Core Viewpoint - Haitong International expects Hu Shang Ayi (02589) to achieve revenues of 4.22 billion, 4.92 billion, and 5.63 billion CNY for the years 2025-2027, with adjusted net profits of 540 million, 620 million, and 710 million CNY respectively, assigning a target price of 105 HKD based on a 16X PE valuation for 2026, and initiating coverage with an outperform rating [1] Group 1: Company Overview - Hu Shang Ayi is a leading fresh beverage company in China, projected to surpass 10,000 stores by the end of 2025, becoming the third fresh tea beverage brand in the country to achieve this milestone [2] - The company is leveraging its scale and channel advantages to strengthen its position in the market, as the window for new brands to rapidly scale has closed, leading to a landscape where strong brands will dominate [2] Group 2: Business Strategy - The company operates with a "one body, two wings" business model, focusing on Hu Shang Ayi in China and the Tea Waterfall brand along with overseas markets as growth drivers [3] - Hu Shang Ayi's rapid expansion is attributed to its effective management philosophy, which emphasizes mutual benefits and resource sharing, as well as a focus on health-oriented products targeting specific customer demographics [3] - The company has established a low-threshold store model and an inclusive franchise system, which allows for sustainable expansion through new franchisee investments and improved single-store profitability [3] Group 3: Growth Engines - The Tea Waterfall brand is designed for lower-tier markets, creating a distinct identity while benefiting from the main brand's resources, while overseas expansion targets developed markets with successful store openings [4] - Both channel penetration and international expansion are seen as correct strategic directions for the brand, with significant potential for growth as these initiatives are still in their early stages [4] Group 4: Financial Forecast - The company is expected to stabilize its market share with over 2,000 new Hu Shang Ayi stores and over 1,000 new Tea Waterfall stores by 2026, with same-store sales expected to remain stable despite high bases due to delivery subsidies in 2025 [5]

Group 1 - The core viewpoint of Haitong International is to maintain an "outperform" rating for Maogeping (01318), with a target price of HKD 108.2, indicating a potential upside of 23.1% based on a 32X PE for 2026. The firm believes that the brand strength and fundamentals remain solid, with the company's core value lying in its strong high-end brand positioning and continuous product innovation [1] Group 2 - Haitong International expects Maogeping to continue strong growth in the second half of 2025, benefiting from robust offline same-store performance driven by sales volume, despite a weakening consumer spending power in the latter half of the year. The expansion of membership and high repurchase rates support sales growth [2] - The company is projected to achieve revenues of RMB 5.101 billion, RMB 6.489 billion, and RMB 8.115 billion for 2025-2027, representing year-on-year growth of 31.3%, 27.2%, and 25.0% respectively. Net profit attributable to the parent company is expected to be RMB 1.201 billion, RMB 1.494 billion, and RMB 1.848 billion for the same period, with growth rates of 36.4%, 24.4%, and 23.7% respectively [2] Group 3 - The company has signed a strategic agreement with investment institution Luwei Kaiteng to inject internationalization and capitalization momentum, focusing on global market expansion, establishing a high-end beauty investment fund, and optimizing corporate governance. This collaboration is expected to significantly enhance the company's penetration in overseas high-end markets and open up avenues for future growth through the investment fund platform [3] Group 4 - The company's controlling shareholders and some directors plan to reduce their holdings by up to 3.51% of the total share capital, equating to a maximum of 1,720 shares, valued at approximately HKD 15.1 billion based on the closing price of HKD 87.95 per share on January 7. The reduction is primarily for personal financial planning, and the company emphasizes that this will not lead to a change in control, as the founding family will maintain around 70% ownership [4]

Group 1 - The core viewpoint of Haitong International is to maintain an "outperform" rating for Maogeping (01318), with a target price of HKD 108.2, indicating a potential upside of 23.1% based on a 32X PE for 2026. The firm believes in the company's strong brand power and fundamentals, highlighting its high-end brand positioning and continuous product innovation as key value drivers [1][2]. Group 2 - It is anticipated that Maogeping will continue its strong growth in the second half of 2025, benefiting from robust offline same-store performance driven by sales volume, despite a weakening consumer spending environment. The expansion of membership and high repurchase rates are expected to support sales growth [2]. - The company is projected to achieve revenues of CNY 5.101 billion, CNY 6.489 billion, and CNY 8.115 billion for 2025-2027, reflecting year-on-year growth rates of 31.3%, 27.2%, and 25.0%, respectively. Net profit attributable to the parent company is expected to be CNY 1.201 billion, CNY 1.494 billion, and CNY 1.848 billion, with growth rates of 36.4%, 24.4%, and 23.7% [2]. Group 3 - The company has signed a strategic agreement with investment institution Luwei Kaiteng to inject internationalization and capitalization momentum, focusing on global market expansion, establishing a high-end beauty investment fund, and optimizing corporate governance. Successful implementation of this cooperation is expected to significantly enhance the company's penetration in overseas high-end markets [3]. Group 4 - The company's controlling shareholders and some directors plan to reduce their holdings by up to 3.51% of the total share capital, equating to a maximum of 1,720 shares, valued at approximately HKD 15.1 billion based on the closing price of HKD 87.95 per share on January 7. The company emphasizes that this reduction will not lead to a change in control, as Maogeping and its relatives will maintain around 70% of the company's equity [4].

