Investment Rating - The report assigns an "Outperform" rating to multiple companies including Nike, Midea Group, JD Group, Haier Smart Home, Gree Electric, Anta Sports, and many others, indicating a positive outlook for these stocks [1]. Core Insights - The gold and jewelry sector has emerged as the top performer this week, driven by new consumer sentiment and the upcoming Spring Festival, which is expected to boost sales [4][14]. - The overall performance of various sectors shows significant fluctuations, with gold and jewelry leading the gains, while sectors like luxury goods and U.S. hotels are experiencing declines [12][15]. - The report highlights that the valuation of various sectors remains below their historical averages, suggesting potential investment opportunities [10][17]. Sector Performance Summary - **Gold and Jewelry**: This sector saw a weekly increase of 12.9%, with notable stock performances from Lao Pu Gold (+20.5%) and Chao Hong Ji (+12.3%) due to positive sales forecasts [6][14]. - **Gambling**: The gambling sector increased by 2.9%, with companies like MGM China and Galaxy Entertainment showing strong market share growth [14]. - **Overseas Cosmetics**: This sector rose by 2.1%, driven by E.L.F. Beauty's stock increase of 4.6% following positive earnings forecasts [14]. - **Retail**: The retail sector increased by 2.0%, with Wanchen Group's stock rising by 14.3% due to optimistic revenue expectations [14]. - **Domestic Cosmetics**: This sector saw a modest increase of 0.9%, with companies like Proya and Runben showing positive stock movements [8][14]. - **Snacks**: The snack sector increased by 0.6%, with Youyou Foods and Qiaqia Foods showing gains [14]. - **Pet Sector**: This sector experienced a slight decline of 0.4%, with Zhongchong Co. facing stock price pressures [14]. - **Domestic Sportswear**: This sector decreased by 1.4%, with Anta Sports experiencing a notable decline of 6.1% [14]. - **U.S. Hotels**: This sector fell by 1.4%, with major hotel chains like Marriott and Hilton reporting declines [15]. - **Credit Cards**: The credit card sector also saw a decline of 1.4%, influenced by uncertainties regarding proposed interest rate caps [15]. - **Luxury Goods**: This sector decreased by 1.6%, with Burberry facing significant stock price drops due to market concerns [15]. - **Overseas Sportswear**: This sector fell by 1.8%, with Adidas experiencing a notable drop of 8.7% due to downgrades from investment banks [16]. Valuation Analysis - The report indicates that the expected PE ratios for various sectors in 2025 are below their historical averages, suggesting potential undervaluation. For example, the expected PE for the gold and jewelry sector is 25.9, which is 49% of its historical average [10][17].

Investment Rating - The report maintains an "Outperform" rating for Laopu Gold [2][12] Core Insights - Laopu Gold's revenue is expected to grow by 217% year-on-year in 2025, reaching RMB 26.96 billion, with a projected net profit of RMB 4.63 billion, reflecting a 214% increase [3][12] - The company is focusing on deepening its domestic and overseas offline expansion, with a strategy of "fewer but better, larger and more beautiful" in site selection, enhancing per-store sales efficiency [4][10] - Differentiated original designs are driving product iterations, with new product contributions expected to rise, including exclusive launches targeting diverse consumer groups [5][11] Revenue and Profit Forecast - Revenue projections for 2025, 2026, and 2027 are RMB 26.96 billion, RMB 36.03 billion, and RMB 43.78 billion, respectively, with year-on-year growth rates of 217%, 33.6%, and 21.5% [6][12] - Attributable net profit forecasts for the same years are RMB 4.63 billion, RMB 6.51 billion, and RMB 8.19 billion, with growth rates of 214.3%, 40.6%, and 25.8% [6][12] Market Position and Strategy - Laopu Gold plans to open approximately 5 new stores in high-end districts and upgrade existing ones, focusing on high-density and strong presence in core cities [4][10] - The company has expanded its international presence with the opening of its first overseas store in Singapore, enhancing brand internationalization [4][10] Product Development - The company has a clear cadence for new product launches, with several unique designs introduced throughout 2025, aimed at appealing to contemporary consumer aesthetics [5][11]

