1H24 profit alert points to solid 2Q results

北方华创(002371)
    Naura announced a 1H24 profit alert. 1H revenue is expected to be within the rangeof RMB11.4-13.1bn, representing 35.4% to 55.9% YoY growth, respectively. Netprofit is estimated to be RMB2.6-3.0bn (YoY growth of 42.8% to 64.5%). This impliesthat 2Q24 revenue (mid-point) could be RMB6.4bn (40.8% YoY and 9.5% QoQgrowth), 5% below consensus estimate. 2Q24 net profit (mid-point) is expected to beRMB1.6bn (35.7% YoY and 45.4% QoQ growth), 9% above consensus estimate.2Q24 mid-point NPM is 25.5% vs. 19.2%/26.5% in 1Q24/2Q23. The companyattributed the growth to 1) its broad coverage of semiconductor equipment (etching,deposition, cleanser, etc.), 2) increasing market share, 3) economies of scalegradually showing, and 4) improving operational efficiency and stable decrease inexpense ratio. Maintain BUY with an unchanged TP at RMB405.
    1H24 revenue in-line with seasonality: 1H24 revenue/NP (mid-point)accounted for 40%/50% of our 2024 full-year estimates (Rev./NP:RMB30.9bn/RMB5.5bn), or 41%/51% of Bloomberg consensus estimates(Rev./NP: RMB30.0bn/RMB5.4bn). Revenue seasonality remains consistent,with mid-point 1H24 revenue representing 40% of that of FY24E (RMB30.9bn,per our forecast), similar to 1H23 (38% of FY23 revenue). This historical patternsuggests the potential for strong sequential growth in 3Q-4Q24E, in our view.
    Looking forward to 2H24, we expect the pace of semi supply chainlocalization in China to remain steady. Naura signed new equipment ordersexceeding RMB30bn in 2023, with over 70% related to semiconductormanufacturing tools. We expect Naura to deliver robust revenue growth on capexexpansion from downstream clients (including memory and foundry) and thesemi localization trend. In addition, we believe the company could be one of thebeneficiaries amid the recently launched “Big Fund III” (US$47.5bn) in China.
    We reiterate our BUY rating for Naura, with an unchanged TP at RMB405,based on 39x 2024E P/E. Naura is currently our favourite pick under the semilocalization theme. Risks: 1) intensified competition from overseas and domesticpeers, and 2) escalating geopolitical tensions.

Impressive 618 with makeup brand making its debut to TOP 1; Maintain BUY

珀莱雅(603605)
    Proya reported impressive results during the 618 promotion event with totalGMV ranking top/second on Tmall/Douyin’s cosmetic sector, buoyed byeffective hero product strategy and possibly more discounts. GMV growthreached +70%/+110% YoY on Tmall/Douyin, largely surpassing the platforms’sector total and international peers. Growth might be lower at the revenue levelas the return rate is raising industrywide. Proya makeup/hair care brands’ranking climbed to the top/top 10 on Tmall for the first time, suggesting newbrand development is proceeding well. We raise our 2024E/25E earningsestimates by c.20% to reflect success in 618 and solid 4Q23/1Q24 earnings.Maintain BUY with TP revised to RMB135.57, reflecting 35x 2024E P/E.
    Impressive 618: retained throne on Tmall, ranked 2nd on Douyin.Based on data from third-party statistics, during the 618 shopping festival,Proya’s GMV maintained its champion status on Tmall and ranked secondon Douyin in cosmetic sector (behind Kans), surpassing all internationalpeers (Figure 1). YoY growth reached +70% and +110%, respectively,significantly outperforming the cosmetics GMV growth on platforms (-13.3% for Tmall+JD+PDD, +47.6% for Douyin) (Figure 2-3). The successis primarily due to: 1) effectiveness of the hero product strategy. Mainskincare brand ranked the first/second by GMV on Tmall/Douyin,respectively. 2) Possibly more discounts were offered as our preliminaryestimates indicate that Proya offered 7% more discount during 618compared to Double 11 2023 on Li Jiaqi's live broadcast event (Figure 4).
    Makeup made its debut to the top, hair care entered top 10. During618, GMV of Timage on Tmall's makeup ranking reached the top for thefirst time (ranked the 7th/2nd during 2023’s 618 and 2023’s Double 11),with 80% YoY growth in GMV on Tmall, significantly outpacing theindustry's -14.2% (Tmall+JD+PDD). The company's makeup GMV on theDouyin platform remained flat YoY, possibly due to a strategic decision toforgo platforms with intense competition and higher cost. Hair care brand,Off&Relex (OR), made a notable entry into the top 10 of Tmall's hair caresector, with a 70% YoY increase in GMV. We believe that after this initialbreakthrough, OR is poised to become the company's next star brand.
    Raise estimates. We raise 2024/25E revenue by c.20%. With a relativelystable GPM, we also lift NP estimates by c.20% in 2024/25E to reflect thesuccess in 618 and the solid 4Q23 & 1Q24 earnings (+39% & +46% YoY).Maintain BUY with TP revised to RMB15.57, representing 35x 2024E P/E.Risks: worse-than-expected macro climate, surprisingly high return ratefor 618 events, selling expense surge, and management changes

