Core Insights - Adidas reported a 7% year-on-year revenue growth for FY2025H1, reaching €12.105 billion, with a net profit increase of 121% to €798 million [4] - The brand's revenue growth was 14% on a currency-neutral basis, with all regional markets achieving double-digit growth [4] - The company maintains its full-year guidance, expecting high single-digit revenue growth on a currency-neutral basis for FY2025, with double-digit growth for the Adidas brand [4] Market Trends - The domestic market indices showed positive performance, with the Shanghai Composite Index closing at 3,617.60, up 0.96% [3] - The textile and apparel sector experienced a decline of 2.14% this week, underperforming the broader market [5] - Retail sales of sports and entertainment products grew significantly, with a 22.2% year-on-year increase in the first half of 2025 [5] Industry Dynamics - The Chinese gold consumption in the first half of 2025 was 505.205 tons, a decrease of 3.54% year-on-year, with jewelry consumption dropping by 26% [5] - The pharmaceutical industry is seeing advancements in innovative drugs, particularly in obesity treatments with GLP-1 and Amylin therapies showing promising results in clinical trials [8][11] - In the biopharmaceutical sector, ADC drugs for lung cancer are demonstrating significant efficacy, with several products showing improved outcomes in clinical trials [10][12]

Group 1 - Goldman Sachs maintains a "Buy" rating for Li Auto-W with a target price of HKD 138, expecting monthly sales of 6,000 units for its new electric SUV i8 [1] - China Biologic Products is rated "Outperform" by CMBI, highlighting its strong innovation pipeline and growth in biosimilars and generics [1] - JPMorgan upgrades Hang Lung Properties to "Overweight" with a target price of HKD 10, citing attractive dividend yield and improved sales outlook [2] Group 2 - Citi maintains a "Outperform" rating for China Overseas Property but lowers the target price to HKD 6.1, focusing on service quality improvement [3] - UBS maintains a "Buy" rating for Ping An Insurance, raising the target price to HKD 66, driven by improved macro conditions and growth in asset management [4] - UBS maintains a "Buy" rating for GCL-Poly Energy with a target price of HKD 1.9, benefiting from supply cuts and strong product quality [5] Group 3 - Macquarie maintains a "Outperform" rating for Prada but lowers the target price to HKD 60, citing lower-than-expected sales growth [6] - Goldman Sachs maintains a "Neutral" rating for CATL, adjusting the target price to HKD 436 due to expected declines in battery gross margins [7] - Goldman Sachs maintains a "Buy" rating for Kuaishou-W with a target price of HKD 68, anticipating significant revenue growth in the AI sector [8] Group 4 - Morgan Stanley maintains an "Overweight" rating for HSBC, raising the target price to HKD 107.1 due to improved earnings forecasts [9]

Group 1: Financial Performance - Hermès reported a 9% sales growth in Q2, reaching €3.9 billion, with all regions showing growth [15] - Adidas achieved a 7.3% increase in net sales to €12.1 billion, with a significant 70% rise in operating profit to €1.2 billion [2] - Prada's net revenue for H1 reached €2.74 billion, reflecting a 9.1% growth at constant exchange rates [3] - Canada Goose experienced a robust start to the fiscal year with a 22.4% increase in global revenue to CAD 107.8 million [10] - L'Oréal's sales for H1 were €22.47 billion, with a 1.6% growth, and an operating profit margin of 21.1% [9] - SMCP reported a 2.7% increase in sales to €601.1 million, with growth in all regions except Asia [11] Group 2: Management Changes - Kering appointed Luca de Meo as CEO, offering a €20 million signing bonus, which positively impacted the stock price [4] - PUMA appointed Andreas Hubert as COO, aiming to streamline operations by integrating various functions [8] - Arena announced Mark Pinger as the new Chief Brand Officer, effective October 1, 2025 [8] - Jil Sander's CEO Serge Brunschwig resigned after six months in the position [14] Group 3: Brand and Market Insights - The performance of Prada's main brand declined by 1.9%, while Miu Miu surged by 49.2%, indicating a divergence in brand performance [3] - Hermès' leather goods sales grew by 14.8%, while the watch segment faced challenges with a 5.5% decline [15][16] - L'Oréal's digital transformation efforts are beginning to show results, with a growth acceleration from Q1 to Q2 [9] - The luxury market is showing resilience, with brands like Canada Goose capitalizing on strong demand [10]

