Equity Research Report FUTU (FUTU US) 1Q25 Earnings Jumped on Active Trading and Client Acquisition | Huatai Research | Quarterly Results Review | Rating (Maintain): | BUY | | --- | --- | --- | --- | | 30 May 2025 │ US | Brokerage | Target price (USD): | 159.87 | FUTU's 1Q25 revenue was HKD4.7bn (+81% yoy) and attributable net profit (NP) was HKD2.1bn (+107% yoy). We attribute buoyant earnings for the quarter primarily to accelerated overseas customer acquisition, as well as rising stock trading turnover in ...

Equity Research Report Pinduoduo Holdings (PDD US) 1Q25 Earnings Missed, Business Adjustments Still Take Time | Huatai Research | Quarterly Results Review | Rating (Downgrade): | HOLD | | --- | --- | --- | --- | | 29 May 2025 │ US | Internet | Target price (USD): | 102.30 | Pinduoduo's (PDD) 1Q25 revenue rose 10.2% yoy to RMB95.7bn, missing the Visible Alpha (VA) consensus of RMB103.9bn; non-GAAP attributable net profit (NP) was RMB16.9bn, with non-GAAP NPM down 17.6pp yoy to 17.7%, below the VA consensus o ...

Equity Research Report Keboda Technology (603786 CH) Faster Production Globalization on Acquisition of Czech IMI Based on the company's 2024 annual report, Keboda secured exclusive appointment for Volkswagen's fifth-generation lighting controls, eFuse orders from Mercedes-Benz Global, Volkswagen Germany, and Li Auto, alongside multiple BMW body controller contracts. Overseas revenue made up c. one-third of total sales during the year. International projects represented 15% of new contract wins by quantity w ...

Equity Research Report BGI Genomics (300676 CH) Expense Ratios and GPM Dented Net Profit in 1Q25 | Huatai Research | Annual Results Review | Rating (Maintain): | OVERWEIGHT | | --- | --- | --- | --- | | 29 May 2025 │ China (Mainland) | Medical Devices | Target price (RMB): | 52.19 | BGI Genomics' revenue/attributable net profit (NP)/recurring attributable NP were RMB+3,867/-903/-919mn (-11.1/-1,072/-1,091% yoy) for 2024 and RMB+672/-53/-63mn (-18/-525/-2,879% yoy) for 1Q25. Its 2024 revenue/attributable NP ...

Investment Rating - The investment rating for Maccura Biotechnology is maintained as BUY with a target price of RMB13.54, indicating a potential upside of 14% from the closing price of RMB11.90 as of May 15, 2025 [6][7]. Core Insights - Maccura's 2024 revenue and attributable net profit were RMB2,549 million and RMB127 million, respectively, reflecting declines of 12.0% and 59.4% year-on-year, primarily due to short-term policy headwinds and adjustments in the agency business [1][6]. - The proprietary business revenue showed resilience, increasing by 1.8% year-on-year to RMB1,913 million, suggesting robust growth in the main business segment [1]. - For the first quarter of 2025, revenue and attributable net profit fell by 17.2% and 80.1% year-on-year, attributed to ongoing transformation efforts and increased marketing spending [1]. Revenue Growth and Market Share - Maccura's CL reagents revenue in 2024 grew by 8% year-on-year to RMB1,029 million, supported by enhanced market recognition and the installation of 224 bioassay automation lines and 1,352 immunoassay analyzers [2]. - The company is expected to ship nearly 2,000 new CL analyzers in 2025, which will likely drive in-hospital reagent consumption and contribute to steady revenue growth and market share gains [2]. Segment Performance - The biochemistry segment experienced a revenue decline of 13.5% year-on-year in 2024, totaling RMB499 million, mainly due to price adjustments following inter-provincial VBP [3]. - Clinical testing revenue increased by 21.8% year-on-year to RMB214 million, with expectations for rapid growth in 2025 due to successful market penetration of clinical testing equipment [3]. - The agency business saw a significant revenue drop of 37.6% year-on-year to RMB612 million, indicating ongoing challenges in this segment [3]. Earnings Forecasts and Valuation - Earnings per share (EPS) estimates for 2025, 2026, and 2027 have been lowered by 44%, 46%, and 0% to RMB0.49, RMB0.58, and RMB0.70, respectively, due to short-term disruptions and increased marketing and R&D spending [4]. - The valuation of the IVD business is set at 28x 2025E PE, while the agency business is valued at 24x 2025E PE, compared to peers' averages of 29x and 24x [4].

