1H25前瞻：预期盈利转机按计划进行
FY25EFY26EFY27E5,9236,5937,2126.011.39.4182.1257.2294.5nana41.214.51.872.643.03nana41.214.5na1.902.603.00ns6.14.43.80.40.40.30.30.00.00.00.06.07.88.24.818.0(33.4)(22.2) Target PriceHK$0.123(Previous TPHK$0.112)Up/DownsideCurrent PriceHK$0.115China TechnologyAlex NG(852) 3900 0881alexng@cmbi.com.hkHanqing LIlihanqing@cmbi.com.hkStock DataMkt Cap (HK$ mn)1,117.7Avg 3 mths t/o (HK$ mn)52w High/Low (HK$)0.15/0.07Total Issued Shares (mn)Source: FactSetShareholding StructureLandmark Worldwide HoldingsWang Ya NanSource: HKExShare PerformanceAbsoluteRelative16.2%57.5%43.8%Source: FactSet12-mth Price PerformanceSource: FactSet 7.4%0.99719.0Ltd24.4%7.8%1-mth12.0%3-mth36.4%6-mth13.6% PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGEEarnings RevisionFigure1: Earnings revision(HK$mn)FY25ERevenue5,923Gross profit957Operating profit90Net profit182EPS (HK$)0.019Gross margin16.2%Operating margin1.5%Net Margin3.1%Source: Company data,CMBIGMestimatesFigure2: CMBIGMestimates vs consensus(HK$ mn)FY25ERevenue5,923Gross profit957Operatingprofit90Net profit182EPS (HK$)0.019Gross margin16.2%Operating margin1.5%Net Margin3.1%Source: Company data,Bloomberg,CMBIGMestimatesFigure3: Revenue breakdownHK$ mnConsumer electronics… YoYHandsets…YoYMetal…YoYNon-metal…YoYApple…YoYElectrical appliances…YoYMotors…YoYNetwork…YoYHousehold goods…YoYTotal…YoYSource:Companydata,CMBIGMestimates PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGEValuationMaintain BUY with newTPofHK$0.123We largely maintain our FY25-27E EPS estimates, and our new TP of HK$0.123(vsprior HK$0.112)is based on higher 6.6x FY25E P/E (vs prior 6.0x) given recent sectorre-rating and higher earnings visibility.Our 6.6x target P/E multiple isat a30% discountto 9.0x 10-year avg.forwardP/E.We believe the stock is undervalued, given its 66.2%shareholdingin A-share subsidiary,Tongda Smart Tech(001368 CH;mkt cap:HK$3.2bn), and Tongda’s FY24 net cash of HK$635mn.Figure5: 12M forward P/E bandSource: Company data,CMBIGM estimates-0.50.00.51.01.52.02.53.0Jan/14Jan/15Price (HKD)Closing Px11x Jan/16Jan/17Jan/18Jan/19Jan/20Jan/21Jan/22Jan/23Jan/245x8x14x17x Figure6: 12M forward P/B bandSource: Company data,CMBIGM estimatesJan/250.00.51.01.52.02.53.03.5Jan/14Jan/15Jan/16Jan/17Jan/181-yr Forward P/EMean+1SD PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGEDisclosures& DisclaimersAnalyst CertificationThe research analyst who is primary responsible for the content of this research report, in whole or in part, certifies thatwith respectto the securities or issuerthat the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and FuturesCommission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to the date of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date ofissue of this report; (3) serve as an officer of any of the HongKong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies coveredin this report.CMBIGM RatingsBUY: Stock withpotential return of over 15% over next 12 monthsHOLD: Stock with potential return of +15% to-10% over next 12 monthsSELL: Stock with potential loss of over 10% over next 12 monthsNOT RATED: Stock is not rated byCMBIGMOUTPERFORM:Industry expected to outperform the relevant broad market benchmark over next 12 monthsMARKET-PERFORM:Industry expected to perform in-line with the relevant broad market benchmark over next 12 monthsUNDERPERFORM:Industryexpected to underperform the relevant broad market benchmark over next 12 monthsCMB InternationalGlobal MarketsLimitedAddress: 45/F, Champion Tower, 3 Garden Road, Hong Kong, Tel: (852) 3900 0888 Fax: (852) 3900 0800CMB InternationalGlobalMarketsLimited (“CMBIGM”) is a wholly owned subsidiary of CMB International Capital Corporation Limited (a wholly ownedsubsidiary of China Merchants Bank)Important DisclosuresThere are risks involved in transacting in any securities. The information contained in this report may not be suitable forthe purposes of all investors.CMBIGMdoes not provide individually tailored investment advice. This report has been prepared without regard to the individual investment objectives, financial positionor special requirements. Past performance has no indication of future performance, and actual events may differ materially from that which is contained in thereport.The value of, and returns from, any investments are uncertain and are not guarant
