Investment Rating - The report maintains an "Outperform" rating for the company [5]. Core Insights - The company, Guoquan, is a leading brand in the home dining food product sector in China, with over 10,150 stores as of 2024, and a revenue forecast of 6.47 billion yuan for the same year, with 84% of revenue coming from franchisees [1][4]. - The home dining market in China has grown significantly, with a CAGR of approximately 14.7% from 2018 to 2022, and the segment for food products has seen even faster growth at 25.5% [1][34]. - Guoquan's business model includes a deep integration of the supply chain and a focus on optimizing its commercial model, which is expected to enhance profitability [2][55]. Summary by Sections Company Overview - Guoquan is positioned as a leading brand in home dining food products, offering a variety of ready-to-eat and ready-to-cook ingredients across eight categories [12][14]. - The company has established a nationwide franchise network, achieving a store count of 10,150 by the end of 2024 [1][26]. Industry Analysis - The home dining market in China has expanded from 32.48 trillion yuan in 2018 to 56.16 trillion yuan in 2022, with projections to reach 71.09 trillion yuan by 2027 [34]. - The competitive landscape is highly fragmented, with Guoquan holding a market share of approximately 3.0%, leading the industry [39]. Core Advantages - Guoquan employs a "single product, single factory" model, operating seven factories to cover various product categories, which enhances its supply chain efficiency [2][55]. - The company has established a robust network of over 300 suppliers, ensuring a comprehensive supply chain and optimizing production costs [55][56]. Future Outlook - The company aims to expand its store count to 20,000, primarily targeting lower-tier cities, with a projected revenue growth of 13.3% to 95.9 billion yuan by 2027 [2][3]. - Profitability is expected to improve, with net profit margins projected to rise as operational efficiencies are realized [3][27].

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The external environment remains challenging, but the company is expected to benefit from sports resources that will support its long-term development [5] - The company has shown resilience in its e-commerce channel, maintaining high single-digit growth despite external pressures [7] - The company is actively expanding its offline store presence, with a net increase of 33 stores in Q3 2025, totaling 6,132 stores [7] - The signing of player Yang Hanshen, who was selected in the first round of the NBA draft, is anticipated to enhance the company's brand and product sales in the basketball category [7] - The company is projected to achieve net profits of RMB 2.645 billion, RMB 2.843 billion, and RMB 3.101 billion for the years 2025 to 2027, respectively [7] Financial Summary - Revenue projections for the company are as follows: RMB 28,676 million in 2024, RMB 29,027 million in 2025, RMB 30,766 million in 2026, and RMB 32,845 million in 2027, with growth rates of 3.9%, 1.2%, 6.0%, and 6.8% respectively [8] - The company's net profit for 2025 is estimated at RMB 2,645 million, reflecting a year-on-year decline of 12.21% [6][8] - The company's return on equity (ROE) is projected to decline from 11.54% in 2024 to 9.00% in 2027 [8]

Investment Rating - The report initiates coverage on Beike with a "Buy" rating and a target price of HKD 65.64, based on a 26x adjusted PE for 2026 [2][10]. Core Insights - Beike is positioned as a leading O2O real estate transaction platform in China, benefiting from supportive policies that are expected to facilitate a moderate market recovery. The company is anticipated to improve its profitability through enhanced operational efficiency and AI integration in its services [6][19]. - The real estate market is stabilizing, with signs of recovery in sales, particularly in second-hand housing, although challenges remain in new housing sales and inventory management [7][10]. - Beike's brokerage business is expected to gain market share, driven by its extensive network and the integration of third-party stores, which will enhance its revenue contribution [8][10]. Summary by Sections Business Overview - Beike has restructured into four main business lines: brokerage, home decoration, rental services, and data-driven residential development, aiming for a synergistic growth model [23]. - The company operates over 60,000 stores and employs nearly 568,000 agents, significantly outpacing competitors in terms of scale and market coverage [24][29]. Financial Projections - Revenue is projected to grow from RMB 93.46 billion in 2024 to RMB 125.93 billion by 2027, with a compound annual growth rate (CAGR) of approximately 11% [5][10]. - Adjusted net profit is expected to improve significantly, reaching RMB 9.82 billion by 2027, supported by operational