Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The issuance of convertible bonds and the establishment of a call option spread are aimed at obtaining low-cost financing while controlling dilution risk [2] - The funds from the convertible bonds will be used for overseas store expansion, supply chain development, and shareholder return plans, with each area accounting for 50% of the total [3] - The company is expected to continue its high growth trajectory, particularly in overseas markets, with significant improvements in profitability [4] Summary by Sections Convertible Bonds and Call Options - The company plans to issue $550 million in convertible bonds with a 7-year term and a coupon rate of 0.5%, with a conversion price set at HKD 64.395, representing a 26.14% premium over the closing price on January 6 [1] - The call option spread includes a lower call option and an upper warrant, with exercise prices set at HKD 64.395 and HKD 102.1, respectively [1][2] Use of Proceeds - The proceeds from the convertible bonds will primarily support overseas store expansion and supply chain enhancements, as well as a shareholder return plan focused on share buybacks [3] - As of Q3 2024, the company has opened 183 new overseas stores, bringing the total to 2,936, a year-on-year increase of 623 stores [3] Financial Projections - Revenue projections for 2024-2026 are estimated at CNY 171.7 billion, CNY 205.7 billion, and CNY 240.6 billion, respectively, with net profits of CNY 25.3 billion, CNY 32.0 billion, and CNY 40.0 billion [4][5] - The company is expected to maintain a strong return on equity (ROE) of around 21% over the next few years [5]
名创优品：发布可转债及订立看涨期权价差事件点评：获取低成本融资，摊薄风险可控