30 September 2024 | 9:01PM EDT _ US Autos & Industrial Tech Platforms & Power: driving more sustainable profitability; Upgrade F to Buy We believe that the key to success in the automotive industry will increasingly come from mastering both the platform and power aspects of vehicles, including for electric and hybrid vehicles. And this platform and power theme extends beyond autos to broadly incorporate industrial and technology infrastructure. What do we mean by platforms & power? n Platforms: By platforms ...

29 September 2024 | 6:12PM HKT _ Greater China Semis: August: IC production +18% YoY; IC import volume +15% YoY | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------| | | Allen Chang +852-2978-2930 \| allen.k.chang@gs.com Goldman Sachs (Asia) L.L.C. | | | Verena Je ...

28 September 2024 | 12:58AM HKT _ | --- | --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|--------------------------------------------------------------------------------------------------|-------------------------|-------------------------------------------------------------------------------------------------------------------------| | | | | | | | 1 ...

Summary of Key Points from the Conference Call Industry Overview - **Industry**: China Consumer Durables, specifically focusing on white goods and consumer discretionary products Core Insights 1. **Trade-in Policy Impact**: The trade-in policy has significantly boosted revenue, with a notable increase in retail sales at the Casarte store in Shenzhen, reaching Rmb4 million from September 6-16, compared to monthly sales of Rmb1.5-2 million in earlier months. This is attributed to provincial subsidies during June-August [1][5] 2. **Product Performance**: Air conditioners, washing machines, and refrigerators are outperforming due to national subsidies, while categories like dry-cleaning machines are excluded in some provinces [1][5] 3. **Sales Growth**: Retail sales in offline key account channels grew approximately 25% year-over-year from September 6-26 in Shenzhen, with specific stores like Five Star and Suning showing over 100% growth [2][5] 4. **Average Selling Price (ASP) Increase**: The ASP of Casarte products increased to Rmb700 post-implementation of the trade-in policy, compared to around Rmb5,000 prior to the policy [2][5] 5. **Subsidy Mechanism**: Customers receive direct price reductions when purchasing appliances, with subsidies processed by distributors after government review, which can take 3-6 months [5] 6. **Inventory Management**: Inventory levels peaked in May at Rmb40-50 million year-over-year but have since been reduced by Rmb30 million month-over-month, returning to a healthy level by July [5] 7. **Customer Demographics**: The majority of customers utilizing the trade-in policy are purchasing for new homes, with efforts to penetrate older communities to stimulate replacement demand [5] Company-Specific Insights 1. **Hisense Home Appliances Group**: Rated as a "Buy" due to high earnings growth visibility, attractive dividend yield, and undemanding valuation, trading at an average of 8x 2024E-25E P/E with ~20% profit growth expected [6][9] 2. **Haier Smart Home**: Also rated as a "Buy," benefiting from resilient domestic growth, market share gains, and improving overseas demand. The company is expected to deliver better-than-industry growth through product expansion [9][10] 3. **Gree Electric Appliances**: Rated as a "Buy," with a focus on stable growth outlook and attractive risk/reward profile, expected to grow in line with the overall AC market [13][14] Valuation and Risks 1. **Target Prices**: - Hisense: 12-month target price of Rmb40/HK$34 based on 17x/12x 2026E P/Es [6] - Haier: 12-month target price of Rmb33/HKD33 based on a discounted P/E approach [10] - Gree: 12-month target price of Rmb49 based on a 10x exit multiple applied to 2026E EPS [14] 2. **Key Risks**: - Disruption in white goods demand due to weaker macroeconomic conditions - Rising raw material costs impacting margins - Challenges in marketing effectiveness and integration of acquisitions [10][14] Additional Considerations - The conference highlighted the importance of government subsidies in driving consumer behavior and sales in the consumer durables sector, particularly in the context of trade-in policies [1][5] - The ongoing focus on premiumization and product mix improvements is expected to enhance margins and overall company performance in the competitive landscape [9][10]

2 October 2024 | 8:59AM HKT _ China Semis Rising domestic supply in mature nodes driven cycle - initiating Hwatsing, Piotech, Nexchip at Buy We expand our coverage within the semiconductor equipment (SPE) and foundry space and see Hwatsing (SPE, CMP tool), Piotech (SPE, deposition tool), and Nexchip (Foundry, DDIC / CIS) as well positioned to benefit from capacity expansion and customers' need for supply chain diversification in the current geopolitical environment. We expect China Semi Capex to climb quick ...

