Zhi Tong Cai Jing·2025-10-24 06:52Core Insights - The report from Citi indicates that Prada's retail sales for Q3 this year largely met market expectations, showing a year-on-year growth of 7.6% when calculated at constant exchange rates [1] - Retail sales for the Prada and Miu Miu brands also aligned with market expectations, with Prada experiencing a year-on-year decline of 0.8% and Miu Miu seeing a year-on-year increase of 29% [1] - Over a two-year period, both brands demonstrated stable quarterly performance, with Prada's core brand growing by 1% in both Q2 and Q3 of this year, while Miu Miu grew by 136% and 134% respectively [1] Valuation and Market Position - Citi maintains a target price of HKD 50 for Prada and a "Outperform" rating, citing that Prada is still expanding its market share [1] - The valuation of Prada appears low at 26 times enterprise value/EBITDA, representing a 53% discount compared to the industry average [1] Market Performance - In terms of market performance, the Chinese market for Prada's core brand is still experiencing negative growth, but there has been a quarter-on-quarter improvement in Q3 [1] - Positive growth was recorded in the Americas, Europe, and Japan, driven by strong local demand and a slight improvement in tourism demand, leading to quarter-on-quarter enhancements [1] - Looking ahead, sales have continued to improve since October, although management has indicated that the fourth quarter will present challenging comparisons, with the last six weeks being crucial [1]