Investment Rating - The report maintains an "OUTPERFORM" rating for Baidu Group [2] Core Views - Baidu's operating cash flow is expected to remain positive in Q4, supported by prudent spending and the integration of AI tools in operations [4][13] - The listing of Kunlun Chip (KLX) is anticipated to unlock significant valuation for Baidu, with potential revenue comparable to Cambricon [5][14] - Apollo Go is set to accelerate its global expansion in 2026, which may further support Baidu's stock performance [15] Financial Summary - Baidu's revenue for FY25 is projected at RMB 128.7 billion, a decrease of 2.4% year-on-year, with a net profit of RMB 18.6 billion, down 31% [3][11] - The core business is expected to generate an adjusted operating profit of RMB 14.1 billion, corresponding to a margin of 13.8% [11] - For Q4, total core revenue is estimated at RMB 25.8 billion, reflecting a year-on-year decline of 6.9% but a quarter-on-quarter increase of 4.5% [12] Valuation and Recommendations - The report employs a Sum-of-the-Parts (SoTP) valuation method, estimating a total market cap of approximately HK$481.8 billion or a target price of HK$178, corresponding to a 24x PE for FY26 [6][14] - The valuation breakdown includes traditional search ads, AI cloud, AI SaaS, AI ads, and other segments, with significant contributions from the Robotaxi and Kunlun Chip businesses [6][15]

Investment Rating - The report maintains an "Outperform" rating for TCL Electronics Holdings, with a target price of HK$15.60 based on a current price of HK$12.23 [2][5]. Core Insights - TCL is expected to achieve an adjusted net profit of HK$2.33 billion to HK$2.57 billion in 2025, representing a year-on-year growth of 45% to 60% compared to 2024 [3][9]. - The company continues to adhere to a globalization and high-end development strategy, with strong growth in global business and improving profitability [3][9]. - A strategic partnership with Sony in the home entertainment sector aims to establish a joint venture, enhancing TCL's global competitiveness and expanding its business territory [3][10]. Financial Performance - Revenue projections for TCL are as follows: HK$99.32 billion in 2024, HK$119.64 billion in 2025 (up 26% year-on-year), HK$135.67 billion in 2026 (up 20%), and HK$152.14 billion in 2027 (up 13%) [2][5]. - Net profit is projected to grow from HK$1.76 billion in 2024 to HK$2.47 billion in 2025 (up 137%), HK$3.02 billion in 2026 (up 41%), and HK$3.62 billion in 2027 (up 22%) [2][5]. - The diluted EPS is expected to increase from HK$0.70 in 2024 to HK$0.98 in 2025, HK$1.20 in 2026, and HK$1.43 in 2027 [2][5]. Market Position - In 2025, global TV shipments are projected to reach 220 million units, a slight decline of 0.7% year-on-year, while TCL's shipments are expected to grow by 5.4% to 30.4 million units, capturing a 13.8% market share [4][11]. - TCL ranks second globally in TV shipments, while Sony ranks tenth with a significant decline in shipments [4][11]. - The report anticipates that major sports events in 2026 will help stabilize or increase global TV shipments, with TCL and other leading brands expected to expand their market share [4][11]. Valuation - The valuation for TCL has been adjusted, with EPS forecasts for 2025-2027 raised to HK$0.98, HK$1.20, and HK$1.43 respectively, and a PE valuation of 13x for 2026 [5][12]. - The target price of HK$15.60 reflects the company's strong performance and growth potential in the high-end display technology market [5][12].

Investment Rating - The investment rating for Bros Eastern is "Outperform" with an expected relative return exceeding the benchmark index by more than 10% over the next 12-18 months [4]. Core Insights - The report highlights a significant supply contraction in two major cotton exporting countries: the USA and Brazil, marking a turning point in global cotton supply with a "double reduction" pattern [5][6]. - The USA's cotton yield forecast has been cut by 8% to 856 pounds per acre, leading to a 2% reduction in final output, while Brazil's planting area is expected to decrease by 2.8% and production by 6.3% to 3.82 million tons, the first decline in five years [5][6]. - The report indicates that the US cotton price is showing bottoming characteristics, with current prices around 65 cents per pound, significantly below the average planting cost of 80 cents per pound, suggesting limited downside potential [6][8]. - Brazil's supply-demand changes are identified as a key variable affecting US cotton prices, with estimates indicating a 15.6% cost return rate loss for Brazilian cotton farmers, further supporting the supply contraction narrative [7][8]. Summary by Sections Supply Contraction - The USA's WASDE report indicates an increase in harvested area but a significant yield reduction, easing inventory pressure [5]. - Brazil's CONAB report predicts a decrease in both planting area and production, particularly in Mato Grosso, which accounts for 70% of Brazil's cotton output [5][6]. Price Dynamics - The ICE No. 2 cotton futures price is at a historical low, indicating a clear bottoming trend, with a significant cost inversion against planting costs [6][8]. - The basis analysis shows that the cotton basis is at historical lows, with signs of structural recovery, suggesting potential price increases in the medium term [6][8]. Investment Recommendations - The report recommends Bros Eastern due to its low-cost cotton inventory, which is expected to provide significant profit elasticity as cotton prices rise [8]. - The anticipated increase in raw material prices is expected to boost yarn sales prices and restore gross profit margins through inventory appreciation [8].