3 October 2024 | 6:50PM BST _ Chemicals: A postcard from the East Coast: US investors wary oversupply limits China upside Earlier this week (30 September — 2nd October) we met with >30 investors in Boston and New York to discuss stock ideas in the US and European chemicals sectors. The big themes for our clients were the potential stock implications of 1) China stimulus, 2) US port strikes, 3) Auto warnings. From the European side, Novonesis, BASF, Lanxess, and Akzo Nobel were the most discussed names while ...

Summary of Xiaomi Corp. (1810.HK) Conference Call Company Overview - **Company**: Xiaomi Corp. (1810.HK) - **Industry**: Electric Vehicles (EV) and Consumer Electronics Key Points and Arguments 1. **Target Price Adjustment**: Goldman Sachs reiterates a Buy rating on Xiaomi with a revised 12-month target price of HK$27.5, up from HK$24.7, reflecting confidence in the company's growth trajectory and EV execution [2][5][6] 2. **User-Centric Strategy**: Xiaomi is focusing on a "Human x Car x Home" strategy, which is expected to drive user engagement and sales both in China and globally [2] 3. **EV Deliveries and Manufacturing Capacity**: - Xiaomi aims for 20,000 monthly deliveries of the SU7 model starting October 2024, up from 10,000+ in Q3 2024, which is expected to reduce the current waiting period of 22-28 weeks [9] - The company has raised its delivery volume forecast for the SU7 to 225,000 units for 2025, reflecting strong demand [9] 4. **Financial Projections**: - Revenue estimates for 2024-2026 have been revised upwards by 0%/3%/8% due to higher EV volume assumptions, with projected delivery volumes of 120k/269k/473k for 2024-2026 [2] - Group net profit estimates for 2024-2026 have been maintained, with a projected core net profit of Rmb29bn/Rmb31bn/Rmb34bn [2] 5. **New Model Launch**: The SU7 Ultra prototype is set to compete in performance metrics with high-end models like the Porsche Taycan, indicating Xiaomi's ambition to enter the premium EV market [10][12] 6. **Construction of EV Factory Phase II**: The construction of the second EV factory is progressing faster than expected, with potential mass production starting in Q4 2025, ahead of market expectations [13][15] 7. **Market Positioning**: The SU7 Ultra is expected to be priced competitively against models like the Porsche Panamera and Tesla Model S, with an average selling price (ASP) of Rmb800k [12][10] Additional Important Information 1. **Financial Metrics**: - The company reported a net loss of Rmb7.8bn for the smart EV segment, indicating challenges in profitability despite revenue growth [5] - The current share price implies a valuation of 16x 2025E P/E for Xiaomi core and 1x 2025E EV/Sales [6][8] 2. **Market Dynamics**: The EV segment is expected to contribute significantly to Xiaomi's revenue, with projections indicating that 15% of total EV revenue will come from the SU7 Ultra by 2025 [2][12] 3. **Competitive Landscape**: Xiaomi's strategy includes leveraging its existing smartphone and IoT ecosystem to enhance its EV offerings, aiming to capture a larger market share in the growing EV sector [2][4] This summary encapsulates the critical insights from the conference call, highlighting Xiaomi's strategic direction, financial outlook, and competitive positioning in the EV market.

EQUITY RESEARCH | October 2, 2024 | 10:38PM HKT _ Research Zijin Mining (2899.HK) A growing Chinesemining giant | --- | --- | --- | --- | --- | |-------|-------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------- ...

2 October 2024 | 7:13AM EDT _ Global Market Views: Easing Reduces Risk (Wilson/Trivedi) 1. Fed easing for "risk management" should ease macro volatility. The large 50bp cut from the Fed in September surprised markets on the day, but in the medium term such a front-footed approach should reduce macro and market volatility. With the post-Covid inflation surge rapidly receding in the rear-view mirror, it makes sense for policymakers to move rates back to neutral as soon as possible and avoid taking unnecessary ...

2 October 2024 | 4:01AM EDT _ | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------|----------------------------------------------------------------------------------|-------------------------------------------------|----------|--------------------------------------------------------|-----------------------------------------|-----------|----------------------------|-------------------------| | | | | | | | | | | | | Dell Technologies Inc. Key takeaways from 2024 investor field trip to DEL ...