Core Viewpoint - Chow Sang Sang (00116.HK) reported a revenue of HKD 11.036 billion for the first half of 2025, reflecting a 2% year-on-year decrease in its continuing operations [1] Revenue Performance - Revenue from jewelry and watches in mainland China decreased by 2% compared to the same period in 2024 [1] - Revenue in Hong Kong and Macau experienced a decline of 6% [1] Profitability Metrics - The group's gross profit margin increased by 5.2 percentage points to 33.5% [1] - Higher gross margins were attributed to rising gold prices, which positively impacted the sales of gold products [1] Cost Management - The company implemented store network restructuring and other cost control measures, contributing to reduced costs and profit growth [1] - Another factor for the improved gross margin was the adjustment of the product mix towards higher-margin items [1] Net Profit Growth - Profit attributable to shareholders rose by 71% to HKD 902 million [1] - Profit from continuing operations attributable to shareholders increased by 81% to HKD 910 million [1]

Investment Rating - The report maintains an "Outperform" rating for Chongqing Brewery with a target price of RMB 61.00, based on a current price of RMB 55.26 [2][6]. Core Insights - The company's revenue for the first half of 2025 was RMB 8.839 billion, showing a slight decline of 0.24% year-on-year, while net profit attributable to shareholders was RMB 865 million, down 4.03% year-on-year [3][11]. - The company demonstrated strong operational resilience despite facing pressure in Q2, where revenue was RMB 4.484 billion, down 1.84% year-on-year, and net profit was RMB 392 million, down 12.70% year-on-year [3][11]. - Regional performance varied, with the Northwest region showing growth, while the Southern region faced significant pressure [3][11]. Revenue and Profitability - Total sales volume in H1 reached 1.8008 million kiloliters, up 0.95% year-on-year, outperforming the industry average [4][12]. - The average ton price for H1 was RMB 4,779, down 1.14% year-on-year, with high-end products showing slight revenue growth [4][12]. - Gross margin improved to 49.83% in H1, up 0.61 percentage points year-on-year, primarily due to lower tonnage costs [5][13]. Cost Management and Tax Impact - Cost optimization efforts led to a gross margin increase, but a significant rise in the corporate income tax rate from 20% to 27.2% negatively impacted net profit [5][13]. - The net profit margin for H1 was 9.8%, down 0.4 percentage points year-on-year, with Q2 showing a further decline to 8.7% [5][13]. Investment Recommendations and Forecasts - The report suggests that despite short-term challenges, the company's fundamentals are expected to stabilize, with a high dividend payout ratio and steady expansion of the dealer network [6][14]. - EPS estimates for 2025-2027 are projected at RMB 2.42, RMB 2.56, and RMB 2.74, respectively, with a 25x PE multiple applied for 2025 [6][14].

Core Insights - Coca-Cola reported Q2 2025 revenue of $12.535 billion, a 1% year-over-year increase, and a net profit of $3.803 billion, reflecting a 58% year-over-year growth [1] - The significant increase in net profit is attributed to price increases and adjustments in the product mix, despite a 1% decline in global sales [1] - The Chinese market showed growth in sales, driven by strong performance from the flagship Coca-Cola brand and the foodservice channel [1] Revenue and Profit Performance - Revenue for Q2 2025 was $12.535 billion, up 1% from the previous year [1] - Net profit reached $3.803 billion, marking a substantial 58% increase year-over-year [1] - Global sales volume decreased by 1%, but pricing and product mix improved by 6% [1] Market and Product Strategy - Coca-Cola plans to launch a new product made with American cane sugar in the U.S. market this fall to cater to consumer demand for differentiated flavors [1] - The company is exploring various sweetener options across its product lines, including lemonade, tea, coffee, and vitamin water [1] - Coffee is identified as a large, fragmented, and growing category within the beverage industry, although the investment in Costa has not met expectations [1] Costa Coffee Insights - Costa Coffee, a subsidiary of Coca-Cola, has 355 stores in China as of July 23, primarily concentrated in Jiangsu and Shanghai, with over 50% located in first-tier cities [1] - The performance of Costa in key growth areas such as ready-to-drink coffee and home brewing products has been underwhelming, leading the company to reflect on its strategy [1]