Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The acquisition of DFS Cotai Limitada and related assets is expected to enhance the company's position in the high-end tourism retail market in Hong Kong and Macau, allowing for better integration of quality retail networks and strengthening core competitiveness [1][4] - The transaction is valued at a maximum of USD 3.95 billion, with a total consideration of up to HKD 9.24 billion through the issuance of new H shares to LVMH and the Miller family trust [1][4] - The acquisition is anticipated to improve operational efficiency by leveraging DFS's established brand and membership system, while also facilitating the export of domestic products through the Hong Kong and Macau markets [4] Financial Summary - The total valuation of nine DFS stores in the Macau region is approximately RMB 31.34 billion (around USD 4.41 billion), with projected revenues of RMB 41.49 billion and RMB 27.54 billion for the years 2024 and 2025 respectively [3] - The net profit for the DFS stores in the Macau region is expected to be RMB 1.28 billion and RMB 1.33 billion for the same periods, with corresponding PE ratios of 25X and 23X [3] - The company's cash reserves as of Q3 2025 stand at RMB 319.69 billion, indicating a strong liquidity position [3] Profit Forecast and Valuation - The company's net profit forecasts for 2025, 2026, and 2027 have been adjusted upwards to RMB 39.60 billion, RMB 52.41 billion, and RMB 61.83 billion respectively, reflecting increases of 8%, 10%, and 10% [5] - The target price for A-shares has been raised to RMB 115.75 and for H-shares to HKD 104.36, corresponding to PE ratios of 46X and 38X for 2026 [5] - The company is expected to maintain a consistent growth trajectory with projected revenues increasing from RMB 55.10 billion in 2025 to RMB 67.51 billion in 2027 [10]