Investment Rating - The report maintains an "Outperform" rating for ANTA Sports [2][5] Core Insights - ANTA Brand experienced its first low-single-digit negative sell-through growth in 4Q25 after 11 consecutive quarters of positive growth, with offline sales declining and the children's category being a significant drag, although it still achieved a full-year low-single-digit growth target [3][10] - FILA Brand achieved mid-single-digit sell-through growth in both 4Q25 and for the full year 2025, with discounts deepening year-on-year and quarter-on-quarter [3][10] - Management is cautious about 2026, planning increased investment in brand and marketing due to major sporting events such as the Milan Winter Olympics, World Cup, and Asian Games [3][10] Financial Summary - Revenue projections for ANTA Sports from 2025 to 2027 are RMB 78.26 billion, RMB 85.00 billion, and RMB 92.04 billion, representing year-on-year growth of 10.5%, 8.6%, and 8.3% respectively [5][12] - Net profit attributable to parent shareholders is projected at RMB 12.98 billion, RMB 14.34 billion, and RMB 16.24 billion for the same years, with year-on-year changes of -13.1%, 14.6%, and 13.8% respectively [5][12] - The corresponding P/E ratios for 2025 to 2027 are 16.0x, 14.5x, and 12.8x [5][12] Brand Strategy - ANTA Brand will focus on core positioning in running, training, and basketball, with continuous technology iterations for its running series [4][11] - FILA continues to emphasize product quality, achieving top sales in categories like down jackets and dad shoes during major sales events [4][11] - Descente has entered a steady growth phase, with over 240 stores and a stable store network, while KOLON's growth is driven by core stores and community activities [4][11]

Investment Rating - The report initiates coverage with an OUTPERFORM rating, setting a target price of ₩22,000, while the current price is ₩17,970 [2]. Core Insights - Hite Jinro holds a dominant position in the Korean soju market with nearly 70% market share, demonstrating resilience in sales and stable operating profit margins despite industry challenges [4][13]. - The company is expected to implement a 5% price increase in the soju segment in Q2 2026, which, combined with economies of scale, could push operating profit margins closer to 13% [4]. - The overseas expansion strategy, particularly with the upcoming Vietnam factory and entry into the Indian market, is anticipated to drive significant revenue growth, overcoming domestic market saturation [5][33]. - The report highlights the defensive characteristics of Hite Jinro's business model, with strong brand loyalty and pricing power in the soju segment, while the beer segment faces challenges from declining demand and competition [40]. Summary by Sections Company Overview - Hite Jinro was formed through the merger of Hite and Jinro, creating the largest beverage company in Korea with a market share of approximately 50% in the alcohol sector [24]. - The company’s revenue structure is heavily reliant on soju, which contributes about 58% of total revenue, while beer contributes around 32% [27]. Market Analysis - The Korean alcohol market is characterized by a unique dominance of soju, which accounts for 42% of the market, contrasting with global trends where beer typically holds a larger share [8]. - The beer market in Korea is experiencing a decline, with a projected drop in sales of about 12% over three years, driven by consumer preference for lower-priced products [14][15]. Financial Performance - The company achieved a record operating profit of approximately ₩208 billion in 2024, with revenue growth slightly exceeding market expectations [34]. - Future projections estimate revenues of ₩25,960 billion, ₩26,580 billion, and ₩27,340 billion for 2025-2027, with net profits expected to be ₩1,060 billion, ₩1,230 billion, and ₩1,290 billion respectively [41]. Strategic Initiatives - The establishment of a production facility in Vietnam is expected to enhance cost competitiveness and facilitate market penetration in Southeast Asia, with an anticipated annual capacity of 50 million bottles [32]. - The company is also entering the Indian market, which presents a significant growth opportunity despite regulatory challenges and the need for consumer education [33].