Key beneficiary of semiconductor localization

北方华创(002371)
    We recently held an NDR with Naura Technology’s management and wemaintain our positive outlook for the Company. We expect Naura to deliverrobust revenue growth on capex expansion from downstream clients andaccelerated semi localization trend. In addition, we believe the Companycould be one of the beneficiaries of the recently launched “Big Fund III”(US$47.5bn) in China. Naura is currently our favourite under the semilocalization theme. Reiterate BUY rating for Naura (002371 CH), with anunchanged TP at RMB405.
    Geopolitical tensions have driven major economies worldwide to pursueresilience over efficiency, leading to significant investments to strengthendomestic chip fabrication capabilities. The recently established “Big FundIII” (US$47.5bn) in China is so far the largest phase of the series, withregistered capital of RMB344bn (vs. Phase I/II: RMB139bn/RMB200bn).The phase III underscores yet another Chinese government’s effort toachieve self-sufficiency in semi amid the escalating geopolitical tensions.Previous phases focused on chip fabrication, equipment, materials, etc.,and we expect similar investment interests for Phase III, as well as apotential focus on AI-related areas. We expect Naura to be one of thebeneficiaries.
    Looking forward, Naura will likely maintain robust growth on capexexpansion from clients and accelerated semi localization trend. Keydrivers of revenue could be from order wins in CCP, CVD and cleanserproducts. The Company disclosed that new orders signed in 2023 wereRMB30bn, of which 70%+ were for semiconductor equipment and 15%were for new energy/PV. We think these orders will support 40% revenuegrowth in 2024.
    We reiterate our BUY rating for Naura (002371 CH), with anunchanged TP at RMB405, based on the same 39x 2024E P/E. Weraise our GPM forecasts by 1.9ppt and 3.9ppt for 2024/25E, consideringlarger revenue contribution from more advanced equipment. Thisaccretive impact on net profit was offset by a higher projection for R&Dspending (~11% of total revenue), as the Company is expanding itsproduct coverage. Risks: 1) intensified competition from overseas anddomestic peers, and 2) escalating geopolitical tensions.