leverage and a turnaround in the home decoration segment [10][21]. Market Dynamics - The real estate sector is gradually stabilizing, with government policies aimed at supporting the market. The demand for second-hand homes is expected to increase, while new home sales face ongoing pressure [7][10]. - Beike's home decoration business is projected to achieve a revenue of RMB 204 billion by 2027, with a net profit margin of around 10% [21][22]. Competitive Advantages - Beike's competitive edge lies in its channel advantages and the ACN network, which enhances transaction efficiency and transparency [19]. - The company is leveraging AI tools to improve customer experience and operational efficiency across its service offerings [20][21].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 136.00 [7]. Core Insights - The company is expected to face significant pressure on revenue growth and profits in Q3 2025 due to intense competition in the food delivery sector, particularly from irrational subsidies [1][2]. - Despite short-term challenges, the report remains optimistic about the company's long-term efficiency advantages and brand strength, anticipating a return to rational operations in Q4 2025 [1][5]. - The company is also making progress in its overseas food delivery business, with plans to expand into the Brazilian market [4]. Revenue and Profit Forecast - For Q3 2025, the company is projected to generate revenue of RMB 978 billion, representing a year-over-year growth of 4.5%, but with an expected operating loss of RMB 18.5 billion and an adjusted net loss of RMB 15.9 billion [1][5]. - The report forecasts revenues of RMB 3,768 billion, RMB 4,448 billion, and RMB 5,102 billion for the years 2025, 2026, and 2027 respectively, with adjusted net profits of RMB -79 billion, RMB 354 billion, and RMB 544 billion [5][10]. Business Segments Performance - The instant delivery segment is expected to see a year-over-year order volume increase of 17.0% in Q3 2025, driven by increased platform subsidies, although user experience (UE) is projected to decline significantly [2]. - The dine-in segment is anticipated to grow by 5% year-over-year in Q3 2025, but faces pressure from offline dining consumption and increased competition from delivery services [3]. - New business revenue is expected to reach RMB 284 billion in Q3 2025, with a year-over-year growth of 17.5%, although it will incur an operating loss of RMB 2.4 billion [4]. Valuation Metrics - The report provides a sum-of-the-parts (SOTP) valuation, assigning PE multiples of 7x for the food delivery business and 18x for the dine-in business for 2026, with a target price of HKD 136.00 per share [5][14]. - The company’s estimated PE ratios for 2025, 2026, and 2027 are projected to be 13.00, 15.85, and 10.31 respectively [10][24].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price set at HKD 16.33, indicating a potential upside of 10%-20% over the next six months [5][13]. Core Insights - The company reported a revenue increase of 3.7% year-on-year to USD 400 million in Q3 2025, driven by demand in the sports category and new customer acquisitions [1]. - The company aims to expand its total production capacity by 20 million pairs starting in 2025, focusing on enhancing production efficiency in Indonesia and Bangladesh [2]. - The three-year plan (2023-2025) is on track to achieve a 10% operating profit margin and a low double-digit compound annual growth rate in after-tax profits [3]. - The company plans to maintain a dividend payout ratio of approximately 70% in 2025 and 2026, returning up to USD 60 million annually to shareholders through share buybacks and special dividends [1]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a revenue increase of 1.7% year-on-year to USD 1.18 billion, with manufacturing revenue up 1.6% to USD 1.15 billion [1]. - The average selling price (ASP) decreased by 3.1% to USD 27.7 due to a lower average price in the sports category [1]. Production Capacity Expansion - The company is set to enhance its production capacity by 20 million pairs, with new facilities expected to be operational by the second half of 2026 [2]. - The production efficiency in Indonesia and the Philippines is anticipated to improve gradually starting in the second half of 2025 [2]. Strategic Goals - The company is focused on diversifying its product mix and expanding its customer base, particularly in the luxury and high-end fashion categories [3]. - The acquisition of a small handbag and accessories factory in Vietnam aims to elevate the quality and efficiency of its manufacturing capabilities in this segment [3]. Profit Forecast Adjustments - The revenue forecasts for 2025-2027 have been adjusted to USD 1.58 billion, USD 1.66 billion, and USD 1.76 billion respectively, with net profits projected at USD 160 million, USD 170 million, and USD 190 million [4].