Group 1: Company Performance - Hermès reported a 9% increase in sales for the second quarter, reaching €3.9 billion, with all regions showing growth [14] - Adidas achieved a 7.3% increase in net sales for the first half of the fiscal year, totaling €12.1 billion, with a gross margin of 51.9% [2] - Prada's net revenue for the first half of the fiscal year reached €2.74 billion, reflecting a 9.1% growth at constant exchange rates [2] - Canada Goose reported a strong start to the new fiscal year with a 22.4% increase in global revenue, amounting to CAD 107.8 million [9] - Kering's stock price rose 24% following the appointment of Luca de Meo as CEO, who received a €20 million signing bonus [3] - SMCP's sales increased by 2.7% to €601.1 million, with all regions outside Asia showing growth [11] Group 2: Operational Changes - PUMA appointed Andreas Hubert as COO, effective September 1, to streamline operations and integrate various functions [6] - Arena announced Mark Pinger as the new Chief Brand Officer, effective October 1, leveraging his sports background for brand growth [7] - Jil Sander's CEO Serge Brunschwig resigned after six months, indicating potential instability in leadership [13] Group 3: Market Trends and Insights - L'Oréal's second-quarter sales grew by 1.6%, with an operating profit margin of 21.1%, indicating a positive trend in digital transformation [8] - The luxury market shows a divergence in brand performance, with Prada's main brand experiencing a slight decline while Miu Miu surged by 49.2% [2][3] - The disappearance of shares held by Hermès' largest individual shareholder may impact brand image and market confidence [5]

Core Viewpoint - The report from CICC maintains a "buy" rating for Prada (01913) but lowers the target price by 6.3% to HKD 75 due to ongoing weakness in the luxury goods sector and uncertainties surrounding the integration of Versace [1] Group 1: Target Price and Valuation - The target price corresponds to a 2025 P/E ratio of 22.6 times and a 2026 P/E ratio of 18.9 times [1] - The current stock price reflects a 2025 P/E ratio of 13.8 times and a 2026 P/E ratio of 11.2 times, indicating a potential upside of 60.3% from the target price [1] Group 2: Financial Performance - Prada Group reported a 9% year-on-year increase in net revenue for 1H25, reaching EUR 2.74 billion, in line with FactSet consensus expectations [2] - Gross margin improved to 80.1% in 1H25 from 79.8% in 1H24 due to higher operational efficiency and lower logistics costs [2] - EBIT grew by 6% year-on-year to EUR 607 million, with an EBIT margin of 22.2%, slightly below FactSet consensus of EUR 631 million [2] - Net income stood at EUR 386 million, with a net margin of 14.1%, remaining stable year-on-year [2] - As of June 30, 2025, the group held net cash of EUR 352 million [2] Group 3: Growth Drivers - Despite uncertainties related to the Versace acquisition, Prada Group is expected to be one of the best-performing luxury companies in 2025, driven by: 1) Expansion of retail space for Prada and Miu Miu brands, expected to accelerate in 2H25 [1] 2) Increased production of leather goods for the Miu Miu brand [1] 3) Consistency in creativity while many peers undergo design transformations in 2025 [1]

Core Viewpoint - The investment bank maintains an "outperform" rating for Prada (01913) but has lowered the target price by 6.3% to HKD 75 due to ongoing weakness in the luxury goods sector and uncertainties surrounding the integration of Versace [1] Group 1: Financial Performance - Prada Group reported a 9% year-on-year increase in net revenue for 1H25, reaching EUR 2.74 billion, in line with FactSet consensus expectations [2] - Gross margin improved to 80.1% in 1H25 from 79.8% in 1H24, driven by higher operational efficiency and lower logistics costs [2] - EBIT grew by 6% year-on-year to EUR 607 million, with an EBIT margin of 22.2%, slightly below FactSet consensus of EUR 631 million due to non-recurring expenses related to the Versace acquisition and increased marketing costs [2] - Net income stood at EUR 386 million, with a net margin of 14.1%, remaining stable year-on-year primarily due to timing adjustments in tax payments [2] - As of June 30, 2025, the group held net cash of EUR 352 million [2] Group 2: Growth Drivers and Outlook - Despite uncertainties regarding the Versace integration, the bank believes that excluding Versace, Prada Group could be one of the best-performing luxury companies in 2025, with expected revenue growth above industry average and rare EBIT margin expansion potential [1] - Key growth drivers include the expansion of retail space for the Prada and Miu Miu brands, expected to accelerate in 2H25, increased production of Miu Miu leather goods, and maintaining creative consistency while many peers undergo design transformations in 2025 [1] - The current valuation of Prada Group is considered attractive based on the 2025 earnings outlook and long-term prospects [1]

