Company Overview - Company has enhanced confidence in the operational performance of Shanghai Hang Lung Plaza for the second half of the year and next year, based on recent research findings [1] - The third phase of the project, with a total floor area of approximately 3,000 square meters, is expected to open in Q3 2026, expanding the total rentable area to about 32,000 square meters [1] Operational Strategy - The company is actively expanding rentable space and optimizing space usage efficiency through strategies such as converting large shops into smaller ones and improving the connection between office buildings and commercial spaces [1] - The introduction of new brands and flagship stores, including a new three-story Chanel flagship store expected to open in Q4, is anticipated to significantly contribute to retail sales [1] Market Performance - Shanghai Hang Lung Plaza's retail sales showed a gradual improvement in the first half of 2025, with a projected continuation of this trend in the second half, supported by a lower comparative base from the previous year [2] - Marketing activities, including a collaboration with Jellycat and the annual anniversary celebration, are expected to drive customer traffic growth [2] Financial Outlook - The company maintains an outperform rating and has slightly raised the target price by 6% to HKD 9.46 per share, reflecting a 15 times core P/E for 2025 and a target dividend yield of 5.5% [2] - The contribution of Shanghai Hang Lung Plaza to the company's total rental income was approximately 16% in the first half of 2025, providing support for the overall annual performance and dividend payout [2]

Core Viewpoint - CICC maintains a "outperform" rating and profit forecast for Hang Lung Properties (00101), raising the target price by 6% to HKD 9.46 per share, reflecting a 15x target core P/E for 2025 and a 5.5% target dividend yield, with an 8% upside potential [1] Group 1: Expansion and Development - The company is actively expanding its leasable area, with the third phase of Shanghai Hang Lung Plaza expected to open in Q3 2026, adding approximately 3,000 square meters to the current 32,000 square meters of leasable area [2] - The opening of the third phase is anticipated to enhance the project’s leasable area, accommodate more flagship stores, and improve customer experience through better space utilization [2] Group 2: Brand Adjustment and Performance - The company expects to see results from brand adjustments within this year, with a new three-story flagship store for Chanel anticipated to open in Q4, potentially contributing significantly to retail sales [3] - New brands such as Rolex have already opened this year, and the company is also introducing experiential brands like DJI and Hasselblad to enhance brand diversity [3] Group 3: Operational Performance Outlook - The retail performance of Hang Lung Properties' mainland shopping centers showed improvement in the first half of 2025, with Shanghai Hang Lung Plaza experiencing a quarterly improvement trend [4] - The company expects the operational performance to continue improving in the second half of the year, supported by a lower comparative base from last year and various marketing activities planned [4] - Shanghai Hang Lung Plaza is crucial for the company's overall performance, contributing approximately 16% to total rental income in the first half of 2025, providing support for annual performance and dividend payout [4]

Core Viewpoint - CICC maintains a "outperform" rating and profit forecast for Hang Lung Properties (00101), raising the target price by 6% to HKD 9.46 per share, corresponding to a 15x 2025 target core P/E and a 5.5% target dividend yield, indicating an 8% upside potential [1] Group 1: Expansion and Development - The company is actively expanding its leasable area, with the third phase of Shanghai Hang Lung Plaza expected to open in Q3 2026, adding approximately 3,000 square meters to the current 32,000 square meters of leasable area [2] - The opening of the third phase is anticipated to enhance the project’s leasable area, accommodate more flagship stores, and improve customer experience through better space utilization [2] Group 2: Brand Adjustment and Performance - The company expects to see results from brand adjustments within this year, with Chanel's new three-story flagship store likely to open in Q4, potentially contributing significantly to retail sales [3] - New brands such as Rolex have already opened this year, and the company is also introducing experiential brands like DJI and Hasselblad to enhance brand diversity [3] Group 3: Operational Performance Outlook - The retail sales of Hang Lung Properties' mainland shopping centers showed a trend of improvement, with Shanghai Hang Lung Plaza's sales improving quarter by quarter [4] - The company anticipates that the operational performance in the second half of the year will continue to improve, supported by a lower comparative base from last year and various marketing activities planned [4] - Shanghai Hang Lung Plaza is expected to contribute approximately 16% to the company's total rental income in the first half of 2025, providing support for the company's overall performance and dividend payout [4]

Core Viewpoint - Anta Sports achieved a revenue of 38.54 billion yuan in H1 2025, representing a year-on-year increase of 14.3%, with a net profit of 7.03 billion yuan, also up by 14.5%, exceeding expectations [1][2] Group 1: Financial Performance - The company plans to distribute a mid-term dividend of 3.53 billion yuan, with a payout ratio of 50% [1] - Anta's operating profit margin (OPM) reached 26.3%, an increase of 0.6 percentage points year-on-year [1] - The revenue breakdown for H1 2025 shows Anta brand at 16.9 billion yuan (+5%), FILA at 14.2 billion yuan (+9%), and other brands at 7.4 billion yuan (+61%) [1] Group 2: Brand Performance - FILA and outdoor brands showed strong performance, with FILA's new CEO enhancing brand and retail channel strategies [1][2] - Descente and Kolon maintained high-quality growth due to favorable market conditions and refined operations [1] Group 3: Margin Analysis - Gross profit margins (GPM) for Anta and FILA decreased by 1.7 percentage points and 2.2 percentage points respectively, attributed to increased costs in professional categories and a higher proportion of online sales [2] - Despite GPM pressure, Anta's OPM improved due to increased government subsidies, with OPM expected to remain healthy through refined expense management [2] Group 4: Future Outlook - The company anticipates net profits of 13.4 billion yuan, 15 billion yuan, and 16.8 billion yuan for 2025-2027, reflecting year-on-year growth of 13%, 12%, and 12% respectively [2] - Anta's brand expansion overseas is accelerating, with plans for increased investment in FILA and recent acquisition of the Wolf Paw brand to enhance its brand matrix [2]

Investment Rating - The investment rating for Anta Sports (2020.HK) is "Buy" and is maintained [8]. Core Views - Anta's retail performance in Q2 2025 showed low single-digit growth for the Anta brand, while FILA brand experienced mid-single-digit growth, and other brands grew by 50%-55% year-on-year [2][6]. - The company is facing short-term operational pressure due to intensified competition and discounting, but the long-term outlook remains stable with expected healthy growth in revenue and net profit for H1 2025 [8]. - The forecast for net profit from 2025 to 2027 is projected at 134 billion, 150 billion, and 166 billion respectively, with year-on-year growth rates of 13%, 11%, and 11% [8]. Summary by Sections Retail Performance - Anta's retail performance in Q2 2025 was slightly below expectations, primarily due to adjustments in offline franchise stores and pressure from the 618 sales event [8]. - FILA's performance met expectations, with stable discounts in offline channels and a slight increase in e-commerce discounts [8]. Financial Projections - Total revenue projections for Anta are 70,826 million in 2024, 77,975 million in 2025, 85,282 million in 2026, and 92,167 million in 2027, reflecting growth rates of 13.58%, 10.09%, 9.37%, and 8.07% respectively [10]. - The projected net profit for 2025 is 13,420 million, showing a decrease of 13.95% compared to 2024, followed by increases of 11.47% and 10.93% in the subsequent years [10].