高端市场持续拓展，国际化战略快速推进

联影医疗(688271)
    2023年公司实现营收114.1亿元，同比增长23.5%；归母净利润19.7亿元，同比增长19.2%，毛利率略微提升至48.5%（+0.1ppts），我们认为主要得益于中高端产品和服务收入占比的提高，以及生产、物流等环节运营效率的提升。归母净利率下降0.6个百分点，主要是由于公司积极拓展海外业务并持续加大研发投入，销售费用率和研发费用率有所上升。1Q24，公司保持稳健增长，实现营业收入23.5亿元，同比增长6.2%；归母净利润3.6亿元，同比增长10.2%。
    设备销售稳步增长，中高端产品表现亮眼。2023年公司设备销售收入99.3亿元，同比增长21.1%，各产线收入和销量均实现增长。1）CT：2023年产线收入同比增长7.8%，中高端及超高端CT显著增长，新增装机超400台。若以产品收入及销量估算其出厂单价（ASP，下同），2023年公司CT产品ASP同比提升6.0%。2）MR：2023年产线收入实现同比58.5%的高速增长，3.0T及以上MR产品增长强劲，带动MR产品ASP同比大幅提升21.2%。在国内3.0T以上MR市场中，公司凭借uMR Jupiter5T市场份额排名第一。近日，uMR Jupiter5T已获得FDA认证。
    服务收入快速增长，服务业务毛利率持续改善。2023年服务收入同比增长42.8%至10.7亿元，服务收入占比提升至9.4%（+1.3ppt）。服务业务的毛利率上升至61.7%（+5.9ppts）。我们认为，由于维保服务通常由工程师负责，因此服务业务的快速拓展使得单位人工成本下降，带动服务业务毛利率提升。随着公司装机量的增长，服务收入有望持续快速增长。
    海外业务延续强劲增长势头。2023年公司海外业务收入同比增长54.7%至16.8亿元，海外收入占比提升至14.7%（+1.1ppt），其中亚太区域收入同比增长78.6%，占海外收入的46.9%，欧美区域收入同比增长约43.0%，占海外收入约44.9%。截至目前，公司已分别有49款和44款产品获得CE及FDA认证，业务覆盖超65个国家/地区。公司的全球服务体系也在不断完善，截至2023年底，公司全球服务网络建设覆盖超60个国家/地区，带动公司2023年海外服务收入同比增长超100%。公司1Q24海外业务收入同比增长近50%，海外收入占比超15%。我们预计，2024年联影医疗的海外业务有望继续保持同比超50%的快速增长。
    维持买入评级，目标价160.39元人民币。我们认为，尽管公司在1Q24面临国内医院招标活动延迟以及1Q23基数较高的挑战，但“十四五”配置证规划及国务院推动设备以旧换新行动方案的陆续执行都将刺激国内大型医疗设备需求的释放。我们预计23-26E公司收入和净利润将保持年复合超20%的增长，基于9年的DCF模型，给予160.39元的目标价（WACC：9.3%，永续增长率：4.0%）

Steady 1Q performance amid challenging environment

药明康德(603259)
    WuXi AppTec reported 1Q24 revenue of RMB7,982mn, down 11.0% YoY,attributable recurring net profit of RMB2,034mn, up 7.3% YoY, and attributableadjusted non-IFRS net profit of RMB1,913mn, down 18.3% YoY. 1Q24 revenue/ adjusted Non-IFRS net income accounted for 20.4%/ 16.8% of our 2024 fullyear estimates, both moderately lower than historical ranges. Non-IFRS grossprofit margin deteriorated by 2.3ppt to 38.7% while non-IFRS net profit margindecreased by 2.1ppt to 24.0% in 1Q24, due to the decline in CDMO revenuefrom COVID commercial projects, pricing erosion, ramp-ups of new facilities inits Testing and Biology segments, and escalating costs in its ATU segment.Non-COVID D&M revenue (in WuXi Chemistry segment) showed positivegrowth in 1Q24, up 1.2% YoY. Despite a challenging start of 2024, mgt. hasupheld its revenue guidance of RMB38.3-40.5bn for 2024, projecting growth of2.7% to 8.6% YoY, excluding revenues from COVID-19 commercial projects.Furthermore, mgt. reiterated that the adjusted non-IFRS net profit margin wouldbe align with the 2023 level.
    TIDES business continued to serve as a significant growth driver. In1Q24, TIDES revenue delivered impressive growth of 43.1% YoY withsubstantial 110% YoY growth in backlog. Both revenue and backlogmaintained a strong momentum from a high base in 2023. Mgt. expects 60%revenue growth for the TIDES business in 2024. Moreover, the additional22k-liter solid-phase peptide synthesizers commenced operation in Jan2024, enhancing the total capacity to 32k liters. Plans are in progress toexpand new peptide production capacity in Taixing, Jiangsu, to meet robustcustomer demand.
    Moderate recovery in clinical CRO&SMO business. In 1Q24, revenuefrom the Clinical CRO&SMO segment grew by 11.0% YoY, with SMOrevenue increasing by 26.4% YoY. The growth aligns with the upwardtrends reported by several domestic clinical CRO&SMO companies in 2023and 1Q24. The demand in China's clinical stage pharmaceutical R&D isexpected to lead the recovery, mirroring the recovery pattern observed inoverseas markets since1Q23.
    Solid customer relationships amid uncertainty. WiXi AppTec addedover 300 new clients in 1Q24, consistent with the level seen in 1Q23.Encouragingly, revenue from global Top 20 pharmaceutical companiesreached RMB2.7bn (~34% of total revenue), indicating a YoY increase of4.2% excluding COVID-19 commercial projects. However, mgt. admittedthat the draft of the Biosecure Act has started impacting WuXi ATU inacquiring new clients and orders in the US market.
    Maintain BUY. To factor in the uncertainties from geopolitical risks, we cutour TP from RMB67.53 to RMB53.23 (based on a 10-year DCF model withWACC of 10.73% and terminal growth of 2.0%). We forecast revenue togrow by -5.6%/ +10.0%/ +12.5% YoY and adjusted non-IFRS net income togrow by -12.4%/ +10.5%/ +16.4% YoY in 2024E/ 25E/ 26E, respectively.

