Investment Rating - The report initiates a "Buy" rating for the company with a target price of HKD 5.0, reflecting a potential upside of 23% from the current price of HKD 4.07 [71][73]. Core Insights - The company is positioned as a leading provider in the IDC (Internet Data Center) sector, focusing on "edge computing + edge AI" to drive new growth engines. The stable relationships with upstream and downstream partners are expected to enhance market share [2][12]. - The IDC business is projected to benefit from the digital transformation of Chinese enterprises, with a compound annual growth rate (CAGR) of 13.6% expected from 2024 to 2028 in the IDC market [16][8]. - The edge computing market is anticipated to grow at a CAGR of 32.9% from 2024 to 2028, indicating significant potential for the company's edge computing services [36][8]. Financial Projections - Revenue is forecasted to grow from RMB 696 million in 2023 to RMB 1,189 million by 2027, with a CAGR of approximately 19% [3][53]. - The operating profit is expected to increase from RMB 23 million in 2023 to RMB 87 million in 2027, reflecting a growing profit margin [3][60]. - The net profit is projected to rise from RMB 14 million in 2023 to RMB 69 million in 2027, with an expected net profit margin improvement [3][60]. Market Dynamics - The report highlights the increasing demand for IDC services driven by the rise of cloud computing, blockchain, and IoT technologies, with the IDC market size in China expected to reach RMB 426.8 billion by 2028 [16][8]. - The edge computing services are positioned to capture a growing share of the market, with the company already establishing a cross-regional edge computing network across major cities in China [40][12]. Business Model and Strategy - The company operates a flexible and scalable business model that avoids direct competition with state-owned telecom operators, allowing for rapid business expansion [35][12]. - The focus on edge AI and edge computing services is expected to create a new growth curve, with the company leveraging its existing infrastructure to enhance service offerings [49][12]. Customer and Supplier Relationships - The company has established strong relationships with major clients across various sectors, including government, finance, and telecommunications, which contribute to a low customer churn rate [28][12]. - Long-term partnerships with key suppliers, including state-owned telecom operators, enhance the company's ability to meet diverse customer needs [32][12].

Investment Rating - The report assigns a "Buy" rating for the company with a target price of HKD 11.52, based on a current price of HKD 8.85 [3]. Core Insights - The company is positioned as a leading technology product channel developer and solution integrator in the Asia-Pacific region, focusing on ICT industry solutions, particularly in enterprise systems, consumer electronics, and cloud computing. The company is expected to benefit significantly from the dual drivers of AI and cloud services, alongside the expansion in Southeast Asia [1][10]. - Revenue is projected to grow from HKD 637 billion in 2020 to HKD 811 billion in 2024, representing a year-on-year growth of 20.6%. Net profit is expected to increase from HKD 8.3 billion in 2023 to HKD 9.58 billion in 2024, a growth of 14.09% [1][3]. - The company has a strong cash flow performance, with operating cash flow expected to rise to HKD 16.59 billion in 2024, reflecting a significant year-on-year increase of 185% [1][28]. Summary by Sections 1. Company Overview - The company has established itself as a top player in the ICT distribution sector, with a diversified business model that includes enterprise systems, consumer electronics, and cloud computing services. It has been recognized in the Fortune China 500 for five consecutive years [10][11]. 2. Market Growth Drivers - The global ICT market is projected to grow from approximately USD 5.3 trillion in 2024 to USD 6.9 trillion by 2028, with a CAGR of 7%. The Chinese ICT market is expected to grow from USD 626 billion in 2024 to USD 751.76 billion by 2028, with a CAGR of 6.5% [1][30]. - The demand for generative AI is driving significant growth in the ICT sector, particularly in GPU servers, AI chips, and cloud infrastructure investments [1][31]. 3. Southeast Asia Focus - The company has strategically positioned itself in Southeast Asia, where the data center market is experiencing rapid growth. By the end of 2024, Southeast Asia is expected to become the third-largest market for new computing capacity globally [2][56]. - The company has established a robust presence in nine Southeast Asian countries, with significant market shares in Thailand, Singapore, Indonesia, the Philippines, and Malaysia [2][68]. 4. Financial Projections - Revenue forecasts for 2025-2027 are projected at HKD 1,037 billion, HKD 1,296.26 billion, and HKD 1,555.51 billion, respectively, with corresponding growth rates of approximately 28%, 25%, and 20% [3][4]. - Net profit estimates for the same period are HKD 12.51 billion, HKD 15.32 billion, and HKD 18.83 billion, with growth rates of 30%, 22.4%, and 22.9% [3][4]. 5. Cash Flow and Operational Efficiency - The company demonstrates strong operational efficiency, with inventory turnover days at 46 and accounts receivable turnover days at 74. The overall operational turnover days are only 52, indicating effective cash management [28].

