External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

iQIYI, Inc. offers video entertainment services. The Company provides movies, television dramas, variety shows, and other video contents. iQIYI offers services worldwide.

<ul><li>iQiyi reported 3Q24 financial results: total revenue declined by 10% YoY to RMB7.2bn, in line with Bloomberg consensus and our estimate; non-GAAP net income was down by 23% YoY to RMB480mn, ahead of consensus/our estimate of RMB266/426mn primarily due to better-than-expected opex control and foreign exchange gains.</li><li>Looking ahead in 4Q24E, we forecast total revenue to decline by 14% YoY and 8% QoQ, primarily due to the lighter content slate and soft consumption sentiment.</li><li>That said, we expect non-GAAP operating income to be largely flattish QoQ at RMB368mn in 4Q24E, thanks to iQiyi’s prudent cost and opex control. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

iQiyi reported 3Q24 financial results: total revenue declined by 10% YoY to RMB7.2bn, in line with Bloomberg consensus and our estimate; non-GAAP net income was down by 23% YoY to RMB480mn, ahead of consensus/our estimate of RMB266/426mn primarily due to better-than-expected opex control and foreign exchange gains.Looking ahead in 4Q24E, we forecast total revenue to decline by 14% YoY and 8% QoQ, primarily due to the lighter content slate and soft consumption sentiment.That said, we expect non-GAAP operating income to be largely flattish QoQ at RMB368mn in 4Q24E, thanks to iQiyi’s prudent cost and opex control. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IQIYI (IQ US) - Short-Term Headwind Continues; Strategic Upgrades to Drive Long-Term Growth

Palo Alto Networks, Inc. provides network security solutions. The Company offers firewalls that identify and control applications, scan content to stop threats, prevent data leakage, integrated application, user, and content visibility. Palo Alto Networks serves customers worldwide.

<ul><li>Palo Alto Networks (PANW) announced 1QFY25 (Jul year-end) results: total revenue was up 13.9% YoY to US$2.1bn, 1% ahead of Bloomberg consensus, and non-GAAP net income reached US$544.9mn, up 17% YoY, 6% better than consensus, driven by more optimized-than-expected sales and marketing and G&amp;A spend aided by operating efficiency improvement.</li><li>The accelerated Platformization strategy is delivering early-stage results, in our view, and should help drive its long-term market share gains.</li><li>Our FY25E revenue/non-GAAP net profit are lifted by 0.3%/2.2% to factor in better-than-expected results. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Palo Alto Networks (PANW) announced 1QFY25 (Jul year-end) results: total revenue was up 13.9% YoY to US$2.1bn, 1% ahead of Bloomberg consensus, and non-GAAP net income reached US$544.9mn, up 17% YoY, 6% better than consensus, driven by more optimized-than-expected sales and marketing and G&amp;A spend aided by operating efficiency improvement.The accelerated Platformization strategy is delivering early-stage results, in our view, and should help drive its long-term market share gains.Our FY25E revenue/non-GAAP net profit are lifted by 0.3%/2.2% to factor in better-than-expected results. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Palo Alto Networks (PANW US) - Platformization Strategy Resonating Well with Customers

Baidu, Inc. operates an Internet search engine. The Company offers algorithmic search, enterprise search, news, MP3, and image searches, voice assistance, online storage, and navigation services. Baidu serves clients globally.

<ul><li>Baidu announced (21 Nov) its 3Q24 results: total revenue was RMB33.6bn, inline with both our forecast and Bloomberg consensus; excluding one-off foreign exchange loss of RMB1.1bn, non-GAAP net income would be RMB7.0bn, better than consensus of RMB6.2bn.</li><li>Non-GAAP OP of Baidu Core reached RMB6.7bn, 1%/4% better than our forecast/ consensus, thanks to more optimized than expected R&amp;D spending.</li><li>Monetization of Gen-AI related initiative likely still takes time, and we expect Baidu to still prioritize product enhancement and user engagement improvement over monetization in 4Q24- 1Q25, while we concur that the related investment in driving for business transformation is vital for Baidu’s long-term business development. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Baidu announced (21 Nov) its 3Q24 results: total revenue was RMB33.6bn, inline with both our forecast and Bloomberg consensus; excluding one-off foreign exchange loss of RMB1.1bn, non-GAAP net income would be RMB7.0bn, better than consensus of RMB6.2bn.Non-GAAP OP of Baidu Core reached RMB6.7bn, 1%/4% better than our forecast/ consensus, thanks to more optimized than expected R&amp;D spending.Monetization of Gen-AI related initiative likely still takes time, and we expect Baidu to still prioritize product enhancement and user engagement improvement over monetization in 4Q24- 1Q25, while we concur that the related investment in driving for business transformation is vital for Baidu’s long-term business development. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Baidu (BIDU US) - Pace of Ads Rev Growth Recovery Key to Watch