1Q24 net profit +40% YoY in line; solid growth outlook

潍柴动力(000338)
    While Weichai Power (Weichai)’s revenue growth of 6% YoY in 1Q24 is belowour expectation, net profit of RMB2.6bn (+40% YoY) accounted for 21.4% of ourfull-year estimates (run rate in 1Q23: 20.5%), which is still in line with ourexpectation. The earnings growth was driven by margin expansion on both corebusiness and KION Group (KGX GR, NR). We maintain Weichai as our sectortop pick, given (1) the large gas/diesel price gap will continue to drive naturalgas engine demand, where Weichai has >60% market share in; (2) high-speedlarge-bore engines will serve as a structural growth driver on the back ofconstruction of more data centres. Maintain BUY with SOTP-based TP ofHK$22/RMB20.4 for Weichai H/A.
    1Q24 results highlights. Weichai’s revenue grew 6% YoY to RMB56.4bn.Gross margin expanded 3.4ppt YoY to 22.1% in 1Q24. With limited increasein SG&A and R&D expense ratio, the pre-tax profit surged 58% YoY toRMB4.2bn. Based on our calculation, the pretax profit of Weichai’s corebusiness / KION grew 45% / 93% YoY in 1Q24 (in RMB terms). Operatingcash flow in 1Q24 substantially improved to RMB1.6bn, vs outflow ofRMB471mn in 1Q23.
    Margin recovery of KION Group. KION (46.5% owned by Weichai)reported adjusted EBIT of EUR227mn in 1Q24 (+46% YoY), driven byeasing cost pressure. KION guided a full-year adjusted EBIT target ofEUR790-940mn (up 0-19% YoY).
    Weichai’s engine sales outpaced industry in 1Q24. According toCICEIA, Weichai's multi-cylinder sales (HDT, construction machinery, otherengines) grew 13% YoY to 206k units in 1Q24 (vs the industry average of adecline of ~1%), with market share of ~18% (+2.3ppt YoY).
    Risk factors: 1) weakness in engine exports; 2) lower-than-expectedreplacement demand; 3) an increase in component costs.

海内外持续高端突破，业绩增长稳健

迈瑞医疗(300760)
    2023年公司实现营收349.3亿元，同比增长15.0%；归母净利润115.8亿元，同比增长20.6%，归母净利率提升至33.2%（+1.5ppts）。2024年一季度，公司保持稳健增长，实现营业收入93.7亿元，同比增长12.1%；归母净利润31.6亿元，同比增长22.9%，归母净利率同比提升3.0个百分点至33.7%。
    IVD延续快速增长，生命信息与支持和影像产线有望复苏。2023年，公司IVD产线收入同比增长21.1%。国内市场受益于常规诊疗活动的迅速恢复和大样本量客户的加速突破，IVD收入同比增长20%，其中试剂收入同比增长超25%，带动板块毛利率提升至64.3%（+3.9ppts）。此外，借助21年开展的安徽省化学发光集采，2023年公司在当地的心肌标志物及炎症、甲功、传染病和肿瘤标志物项目都取得了同比超30%的高速增长。我们认为，安徽25省联盟化学发光集采在2024年的落地执行以及国内IVD集采的扩围将持续助推公司的高端渗透和市场份额提升。海外市场中大样本量客户的渗透也在持续加快，2023年公司成功突破106家海外第三方连锁实验室，带动海外IVD收入2021-23年复合增长超过30%。随着海外IVD平台化建设的逐步完善，公司海外IVD业务有望长期快速增长。生命信息与支持和医学影像产线在2H23受到国内公立医院招标采购延迟的影响，但微创外科和高端超声表现亮眼，2023年分别同比增长超30%和20%，公司超声的市场份额首次实现国内第一，全球第三。展望2024年，医院招投标活动有望逐季复苏，设备以旧换新政策将进一步刺激设备采购的释放，我们预计板块在2024年将加速增长。
    新兴市场引领海外市场的强劲增长。2023年，公司海外收入同比增长15.8%至135.5亿元，海外收入占比达38.8%（+0.3ppts）。随着公司产能恢复常态，公司海外业务快速复苏，2H23海外收入同比增长22.0%。2023年，公司在生命信息与支持产线、IVD产线和医学影像产线分别突破近300家、超450家和超200家全新高端客户。公司1Q24的海外收入同比增长近30%，三大产线均实现快速增长，主要得益于1）1Q23海外收入基数较低；2）海外高端客户群的加速突破。新兴市场发展迅猛，2023年和1Q24的收入增速分别超过20%和30%。我们认为，公司产品较之于国际品牌更具备性价比优势，因此公司在新兴市场的业务有望持续快速增长，成为公司海外业绩增长的主要驱动力之一。
    维持买入评级，目标价383.49元人民币。我们预计公司2024E收入和净利润均将实现20%的稳健增长，基于9年的DCF模型，给予383.49元人民币的目标价（WACC：9.6%，永续增长率：3.0%）。

