Investment Rating - The report maintains a "Buy" rating for Anta Sports [5] Core Views - Anta's main brand achieved high single-digit growth in Q2 2024, with a significant acceleration compared to Q1 2024, and a year-on-year growth in the first half of the year in the single digits, meeting expectations [5] - FILA's revenue in Q2 2024 grew in the mid-single digits despite a high base from the previous year, indicating stable performance [5] - Other brands experienced a revenue growth of 40-45% in Q2 2024, exceeding expectations, supported by a strong outdoor trend and brand strength [5] - The company maintains a healthy inventory level with improving discount rates, indicating high-quality retail growth [5] - Management expects a recovery in sales to accelerate in the second half of the year, maintaining growth guidance for all brands [5] - The multi-brand matrix is seen as a valuable resource, with steady growth in the main and FILA brands, and strong performance from new outdoor brands [5] Financial Summary - For FY2023, the company reported a revenue of 624 billion RMB, a year-on-year increase of 16% [6] - The net profit attributable to shareholders for FY2023 was 102.4 billion RMB, reflecting a year-on-year growth of 35% [6] - The gross margin improved to 62.6%, up 2.4 percentage points from the previous year, while the net profit margin increased to 16.4%, up 2.3 percentage points [6][7] - The company forecasts revenues of 703 billion RMB for FY2024, with a projected net profit of 134.8 billion RMB [9]

Investment Rating - Buy rating with a target price of $1716, representing a 22% upside [1][8] Core Views - Broadcom is a platform-based tech giant with strong integration capabilities, benefiting from AI-driven semiconductor demand and VMware's software business [4][5] - The company's semiconductor solutions, especially in networking and XPU, are expected to grow significantly due to AI trends [5][9] - VMware acquisition enhances Broadcom's software business, contributing to long-term profitability [5][55] Financial Performance - FY24-26 revenue growth projected at 43.4%/12.1%/9.9%, with Non-GAAP net income growth of 19.9%/22.7%/17.5% [8][9] - FY24 semiconductor revenue expected to grow 10.8%, driven by AI-related demand, while software revenue is projected to grow 163.4% due to VMware integration [9][69] - FY24-26 Non-GAAP net margins forecasted at 45.5%/49.8%/53.3%, supported by high-margin software and operational efficiency [72] Semiconductor Solutions - Networking revenue expected to grow 39% in FY24, driven by AI-driven demand for Ethernet and custom ASIC chips [5][9] - XPU business projected to generate $7 billion in FY24, with AI-related revenue accounting for 35% of semiconductor revenue [5][50] - Broadcom's leadership in SerDes IP and optical transceivers positions it well for AI infrastructure needs [34][36] Software Business - VMware integration boosts software revenue to 38% of total revenue in FY24Q1, with VMware contributing $2.1 billion [5][56] - VMware's revenue is expected to grow double-digit sequentially in FY24, reaching $20 billion for the full year [63][69] - Broadcom's historical success in software integration, including CA Technologies and Symantec, supports confidence in VMware's integration [55][58] Industry Trends - AI-driven demand for networking and XPU chips is reshaping the semiconductor industry, with Ethernet and InfiniBand expected to coexist in AI infrastructure [23][26] - XPU market projected to reach $42.9 billion by 2028, driven by tech giants' in-house chip development and AI applications [46][48] - VMware's dominance in virtualization and hybrid cloud markets strengthens Broadcom's position in the software-defined data center space [61][66]

Investment Rating - The report maintains a "Buy" rating for the company [2][5] Core Views - The major shareholder plans to increase their stake in the company, indicating strong confidence in its intrinsic value [4][5] - Despite a decline in sales, the company has improved its industry ranking, focusing investments on core first and second-tier cities [4][5] - The company is classified as a green enterprise, maintaining low financing costs while actively expanding [4][5] Financial Summary - The company reported a sales amount of 30.01 billion yuan from January to April 2024, a year-on-year decrease of 47.5%, with a sales area of 1.023 million square meters, down 38.7% [4] - The company achieved a total sales target completion of 20.4% for the year [4] - The company acquired five land parcels in Shanghai, Guangzhou, and Hefei, with a total investment of 7.42 billion yuan, a year-on-year decrease of 48% [4] - The company's land reserve at the end of 2023 was 25.67 million square meters, distributed across 29 cities [4] Profit Forecast - The report forecasts net profits for 2024-2026 to be 3.20 billion yuan, 3.54 billion yuan, and 3.91 billion yuan respectively [5][6] - The current price corresponds to a price-to-earnings ratio of 6.1 for 2024 and 5.5 for 2025 [5][6] Revenue and Profit Trends - The company's revenue is projected to grow from 80.22 billion yuan in 2023 to 91.85 billion yuan in 2024, reflecting a year-on-year growth rate of 14.5% [6][8] - The net profit is expected to slightly increase from 3.18 billion yuan in 2023 to 3.20 billion yuan in 2024, indicating a minimal growth rate of 0.6% [6][8]