KE Holdings Inc. operates as an integrated online and offline platform for housing transactions and services. The Company offers existing and new home sales, home rentals, home renovation, real estate financial solutions, and other services. KE Holdings conducts businesses in China.

<ul><li>Beike reported (21 Nov) 3Q24 results: revenue increased 27% YoY to RMB22.6bn, 1.5%/4.7% below Bloomberg consensus/CMBI estimates, mainly due to the mixed performance where existing home GTV (EHT) was dragged by low home transaction sentiment and new home transactions (NHT) were benefited from market share gains.</li><li>Non-GAAP net income was RMB1.8bn, representing a margin of 7.9%, in-line with both our estimates and consensus, thanks to fee controlling measures. We remain positive on Beike given its continuously increasing market share in EHT &amp; NHT businesses and smooth expansion of new business.</li><li>Our SOTP-based target price is lifted to US$23.3 (was US$21.5), including US$22.3 for Beike Core and US$0.9 for Shengdu, translating into 21.4x 2025E PE (non-GAAP). Maintain BUY</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Beike reported (21 Nov) 3Q24 results: revenue increased 27% YoY to RMB22.6bn, 1.5%/4.7% below Bloomberg consensus/CMBI estimates, mainly due to the mixed performance where existing home GTV (EHT) was dragged by low home transaction sentiment and new home transactions (NHT) were benefited from market share gains.Non-GAAP net income was RMB1.8bn, representing a margin of 7.9%, in-line with both our estimates and consensus, thanks to fee controlling measures. We remain positive on Beike given its continuously increasing market share in EHT &amp; NHT businesses and smooth expansion of new business.Our SOTP-based target price is lifted to US$23.3 (was US$21.5), including US$22.3 for Beike Core and US$0.9 for Shengdu, translating into 21.4x 2025E PE (non-GAAP). Maintain BUYContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ke Holdings (BEKE US) - To Ride on the Policy Tailwind in 4Q

PDD Holdings Inc. is a multinational commerce group that owns and operates a portfolio of businesses. The Company focuses on digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities. PDD Holdings has built a network of sourcing, logistics, and fulfillment capabilities for its underlying businesses.

<ul><li>PDD Holdings (PDD) announced (21 Nov) 3Q24 results: revenue was up 44.3% YoY (3Q23: 93.9%; 2Q24: 85.7%) to RMB99.4bn, 3% shy of Bloomberg consensus estimates, mainly owing to the 6% miss on transaction services fees which we attribute to the impact from enhancement of merchant support.</li><li>NonGAAP net profit increased by 61.3% YoY to RMB27.5bn, 6% short of consensus, due to the miss in revenue generation.</li><li>We lower our 2024-2026E revenue forecast by 4-9% and non-GAAP net profit by 9-16% to factor in the greater-than-expected impact of PDD’s move to enhance merchant support, as well as PDD’s effort to provide home appliances products at prices similar to its peers’ level against the backdrop of nationwide home appliance trade-in program. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

PDD Holdings (PDD) announced (21 Nov) 3Q24 results: revenue was up 44.3% YoY (3Q23: 93.9%; 2Q24: 85.7%) to RMB99.4bn, 3% shy of Bloomberg consensus estimates, mainly owing to the 6% miss on transaction services fees which we attribute to the impact from enhancement of merchant support.NonGAAP net profit increased by 61.3% YoY to RMB27.5bn, 6% short of consensus, due to the miss in revenue generation.We lower our 2024-2026E revenue forecast by 4-9% and non-GAAP net profit by 9-16% to factor in the greater-than-expected impact of PDD’s move to enhance merchant support, as well as PDD’s effort to provide home appliances products at prices similar to its peers’ level against the backdrop of nationwide home appliance trade-in program. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

PDD Holdings (PDD US) - Impact from Enhancement of Merchant Support Stared to Emerge