilience [1] - Despite a cautious outlook for sales growth in the second half of fiscal year 2026, profit margins are expected to expand due to strong support from core brands and the closure of underperforming stores [1] Group 2: Market Outlook - The report expresses increased confidence in the company's recovery prospects, particularly due to positive signs from Nike, although a full recovery may take considerable time [1] - The target price for the company's stock has been raised from HKD 3.62 to HKD 3.77, with an expected dividend yield of 8% for fiscal year 2027, maintaining a "buy" rating [1]

Core Insights - The earnings release from Nike shows some positive signs, but the valuation remains a concern for investors [1][2] - Year-on-year revenue growth of only 1% is viewed as insufficient to justify the current trading multiples, which are around 30 times 2027 earnings [2][3] - There is potential for margin expansion, with current margins at 7% compared to a peak of 13%, but a return to peak levels is not expected [2] Financial Performance - The latest quarter's performance is considered better than the previous quarter, with inventory down a couple of percent, which may help improve margins [5] - Despite the modest revenue growth, there is an expectation that the stock should increase from its current levels [6] Market Sentiment - The stock's performance has been disappointing, especially given the recent history of significant price fluctuations [4] - The overall sentiment suggests that while there are improvements, the stock has not bounced back as much as anticipated following the earnings release [4][5]

Investment Rating - The report maintains a "Buy" rating for the company [2][7]. Core Insights - The company experienced a revenue decline of 6% in 2024, with total revenue of 443 million yuan and a net profit of 135 million yuan, down 7% year-on-year. This was attributed to delayed recovery in core customer demand [7]. - In Q1 2025, the company reported a revenue of 147 million yuan, reflecting a year-on-year growth of 24.9%, and a net profit of 47 million yuan, up 21.5% year-on-year, indicating a recovery in performance [7]. - The company is entering a product harvest phase with several new medical endoscope products launched or set to launch in both domestic and international markets, which is expected to drive future growth [7]. Financial Data and Profit Forecast - The company’s total revenue is projected to grow from 565 million yuan in 2025 to 791 million yuan in 2027, with corresponding net profits expected to rise from 183 million yuan to 276 million yuan [6][9]. - The gross margin is expected to remain stable at around 64.5% over the forecast period, with a return on equity (ROE) projected to increase from 12.5% in 2025 to 15.5% in 2027 [6]. - The price-to-earnings (PE) ratio is forecasted to decrease from 23 in 2025 to 15 in 2027, indicating potential undervaluation compared to industry peers [7].