ZTE (00763) was awarded a rising target price by UBS to HK$112.8

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Credit Suisse raised ZTE (00763) earnings per share by 14%/9%/3 over the next three years, expecting strong double-digit growth in the second half of the year, with a price target of HK$34.4.

UBS believes that the Kuaishou-W (01024) valuation is attractive, and the company expects the company's advertising revenue to increase by 101% year-on-year this year.

Xiaomo listed Li Ning (02331) as the preferred stock in China's sportswear industry, and the brand value may be further released, coupled with the continuous improvement of efficiency, it is confident in its long-term structural growth.

Damo believes that the mainland beer industry or potential price increases will become a catalyst, and the stock price of China Resources Beer (00291) will rise in the next 60 days, with a target price of HK$78.

The target price of ZTE (00763) rose to HK$36.82 and the lowest was HK$34.4

Credit Suisse: Gave ZTE (00763) a "outperform" rating the target price increased to HK$34.4

Credit Suisse said it raised ZTE (00763)'s 2021-23 earnings per share by 14%/9%/3%, respectively. The company's revenue rose 14% year-on-year to RMB30.8 billion in the third quarter, exceeding the bank's expectations; Net profit rose 108% year-on-year to RMB1.8 billion, above the median of its guidance and 32% higher than the bank's original expectations, mainly due to higher gross margin. Gross margin rose 8.1 percentage points year-on-year to 38%, exceeding expectations, benefiting from the improvement of average sales price and cost structure due to the slowdown in its own design chips and competition. Credit Suisse expects ZTE to achieve strong double-digit semi-annual growth in the second half of the year, as the three major telecom operators only completed 37% of their total annual capital expenditure budgets. The bank expects ZTE Telecom Services to grow further by 25% quarter-on-quarter in the last quarter, with the shipment of beneficiary items and revenue recognition in the accounts. Gross margin for the overall fourth quarter may remain high.

Jefferies: Maintain ZTE (00763) "Buy" rating The target price was raised to HK$36.82

Jefferies said that due to ZTE (00763) higher operating expenses, it lowered its short-term forecast, but expected a lower level of operating expenses in 2023, believing that the market's expected profit level was too low and maintaining the company's gross margin improvement and market share growth potential unchanged. According to the report, the company's revenue growth in the third quarter was delayed earlier. Revenue growth in the third quarter rose 14% year-over-year, in line with expectations. Based on the acceleration of 5G base station delivery in Q4 and the remaining spectrum 2.6/3.5GHz base station tenders may be announced soon, the year-on-year revenue growth in Q4 is expected to accelerate to 21%, especially due to weak performance in the same period last year.

In addition, the gross margin in the third quarter was 38%, which was better than expected, or driven by the high gross margin of the low-end version of 5G base stations. The bank estimates that the gross profit margin of the above base stations can reach 45%-50%, similar to 4G base stations, so it is expected that the gross profit margin of the operator will rise by 1 percentage point in 2021-26. However, the bank believes that operating expenses were higher than expected due to the cost of research and development expenses, accounting for 17.3% of revenue. The bank has raised its operating expense forecast for next year, but believes that high R&D spending is only short-term and will not rise further, especially if revenue is expected to decline from 2024. The bank expects that in 2021-26, R&D costs will maintain the revenue range of 15%-17%. For the fourth quarter, the gross profit margin was forecast to be better than expected; As well as core operating profit and net profit significantly beat expectations.

Nomura: The first "Buy" rating given to Reading Group (00772) with a target price of HK$75

Nomura said that the entire value chain of Yuwen Group's (00772) literary business is strong, covering IP production to commercialization. Mainly supported by shareholder Tencent (00700), the company has become a hot selection platform for writers to create literary content, and is willing to pay for reading because of its high-quality reader base; Well-designed incentives to encourage writers to create more engaging content; and traffic support from Tencent. Yuwen has successfully created popular IPs such as "Langya List" and "Qing Yu Nian", and it is expected that more popular IP will be released in the future.

