Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company is experiencing significant revenue growth, with a forecasted total revenue of 2,655 million yuan for 2025, representing a year-on-year growth rate of 32.3% [6] - The net profit attributable to the parent company is projected to reach 549 million yuan in 2025, reflecting a year-on-year increase of 61.8% [6] - The company is positioned as a leading player in the AIoT sector, benefiting from strong demand and a growing ecosystem of developers [7] Financial Data and Profit Forecast - Total revenue for 2024 is estimated at 2,007 million yuan, with a projected increase to 2,655 million yuan in 2025 and further growth to 3,515 million yuan in 2026 [6][9] - The net profit for 2024 is expected to be 339 million yuan, increasing to 549 million yuan in 2025 and 735 million yuan in 2026 [6][9] - The gross margin is expected to remain stable above 40%, with a projected gross margin of 44.1% in 2025 [6] Performance Highlights - The company anticipates a strong performance in the first half of 2025, with expected revenue between 12.2 to 12.5 billion yuan, a year-on-year growth of 33% to 36% [7] - The second quarter of 2025 is projected to see revenue of approximately 6.77 billion yuan, a 27% increase year-on-year [7] - The company is leveraging its position as a core supplier for AI applications, with new product lines such as Wi-Fi 6E and Wi-Fi 7 chips under development [7]

Investment Rating - The report maintains a "Buy" rating for Budweiser APAC with a target price of HK$11.00, reflecting a potential upside of 27% from the current price of HK$8.66 [1][8]. Core Insights - The report indicates that Budweiser APAC's sales during the Chinese New Year were encouraging, with management stating that shipments to retailers matched last year's levels. The company is expected to achieve mid-single-digit volume growth in 2025, with a 3% increase in the Chinese market [6][13]. - A strategic shift has been announced, focusing on the "Core++" segment rather than ultra-premium products, aiming to enhance market share amidst a challenging macroeconomic environment [7][13]. - The company declared a dividend of $0.0566 per share, with a high payout ratio of 96%, which is expected to support long-term investor returns [7][8]. Financial Adjustments - The target price has been adjusted downwards from HK$11.60 to HK$11.00, while the earnings per share (EPS) estimates for 2025 and 2026 have been slightly increased by 0.7% and 1.9% respectively [2][8]. - Revenue forecasts for 2025 and 2026 have been raised by 2.0% and 3.2% respectively, reflecting better-than-expected recovery in beer sales in China [13][14]. - The normalized net profit for 2025 is projected at $887 million, with an adjusted net profit margin of 13.4% [10][14]. Market Performance - Budweiser APAC's stock has shown a 52-week range of HK$14.08 to HK$6.84, with a market capitalization of approximately $14.75 billion [1][8]. - The report highlights that the company's valuation is currently at a forward P/E of 21.1x for 2025, which is one standard deviation below the average of the past three years [15][17]. Strategic Focus - The management emphasizes that the strategic adjustment does not neglect high-end products but rather aims for a more comprehensive approach to current market conditions [7][8]. - The report suggests that the focus on the "Core++" segment will create significant synergies within Budweiser APAC's overall product portfolio [7][8].