Core Viewpoint - The report from CICC indicates that TBO's performance for the first half of the 2026 fiscal year met expectations, with a year-on-year revenue decline of 6% and a net profit decrease of 10% [1] Financial Performance - TBO's revenue decreased by 6% year-on-year [1] - Net profit fell by 10% [1] - The company declared an interim dividend of 0.13 HKD, with a payout ratio of approximately 102% [1] Earnings Forecast - CICC maintains its earnings per share estimates for TBO at 0.21 HKD for the 2026 fiscal year and 0.26 HKD for the 2027 fiscal year [1] Rating and Target Price - CICC continues to rate TBO as "outperforming the industry" [1] - The target price for TBO has been raised by 23% to 4.17 HKD [1]

Group 1: Dongpeng Beverage - Dongpeng Beverage reported a revenue of 61 billion yuan in Q3, a year-on-year increase of 30.4%, and a net profit of 13.9 billion yuan, up 41.9% [1] - For the first three quarters, the total revenue reached 168.4 billion yuan, growing by 34%, with a net profit of 37.6 billion yuan, an increase of 38.9% [1] - The company anticipates achieving an annual revenue of 158.4 billion yuan in 2024, representing a 40.6% growth, and a net profit of 33.3 billion yuan [1] - Energy drinks generated 4.2 billion yuan in revenue, a 15% increase, while electrolyte drinks saw a significant 84% growth, reaching 1.35 billion yuan [1] Group 2: Coca-Cola - Coca-Cola's Q3 revenue reached 12.455 billion USD, a 5% increase, surpassing market expectations [3] - The net profit for the quarter was 3.683 billion USD, reflecting a 29% growth [3] - Global single-serve sales increased by 1%, with flagship Coca-Cola brand sales growing by 1% driven by markets in Europe, the Middle East, Africa, and Asia-Pacific [3] - The company reaffirmed its 2025 earnings guidance, expecting an 8% growth in comparable currency-neutral earnings per share [4] Group 3: Deckers Brands - Deckers Brands reported a net sales increase of 9.1% in Q2, reaching 1.431 billion USD [4] - HOKA brand sales grew by 11.1% to 630 million USD, while UGG brand sales increased by 10.1% to 760 million USD [5] - The company expects full-year net sales to be around 5.35 billion USD, slightly below analyst expectations [5] Group 4: Adidas - Adidas reported a 12% revenue growth in Q3, reaching 6.63 billion euros, driven by double-digit growth across markets and product categories [7] - The gross margin improved by 0.5 percentage points to 51.8%, with operating profit significantly increasing to 736 million euros [7] - The company raised its full-year operating profit forecast to approximately 2 billion euros [7] Group 5: Wanchen Group - Wanchen Group announced a revenue of 36.562 billion yuan for the first three quarters, a 77.37% year-on-year increase, with a net profit of 855 million yuan, up 917.04% [16] - The growth was attributed to the continuous development of the bulk snack business [16] Group 6: Baima Tea - Baima Tea's IPO was oversubscribed nearly 1900 times, with subscription amounts reaching at least 853 billion yuan [17] Group 7: Wumart Group - Wumart Group's founder expressed optimism about the development of the hard discount model, aiming to adjust AI new retail to 100 stores by year-end [18] Group 8: Jinzhai Food - Jinzhai Food reported a Q3 revenue of 685 million yuan, a 6.55% increase, but a net profit decline of 14.77% [19] Group 9: Sushi Industry - Japan's largest conveyor sushi manufacturer plans to invest approximately 300 million yen to expand its factory, increasing production capacity by 20% [20]

Group 1: Company Analysis - The report highlights the strong performance of Dongfang Caifu (300059.SZ), with a revenue of 11.589 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 58.7%, and a net profit attributable to shareholders of 9.097 billion yuan, up 50.6% year-on-year [9][10] - The company's return on equity (ROE) stands at 10.74%, an increase of 2.60 percentage points compared to the previous year [9] - The significant growth in the company's securities business, particularly in brokerage and margin financing, is attributed to the active trading environment in the capital market since Q4 2024 [9][10] Group 2: Industry Insights - The report discusses the recovery of the fund distribution business, noting that Dongfang Caifu's fund distribution scale is leading in the industry, with a total of 1.0572 trillion yuan in fund sales for the first half of 2025 [11] - The report emphasizes the resilience of the export market, with a surprising export growth rate of 6.6% in Q3 2025, indicating a robust recovery despite expectations of a decline [15] - The media industry is identified as having a favorable seasonal effect, particularly in November, suggesting a good opportunity for investment in this sector [33]