Nomura said that Yuwen acquired Xinli Media in 2018 to commercialize high-quality IP into a variety of entertainment products, including movies, TV series and others. Tencent's strong content production ecosystem further supports Reading, covering game development, comics, and animation products. As a result, the report said, the company has entered an integrated platform to cultivate and monetize successful IP, paving the way for sustained revenue and net profit growth for many years to come.

UBS: Gave Kuaishou-W (01024) a "Buy" rating with a target price increase of 34.6% to HK$140

UBS said it maintained the Kuaishou-W(01024) GMV forecast for 2021 unchanged at 664 billion yuan and believed that the Kuaishou valuation was attractive, equivalent to a 3-fold price-to-sales ratio forecast in 2022, compared with an average of about 4 times for the industry. According to the report, the company's daily active users (DAUs) and monthly active users (MAU) growth in the third quarter was in line with expectations, reflecting the ability to retain the core user base. UBS said that the data shows that Kuaishou's user engagement has increased, mainly from the film content investment during the period, including short dramas and Olympic Games-related insiders, as well as algorithm adjustments, and it is expected that Kuaishou's advertising revenue this year will increase by 101% year-on-year.

The target price of Li Ning (02331) is as high as HK$112.8 and as low as HK$105

UBS: Maintained Li Ning's (02331) "Buy" rating The target price edged up to HK$112.8

UBS said that Li Ning (02331) sold better than expected in the third quarter and was confident of seeing the brand improve and profit margin expansion. The report mentioned that Li Ning announced that retail sales in the third quarter increased by more than 40% year-on-year, better than the bank's expectations. The bank focused on a mid-unit improvement in the company's discount levels in the third quarter compared to the same period last year, and flat with the third quarter of 2019. In terms of store network, li ning and Li Ning's YOUNG sales points expanded faster, with a net increase of 99 and 96 in the third quarter, respectively. In addition, management maintains full-year guidance. UBS believes that due to Li Ning's strong sales performance in the third quarter and the recent stock price correction, the market is expected to have a positive reaction to the stock.

Xiao Mo: Gave Li Ning (02331) an "overweight" rating the target price increased by 11.7% to HK$105

Xiaomo said that maintaining Li Ning's (02331) 2012-23 profit forecast, about 1% to 2% lower than market expectations, believes that Li Ning's brand value will be further released, coupled with the continuous improvement of efficiency, it is confident in long-term structural growth, and Li Ning is the first choice for China's sportswear industry. According to the report, the company's retail sales dematerialization rate in the third quarter increased to about 40%, exceeding market expectations by 30% to 35%, while discounts, inventory, account period structure and sell-out ratios all improved year-on-year, which is encouraging. In addition, Li Ning achieved positive growth during the National Day Golden Week in October, the sales trend further accelerated, and the sales trend since October has been stable, and it is believed that Li Ning is expected to achieve the annual growth guidelines, with sales growth of more than 40% and net profit margin of 16% to 17.5%.

Damo: Gave China Resources Beer (00291) an "overweight" rating with a target price of HK$78

Damo expects china resources beer (00291) to rise in the next 60 days, with a probability of 70% to 80%. After the company's recent stock price adjustment, it believes that the value is showing, and it is believed that the adjustment has roughly reflected the industry's sales volume in the third quarter of this year fell by 6% year-on-year (affected by the new crown epidemic). According to the bank's understanding, Cr Beer has a solid high-end trend driven by major sub-brands and above products, including Super X, Heineken and Marrsgreen. Damo believes that the mainland beer industry or potential price increases will be a catalyst, and believes that the current price of China Resources Beer is only equivalent to the forecast price-earnings ratio of 29 times in 2022, and its compound growth rate per share from 2021 to 2023 is expected to be 33%, which is considered to be attractive to its valuation.

CICC: First to helens (09869) "outperform the industry" rating with a target price of HK$24

CICC said Helens (09869) is a leading bar operator in the mainland, especially popular with the younger generation; Earnings per share are expected to reach RMB4 this year and RMB 55 next year, with an average annual compound growth rate of 216% in 2020-22. As a leader in the fast-growing bar industry, the company is expanding rapidly with its operating scale. CICC believes that the company should base its valuation on its forecast price-earnings ratio of 37 times next year, with a target market value of HK$30.4 billion.