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The report highlights that the company's revenue growth is driven by brand expansion and operational leverage, leading to improved profitability [12][13] - The company is expected to benefit from an increase in store numbers, optimization of existing stores, and enhanced brand influence, which will contribute to a larger market share in the high-end gold jewelry sector in China [14] - The report anticipates significant revenue growth for the company, projecting revenues of approximately 255.17 billion, 369.59 billion, and 470.41 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding growth rates of 200.0%, 44.8%, and 27.3% [15] Summary by Sections Financial Performance - For the first half of 2025, the company forecasts revenue between 120 billion and 125 billion yuan, representing a year-on-year growth of approximately 241% to 255% [12] - The net profit is expected to be around 22.3 billion to 22.8 billion yuan, with a year-on-year increase of approximately 279% to 288% [12] - Adjusted net profit is projected to be between 23 billion and 23.6 billion yuan, reflecting a growth of approximately 282% to 292% [12] Market Positioning - The report emphasizes the importance of brand influence and product innovation in driving sales growth across both online and offline channels [13] - The average store efficiency for high-end brands in China, such as Cartier and LV, is cited, indicating a potential for the company's store efficiency to improve significantly in the future [14] Future Projections - The company is expected to maintain a strong growth trajectory, with projected revenues and net profits showing substantial increases over the next few years [15] - The report outlines expected earnings per share (EPS) of 27.25, 39.57, and 52.78 yuan for the years 2025, 2026, and 2027 respectively [15]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [5] Core Views - The company is positioned as a high-end traditional gold brand, with expectations for continued market share growth. The brand appeals to both young and middle-aged high-net-worth individuals, and it is actively expanding its channels both domestically and internationally [6][8] - The company is projected to achieve significant revenue and profit growth in the coming years, with net profits expected to reach RMB 44.0 billion, RMB 57.2 billion, and RMB 67.6 billion for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 198.8%, 30.0%, and 18.2% [6][7] Financial Performance and Forecast - The company anticipates a strong sales performance for the first half of 2025, with expected revenue of approximately RMB 138 billion to RMB 143 billion, representing a year-on-year growth of about 240% to 252% [8] - Revenue and net profit forecasts for the years 2025 to 2027 are as follows: - Revenue: RMB 24,480 million (2025), RMB 31,826 million (2026), RMB 36,607 million (2027) with growth rates of 187.8%, 30.0%, and 15.0% respectively [7] - Net Profit: RMB 4,402 million (2025), RMB 5,725 million (2026), RMB 6,765 million (2027) with growth rates of 198.8%, 30.0%, and 18.2% respectively [7] - The company’s return on equity (ROE) is projected to be 52.9% in 2025, decreasing to 32.5% by 2027, indicating strong profitability [7][9] Market Potential - The traditional gold market is expected to grow significantly, with a projected market size of RMB 219.3 billion in 2024 and a compound annual growth rate (CAGR) of 21.8% from 2023 to 2028, outpacing other segments in the gold and jewelry industry [8]

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 68 per H-share [1][6]. Core Insights - The company is expected to experience a decline in net profit for the first half of 2025, with a forecasted decrease of 20.8% year-on-year. Total revenue for the same period is projected to be RMB 28.15 billion, down 10% year-on-year [6][8]. - The second quarter of 2025 is anticipated to show a revenue of RMB 11.4 billion, reflecting an 8.5% decline year-on-year, and a net profit of RMB 660 million, down 32.2% year-on-year. This performance is below expectations [6][8]. - The company is expected to benefit from the recovery of cross-border flights and the improvement of airport duty-free store operations in the second half of 2025, with a projected increase in market share in Hainan [8]. Financial Summary - The company’s net profit for 2025 is estimated at RMB 45.21 billion, with a year-on-year growth of 6%. The earnings per share (EPS) is projected to be RMB 2.19 [7][8]. - The price-to-earnings (P/E) ratio for H-shares is expected to be 24 times for 2025, decreasing to 19 times by 2027 [7][8]. - The company’s revenue is projected to grow from RMB 61.38 billion in 2025 to RMB 74.87 billion by 2027 [11]. Market Position and Strategy - The company is focusing on expanding its presence in the Hainan market, which is expected to improve as the Hainan Free Trade Port is set to officially close on December 18, 2025. This is anticipated to enhance local economic vitality and benefit the company's operations [8]. - The company plans to open multiple new city duty-free stores throughout the year, further enhancing its operational layout [8].