公司一季度业绩为全年发展夯实了基础

中际旭创(300308)
    中际旭创公布了2023财年和2024年一季度业绩，总体超出我们和市场的预期。公司2023财年收入同比增长11.2%至107亿元人民币，净利润同比增长77.6%至22亿元人民币。一季度收入同比增长163.6%至48亿元人民币，净利润同比大幅增长303.8%至10亿元人民币。公司出色的业绩主要得益于其高速光模块（特别是400G和800G）的强劲需求，占2023财年总收入90%以上。我们将中际旭创的目标价上调至183元人民币，对应2024年30倍预测市盈率，并维持“买入”评级。
    400G光模块出货量强劲，推动一季度收入增长；预计800G光模块出货量将在今年逐季增长。受益于海外强劲的需求，公司一季度收入同比增长164%，环比增长31%。我们预计随着公司产能的如期扩张（供应端）与高科技企业对AI基础设施的持续投资（需求端），公司800G光模块的出货量将从今年二季度开始加速增长。同时，管理层指出，公司1.6T产品目前正在接受海外重点客户认证，预计将于今年下半年完成认证，并进入到客户下单环节。公司预期在下半年开始会看到规模上量。
    中际旭创一季度的增长显示：1）公司受供应链瓶颈的影响低于预期，高速光模块正常交付；2）AI需求将持续强劲。我们将公司2024E/25E年的收入预测分别上调25%/44%。同时，由于一季度毛利率下跌，我们将2024/2025E的毛利率略微下调0.2/0.3个百分点。毛利率下跌的原因包括：1）公司一季度高速光模块产品组合结构的变动（400G占比较高），以及2）年初产品定价调整等因素的影响。总体而言，随着800G光模块的加速出货，我们预计公司毛利率将逐季改善。我们对公司2024年整体毛利率维持在33.8%的水平持乐观态度。
    维持“买入”评级，目标价上调至183元人民币。我们将公司2024E/25E年的收入预测上调25%/44%，净利润预测上调35%/59%。新目标价基于2024E年30倍预测市盈率，接近5年历史平均远期市盈率（29倍）。我们对公司未来发展持乐观看法，原因包括：1）大型云厂商对400G/800G光模块的需求依旧强劲；2）关键零部件供应瓶颈得以改善，公司正在扩大800G光模块产能；3）本次定价调整好于预期；4）汇率影响（公司85%的收入来自海外）。综上所述，我们认为中际旭创是AI投资浪潮的核心受益标的之一，考虑其在光模块市场中的领先地位和先发优势，我们认为公司后续业务增速将保持强劲增长。