Investment Rating - The report maintains a "Buy" rating for Neusoft Corp with a target price of RMB 16.17 [2][6]. Core Insights - Neusoft Corp is expected to benefit from AI-driven opportunities, with all four core business segments anticipated to accelerate growth as downstream customer demand recovers [2][3]. - The company has established a strong competitive advantage in the "AI + healthcare" sector, with significant contracts signed in this area [3][4]. - The operating cash flow reached a historical high of RMB 855 million in 2024, reflecting improved cost management and operational efficiency [4][6]. Financial Performance - In 2024, Neusoft's revenue was RMB 11.56 billion, with a net profit attributable to the parent company of RMB 1.156 billion, showing a year-on-year growth of 9.64% [2][6]. - The company's gross margin for 2024 was 24.01%, a slight decrease of 0.19 percentage points from the previous year, primarily due to a decline in the gross margin of the intelligent connected vehicle segment [4][6]. - For the first quarter of 2025, revenue was RMB 1.85 billion, a year-on-year increase of 1.06%, while the net profit attributable to the parent company was a loss of RMB 12 million [5][6]. Revenue and Profit Forecast - Revenue forecasts for 2025, 2026, and 2027 are projected at RMB 13.3 billion, RMB 15.9 billion, and RMB 19.6 billion, respectively [6][12]. - The net profit attributable to the parent company is expected to be RMB 434 million, RMB 525 million, and RMB 716 million for the years 2025, 2026, and 2027, respectively [6][12]. Market Position and Valuation - The report indicates that Neusoft's valuation is aligned with industry averages, with a projected P/E ratio of 42.4 for 2025 [6][14]. - The potential upside from the current closing price of RMB 9.93 to the target price of RMB 16.17 represents a 63% increase [8].

Investment Rating - The investment rating for Xinbao Electrical Appliances Holdings is maintained as "Buy" with a target price of RMB 16.47, indicating a potential upside of approximately 11% from the closing price of RMB 14.86 as of May 15, 2025 [1][2]. Core Insights - Xinbao's revenue and net profit for 2024 were RMB 16.821 billion and RMB 1.053 billion, respectively, reflecting year-on-year growth of 14.84% and 7.75%. The first quarter of 2025 saw a revenue increase of 10.36% and a net profit increase of 43.02%, driven by strong export growth. However, the increase in US tariffs may pressure performance in the second quarter of 2025 [1][5][7]. - The company has extensive experience in product planning, industrial design, technological innovation, and rapid mass production, which is expected to help maintain resilience in overseas sales [1]. Financial Performance - In 2024, Xinbao's gross profit margin (GPM) decreased by 1.82 percentage points to 20.91% due to a higher proportion of low-GPM exports. In the first quarter of 2025, GPM improved by 0.5 percentage points to 22.42% [6]. - The overall expense ratio decreased by 1.08 percentage points in 2024, with sales and management expense ratios declining by 0.36 and 0.94 percentage points, respectively. However, in the first quarter of 2025, the overall expense ratio increased by 0.18 percentage points due to reduced interest income and foreign exchange gains [6]. Revenue Forecast - Revenue for 2025 is projected to be RMB 17.689 billion, with a growth rate of 5.16%. The net profit is expected to reach RMB 1.163 billion, reflecting a growth rate of 10.44% [14]. - The earnings per share (EPS) for 2025 is estimated at RMB 1.43, with subsequent years showing continued growth [14]. Market Position - Xinbao's domestic sales faced challenges, with a decline of 4.5% in 2024 and a further decline of 4.9% in the first quarter of 2025. However, there was a slight recovery in retail sales for small kitchen appliances in early 2025, indicating potential for future growth [10][11]. - The company proposed a dividend of RMB 0.45 per share for 2024 and initiated a stock buyback plan in early 2025, reflecting an enhancement in shareholder returns [12].

Investment Rating - The report maintains a "Buy" rating for Manst Technology [7][5]. Core Views - Manst Technology is expected to see a surge in orders as it penetrates multiple niche markets, despite facing operational pressures in its traditional LIB business [2][4]. - The company has shown optimism regarding its coating platform technology and the smooth progress of various business segments, anticipating accelerated growth in potential orders [2][4]. Financial Performance - For 2024, Manst's revenue and net profit are projected at RMB 1.699 billion and RMB 313.1 million, respectively, reflecting a year-on-year growth of 113.7% and a significant decline in net profit by 91% [2]. - The first quarter of 2025 shows revenue of RMB 438 million and a net profit of RMB 60 million, indicating a year-on-year increase of 139.2% in revenue but a decline of 90.2% in net profit [2]. - The report forecasts net profits for 2025, 2026, and 2027 to be RMB 203 million, RMB 283 million, and RMB 303 million, respectively, with a downward adjustment of 17.7% and 16.1% for 2025 and 2026 compared to previous estimates [5]. Business Segments - Coating Application: Revenue in this segment is expected to decline by 40.1% in 2024 to RMB 471 million, with a gross margin of 51.79% [3]. - Energy Systems: This segment is projected to have a low gross margin of 10.4% in 2024, with expectations of revenue reaching RMB 350 million in Q1 2025 and a gross margin increase to 15-20% [3]. - Solid-State Batteries: Manst has developed equipment for solid-state battery production and has received orders from multiple domestic and international clients [4]. - Robotics: The company is progressing with product designs and prototypes in its robotics segment [4]. - Semiconductor Devices: Manst has delivered its first GW-level perovskite solar cell coating equipment in China and secured over RMB 1 billion in new orders for 2024 [4]. - Energy Storage: The segment has seen rapid order growth, with new orders reaching RMB 2 billion in 2024, and revenue expectations for 2025 are between RMB 1.5 billion and RMB 2 billion [4]. Valuation - The report assigns a target price of RMB 5.64, based on a 40x P/E ratio for 2025, which is higher than the industry average of 33.9x [5][8]. - The closing price as of May 15 was RMB 55.94, indicating a potential upside of 1% [8].