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company is expected to achieve revenue of 12-12.5 billion yuan in the first half of 2025, representing a year-on-year increase of 241%-255%. Adjusted net profit is projected to be 2.3-2.36 billion yuan, up 282%-292%, while net profit is estimated at 2.23-2.28 billion yuan, reflecting a growth of 279%-288% [1][2] - The significant revenue growth in the first half of 2025 is primarily driven by the increase in same-store sales and online channel growth. The company anticipates that the contribution from new stores will enhance overall performance in the second half of 2025 [2] - The company's brand influence continues to expand, creating a notable market advantage that drives substantial revenue growth across both online and offline stores. Product iterations and optimizations are also contributing to this growth [2] - The net profit margin for the first half of 2025 is expected to improve, with adjusted net profit margin around 18.9%-19.2%, compared to 17.7% in 2024. The overall net profit margin is projected to be 18.2%-18.6%, up from 16.7% in the first half of 2024 [2] Financial Projections - Revenue projections for 2025-2027 are 24.6 billion, 35.8 billion, and 46.3 billion yuan, with year-on-year growth rates of 189%, 45%, and 29% respectively. The net profit for the same period is expected to be 4.918 billion, 7.256 billion, and 9.435 billion yuan, with growth rates of 234%, 48%, and 30% respectively [3][4] - The earnings per share (EPS) for 2025-2027 are forecasted to be 28.48, 42.02, and 54.64 yuan, with corresponding price-to-earnings (P/E) ratios of 24, 16, and 12 [3][4]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company is expected to benefit from a rich reserve of game content, with multiple new games anticipated to contribute to revenue growth in the second half of the year. The advertising sector is also projected to see growth due to increased user engagement and improved conversion rates [3][10] - Revenue forecasts for 2025 to 2027 are adjusted to 30.2 billion, 32.2 billion, and 33.9 billion CNY respectively, reflecting a downward revision due to underperformance in certain game titles [3][10] Financial Summary - The company’s revenue for 2023 is projected at 22.5 billion CNY, with a year-on-year growth of 2.87%. This is expected to rise to 30.2 billion CNY in 2025, representing a growth of 12.47% [4][11] - The operating profit is forecasted to turn positive in 2025, reaching 797 million CNY, with a significant increase in subsequent years [4][11] - The net profit attributable to the parent company is expected to be 602 million CNY in 2025, with a notable recovery from a loss of 4.8 billion CNY in 2023 [4][11] - The gross margin is projected to improve from 24.16% in 2023 to 37.07% in 2025, indicating better cost management and revenue generation efficiency [4][11] Revenue Breakdown - Game revenue is expected to reach 16.3 billion CNY in Q2 2025, showing a year-on-year increase of 62%. The advertising revenue is projected at 24 billion CNY, with a year-on-year growth of 17.7% [10][11] - Live streaming and value-added services (VAS) revenue is anticipated to be 28 billion CNY in Q2 2025, reflecting a 10% increase year-on-year [10][11] Valuation Metrics - The target price for the company's stock is set at 214.30 HKD, based on a price-to-sales (P/S) ratio of 2.7x for comparable companies [3][12] - The company’s price-to-earnings (P/E) ratio is projected to be 118 in 2025, indicating a high valuation relative to earnings [4][12]

Investment Rating - The report does not explicitly state an investment rating for Eternal Beauty Holdings Core Viewpoints - Eternal Beauty Holdings Limited is the largest perfume brand management company in China, established in 1983 and has been operating in the Chinese market for nearly 40 years [1][7] - The company focuses on long-term value and brand image building rather than short-term discount promotions [4][11] - The business model is primarily B2B, with 80% of operations in brand agency and distribution, and 20% in direct retail [2][8] - The company has exclusive agency rights for over 90% of brands in the Chinese market, covering a comprehensive sales network [9][10] - Eternal Beauty Holdings ranks third in the Chinese perfume market, behind international giants Chanel and LVMH, and offers a diverse range of approximately 2,000 scents across 52 perfume brands [5][12] Summary by Sections Company Overview - Eternal Beauty Holdings is headquartered in Hong Kong and officially listed on the Hong Kong Stock Exchange on June 26, 2025, with an issue price of HK$2.88 per share [1][7] Business Model - The company operates a B2B brand agency and distribution model, ensuring stable profit margins for partners and maintaining long-term relationships [2][8] - Direct retail operations are concentrated in top commercial areas of 13 cities, avoiding lower-tier city channels [2][8] Market Strategy - The company emphasizes full-channel control to maintain stable pricing and prevent market disruption [9][10] - It provides a one-stop solution for brands entering the Chinese market, leveraging its extensive network and market experience [10] Brand Management - Eternal Beauty Holdings prioritizes long-term brand value and customer mindset cultivation, collaborating with brands for over 10 years [4][11] - The company recognizes the personalized nature of perfume consumption in China and tailors its offerings accordingly [5][12]