2023 net profit a miss; 1Q24 still weak; Stay on the sidelines

三一重工(600031)
    SANY Heavy (SANY)’s net profit in 2023 came in at RMB4.53bn (+6% YoY),which is 12% below both our and consensus estimates. In addition, net profit in1Q24 only grew 5% YoY to RMB1.58bn due to a lack of revenue growth (-1%YoY). We are still concerned about further slowdown of export this year, giventhe weakness in the overseas demand (in particular in Europe). We maintainour 2024E earnings forecast but revise up our 2025E estimates by 8% as wetake into consideration a moderate recovery in China’s market. Still, our newestimates remain 24%/29% below consensus. Maintain HOLD with new TP ofRMB14.8, based on 24x 2024E P/E.
    4Q23 results below expectations. Revenue declined 17% YoY toRMB17.9bn. Gross margin narrowed 1.9ppt YoY to 25.6%. EBIT wasRMB698mn (-25% YoY), largely helped by a fair value gain of RMB602mn.Net profit dropped by 29% YoY to RMB480mn.
    Slowdown of overseas revenue in 2H23. Overseas revenue in 2H23(62% of SANY’s revenue) grew 4% YoY to RMB20.8bn (slowed from 36%in 1H23). In terms of region, Europe grew 15% YoY to RMB8.1bn (39% ofoverseas revenue). Asia Pacific (ex-China) remained stable at RMB7.6bn(36% of overseas). Both America and Africa revenue dropped 6% YoY in2H23 (17%/7% of overseas).
    Sluggish 1Q24 results. Revenue dropped 1% YoY while gross marginexpanded 0.5ppt to 28.4%. Helped by lower R&D and administrativeexpense ratio, net profit grew 5% YoY to RMB1.58bn. On the positive side,operating cash flow improved significantly to RMB4.38bn (vs -RMB1.6bn in1Q23).
    Valuation. We revise up our TP to RMB14.8, based on 24x 2024E P/Ewhich is equivalent to 0.5SD above the average of 20x since 2017 (previousTP: RMB12.3, based on 19x). We now apply an above average targetmultiple as we see initial signs of stabilisation of excavator sales in China’smarket, and we expect a moderate recovery in 2025E.
    Upside risk: stabilization of property investment in China; Downside risk:further slowdown of overseas demand.

Meaningful demand recovery in 1Q24

泰格医药(300347)
    Tigermed reported1Q24revenue of RMB1,660mn,down8.0%YoY,andattributable recurring net income of RMB303mn,down20.5%YoY,which wasmainly due to the substantially reduced gains on fair value changes andinvestment changes(RMB8mn in1Q24vs RMB198mn in1Q23).1Q24revenue/attributable recurring net income accounted for19.8%/18.0%,respectively,ofour2024full-year estimates,which were largely in line with its pre-COVIDaverage level.1Q24revenue would be flat compared with1Q23if excludingCOVID vaccine related revenue.Gross profit margin(GPM)in1Q24was37.8%,significantly improved by5.0ppt QoQ,driven by ongoing cost managementmeasures as well as the MoM GPM improvements of its lab services.Accordingto mgt.,GPM would be38.5%in1Q24,flat QoQ,if excluding COVID vaccinerelated revenue.Mgt.targets to grow the attributable recurring net income by25-30%QoQ in2Q24,considering the accelerated revenue conversion fromcontracts and the cost control measures.
    Demand experiencing meaningful recovery in1Q24.According to mgt.,1Q24contract signings rebounded to double-digit growth,with Mar showingan acceleration compared to Jan and Feb.The upward trend has persistedinto April.Specifically,orders from MNC and domestic pharma clientscontributed to a notably larger proportion in total orders while orders fromthe U.S.and Australia remain robust.Encouragingly,there are signs ofrecovery in orders from domestic biotech firms,thanks to the recovery ofbiotech funding.Tigermed’s BD team will continue to focus on exploringopportunities from MNC and domestic pharma clients.
    Strengthening cost control.Tigermed plans to continue its cost control onSG&A expenses and GPM optimization.Mgt.indicated that,with its asset-light business model,Tigermed possesses ample leverage on cost controls,which,for instance,include increasing the utilization of decentralized clinicaltrial(DCT)platforms(applied in~20%projects as compared with~17%byend-2023),establishing integrated teams within specific therapeutic areas,and reallocating personnel across departments as needed.
    Globalization remaining a high priority.In the global market,Tigermedstrategically serves Chinese companies targeting global market,as well asoverseas local clients with limited access to international CRO services.Thecompany has recruited a local BD team in the U.S and is currently engagedin multiple projects with U.S.local clients.Tigermed intends to furtherexpand team sizes in the U.S.and India to enhance its global operation.
    Maintain BUY.We trim our TP from RMB68.57to RMB66.82,based on a10-year DCF model(WACC:10.95%,terminal growth:2.0%),to factor inthe slower earnings projection and uncertainties in demand recovery pace.We forecast Tigermed’s revenue to grow11.3%/16.2%/20.6%YoY andattributable recurring net income to grow11.9%/20.8%/25.6%YoY in2024E/25E/26E,respectively.