Investment Rating - The report maintains a "Buy" rating for the company, MINISO, with a target price of approximately $31 per ADR, representing a potential upside of 35% [5][10][19]. Core Insights - MINISO aims to become the world's leading IP design retail group, targeting a compound annual growth rate (CAGR) of no less than 20% in revenue from 2024 to 2028, with plans to open 900 to 1,100 new stores annually and double its global store count by 2028 [3][16][27]. - The company has seen significant growth in overseas markets, with 2023 overseas revenue increasing by 47% to 4.705 billion yuan, contributing 34% to total revenue [19][20]. - MINISO's strategy includes deepening its IP cooperation and leveraging global partnerships to enhance brand influence and sales performance [3][27][29]. Summary by Sections Global Expansion Strategy - MINISO has entered the "Overseas 2.0" phase, focusing on a dual strategy of cost leadership and differentiation, with an emphasis on interest-driven consumption [16][18]. - The company plans to enhance its presence in North America, Latin America, the Middle East, Southeast Asia, and Europe, optimizing product structures and improving operational management [17][19]. IP Strategy - MINISO is committed to becoming the world's top IP design retail group, with a goal of IP products accounting for over 50% of sales by 2028 [27][29]. - The company has successfully collaborated with over 80 global IPs, including Disney and Sanrio, to create popular product lines that significantly boost sales [29][30]. Financial Projections - Revenue projections for 2024-2026 are estimated at 17.721 billion yuan, 21.351 billion yuan, and 25.051 billion yuan, respectively, with adjusted net profits of 2.851 billion yuan, 3.405 billion yuan, and 4.001 billion yuan [5][10][19]. - The report anticipates a gross margin of approximately 41.4% for the years 2024-2026, supported by a growing share of high-margin overseas business [7][19]. Market Performance - The overseas market has become a significant growth driver for MINISO, with strong performance in Asia (excluding China), North America, and Latin America, contributing to 92% of overseas revenue [20][21]. - The company has identified substantial store opening potential in key markets, with significant gaps compared to competitors [22][23]. Supply Chain Efficiency - MINISO's supply chain is a core competitive advantage, with technology enhancements leading to a 15% improvement in overall supply chain efficiency [25][26]. - The company has implemented a digital system that has improved inventory turnover for overseas partners by over 60% [26].

Investment Rating - The report maintains a "Buy" rating for the company [2][9][10] Core Insights - The company's Q1 2024 revenue reached 26.85 billion RMB, a year-on-year increase of 7%, which is in line with consensus expectations. Adjusted net profit was 8.51 billion RMB, up 12% year-on-year, slightly exceeding consensus by 2.2% [4][9] - The gross margin improved to 63.4%, surpassing consensus expectations by 1.6 percentage points. The gaming segment continues to show strong growth, with online gaming revenue at 20.4 billion RMB, a 10% year-on-year increase [4][5] Financial Performance - Q1 2024 revenue breakdown shows online gaming revenue at 20.4 billion RMB, with mobile gaming revenue at 16.1 billion RMB, up 19% year-on-year, marking a historical high [5][11] - The company has adjusted its revenue forecasts for 2024 and 2025 to 112.2 billion RMB and 122.5 billion RMB respectively, while also increasing the net profit forecasts for the same years to 34.1 billion RMB and 37.9 billion RMB [9][11] Business Segments - The gaming segment remains robust, with deferred revenue indicating a strong foundation for future growth. The upcoming FPS game "Firefly Assault" is set to launch on June 6, with other key titles expected in the summer [5][11] - Cloud music revenue grew by 4% year-on-year, with a gross margin of 38%, reflecting significant improvement in profitability. The main app has undergone a major revision to focus on music discovery [6][11] Shareholder Returns - The company announced a cash dividend of 0.495 USD per ADR in Q1, totaling 2.26 billion RMB, with a payout ratio of approximately 26.6%. The total shareholder return from dividends and buybacks in 2023 was about 2.3 billion USD, corresponding to a return ratio of nearly 4% [9][11]