Investment Rating - The report maintains an "Outperform" rating for the company, projecting EPS for 2025-27 to be RMB 0.47, 0.49, and 0.52 respectively, with a target price of RMB 10.78 based on a 22x PE valuation for 2026 [4][10]. Core Insights - The company is expected to achieve a significant increase in power generation, with on-grid electricity reaching 125.9 billion kWh in 2025, representing a 13% year-over-year growth. Q4 2025 on-grid electricity is projected at 30.4 billion kWh, up 18% year-over-year [4][10]. - Key drivers for this growth include increased electricity demand in Yunnan, full capacity operation of new hydropower stations, and favorable water inflow conditions [4][10]. - The report highlights that Yunnan's grid has the lowest carbon emissions nationwide, which supports long-term power demand through industrial upgrades, particularly in high-energy industries [4][10]. Financial Summary - The company’s total revenue is projected to grow from RMB 23.46 billion in 2023 to RMB 28.03 billion in 2027, with a CAGR of approximately 3.5% [3]. - Net profit attributable to the parent company is expected to increase from RMB 7.64 billion in 2023 to RMB 9.66 billion in 2027, reflecting a CAGR of about 4.8% [3]. - The report indicates a slight decrease in electricity revenue per kWh in the first three quarters of 2025, attributed to relaxed power supply-demand conditions in the southern region [4][10].

Investment Rating - The report maintains an "Outperform" rating for the company, projecting EPS for 2025-27 to be RMB 0.47, 0.49, and 0.52 respectively, with a target price of RMB 10.78 based on a 22x PE valuation for 2026 [4][10]. Core Insights - The company is expected to achieve 125.9 billion kWh of on-grid electricity in 2025, representing a 13% year-over-year increase, with Q4 2025 on-grid electricity at 30.4 billion kWh, up 18% year-over-year [4][10]. - Key drivers for growth include increased electricity demand in Yunnan, full capacity operation of new hydropower stations, and favorable water inflow conditions [4][10]. - The report highlights that Yunnan's grid has the lowest carbon emissions nationwide, supporting long-term power demand through industrial upgrades, particularly in high-energy industries [4][10]. Financial Summary - Total revenue is projected to grow from RMB 23.46 billion in 2023 to RMB 28.03 billion in 2027, with a CAGR of approximately 3.5% [3]. - Net profit attributable to shareholders is expected to increase from RMB 7.64 billion in 2023 to RMB 9.66 billion in 2027, reflecting a CAGR of about 4.8% [3]. - The company’s net profit margin is projected to remain stable, with a slight decrease in ROE from 11.3% in 2023 to 9.9% in 2027 [3][4].

Investment Rating - The report assigns an "Outperform" rating to the company [4] Core Insights - The company is actively expanding its brand incubation business, which is expected to lead to the release of operational leverage and accelerate performance growth starting in 2026 [1][4] - Revenue and net profit are projected to grow significantly, driven by the rapid growth of the brand incubation business and stable growth in the e-commerce operation business [4][10] Financial Summary - Total revenue is forecasted to reach 15.4 billion, 24.7 billion, and 29.6 billion yuan for 2025, 2026, and 2027 respectively, with growth rates of 34%, 60%, and 20% [4][10] - Net profit attributable to the parent company is expected to be 1.33 billion, 2.47 billion, and 3.02 billion yuan for the same years, with growth rates of 47%, 86%, and 22% [4][12] - The company’s gross margin is projected to improve, reaching 57.4%, 64.8%, and 66.5% in 2025, 2026, and 2027 respectively [10][11] Business Overview - The company primarily provides e-commerce services and brand incubation and management services, collaborating with various well-known domestic and international consumer brands [16] - The brand incubation business focuses on health and pet food sectors, with significant contributions from brands like Keman Duo and Yikali [4][16][22] - The e-commerce operation business is expected to maintain steady growth, with major contributions from the apparel category and partnerships with brands like Skechers and ECCO [4][16][22] Revenue Breakdown - The brand incubation and management business is anticipated to grow rapidly, with projected revenues of 6.0 billion, 14.6 billion, and 18.8 billion yuan for 2025, 2026, and 2027, reflecting year-on-year growth rates of 96%, 143%, and 29% [4][10][12] - The e-commerce operation business is expected to generate revenues of 6.5 billion, 7.0 billion, and 7.3 billion yuan for the same years, with growth rates of 15%, 7%, and 5% [4][10][12] Valuation - The company is assigned a target price of 93.42 yuan based on a 35x PE ratio for 2026, reflecting a valuation discount compared to comparable companies [4][14]