Investment Rating - The report maintains a guidance for low single-digit to mid-single-digit revenue growth for the full year [2][9]. Core Insights - Retail performance has shown steady improvement, with overall retail sales value (RSV) decreasing by 1.9% year-on-year in 1QFY26, driven by a 3.3% decline in mainland China and a 7.8% increase in Hong Kong and Macao [2][9]. - The management expects better performance in 2Q compared to 1Q, and better performance in the second half compared to the first half, leveraging the peak wedding season [2][9]. - The franchise channel has shown resilience, outperforming direct-operated stores, with same-store sales in mainland China decreasing by 3.3% year-on-year, while franchise stores remained flat [3][10]. - The proportion of high-margin products continues to expand, with direct sales same-store sales growth (SSSG) for gold products and jewelry inlaid products in mainland China at -1.4% and -2.2%, respectively, while in Hong Kong and Macao, they are +6.6% and +3.3% [4][11]. - E-commerce channels in mainland China saw a 27% year-on-year increase in RSV, contributing 7.6% to total RSV and 16.9% to sales volume, benefiting from strong demand driven by collaborations and promotional events [5][13]. Summary by Sections Retail Performance - The overall retail sales value (RSV) decreased by 1.9% year-on-year in 1QFY26, with a notable decline in mainland China and an increase in Hong Kong and Macao [2][9]. - Management noted that May was the best performing month, and sales continued to improve in July [2][9]. Franchise vs. Direct-Operated Stores - Franchise channels outperformed direct-operated stores, with same-store sales in mainland China showing a narrowing decline [3][10]. - The company closed a net 311 stores in mainland China, focusing on optimizing store performance [3][10]. Product Mix and Margins - The company is focusing on high-margin products, with expectations for the proportion of one-price gold product sales to increase from approximately 20% to 20-23% [4][11]. - Despite rising gold prices, the company expects a year-on-year decrease in gross profit margin (GPM) of 80-120 basis points, partially offset by product mix improvements [4][12]. E-commerce Growth - E-commerce channels are expanding rapidly, with a significant year-on-year increase in RSV, driven by strategic collaborations and marketing efforts [5][13].

Investment Rating - The report assigns a rating of "Buy" for the company [5] Core Views - The company maintains a leading position in the property insurance sector, with a market share of 37.5% in premium income as of 2024, significantly higher than its competitors [1][16] - The company's car insurance business is a key profit driver, contributing 92.85 billion yuan in underwriting profit in 2024, supported by strong operational capabilities and a leading position in the new energy vehicle insurance market [2][46] - Non-car insurance business is positioned for growth, with premium income reaching 240.7 billion yuan in 2024, despite a short-term underwriting loss [3][74] Summary by Sections 1. Domestic Property Insurance Leader - The company is the largest property insurance provider in China, with a premium income market share of 37.5% and a net profit market share of 47.3% as of 2024 [1][16] - The company has a strong state-owned background, with the Ministry of Finance holding 68.98% of shares, providing long-term resource support [32] - The profit structure is clear, driven by both underwriting and investment [35] 2. Business: Steady Development in Property Insurance and Resilient Investments 2.1. Underwriting: Strong Car Insurance Advantage, Significant Non-Car Potential - Car insurance constitutes 55% of the company's total premium income, with a 2024 underwriting profit of 92.85 billion yuan [2][48] - The company leads in new energy vehicle insurance, with 11.59 million vehicles insured in 2024, reflecting a 57.3% increase [2][66] - Non-car insurance has shown a compound annual growth rate (CAGR) of 10.9% over the past six years, with premium income reaching 240.7 billion yuan in 2024 [3][74] 3. Investment Resilience and Stable Dividend Returns - The total investment return rate for 2024 is 5.2%, with fixed income assets accounting for 60.2% of the portfolio [8] - The company has maintained a stable dividend policy, with a CAGR of 12.8% in cash dividends from 2011 to 2024 [8][43] - The dividend payout ratio averaged 36.5% over the years, with a per-share dividend of 0.54 yuan in 2024 [8][43] 4. Profit Forecast and Investment Recommendations - The company is expected to continue leading the industry, with projected insurance service revenues of 508.3 billion yuan in 2025 and net profits of 38.3 billion yuan [9] - The report provides a first-time coverage with a "Buy" rating based on the company's strong cost control in car insurance and growth potential in non-car insurance [9]