Rating Quick Look | Pinduoduo, Xiaomi, Bilibili, Apple, Beike! All target prices have been raised!

Goldman Sachs: Upgrades Pinduoduo's rating from "Neutral" to "Buy", with a target price raised from $145 to $184.

The report indicates that following a significant growth in Pinduoduo's performance, the recent online marketing revenue growth and the group's profit expectations for the fiscal years 2024 to 2026 have been raised by 25% to 43% to reflect the continued momentum in first-quarter advertising revenue growth. Due to Pinduoduo's domestic business cost structure being more streamlined than expected, the group's net profit expectations for 2024 and 2025 have been raised to 138 billion and 177 billion respectively, with Pinduoduo's valuation currently at 11 times and 9 times the price-to-earnings ratio for 2024 and 2025.

Goldman Sachs: Reiterates "Buy" rating for Xiaomi Corporation-W, with a slight increase in target price from HK$22.6 to HK$23.

The group's overseas revenue contribution has increased year-on-year for the first time since the fourth quarter of 2022, reaching 50.2%, with revenue growing by 40%, while mainland revenue increased by 16% year-on-year. The bank expects this trend to continue in the coming years in businesses such as smartphones, IoT, and the internet, providing Xiaomi with the potential for rising profit margins.

The bank points out that the group's first-quarter performance in 2024 exceeded expectations, with smartphone revenue increasing by 33% year-on-year, and Xiaomi's market share in each major region also increasing year-on-year; MIUI's monthly active users globally and in mainland China increased by 11% and 10% respectively year-on-year, driving internet service revenue and overseas internet revenue up by 15% and 39% year-on-year respectively, the fastest growth since the second quarter of 2022.

At the same time, the gross profit margin also increased by 2.8 percentage points year-on-year to 22.3%; the management raised Xiaomi's SU7 delivery target to 100,000 to 120,000 units by the end of 2024, higher than the bank's forecast of 100,000 units, and the management indicated that the gross profit margin for the smart electric vehicle business in 2024 is expected to be around 5% to 10%, and can be achieved in the second quarter of 2024.

Goldman Sachs: Raises Bilibili's H-share target price from HK$107 to HK$115, with a "Neutral" rating.

The report points out that Bilibili's first-quarter performance met expectations, benefiting from lower cost of goods sold and higher interest income, with adjusted net loss per ADS better than expected. Looking ahead to the second quarter of this year, the management provided a positive outlook for the advertising business, indicating that the growth momentum is healthy and sustainable, the game business is recovering to year-on-year growth, and reiterated the goal of achieving a balance between non-GAAP operating income and expenses in the third quarter of this year.

Due to the company's slightly better operational performance than previously guided, the bank believes that the continued execution of advertising technology upgrades, stabilization of the game business, and improvement in gross profit margin will be key areas of focus in the future. The bank raised its revenue forecasts for 2024 to 2026 by 2% to 3% reflecting advertising revenue growth and a better recovery in the game business, and raised net profit margin forecasts for each year by 1.0%, 0.7%, and 0.6% respectively.

Jefferies: Raises Beike's target price from $17 to $19.8, maintains a "Buy" rating.

The report points out that Beike's first-quarter revenue met market expectations, but exceeded the bank's expectations, especially with total transaction value (GTV) surpassing expectations. The bank expects the overall GTV for the second quarter to remain flat year-on-year at 780 billion yuan, with existing home transactions being the main growth driver, while new home transaction declines are narrowing The bank estimates that the group will reinvest in various areas this year to increase market share, while maintaining its leading competitive position in the real estate transaction market. The bank expects Beike's second-quarter revenue to increase by 8% year-on-year (previously forecasted to increase by 5%) to 21 billion yuan. Considering reinvestment in trading projects and new businesses, the overall gross profit margin is expected to remain stable at around 25%, with a non-GAAP net profit margin of 7% (previously expected 9.5%).

Wedbush: Raises Apple's target price from $250 to $275

The main reason for the adjustment is the expectation of a super cycle for the iPhone 16 driven by artificial intelligence technology, which will add $30 to $40 per share to the company's value. The upcoming Worldwide Developers Conference (WWDC) is a key moment for the company