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [3][7]. Core Insights - The company is expected to achieve a revenue growth of 245%-250% year-on-year in Q3 2025, significantly exceeding previous expectations of 154.2% [1]. - Revenue from China is projected to grow by 185%-190%, while overseas revenue is expected to increase by 365%-370% [1]. - The report highlights strong performance across various channels, with notable growth in both offline and online sales in China [7]. Financial Data and Valuation - Total revenue is forecasted to reach 63.3 billion yuan by 2027, with a compound annual growth rate (CAGR) of 22% from 2025 to 2027 [9]. - Adjusted net profit is projected to grow to 22.2 billion yuan by 2027, reflecting a CAGR of 24% [9]. - The adjusted price-to-earnings (PE) ratio is expected to decline from 21.0x in 2025 to 12.6x in 2027, indicating improving valuation metrics [9][10]. Performance Metrics - The company has shown a significant increase in gross margin, expected to reach 72.4% by 2027 [10]. - The return on equity (ROE) is projected to be 40.9% in 2027, demonstrating strong profitability [10]. - The company maintains a healthy balance sheet with a debt-to-asset ratio of 18.7% by 2027, indicating low financial leverage [10]. Market Position and Growth Drivers - The company has expanded its store count to 542 in mainland China, with a year-on-year growth of 12% [7]. - The overseas market has also seen substantial growth, with a 1265%-1270% increase in the Americas and 735%-740% in Europe and other regions [7]. - New product launches have been successful, with popular items selling out on the first day of release [7].

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1] Core Views - In Q3 2025, the company's sales revenue experienced a mid-single-digit decline year-on-year, with a slowdown compared to the first half of the year. However, e-commerce sales recorded a high single-digit growth. The discount rate has deepened compared to the previous period, and the inventory-to-sales ratio has increased to 5-6 months due to holiday and promotional stocking. The fourth quarter is expected to see a concentrated release of new products [3][4][12] - The company has a healthy operational foundation and potential for brand growth acceleration through future marketing efforts. The profit forecast for 2025-2027 is estimated at 2.512 billion, 2.825 billion, and 3.043 billion yuan, respectively, with year-on-year changes of -16.6%, +12.5%, and +7.7% [3][13] Summary by Sections Retail Performance - As of September 30, 2025, the company's retail revenue (excluding Li Ning YOUNG) recorded a mid-single-digit decline year-on-year. Offline channels (including retail and wholesale) saw a high single-digit decline, while e-commerce virtual store business achieved high single-digit growth [2][3] Store Count - As of September 30, 2025, the total number of sales points in China (excluding Li Ning YOUNG) was 6,132, a net increase of 33 from the previous quarter. The retail business saw a net decrease of 46 stores, while the wholesale business had a net increase of 61 stores. Li Ning YOUNG had 1,480 sales points, with a net increase of 45 from the previous quarter [2] Product Launches - The fourth quarter is expected to see a concentrated release of new products, including new technology fabric "super water-repellent" running shoes and various iterations of basketball and outdoor products [5][6][12] Financial Forecast - The company’s revenue for 2025 is projected to be 29.34 billion yuan, with a year-on-year growth of 2.3%. The net profit for 2025 is expected to be 2.512 billion yuan, reflecting a decline of 16.6% compared to the previous year [14][18]

Investment Rating - The report maintains an "Outperform" rating for Ausnutria Dairy [2][14]. Core Insights - The overseas market is experiencing sustained high growth, becoming a significant growth engine for the company, with notable revenue increases in regions such as North America and the Middle East [5][12]. - The introduction of a childcare subsidy policy in China is expected to alleviate some pressures on the infant formula industry, although a full recovery will require more robust local stimulus measures [4][11]. - Ausnutria is actively expanding its international presence and enhancing its product offerings through a dual focus on goat and cow milk products, which is expected to drive long-term growth [6][13]. Financial Performance Summary - For the fiscal year 2025, the company is projected to achieve revenues of RMB 7.67 billion, with a year-on-year growth of 3.6% [7][14]. - Net profit attributable to shareholders is expected to reach RMB 310 million in 2025, reflecting a growth of 21.0% [7][14]. - The diluted EPS is forecasted to be RMB 0.18 for 2025, with continued growth expected in subsequent years [7][14]. Market Position and Strategy - Ausnutria's Kabrita brand has maintained over 60% market share in China's imported infant goat milk formula market for seven consecutive years, solidifying its position as a market leader [5][12]. - The company is leveraging its strategic partnership with Yili to enhance its product positioning and market layout, particularly in the cow milk segment [5][12]. - The nutritional products segment is also expanding, with new product launches contributing to revenue growth [5][12].

