Big Bank Quick Look | MEITUAN-WR, BIDU-SWR, CLOUD MUSIC! Target prices all raised! LEAPMOTOR faces significant "price cut"

JPMorgan: Maintains "Buy" rating on MEITUAN-WR, raises target price by 3% to HKD 195

Based on the latest closing price of HKD 134.7, this price implies a 45% upside potential!

The bank expects investors' concerns about competition to further ease in the coming quarters due to its effective competitive strategy and robust execution.

The report states that the company's second-quarter performance should be reassuring to investors as it demonstrates the initial effectiveness of its competitive strategy and a good return on investment. Over the past three months, the performance of MEITUAN-WR's stock price has been in line with that of its peers, indicating that it has yet to fully reflect the better-than-expected recovery in local service demand and the better-than-expected execution of its in-store operations.

JPMorgan: Maintains "Buy" rating on Baidu, raises target price by 5% to HKD 195

Based on the latest closing price of HKD 132.7, this price implies a 47% upside potential!

The bank believes that Baidu's second-quarter performance indicates that investors have been overly concerned about the company, and the revenue exposure of Baidu's offline categories allows its core advertising business to achieve resilient growth.

The bank expects Baidu's core advertising revenue to increase by 10% YoY to CNY 20.7 billion in the third quarter, mainly driven by the gradual implementation of consumption stimulus measures in July and August, which is expected to continue to drive the recovery of domestic consumption and further increase demand from advertisers. The bank also expects Baidu's cloud revenue to increase by 8% and 9% YoY in the third and fourth quarters, respectively. The bank has raised its adjusted operating profit forecasts for Baidu this year and next year by 5% and 9%, respectively.

Macquarie: Maintains "Outperform" rating on NetEase, raises target price by 7% to HKD 190

Based on the latest closing price of HKD 158, this price implies a 20% upside potential!

The bank states that NetEase's second-quarter revenue increased by 4% YoY to CNY 24 billion, which was lower than expected. However, the adjusted net profit increased by 67% YoY to CNY 9 billion, surpassing expectations. The bank also expects revenue growth of 13% YoY in the third quarter.

The bank states that the second-quarter revenue from games and value-added services was CNY 19 billion, a 4% YoY increase, and has raised the revenue forecast for this business by 6% and 7% for this year and next year, respectively. The bank has also raised its adjusted net profit forecast for the company by 22% and 12% for this year and next year, respectively.

Bank of America: Maintains "Neutral" rating on LeapMotor, lowers target price by 10% to HKD 44

Based on the latest closing price of HKD 37.6, this price implies a 17% upside potential!

The bank states that LeapMotor announced its performance for the first half of this year, with a second-quarter gross margin of -5.2%. Although it has improved compared to the -25.5% in the same period last year and the -7.8% in the first quarter of this year, it is still slightly below expectations. As for the second quarter, the loss attributable to common shareholders was 1.1 billion yuan, showing an improvement compared to the loss of 1.4 billion yuan in the same period last year, and also better than the bank's expected loss of 1.3 billion yuan.

The bank stated that the group will launch the EREV version of CO1 in the second half of this year, and will also introduce two new models next year. Therefore, the sales expectations for the period from this year to 2025 have been revised upward by 10%, 12%, and 7% respectively. However, due to the decrease in the average selling price of products, the revenue forecast has been lowered by 7%, 3%, and 9%.