Core Viewpoint - Zhejiang Securities maintains a "Buy" rating for Non-Fungible Holdings (00933) with a target price of HKD 0.98, indicating a potential upside of 40% from the current market valuation of HKD 97 billion, driven by a turnaround in profits and strong management under the new CEO [1][2]. Group 1: Company Overview - Non-Fungible Holdings is recognized as an excellent international brand operator, managing brands such as Clarks, Bossini, and Testoni, and has established a joint venture to operate the Nordic outdoor brand Haglofs in Greater China [2]. - The company reported a revenue of HKD 48.1 billion for the first half of 2025, a decrease of 5.7% year-on-year, while the net profit attributable to shareholders increased by 60.9% to HKD 1.8 billion [2]. Group 2: Brand Performance - Clarks, a globally recognized footwear brand, holds a 14.6% market share in the UK and 1.8% in the US, with over 500 direct stores and 3,000 wholesale customers across more than 80 countries [2]. - For the first half of 2025, Clarks generated revenue of HKD 41.5 billion, accounting for 85.7% of total revenue, with a gross margin of 48.7%, despite a 5.3% year-on-year decline in revenue due to weak demand from US tariff policies and strategic product optimization [2]. Group 3: Strategic Initiatives - Clarks plans to open new concept stores globally, including three independent Cloudstepper stores in Malaysia and the US by 2025, and a larger Canvas retail concept store in London's Tottenham Court Road [3]. - The company is expanding its online sales network, launching its first self-operated UK e-commerce platform, clarks.com, in early 2026, and entering various online marketplaces in Europe and the Americas, resulting in a 9.7% year-on-year increase in online revenue to HKD 6.3 billion for the first half of 2025 [3]. Group 4: Management Changes - Victor Herrero has been appointed as the new co-CEO and CEO of Clarks, bringing extensive management experience from previous roles at Lovisa, Guess, and Inditex, and has successfully led the company to profitability with a 60.9% increase in net profit for the first half of 2025 [3][4]. Group 5: Outdoor Brand Expansion - The company has formed a joint venture with Ryan Capital to operate Haglofs in Greater China, planning to open over 20 direct stores by 2025, including the first global VASA flagship store in Shanghai [4].