Investment Rating - The report maintains a "Buy" rating for Bilibili (BILI:US) [1][4] Core Views - Bilibili's Q1 2024 revenue reached 5.7 billion RMB, a year-on-year increase of 12%, slightly exceeding consensus expectations, marking a return to double-digit growth since Q4 2022 [2][5] - The adjusted net loss for Q1 2024 was 440 million RMB, better than the expected 500 million RMB, with the loss rate narrowing to 8% [2][3] - User metrics show healthy growth, with MAU reaching 342 million, a year-on-year increase of 8%, and DAU at 102 million, up 9% year-on-year [3] Financial Data and Earnings Forecast - Revenue (in million RMB) is projected as follows: - 2024E: 25,253 - 2025E: 28,139 - 2026E: 31,439 - Year-on-year growth rates are expected to be 12.1% in 2024, 11.4% in 2025, and 11.7% in 2026 [2][4] - Non-GAAP net profit (in million RMB) forecasts are: - 2024E: -415 - 2025E: 1,028 - 2026E: 1,882 - Non-GAAP EPS (in RMB) is expected to improve from -0.98 in 2024 to 4.47 in 2026 [2][4] Business Segments - Advertising revenue for Q1 2024 was 1.7 billion RMB, a year-on-year increase of 31%, driven by product optimization and efficiency improvements [3] - Value-added services revenue reached 2.5 billion RMB, a 17% year-on-year increase, primarily driven by live streaming [3] - Gaming revenue for Q1 2024 was 1 billion RMB, a year-on-year decline of 13%, with new product launches expected to boost performance in Q2 [3] Profitability and Cash Flow - Gross margin improved to 28% in Q1 2024, marking seven consecutive quarters of sequential improvement [3] - Operating cash flow for Q1 2024 was 640 million RMB, achieving positive cash flow for three consecutive quarters [3]

Investment Rating - The report maintains a "Buy" rating for the company [2][3]. Core Insights - The company reported better-than-expected performance in Q1 2024, with total revenue of 6.55 billion RMB, a year-on-year increase of 62.3% [2]. - Gross margin improved to 12.9%, up 11.2 percentage points year-on-year, attributed to technology collaboration with Volkswagen, improved sales structure, and cost reduction [2]. - The partnership with Volkswagen is expected to provide sustainable high-quality revenue, with service revenue reaching 1 billion RMB in Q1, a 93.1% increase year-on-year [2]. - The average selling price (ASP) of vehicles increased significantly to 254,100 RMB, a 31.8% rise year-on-year, driven by the strong performance of the high-end model X9 [2]. - The company is focusing on cost reduction in autonomous driving hardware, aiming for a 50% reduction, which could further enhance gross margins [2]. - New models and international expansion are anticipated to boost profitability, with the launch of the MONA model in June and plans for significant exports to Europe and other regions [2]. Financial Data and Forecast - The company’s revenue projections for 2024 and 2025 have been adjusted downwards to 48 billion RMB and 81.8 billion RMB, respectively, while a new forecast for 2026 is set at 100.7 billion RMB [2][3]. - The net profit forecast remains unchanged for 2024 and 2025 at -5.1 billion RMB and -1.2 billion RMB, with a new projection for 2026 showing a net profit of 1.4 billion RMB [2][3]. - The earnings per share (EPS) is expected to improve from -5.50 RMB in 2023 to 0.73 RMB in 2026 [3][7].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported FY2024 results that slightly exceeded expectations, driven by both domestic and international sales, with a revenue of HKD 18.41 billion, a year-on-year increase of 6.1% [4][9] - The company is expected to achieve steady growth due to the gradual easing of real estate policies, with a slight upward revision of FY2025 net profit forecast to HKD 2.60 billion [9] Financial Performance - FY2024 revenue reached HKD 18.41 billion, with a net profit of HKD 2.30 billion, reflecting a year-on-year growth of 20.2% [4][7] - The company plans to distribute a dividend of HKD 0.30 per share, with a dividend payout ratio of 50.7% [4] - The company’s gross margin improved due to a decrease in raw material costs, with FY2024 gross margin at 40.4% [8] Domestic Sales - Domestic sales for FY2024 reached HKD 11.99 billion, a year-on-year increase of 8.1%, with strong performance in the functional sofa segment [5] - The penetration rate of functional sofas in China increased to 9.7%, up 2.5 percentage points year-on-year [5] - The company opened 765 new stores in FY2024, bringing the total to 7,236 stores, focusing on expanding into lower-tier cities [5] International Sales - International sales showed significant recovery in FY2024, with North America generating HKD 4.28 billion in revenue, a year-on-year increase of 2.3% [6] - The company expanded its overseas sales team and optimized product offerings to enhance market share in new regions [6] Profitability and Cost Management - The company benefited from lower raw material costs, with significant price reductions in steel, leather, chemicals, and wood products [8] - FY2024 net profit margin improved to 12.5%, up 1.5 percentage points year-on-year, driven by cost management and efficiency improvements [8]