Core Viewpoint - The report from Haitong International indicates a rebound in investor risk appetite during the New Year period, with expectations for the consumer staples sector to follow suit, although the overall fundamentals lack catalysts [1] Demand - Among the eight key consumer sectors tracked in December, four showed positive growth while four experienced negative growth. The growing sectors included condiments, frozen foods, soft drinks, and dining, while the declining sectors included high-end and mid-range liquor, dairy products, and beer. Compared to the previous month, most sectors, except high-end liquor, saw improvements in year-on-year growth rates [2] Pricing - In December, the prices of most liquor products stabilized, with specific prices for various brands noted. For example, the price for Feitian liquor was 1600 yuan per box, down 50 yuan from the previous month and down 720 yuan year-on-year. The price for Wuliangye was 820 yuan, up 20 yuan from the previous month but down 100 yuan year-on-year [3] Cost - The cost index for six categories of consumer goods showed mixed results in December. The cost indices for soft drinks, instant noodles, condiments, dairy products, frozen foods, and beer changed by +1.06%, +0.49%, -0.29%, -0.45%, -0.54%, and -1.05% respectively. Prices for raw materials such as aluminum cans and paper saw significant year-on-year changes [4] Capital - As of the end of December, net inflows into Hong Kong Stock Connect amounted to 20.825 billion yuan, a decrease from the previous month's inflow. The market capitalization of the consumer staples sector accounted for 5.61% of the total, an increase of 0.2 percentage points from the previous month [5] Valuation - By the end of December, the historical PE ratio for A-share food and beverage sectors was at 16% (20.3x), a decrease of 5 percentage points from the previous month. The median valuation for leading food and beverage companies in A-shares remained stable at 22x [6]

Group 1 - The core viewpoint of the article is that Baidu plans to spin off its non-wholly-owned subsidiary Kunlun Chip and list it independently on the Hong Kong Stock Exchange, which is seen as a timely move to capitalize on the IPO wave of GPU suppliers [1] - According to IDC data, Kunlun Chip ranks third in terms of shipment volume with 69,000 units projected for 2024 [1] - The Chinese AI chip market is expected to grow from 142.5 billion yuan in 2025 to 1.3368 trillion yuan by 2029, reflecting a compound annual growth rate of 53.7% [1] Group 2 - Prior to the latest financing round, Baidu held a 59% stake in Kunlun Chip and is expected to maintain a 50% stake post-IPO [1] - Using the valuation benchmark of three times the valuation of Muxi, Kunlun Chip could contribute approximately $29.2 billion to Baidu's market value after applying a 40% discount; without the discount, the contribution could be around $48.7 billion [1] - Baidu's traditional business is valued at $34.7 billion, calculated based on a net profit of 24.3 billion yuan for 2026 and a price-to-earnings ratio of 10 times, leading to a total estimated market value of Baidu at approximately $64.5 billion, excluding potential value releases from Baidu's Apollo Go and other assets [1]

Core Viewpoint - Haitong International initiates coverage on Leshush with a target price of HKD 40.5 and an "Outperform" rating, indicating positive expectations for the company's future performance [1] Group 1: Business Strategy - The company is expected to replicate its existing operational model in Africa to expand into emerging markets such as Latin America, which share similar demographics and consumer attributes [1] - The focus will be on expanding product offerings in health care and hygiene-related sectors [1] Group 2: Growth Opportunities - Strategic acquisitions are anticipated to be a key method for the company to rapidly acquire brand assets and market entry [1]

Core Viewpoint - Haitong International initiates coverage on Leshushi (02698) with an "Outperform" rating and a target price of HKD 40.5, reflecting a strong growth outlook driven by its leading position in the African hygiene products market [2] Group 1: Company Overview - Leshushi is a multinational hygiene products company focused on emerging markets such as Africa, Latin America, and Central Asia, specializing in the development, manufacturing, and sales of baby diapers, baby pull-ups, sanitary napkins, and wet wipes [3] - According to Frost & Sullivan data, Leshushi ranks first in Africa's baby diaper and sanitary napkin markets by sales volume, with market shares of 20.3% and 15.6% respectively, and ranks second by revenue with market shares of 17.2% and 11.9% [3] Group 2: Growth Drivers - The combination of population growth and urbanization in Africa, along with low penetration rates of baby and female hygiene products, drives significant industry growth potential, with Leshushi showing strong growth momentum in both baby diapers and sanitary napkins [4] Group 3: Competitive Advantages - Leshushi employs a differentiated brand strategy, having developed a strong brand matrix since launching its core brand Softcare in Ghana in 2009, now encompassing over 340 SKUs across four core categories [5] - The company has established local production capabilities in eight African countries, with eight factories and 51 production lines, making it the largest local manufacturer of hygiene products in Africa, which enhances cost efficiency and consumer engagement [5] - Leshushi has a deep multi-channel sales network that reaches over 80% of the local population in key operating countries, with a presence in over 30 countries and 18 sales branches serving more than 2,800 customers [5] Group 4: Future Growth Strategy - Leshushi plans to replicate its successful "African model" in Latin America and other emerging markets to create a sustainable second growth curve [6] - The company aims to expand its product categories through channel reuse and acquisitions, transitioning from a leading hygiene products company to a leading fast-moving consumer goods group [6]