Macro Strategy - The "Innovation Bull" market is entering a consolidation phase, driven by a positive cycle of capital pricing and industrial implementation under policy guidance [1][13] - Current macro policies are still being implemented, and the "KOT" valuation system is gradually improving, with medium to long-term funds expected to enter the market annually [1][13] - Market liquidity and valuations have improved, with public fund net values exceeding 1, indicating potential for accelerated fund issuance [1][13] - The market is likely to extend towards technology sectors such as computing power, chips, robotics, and energy storage as the "Innovation Bull" evolves into a comprehensive bull market [1][13] Fixed Income - The report discusses how to identify arbitrage opportunities in the Sci-Tech Bond ETF component bonds, focusing on bonds with an implied rating of AA+ or higher and smaller issuance sizes [2][14] - The report emphasizes the importance of liquidity and credit quality in selecting bonds for inclusion in the ETF, with a preference for bonds issued by central state-owned enterprises [2][14] - The report highlights the potential for price appreciation of bonds that are included in the ETF due to passive fund inflows [2][15] Industry Analysis - The report identifies the "brain" as a key component in the development of embodied intelligence, with various companies exploring different technological paths [4][16] - The embodied intelligence market is expected to grow rapidly, with significant investment in brain technology, which is seen as the most critical and challenging aspect of the market [4][16] - Key players in the market include companies like 品茗科技, 银河通用, and Tesla, among others, with a recommendation to focus on these related stocks [4][16] Company Recommendations - 派能科技 (688063) is projected to recover from impairment and exchange rate impacts, with expected net profits of 1.0/5.0/7.2 billion yuan for 2025-2027, reflecting significant growth [5][17] - 巨子生物 (02367.HK) has received approval for its first type I recombinant collagen product, which is expected to drive growth in the medical beauty sector, with projected net profits of 25.66/32.14/40.46 billion yuan for 2025-2027 [6][18] - 联合动力 (301656) reported a slight decline in net profit but maintains a positive long-term outlook, with expected net profits of 11.3/16.8/25.8 billion yuan for 2025-2027 [7][21] - 杰瑞股份 (002353) continues to show growth potential with projected net profits of 30/35/40 billion yuan for 2025-2027, despite short-term delivery challenges [8][22]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price set for the next six months [7]. Core Insights - The company reported a revenue of 12.3 billion RMB for FY26H1, a year-on-year decrease of 5.8%, and a net profit attributable to shareholders of 789 million RMB, down 9.7% year-on-year. The gross margin stood at 41.0%, reflecting a slight decrease of 0.1 percentage points [1]. - The company is implementing a "1+N" model to enhance its retail strategy, expanding offline stores into various online scenarios, resulting in a total of 4,688 stores, a decrease of 19.4% year-on-year. However, online retail sales have seen double-digit growth, alleviating some pressure on offline traffic [2]. - The company is focusing on high-potential segments, particularly in running and outdoor sports, by partnering with brands like nordaTM and Norrøna for exclusive operations in China [3]. - The membership economy is showing significant value, with a total user base of 89 million and membership contributing 92.9% to total retail sales. High-value members contribute nearly 35% to sales, with average transaction values significantly higher than non-members [4]. Financial Projections - The report maintains its profit forecast, expecting revenues of 26.5 billion RMB, 27.3 billion RMB, and 28.6 billion RMB for FY26-28, with net profits projected at 1.3 billion RMB, 1.5 billion RMB, and 1.7 billion RMB respectively. The expected EPS is 0.21 RMB, 0.24 RMB, and 0.27 RMB for the same period [5].