Investment Rating - The report maintains a "BUY" rating for Daqo New Energy with a target price of RMB 20.64, reflecting a potential upside of 2% from the closing price of RMB 20.22 as of May 15, 2025 [7]. Core Insights - Daqo New Energy reported a significant decline in revenue and net profit for 2024, with revenue at RMB 741 million and a net loss of RMB 272 million, representing year-on-year changes of -54.6% and -147.2% respectively. The fourth quarter of 2024 saw a revenue of RMB 141 million, down 59.3% year-on-year [2]. - The first quarter of 2025 continued to show weak performance, with revenue dropping to RMB 91 million, a decrease of 69.6% year-on-year, while the net loss narrowed to RMB 56 million, a year-on-year decline of 268.8% [2]. - The report anticipates that industry policies will be more effective than market expectations, potentially alleviating supply-demand imbalances in the future [2]. - Daqo New Energy is positioned as a leading player in the domestic silicon material sector, demonstrating cyclical resilience due to its strong liquidity buffer [2]. Financial Performance - The company experienced a significant drop in production and sales volumes in early 2025, with production falling to 250,000 tons and sales to 280,000 tons in the first quarter, reflecting a 27.5% and 33.6% decline respectively [3]. - The average selling price (ASP) of polysilicon increased to RMB 35.9 per kilogram in the first quarter of 2025, up 8.2% from the previous quarter, driven by increased downstream installation demand [3]. - As of the end of the first quarter of 2025, Daqo held RMB 3.1 billion in cash and cash equivalents, along with RMB 1.22 billion in trading financial assets, totaling RMB 4.32 billion, with no short-term or long-term debt [4]. Profit Forecast and Valuation - Due to ongoing supply-demand imbalances, the report has lowered its expectations for 2025 polysilicon ASP, shipment volumes, and gross margins. However, it anticipates a recovery in profitability by 2026 as industry conditions normalize [5]. - The projected net profits for 2025, 2026, and 2027 are RMB -489.67 million, RMB 2.76 billion, and RMB 3.11 billion respectively, with significant improvements expected in 2026 [5]. - The report assigns a price-to-earnings (PE) ratio of 16 times for 2026, reflecting a premium over the industry average of 11.72 times, with a revised target price of RMB 20.64 [5].

Investment Rating - The investment rating for Foxit Software is "Buy" with a target price of RMB 92.92, indicating a potential upside of 38% from the closing price of RMB 67.21 as of May 15, 2025 [7]. Core Views - Foxit Software's dual transformation strategy is progressing smoothly, leading to an expected acceleration in revenue growth in 2025. The company's revenue for 2024 is projected at RMB 711.14 million, representing a year-on-year growth of 16.44%, while the net profit attributable to shareholders is expected to reach RMB 26.96 million, a significant increase of 129.64% [1][5]. Revenue and Profitability - Subscription revenue reached RMB 351 million in 2024, a year-on-year increase of 62.33%, contributing to 49% of total revenue, up 14 percentage points from the previous year. The annual recurring revenue (ARR) from subscriptions is projected at RMB 411 million, reflecting a growth of 64.42% [2]. - The overall renewal rate for core products is approximately 90%, indicating strong customer retention [2]. - Revenue from sales channels grew by 40.49% to RMB 292 million, accounting for 41% of total revenue, which is a 7 percentage point increase year-on-year [2]. Cost Management and Efficiency - The sales, management, and R&D expense ratios for 2024 were 53.85%, 23.64%, and 32.67%, respectively, with a notable decrease in the R&D expense ratio attributed to efficiency gains from AI integration [3]. - The company has enhanced its product suite with AI capabilities, improving its market competitiveness [3]. Global Expansion - Revenue growth in 2024 across different regions was robust, with North America, Europe (including the Middle East), Asia-Pacific, and China experiencing year-on-year growth rates of 9.41%, 24.02%, 53.42%, and 18.00%, respectively [3]. - The separation of domestic and international operations is expected to accelerate Foxit's globalization efforts, particularly in the Asia-Pacific market [3]. Financial Forecasts - Revenue forecasts for Foxit Software are adjusted upwards, with expected revenues of RMB 865.28 million, RMB 1,054 million, and RMB 1,285 million for 2025, 2026, and 2027, respectively. The net profit attributable to shareholders is projected to be RMB 31.50 million, RMB 71.93 million, and RMB 126.16 million for the same years [5][11].