Soochow Securities·2026-01-26 05:08Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights the acquisition of DFS's Greater China operations by the company, which is expected to enhance its strategic partnership with LVMH and strengthen its market position in the Hong Kong and Macau regions [8] - The company is projected to experience a recovery in sales, particularly in the duty-free segment in Hainan, following the implementation of favorable policies and the opening of new stores [8] - The earnings forecast has been adjusted, with expected net profits for 2025, 2026, and 2027 being 4.27 billion, 5.22 billion, and 5.81 billion yuan respectively, reflecting a positive outlook for the company's growth [8] Financial Projections - Total revenue is forecasted to be 56.47 billion yuan in 2024, with a slight decline to 55.17 billion yuan in 2025, followed by a recovery to 61.62 billion yuan in 2026 and 66.07 billion yuan in 2027 [1] - The company's net profit is expected to decrease to 4.27 billion yuan in 2024, then further decline to 3.87 billion yuan in 2025, before increasing to 5.22 billion yuan in 2026 and 5.81 billion yuan in 2027 [1] - The earnings per share (EPS) is projected to be 2.06 yuan in 2024, decreasing to 1.87 yuan in 2025, and then recovering to 2.52 yuan in 2026 and 2.81 yuan in 2027 [1] Market Data - The closing price of the company's stock is 93.32 yuan, with a market capitalization of approximately 193.07 billion yuan [5] - The price-to-earnings (P/E) ratio is currently at 45.25, with projections of 49.95 for 2025, 36.97 for 2026, and 33.21 for 2027 [1][9]