Group 1: Dongpeng Beverage - Dongpeng Beverage's Q3 revenue reached 6.1 billion yuan, a year-on-year increase of 30.4%, with net profit at 1.39 billion yuan, up 41.9% [2] - For the first three quarters, revenue totaled 16.84 billion yuan, growing 34% year-on-year, while net profit was 3.76 billion yuan, an increase of 38.9% [2] - The company has surpassed its total revenue and net profit for the entire year of 2024 within the first three quarters [3] - Energy drinks generated 4.2 billion yuan in revenue, a 15% increase, while electrolyte drinks saw revenue of 1.35 billion yuan, growing 84% [3] - Dongpeng's sales model primarily relies on regional distributors, complemented by various sales channels, with over 3,200 distributors and coverage of over 4.2 million active retail points [3] Group 2: Coca-Cola - Coca-Cola's Q3 revenue reached 12.455 billion USD, a 5% increase, exceeding market expectations [4] - The company's net profit for Q3 was 3.683 billion USD, reflecting a 29% growth [4] - Global unit case volume increased by 1%, with flagship Coca-Cola brand sales growing by 1% driven by markets in Europe, the Middle East, Africa, and Asia-Pacific [4] - The company reaffirmed its 2025 earnings guidance, expecting comparable currency-neutral EPS growth of about 8% [5] Group 3: Deckers Brands - Deckers Brands reported a 9.1% increase in net sales for Q2, reaching 1.431 billion USD [6] - HOKA brand net sales grew by 11.1% to 630 million USD, while UGG brand sales increased by 10.1% to 760 million USD [6] - The company provided a full-year financial outlook, expecting net sales of approximately 5.35 billion USD, below analyst expectations [6] Group 4: Adidas - Adidas reported a 12% increase in brand revenue for Q3, reaching 6.63 billion euros [8] - The company's gross margin improved by 0.5 percentage points to 51.8%, with operating profit rising significantly to 736 million euros [8] - Based on Q3 performance, Adidas raised its full-year operating profit forecast to around 2 billion euros [8] Group 5: Wanchen Group - Wanchen Group announced a 77.37% year-on-year increase in revenue for the first three quarters, totaling 36.562 billion yuan [18] - The net profit for the same period was 855 million yuan, a staggering 917.04% increase [18] Group 6: Bama Tea - Bama Tea's IPO was oversubscribed nearly 1900 times, with subscription amounts reaching at least 85.3 billion yuan [19] Group 7: Wumart Group - Wumart Group's founder expressed optimism about the development of hard discount models in retail, with plans to expand AI new retail to 100 stores by year-end [20] Group 8: Jin Zai Foods - Jin Zai Foods reported a 6.55% increase in Q3 revenue, totaling 685 million yuan, but net profit declined by 14.77% [21]

Core Viewpoint - The company reported a revenue of 12.3 billion yuan for FY25/26 H1, a year-on-year decrease of 5.8%, and a net profit of 790 million yuan, down 9.7% year-on-year, while proposing an interim dividend of 0.13 yuan per share, with a payout ratio increasing by 2.8 percentage points to 102.2% [1] Revenue and Profit Analysis - The main brands (Nike + Adidas) and other brands (PUMA + Converse + VF, etc.) saw revenue declines of 4.8% and 12.2%, respectively, with total revenues of 10.81 billion yuan and 1.41 billion yuan, accounting for 87.9% and 11.5% of total revenue [1] - Retail and wholesale businesses experienced declines of 3.0% and 20.3%, with revenues of 10.60 billion yuan and 1.62 billion yuan, while online retail achieved double-digit growth [2] Operational Efficiency and Cash Flow - The company's gross margin decreased by 0.1 percentage points to 41.0%, primarily due to increased discounts from a higher proportion of online sales, although retail sales and brand support partially offset this impact [2] - The end-of-period inventory decreased by 4.7% to 5.83 billion yuan, with inventory turnover days increasing by 1.7 days to 150 days [2] - Net cash flow from operating activities fell by 48.2% to 1.36 billion yuan, influenced by changes in accounts receivable and payable [2] Strategic Initiatives - The company is enhancing its competitive edge through a comprehensive retail strategy and expanding its presence in running and outdoor segments, adding new partner brands and opening a multifunctional running community store in Shanghai [3] - The company aims to improve profitability and maintain a high dividend payout ratio, with expectations for profit stability in FY26 and improved margins in the long term [3] Earnings Forecast and Valuation - The company has adjusted its net profit forecasts for FY2026-27 down by 20% and 23% to 1.30 billion yuan and 1.49 billion yuan, respectively, while introducing a forecast of 1.70 billion yuan for FY28 [3] - The target price is set at 4.0 HKD, reflecting a PE ratio of 15.2x for FY27, maintaining a "buy" rating due to the company's leading position in comprehensive retail and attractive dividend yield [3]

