Investment Highlights - Company is initiating coverage on Leshushi (02698) with an "outperform" rating and a target price of HKD 40.00, corresponding to a 24x P/E for 2026 [1] - Leshushi is a leading player in the African hygiene products market, benefiting from a localized approach that capitalizes on growth opportunities in emerging markets [1] Market Potential - The hygiene product consumption space in emerging markets is vast, with Africa, Latin America, and Central Asia projected to have CAGRs of 7.9%, 3.0%, and 4.8% respectively from 2025 to 2029, the highest globally [2] - Leshushi is expected to hold market shares of 20.3% in diapers and 15.6% in sanitary napkins in Africa by 2024, with potential for further expansion [1][2] Business Model - Leshushi has established a deeply localized business model that includes strong local manufacturing capabilities, cost advantages, and a differentiated product offering tailored to local needs [2] - The company has developed a comprehensive distribution network that covers over 80% of the population in core markets, supported by a mature global management structure with 90% local employees [2] Growth Strategy - The company aims to expand its market share in Africa while leveraging its experience to enter Latin America and Central Asia, thus unlocking further growth potential [2] - In addition to its core diaper category, Leshushi is rapidly growing its sanitary napkin segment and plans to expand into other complementary product categories such as pull-ups and wet wipes [2] Financial Projections - Earnings per share (EPS) are projected to be USD 0.19 and USD 0.22 for 2025 and 2026 respectively, with a CAGR of 21.1% from 2024 to 2026 [2] - The current stock price corresponds to P/E ratios of 23x and 19x for 2025 and 2026, respectively, indicating a 24% upside potential based on the target price [2]

中金发布研报称，首次覆盖乐舒适(02698)给予跑赢行业评级，目标价40.00港元，对应2026年24倍P/E， 有24%上行空间。该行预计公司2025/2026年EPS分别为0.19/0.22美元，2024-2026年CAGR为21.1%。当 前股价对应2025/2026年23/19倍P/E，该行认为市场低估了公司非洲深度本土化的壁垒优势、新兴市场中 长期成长红利及品类延伸发展前景。 中金主要观点如下： 1)区域扩张：公司在非洲核心市场享受当地消费需求释放红利的同时，拟进一步稳固并提升其市占率， 同时将复用其发展经验，继续拓展拉美、中亚等新兴市场，进一步打开成长空间;2)品类拓展：在纸尿 裤核心品类基础上，公司卫生巾第二曲线成长迅速，未来有望继续拓展拉拉裤、湿巾及其他具备协同效 应的消费品类。 风险提示：竞争加剧;市场开拓不及预期;汇率及原材料价格波动。 乐舒适为非洲卫生用品龙头，凭借贴合当地市场的深度本土化布局享受新兴市场成长红利，该行看好其 后续品类延伸及区域拓展带来的广阔成长空间。潜在催化剂：中非及拉美市场突破;新品类布局;投资并 购。 新兴市场卫品消费空间广阔，乐舒适享成长红利 受益于全球最高的出生 ...

Core Insights - Chinese companies are increasingly viewing international expansion as a necessity rather than an option, with a focus on capturing larger market shares globally [1] - The diversification of export destinations and product types is a significant trend, with emerging markets in Africa, ASEAN, and Latin America becoming key targets [1][2] - International investors are showing heightened interest in the global competitiveness of Chinese companies, driven by improved product quality and competitive pricing [3] Group 1: International Expansion Trends - The shift towards a more diversified approach in overseas markets is evident, with companies moving beyond traditional markets in Europe and the US [1] - The evolution of product types from low-end goods to high-tech products reflects the increasing sophistication of Chinese manufacturing [1][2] - Companies are adopting strategies such as relocating assembly operations to regions like ASEAN to optimize costs and mitigate global uncertainties [1] Group 2: Competitive Advantages - Chinese companies have significantly improved their cost-performance ratio, combining competitive production costs with enhanced product quality [2] - Continuous investment in R&D has led to systematic improvements in product competitiveness, enabling better market penetration [2] - The unique functionalities of products developed for the vast Chinese market provide a competitive edge in global markets [2] Group 3: International Investor Interest - International investors are increasingly evaluating the global competitiveness of Chinese firms, influenced by the visibility of Chinese brands in global markets [3] - The rising share of overseas revenue and profits for Chinese companies over the past two decades has attracted investor attention [3] - Companies with strong market positions, technological advantages, and established overseas operations are particularly favored by international investors [3] Group 4: Localization Strategies - The primary challenge for Chinese companies in international markets is deciding on overseas production capacity and locations [4] - Deep localization and partnerships with local firms are recommended strategies to mitigate operational risks [4] - Successful collaboration with local governments and businesses can enhance support and reduce risks associated with international operations [4] Group 5: Future Outlook - By 2026, the trend of diversification in export markets and product structures is expected to strengthen, supported by the improved quality and reputation of Chinese manufacturing [5]