Core Viewpoint - Haitong International forecasts that Leshushi (02698) will achieve revenues of $5.5 billion, $6.5 billion, and $7.6 billion for the years 2025-2027, representing year-on-year growth of 21%, 17%, and 17% respectively. Adjusted net profits are expected to be $1.1 billion, $1.3 billion, and $1.5 billion for the same years, with year-on-year growth of 14%, 17%, and 17% respectively. Given Leshushi's leading position in the African hygiene products market and the structural opportunities from Africa's demographic dividend and increasing penetration rates, a 25x PE ratio for 2026 is suggested, corresponding to a reasonable market value of HKD 25.1 billion and a target price of HKD 40.5 [1][2]. Company Overview - Leshushi is a multinational hygiene products company focused on emerging markets such as Africa, Latin America, and Central Asia, primarily engaged in the development, manufacturing, and sales of baby diapers, pull-ups, sanitary napkins, and wet wipes. According to Frost & Sullivan data, the company ranks first in Africa's baby diaper and sanitary napkin markets by sales volume for 2024, with market shares of 20.3% and 15.6% respectively. By revenue, it ranks second in both markets, with shares of 17.2% and 11.9% respectively [2]. Growth Drivers - The combination of Africa's population growth and accelerated urbanization, along with the low penetration rates of baby and female hygiene products, drives significant industry growth potential. Leshushi demonstrates leading growth momentum in both the baby diaper and sanitary napkin markets, supported by a product matrix that covers premium, mid-range, and mass-market segments [3]. Core Competencies - Differentiated brand strategy with a strong brand matrix: Since launching its core brand Softcare in Ghana in 2009, the company has expanded to include brands such as Maya, Veesper, Cuettie, and Clincleer, creating a comprehensive brand matrix covering four core categories. As of April 2025, the company has over 340 SKUs across these categories [4]. - Localized production and supply chain management: The company initiated local production in Ghana in 2018 and has established eight factories and 51 production lines across eight African countries by April 2025, making it the hygiene products company with the most local factories in Africa. The "locally produced, locally sold" model significantly shortens the sales chain, reduces costs, and enhances consumer engagement [4]. - Extensive multi-channel sales network: As of April 2025, the sales network has expanded to over 30 countries in Africa, Latin America, and Central Asia, with 18 sales branches in 12 countries serving over 2,800 customers. The network covers all administrative regions in key operating countries, reaching over 80% of the local population [4]. Future Growth Strategy - Regional expansion: Leshushi aims to replicate its successful "African model" in Latin America and other emerging markets with similar demographics and consumption patterns, creating a sustainable second growth curve [5]. - Category expansion: The company plans to leverage existing channel networks and consumer insights to expand into health care and hygiene-related products, while also considering strategic acquisitions to rapidly gain brand assets and market entry [5].

Core Viewpoint - Haitong International initiates coverage on Geek+ (02590) with an "Outperform" rating, projecting significant growth in net profit and revenue from 2025 to 2027 [1] Financial Projections - Expected net profits for Geek+ are projected to be 137 million, 332 million, and 606 million RMB for the years 2025, 2026, and 2027 respectively [1] - Revenue forecasts for the same period are 3.13 billion, 4.03 billion, and 5.12 billion RMB [1] Business Structure and Valuation - The company has a clear main business structure and significant technological advantages [1] - Haitong International applies a price-to-sales ratio valuation, assigning a 10x price-to-sales ratio for 2026, leading to a reasonable market capitalization of 40.3 billion RMB [1] - The target price for the company is set at 32.76 HKD [1]

Core Viewpoint - Haitong International has initiated coverage on Geek+ (02590) with an "Outperform" rating, projecting significant growth in net profit and revenue from 2025 to 2027 [1] Financial Projections - The projected net profits for Geek+ from 2025 to 2027 are expected to be 137 million, 332 million, and 606 million RMB respectively [1] - The anticipated revenues for the same period are forecasted to be 3.13 billion, 4.03 billion, and 5.12 billion RMB respectively [1] Valuation and Market Position - Haitong International highlights the company's clear business structure and significant technological advantages [1] - The company is assigned a 10x price-to-sales ratio for 2026, leading to a reasonable market capitalization estimate of 40.3 billion RMB [1] - The target price for the company's stock is set at 32.76 HKD [1]