Xinda Securities·2026-01-29 10:34Investment Rating - The report assigns a strategic significance to the acquisition of approximately 29.06% of PUMA SE, with a target price of €35 per share, representing a 61.6% premium over the closing price prior to the announcement [2]. Core Insights - The acquisition is valued at approximately €1.505 billion (around 12.278 billion RMB), positioning the reporting company as PUMA's largest single shareholder [2]. - The company views PUMA's long-term brand value and market position, particularly in football and running, as underappreciated in its current stock price, providing a favorable long-term investment opportunity [2]. - The revenue contribution of PUMA from the Chinese market is only about 7%, indicating significant growth potential, with plans to leverage the company's successful "brand + retail" model to enhance PUMA's performance in China [2]. - The acquisition is a critical step in the company's "single focus, multi-brand, globalization" strategy, enhancing its global presence through PUMA's strong influence in Europe, North America, and Africa [2]. Financial Projections - The company has adjusted its profit forecasts, expecting net profits for the fiscal years 2025-2027 to be 13.197 billion, 14.129 billion, and 15.417 billion RMB, respectively, with corresponding P/E ratios of 14.65X, 13.68X, and 12.54X [3]. - Revenue projections for the fiscal years 2025-2028 are estimated at 70.826 billion, 78.263 billion, 85.306 billion, and 92.557 billion HKD, with year-on-year growth rates of 14%, 11%, 9%, and 9% [4]. - The company's diluted EPS is projected to be 4.72, 5.05, and 5.51 HKD for the fiscal years 2025, 2026, and 2027, respectively [4].