Company Overview - Company was established in 2004 and has rapidly developed through a light-asset model and attractive franchise policies, maintaining a top 6 position in the Chinese jewelry market for seven consecutive years [2][3] - Revenue increased from 2.78 billion to 5.72 billion CNY from 2021 to 2024, with a CAGR of 27.1%, while net profit grew by 18.4% during the same period [2][3] - The average age of the management team is approximately 42 years, making it one of the youngest among national gold jewelry companies [2] Industry Analysis - The Chinese jewelry market is projected to reach 728 billion CNY in 2024, with a CAGR of 3.6% from 2019 to 2024 and an expected CAGR of 5.2% from 2024 to 2029 [3] - Consumer preferences are shifting towards lightweight and fashionable jewelry due to economic pressures, while maintaining high aesthetic standards [3] - E-commerce in the jewelry market is growing, with a market size of 42.4 billion CNY in 2024, representing a year-on-year growth of 13.7% and a CAGR of 16.9% from 2019 to 2024 [3] Competitive Advantages - The company employs a light-asset model that allows for rapid product iteration to meet the demands of a younger customer base, with 80% of online and 75% of offline customers being female aged 18-30 [3][4] - As of the end of 2024, the company operates 4,129 stores nationwide, ranking 6th among gold jewelry brands, with a strong presence in southern China [4] - Online sales accounted for 40% of total revenue in 2024, with a year-on-year growth of 31%, indicating a robust e-commerce strategy [5] Future Development - The company plans to enhance brand strength through a multi-brand matrix and aims to open up to five cultural theme stores by May 2025 [6] - The company has begun expanding into Southeast Asia, opening its first overseas store in Bangkok in September 2024, with plans for further expansion in the region [6] Investment Recommendations - The company is expected to achieve revenues of 6.48 billion, 7.32 billion, and 8.22 billion CNY for 2025-2027, with year-on-year growth rates of 13.3%, 12.9%, and 12.3% respectively [7] - Projected net profits for 2025-2027 are estimated at 800 million, 880 million, and 960 million CNY, with growth rates of 13.4%, 10.3%, and 8.8% respectively [7] - The company is assigned a target price of 44 HKD per share based on a 22x PE ratio for 2025, maintaining a "buy" rating [7]