Core Viewpoint - Prada's performance in the first half of the year was slightly below expectations, with revenue of €2.74 billion, which is 2% lower than both the bank's and market's forecasts [1] Group 1: Financial Performance - Prada's retail net sales for the Prada and Miu Miu brands were slightly below expectations, with a decline of 3.6% for Prada and an increase of 40% for Miu Miu [1] - The company's sales increased by 9% year-on-year when calculated at constant exchange rates, aligning closely with Macquarie's predictions [1] - Net profit increased by 0.6% year-on-year, which was 7% lower than Macquarie's forecast due to non-recurring costs associated with the acquisition of Versace [1] Group 2: Market Conditions - The demand for travel consumption has been under pressure in the third quarter, with Miu Miu facing the most significant year-on-year comparative base pressure [1] - Management expects overall tourist traffic in Japan and Europe to stabilize year-on-year by the end of August [1] Group 3: Strategic Outlook - The company aims to prioritize enhancing brand value and believes there is still room for improvement in profitability through operational leverage [1] - Management believes that Miu Miu's penetration rate remains low in many countries, indicating potential for further improvement in product categories and combinations [1]

Core Viewpoint - Prada Group's 1H25 performance shows a mixed result with net income growth but EBIT falling short of market expectations, indicating potential challenges ahead [1][2] Financial Performance - Net revenue for 1H25 increased by 9% year-on-year to €2.74 billion, aligning with FactSet consensus [1] - EBIT grew by 6% year-on-year to €607 million, with an EBIT margin of 22.2%, slightly below the expected €631 million [1] - Gross margin improved to 80.1% in 1H25 from 79.8% in 1H24 due to higher operational efficiency and lower logistics costs [1] - Net income stood at €386 million with a net margin of 14.1%, down from 15.0% in 1H24, primarily due to tax payment timing adjustments [1] Development Trends - Despite uncertainties surrounding the integration of Versace, Prada Group is expected to be one of the best-performing luxury companies in 2025, with anticipated revenue growth above industry average and potential EBIT margin expansion [1] - Key growth drivers include retail space expansion for Prada and Miu Miu brands, increased volume of Miu Miu leather goods, and maintaining creative consistency amid design transformations in the industry [1] Earnings Forecast and Valuation - The financials of Versace have not yet been incorporated into the group's reports, pending transaction completion expected in 2H25 [2] - The target price has been reduced by 6.3% to HKD 75, reflecting ongoing challenges in the luxury sector and uncertainties related to the Versace integration [2] - The target price corresponds to a 2025 P/E ratio of 22.6 times and a 2026 P/E ratio of 18.9 times, with current stock price reflecting a significant upside potential of 60.3% [2]

Group 1 - The core viewpoint of the report is that Citi has downgraded Prada's net profit forecast for 2025 to 2027 by 5% to 6% due to lower sales expectations for Prada and Miu Miu, along with increased advertising and promotional expenses and sales cost forecasts [1] - The valuation basis has been adjusted, with the expected enterprise value to EBIT ratio reduced from 13 times to approximately 9 times, and the target price lowered from HKD 72 to HKD 50, while maintaining an "outperform" rating due to Miu Miu's growing market share and attractive risk-reward ratio [1] - Prada's performance in the first half of the year was slightly below expectations, with revenue recorded at EUR 2.74 billion, which is 2% lower than both Citi's and market expectations, primarily due to slightly disappointing retail net sales for both Prada and Miu Miu brands, which fell by 3.6% and increased by 40% respectively [1] Group 2 - The optimization of channel structure has led to a gross margin that exceeded expectations, but the costs associated with the acquisition of Versace and weak sales have resulted in net profit falling below expectations [1] - The demand for travel consumption has continued to be under pressure in the third quarter to date, and Miu Miu is expected to face the most significant year-on-year comparative base pressure [1]

Group 1 - The core viewpoint of the report indicates that Prada's sales for the first half of the year increased by 9% year-on-year when calculated at constant exchange rates, aligning closely with Macquarie's forecasts [1] - Net profit rose by 0.6% year-on-year, which was 7% lower than Macquarie's predictions, primarily due to non-recurring costs associated with the acquisition of Versace [1] - Macquarie has revised its net profit forecasts for Prada for the years 2025 to 2027 downwards by 7.6%, 7.1%, and 6.6% respectively, to account for the first half performance and brand investments [1] Group 2 - The target price for Prada has been reduced by 8% from HKD 65 to HKD 60, while maintaining an "outperform" rating [1] - Management anticipates that overall tourist traffic in Japan and Europe will stabilize year-on-year by the end of August [1] - The company aims to enhance brand value and believes there is still room for improvement in profitability through operational leverage [1] Group 3 - Management believes that Miu Miu's penetration rate remains low in many countries, indicating further potential for improvement in product categories and combinations [1]