Investment Rating - The report maintains an "Outperform" rating for Li Ning [3][9] Core Insights - Li Ning's Q3 2025 revenue showed a marginal decline, with e-commerce and children's apparel performing relatively better. The overall revenue decreased in the mid-single digits year-on-year, while online sales grew in the high single digits, and offline sales declined in the high single digits [9] - The company anticipates maintaining its performance guidance for 2025, aiming for flat revenue and a high single-digit net profit margin despite facing some pressures. Upcoming marketing initiatives related to the 2026 Milan Winter Olympics and technology releases are expected to enhance brand competitiveness [9] Financial Summary - Revenue projections (in billion RMB): - 2023: 27.6 - 2024: 28.7 - 2025E: 28.8 - 2026E: 30.1 - 2027E: 31.2 - Year-on-year growth rates: - 2023: 7% - 2024: 4% - 2025: 0% - 2026: 4% - 2027: 4% [8] - Net profit projections (in billion RMB): - 2023: 3.19 - 2024: 3.01 - 2025E: 2.48 - 2026E: 2.64 - 2027E: 2.78 - Year-on-year growth rates for net profit: - 2023: -22% - 2024: -5% - 2025: -18% - 2026: 6% - 2027: 5% [8] Operational Insights - The discount rate has deepened slightly due to increased inventory turnover, with expectations to return to a 4-5 month inventory turnover by year-end. The overall inventory turnover ratio is currently at 5-6 months [9] - The number of sales points (excluding Li Ning YOUNG) increased to 6,132, with a net addition of 33 points in the current year. The company plans to close 10-20 direct stores while increasing wholesale points by 50 [9]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price set for the next six months [7]. Core Insights - The company reported a revenue of 12.3 billion RMB for FY26H1, a year-on-year decrease of 5.8%, and a net profit attributable to shareholders of 789 million RMB, down 9.7% year-on-year. The gross margin stood at 41.0%, reflecting a slight decrease of 0.1 percentage points [1]. - The company is implementing a "1+N" model to enhance its retail strategy, expanding offline stores into various online scenarios, resulting in a total of 4,688 stores, a decrease of 19.4% year-on-year. However, online retail sales have seen double-digit growth, alleviating some pressure on offline traffic [2]. - The company is focusing on high-potential segments, particularly in running and outdoor sports, by partnering with brands like nordaTM and Norrøna for exclusive operations in China [3]. - The membership economy is showing significant value, with a total user base of 89 million and membership contributing 92.9% to total retail sales. High-value members contribute nearly 35% to sales, with average transaction values significantly higher than non-members [4]. Financial Projections - The report maintains its profit forecast, expecting revenues of 26.5 billion RMB, 27.3 billion RMB, and 28.6 billion RMB for FY26-28, with net profits projected at 1.3 billion RMB, 1.5 billion RMB, and 1.7 billion RMB respectively. The expected EPS is 0.21 RMB, 0.24 RMB, and 0.27 RMB for the same period [5].