Investment Rating - The report maintains a "Buy" rating for ZTO Express [2][4] Core Views - ZTO Express reported Q1 2024 earnings with revenue of 9.96 billion RMB, a year-on-year increase of 10.9%, and an adjusted net profit of 2.22 billion RMB, up 15.8% year-on-year, meeting expectations [2] - The company is optimizing its parcel volume structure, achieving steady growth with a business volume of 7.17 billion parcels, a year-on-year increase of 13.9%. The market share reached 19.3%, a decrease of 4.1 percentage points, primarily due to changes in industry volume calculations and a focus on high-quality development [2] - ZTO Express is shifting its strategic focus towards enhancing service quality and operational efficiency, with a positive outlook on the growth of its parcel business driven by competitive advantages in service timeliness and cost-effectiveness [2] - The report highlights ZTO Express's role as a leading company in expanding industry value, with expectations for both short-term growth and long-term development [2] Financial Data and Profit Forecast - Revenue projections for ZTO Express are as follows: 2024E at 44.41 billion RMB, 2025E at 50.05 billion RMB, and 2026E at 56.52 billion RMB, with year-on-year growth rates of 16%, 13%, and 13% respectively [3] - Adjusted net profit forecasts are 10.87 billion RMB for 2024E, 13.09 billion RMB for 2025E, and 15.67 billion RMB for 2026E, with year-on-year growth rates of 21%, 20%, and 20% respectively [3] - The report indicates a projected PE ratio of 13x for 2024E, 11x for 2025E, and 9x for 2026E, reflecting the company's strong competitive position and earnings certainty [2][3]

Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Insights - The company reported a significant increase in Q1 2024 revenue and profit, with operating income reaching 159.5 billion RMB, a year-on-year growth of 6%, and adjusted net profit of 50.3 billion RMB, up 54% year-on-year, exceeding consensus expectations [2]. - The advertising revenue grew by 26% year-on-year, driven by strong performance in the WeChat ecosystem, particularly video accounts [4]. - The company is investing heavily in AI technology and high-value content, with a notable increase in capital expenditure from 4.6 billion RMB in the previous year to 15.2 billion RMB in Q1 2024 [5]. Financial Data and Profit Forecast - The company’s revenue is projected to grow from 6,090 billion RMB in 2023 to 6,723 billion RMB in 2024, with a year-on-year growth rate of 10.4% [6]. - Non-IFRS net profit is expected to increase from 1,577 billion RMB in 2023 to 1,990 billion RMB in 2024, reflecting a growth rate of 26.2% [6]. - The company’s gross profit margin is forecasted to improve from 48% in 2023 to 51% in 2024 [7]. Revenue Breakdown - The report details revenue contributions from various segments, with online games expected to generate 1,475 billion RMB in 2024, and advertising business projected at 1,015 billion RMB [11]. - The financial technology and enterprise services segment is anticipated to grow to 2,187 billion RMB in 2024, reflecting a growth rate of 7% [11]. Cash Flow and Capital Expenditure - The company reported a net cash position of 92.5 billion RMB in Q1 2024, significantly up from 54.7 billion RMB in the same period last year [5]. - Free cash flow for Q1 2024 was 51.9 billion RMB, indicating strong cash generation capabilities [5].