Core Viewpoint - The company reported its FY26 interim results, which met expectations, and continued its high dividend policy, emphasizing shareholder returns Financial Performance - Revenue for the first half of FY26 decreased by 6% year-on-year to 12.3 billion yuan, while net profit attributable to shareholders fell by 10% to 790 million yuan, aligning with expectations [1] - The company proposed an interim dividend of 0.13 yuan per share, resulting in a high payout ratio of 102% [1] Brand Performance - Revenue from the main brand declined by 5% to 10.81 billion yuan, with the decline rate improving from 6% in FY25, accounting for 88% of total revenue [1] - Other brands saw a 12% drop in revenue to 1.41 billion yuan, representing 12% of total revenue, while joint venture revenue fell by 15% to 60 million yuan [1] Channel and Operational Efficiency - Direct sales revenue decreased by 3% to 10.6 billion yuan, making up 86% of total revenue, with a reduction of 332 stores to 4,688 [2] - The company is leveraging multi-channel strategies, including Douyin, mini-programs, and instant retail, resulting in double-digit growth in online retail [2] - Wholesale revenue dropped by 20% to 1.6 billion yuan, indicating ongoing adjustments [2] Cost Management - Gross margin remained stable, slightly decreasing by 0.1 percentage points to 41.0%, benefiting from brand partnerships and an increased share of retail business [2] - Sales and management expenses decreased by 5.5% year-on-year, with the expense ratio slightly increasing by 0.1 percentage points [3] - The net profit margin decreased by 0.3 percentage points to 6.4% [3] Inventory and Cash Flow - Inventory decreased to 5.8 billion yuan from 6 billion yuan at the beginning of the period, with inventory turnover days at 150 [4] - Operating cash flow was 1.35 billion yuan, down 48% year-on-year, primarily due to timing differences in accounts receivable related to seasonal sales [4] Strategic Focus - The company is committed to high-quality growth in the sports apparel retail sector, focusing on comprehensive retail strategies and brand expansion [4] - Collaboration with major brands like NIKE and Adidas continues to enhance retail capabilities and channel optimization [4] - Profit forecasts for FY26-28 are set at 1.29 billion, 1.42 billion, and 1.55 billion yuan, with corresponding P/E ratios of 15, 14, and 13 times, maintaining a "buy" rating [4]

Core Insights - The company experienced a 5.8% year-on-year decline in revenue for the first half of fiscal year 2026, totaling 12.3 billion RMB, primarily due to fluctuations in consumer demand for sports products and offline foot traffic [1] - Despite operational pressures, the company managed to maintain a gross margin of 41.0%, only slightly down by 0.1 percentage points year-on-year, aided by increased contributions from retail business and brand support [1] - The management has maintained guidance for net profit to remain flat year-on-year, with an improvement in net profit margin, while recent sales trends are expected to mirror those of the second quarter [1] Brand Performance and Strategy - The main brand saw a year-on-year decline of 4.8%, outperforming other brands which dropped by 12.2%, indicating resilience in the core brand performance [2] - The company is actively collaborating with main brands to enhance online and offline channel management and improve overall discount levels [2] - The company plans to deepen its focus on running and outdoor segments, developing new brands such as norda, soar, Ciele, and Norrna [2] Retail Transformation - The company continues to adjust its store structure and improve quality, with a net reduction of 332 direct-operated stores to 4,688 as of August 2025, alongside a 14.1% decrease in total sales area [2] - Despite the decline in offline foot traffic, the company reported double-digit growth in online retail business, exploring a multi-scenario operational model combining offline stores and online presence [2] - The management is implementing stricter standards for new and renovated stores, focusing on larger store sizes with more restrained renovation investments [2]

Core Viewpoint - The company's 1HFY26 performance met expectations, with a revenue decline of 6% year-on-year to 12.3 billion yuan and a net profit drop of 10% to 800 million yuan, while maintaining a high dividend payout ratio of approximately 102% [1][2]. Performance Review - Revenue was impacted by fluctuations in terminal retail, leading to a focus on optimizing offline channels and expanding online retail operations [1]. - The main brands, Nike and Adidas, saw a revenue decline of 5%, accounting for 88% of total revenue, while other brands experienced a 12% decline [1]. - Direct sales and wholesale revenues fell by 3% and 20% respectively, with a total of 4,688 direct stores, a decrease of 332 stores from the beginning of the fiscal year [1]. - The company opened a new running concept store, ektos, in Shanghai, showcasing innovation in offline retail formats [1]. - Online retail sales grew by double digits, supported by a diversified operational model [1]. Profitability and Cost Control - Gross margin remained stable, with a slight decrease of 0.1 percentage points to 41%, influenced by increased promotional activities in online sales and a higher retail proportion [2]. - The overall expense ratio only increased by 0.1 percentage points to 33.2%, demonstrating effective cost management despite revenue decline [2]. - The net profit margin decreased by 0.3 percentage points to 6.4%, with a net profit decline of 9.8% [2]. - Inventory management was effective, with a 4.7% decrease in inventory by the end of August [2]. - The operating cash flow was healthy, with a net cash flow of 1.35 billion yuan, supporting a high dividend payout ratio [2]. Development Trends - Management indicated that terminal retail performance in September and October would align with 2QFY26, focusing on profit maintenance and improvement in net profit margin for FY26 [2]. Earnings Forecast and Valuation - The company maintains its EPS forecasts for FY26 and FY27 at 0.21 yuan and 0.26 yuan respectively, with current stock prices reflecting 15 and 12 times the FY26 and FY27 earnings [2]. - The target price has been raised by 23% to 4.17 HKD, corresponding to 18 and 15 times the FY26 and FY27 earnings, indicating a potential upside of 20% [2].