Guoxin Securities·2026-01-22 02:45Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][4] Core Views - The company reported a retail value growth of 17.8% year-on-year for the period from October to December 2025, with a sequential increase of 4.1% compared to the previous quarter [3] - In the mainland China market, retail value grew by 16.9%, while the Hong Kong, Macau, and other markets saw a growth of 22.9% [3] - Same-store sales in mainland China increased by 21.4%, with a significant acceleration of 13.8 percentage points compared to the previous quarter [3] - The high-margin priced jewelry segment showed strong performance, with retail value in mainland China increasing by 59.6%, contributing 40.1% to total retail value, an increase of 10.7 percentage points year-on-year [3][4] - The company continues to optimize its store structure and enhance single-store sales through new store formats, despite closing 228 stores during the quarter, bringing the total to 5,813 stores [3][4] Financial Forecasts and Valuation - The projected net profit for the company for the fiscal years 2026-2028 has been revised upwards to HKD 86.37 billion, 96.46 billion, and 105.59 billion respectively, compared to previous estimates of 77.85 billion, 87.11 billion, and 95.43 billion [4] - Corresponding price-to-earnings (P/E) ratios are expected to be 15.7, 14.0, and 12.8 times for the fiscal years 2026, 2027, and 2028 [4] - The company is expected to continue investing in research and design to strengthen its high-margin product offerings and achieve sustained performance growth [4]