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

NVIDIA Corporation designs, develops, and markets three dimensional (3D) graphics processors and related software.  The Company's products provide interactive 3D graphics to the mainstream personal computer market.

<ul><li>Nvidia (NVDA US, NR) announced 3QFY25 results on 21 Nov (HKT).</li><li>Quarterly revenue was US$35.1bn, up 93.6% YoY and 16.8% QoQ (vs. 17.8%/15.3% QoQ in 1Q/2Q).</li><li>Revenue beat guidance (US$32.5bn) by 7.9% and Bloomberg consensus (US$33.3bn) by 5.5%. </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.

Nvidia (NVDA US, NR) announced 3QFY25 results on 21 Nov (HKT).Quarterly revenue was US$35.1bn, up 93.6% YoY and 16.8% QoQ (vs. 17.8%/15.3% QoQ in 1Q/2Q).Revenue beat guidance (US$32.5bn) by 7.9% and Bloomberg consensus (US$33.3bn) by 5.5%. 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.

Semiconductors - Nvidia’s 3Q Earnings Takeaway: Strong Demand for Blackwell Well into Next Year

Thermo Fisher Scientific Inc / Equity Bottom-Up

Thermo Fisher Scientific, Inc. manufactures scientific instruments, consumables, and chemicals.  The Company offers analytical instruments, laboratory equipment, software, services, consumables, reagents, chemicals, and supplies to pharmaceutical and biotech companies, hospitals and clinical diagnostic labs, universities, research institutions, and government agencies.

<ul><li>Thermo Fisher, distinguished by its extensive portfolio of products and services, stands as a global leader in life science services.</li><li>We are confident in the long-term prospects of Thermo Fisher as a global leader in life sciences industry, backed by its economies of scale, strong industry consolidation capabilities and its end-to-end platform amid the expected turnaround in client destocking and biotech funding.</li><li>We initiate coverage on the stock with a BUY rating and TP of US$670.00.</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.

Thermo Fisher, distinguished by its extensive portfolio of products and services, stands as a global leader in life science services.We are confident in the long-term prospects of Thermo Fisher as a global leader in life sciences industry, backed by its economies of scale, strong industry consolidation capabilities and its end-to-end platform amid the expected turnaround in client destocking and biotech funding.We initiate coverage on the stock with a BUY rating and TP of US$670.00.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.

Thermo Fisher (TMO US) - A Global Leader in Life Sciences with Favourable Industry Trends

Kuaishou Technology operates as a content community and social platform. The Company helps users create, upload and watch short videos on mobile devices. Kuaishou Technology offers services worldwide.

<ul><li>Kuaishou reported 3Q24 results: total revenue grew by 11% YoY to RMB31.1bn, in line with Bloomberg consensus estimates of RMB31.0bn; adjusted net profit increased by 24% YoY to RMB3.95bn, also in line with consensus estimates.</li><li>Average DAUs grew by 5% YoY to 408mn in 3Q24 on improved user stickiness, achieving Kuaishou’s medium DAUs target of 400mn. Looking into 4Q24E, we expect Kuaishou’s core commercial business revenue (online marketing &amp; other services) to maintain solid YoY growth of 16%, primarily driven by resilient growth of external marketing service revenue and e-commerce GMV.</li><li>As Kuaishou stepped up investments in key growth initiatives such as e-commerce, short play and AI, we lower our FY25-26E earnings forecasts by 5-8%. We trim our SOTP-derived TP to HK$85.6 (previous: HK$92.0). 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.

Kuaishou reported 3Q24 results: total revenue grew by 11% YoY to RMB31.1bn, in line with Bloomberg consensus estimates of RMB31.0bn; adjusted net profit increased by 24% YoY to RMB3.95bn, also in line with consensus estimates.Average DAUs grew by 5% YoY to 408mn in 3Q24 on improved user stickiness, achieving Kuaishou’s medium DAUs target of 400mn. Looking into 4Q24E, we expect Kuaishou’s core commercial business revenue (online marketing &amp; other services) to maintain solid YoY growth of 16%, primarily driven by resilient growth of external marketing service revenue and e-commerce GMV.As Kuaishou stepped up investments in key growth initiatives such as e-commerce, short play and AI, we lower our FY25-26E earnings forecasts by 5-8%. We trim our SOTP-derived TP to HK$85.6 (previous: HK$92.0). 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.

Kuaishou (1024 HK) - Inline 3Q24 Results; Resilient Core Commercial Business

NIO Inc. manufactures and sells automobiles. The Company offers electric vehicles and parts, as well as provides battery charging services. NIO serves customers worldwide.

<ul><li>Maintain HOLD. Despite NIO’s efforts to lift GPM in 3Q24, its cost control capabilities disappointed us once again.</li><li>With the Onvo L60’s designed GPM and continuous investments in battery swap, we see limited GPM improvement in FY25E despite 45% YoY growth in revenue on our estimates.</li><li>We are of the view that management’s guidance for breakeven in FY26 is too optimistic.</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.

Maintain HOLD. Despite NIO’s efforts to lift GPM in 3Q24, its cost control capabilities disappointed us once again.With the Onvo L60’s designed GPM and continuous investments in battery swap, we see limited GPM improvement in FY25E despite 45% YoY growth in revenue on our estimates.We are of the view that management’s guidance for breakeven in FY26 is too optimistic.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.

NIO Inc. (NIO US) - NIO’s Cost Control Disappoints Us Again

ZTO Express (Cayman) Inc. operates as an express delivery company. The Company provides express delivery service through their nationwide network, as well as other value-added logistics services. ZTO Express serves customers globally.

<ul><li>ZTO Express (ZTO) EBIT grew 17% YoY to RMB2.8bn, which is in line with our expectation.</li><li>Reported net profit in 3Q24 grew only 1% YoY to RMB2.46bn, but this was largely due to one-off tax refunds in 3Q23.</li><li>Unit gross margin expanded 6.5% YoY to RMB0.38/parcel in 3Q24 amid industry price competition. ZTO revised down the full year parcel volume growth guidance to 11.6-12.3% (from 15-18% in Aug), which implies 7.5-10% growth in 4Q24E. </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.

ZTO Express (ZTO) EBIT grew 17% YoY to RMB2.8bn, which is in line with our expectation.Reported net profit in 3Q24 grew only 1% YoY to RMB2.46bn, but this was largely due to one-off tax refunds in 3Q23.Unit gross margin expanded 6.5% YoY to RMB0.38/parcel in 3Q24 amid industry price competition. ZTO revised down the full year parcel volume growth guidance to 11.6-12.3% (from 15-18% in Aug), which implies 7.5-10% growth in 4Q24E. 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.

ZTO Express (ZTO US) - Still Positive on Profitable Growth Strategy Despite Lower Volume Guidance