Core Insights - Starbucks has made a significant strategic decision by introducing local capital through a joint venture with Boyu Capital, relinquishing up to 60% of its controlling stake, marking a pivotal shift in its approach to the Chinese market [1][2] - The current coffee market in China is undergoing unprecedented price competition, with prices dropping to as low as 2.9 yuan per cup, challenging Starbucks' previous brand premium [1][2] - The move towards local partnerships reflects a broader trend where multinational brands must deeply localize their operations to thrive in the increasingly competitive Chinese market [3][4] Company Strategy - By ceding operational control, Starbucks aims for long-term survival and growth in China, recognizing that local insights are more valuable than global brand prestige in the current market [2][3] - Boyu Capital's involvement is not just about financial investment; it brings deep understanding and resources for expanding into smaller cities and emerging regions, indicating a strategic shift towards these markets [2][3] - Starbucks plans to expand its store count in China from 8,000 to 20,000, highlighting the importance of the Chinese market in its global strategy [4] Market Dynamics - The diverse consumer landscape in China presents challenges for Starbucks in maintaining brand identity while localizing products, pricing, and marketing strategies [3][4] - The competitive environment necessitates a balance between brand value, profitability, and rapid expansion, especially in the face of aggressive pricing strategies from local competitors [4][5] - The evolving rules of engagement for multinational companies in China emphasize the need for comprehensive localization, extending beyond product development to include ownership structures and decision-making processes [3][4] Future Outlook - Starbucks' strategy may include a franchising model in the future, allowing for rapid expansion while maintaining control over brand standards and quality [4] - The partnership with Boyu Capital is expected to enhance innovation and localized consumer experiences, which are crucial for maintaining market position as consumer preferences evolve [5] - The case of Starbucks in China serves as a reference point for other multinational brands navigating the complexities of the Chinese market [5]

Core Viewpoint - Saudi Arabia is undergoing significant social reforms and economic diversification, leading to a burgeoning fashion market and changing consumer behaviors, particularly among women [5][21][38]. Group 1: Social Changes and Women's Empowerment - Saudi Arabia has opened its doors to tourism, issuing visas for the first time in 2019, which has led to an influx of visitors and a gradual shift in societal norms [1][5]. - The labor participation rate of women in Saudi Arabia has exceeded 35%, reflecting a 50% increase over the past five years, with all retail positions in women's product stores being filled by women [6][12]. - The government aims to increase women's participation in the workforce from 22% in 2017 to 30% by 2030 as part of its Vision 2030 strategy [5][6]. Group 2: Fashion Industry Growth - The Saudi fashion market is projected to grow significantly, with retail fashion sales expected to rise by 48% from 2021 to 2025, reaching $32 billion, with an annual growth rate of 13% [12][21]. - The Middle East and North Africa region is anticipated to be the only area globally to achieve double-digit growth in all beauty sectors from 2022 to 2027, with growth rates of 11%-12% [3][12]. Group 3: Consumer Behavior and Preferences - Saudi consumers are increasingly favoring local brands, with 20% willing to pay the same or higher prices for domestic products compared to international brands [21][24]. - The influence of social media and peer recommendations is paramount in consumer decision-making, with 78% of Snapchat users valuing creator recommendations as highly as those from friends [31][32]. Group 4: Market Opportunities for Chinese Brands - Chinese brands are finding success in Saudi Arabia by leveraging e-commerce and offering products that resonate with local tastes, such as SHEIN's headscarf-compatible clothing line [14][30]. - The acceptance of new brands is high among Saudi consumers, who are eager to try innovative products that align with their cultural context [14][21]. Group 5: Government Initiatives and Local Brand Development - The Saudi government is actively promoting the fashion industry through initiatives like the "Saudi 100 Brands" program and the Riyadh Fashion Week, aimed at enhancing the global presence of local designers [22][23]. - The local fashion industry has seen the emergence of brands that incorporate traditional craftsmanship, reflecting a blend of cultural heritage and modern design [23][24].

Core Insights - The article highlights the rising popularity of Chinese cuisine in Malaysia, particularly the chain "YONNY Fish You Together," which has quickly become a leading brand in the region within just six months of its establishment [1][3]. Market Potential - The Southeast Asian restaurant market is projected to exceed $100 billion by 2024, with a low restaurant density of only 15 restaurants per 10,000 people, indicating significant room for growth compared to more mature markets like the US and Japan [4]. - The Malaysian restaurant service market is expected to reach $23.95 billion by 2029, with a compound annual growth rate (CAGR) of 12.81% from 2024 to 2029, presenting a lucrative opportunity for brands like YONNY [11]. Brand Expansion Strategy - YONNY is transitioning from a "single-point trial" approach to a "regional densification" strategy, marking a significant step in its overseas expansion plans [10]. - The brand has successfully opened multiple locations in key areas such as Selangor, Kuala Lumpur, and Johor Bahru, indicating a clear strategy to establish a strong presence in Malaysia before expanding further into Southeast Asia [10]. Unique Selling Proposition - YONNY's success is attributed to its dual strategy of "Eastern aesthetics" and "deep localization," which allows it to resonate with local consumers while maintaining its core offerings [11][14]. - The brand has upgraded its English name to "YONNY" for better international appeal and has integrated Chinese cultural elements into its restaurant design to enhance customer experience [13]. Consumer Insights - Research indicates that Malaysian families prefer "shared dining," guiding YONNY in optimizing portion sizes and introducing family meal options [18]. - The brand's positioning as a go-to choice for family gatherings and social events has solidified its market presence in Malaysia [13]. Operational Insights - YONNY's management team is actively studying local consumer preferences and operational strategies to ensure effective market penetration and adaptation [15]. - The brand is focused on building a strong local talent pool to support its expansion and maintain high operational standards [14][21].

Core Insights - The article discusses Uniqlo's strategy of deep localization and individual store management in China, particularly through the opening of its first city flagship store in Changsha, which emphasizes regional culture and consumer engagement [1][3][18] Group 1: Store Concept and Design - Uniqlo's Changsha flagship store is designed as a cultural hub that reflects local identity, featuring products inspired by local symbols and daily life, such as designs based on "small crayfish" and "chili peppers" [4][6][9] - The store includes a UTme! customization workshop, allowing consumers to create personalized designs that resonate with local culture, enhancing emotional connections [6][9][14] Group 2: Cultural Engagement and Community Involvement - The flagship store serves as a platform for cultural experiences, showcasing local art, traditional crafts, and community businesses, thus transforming shopping into a cultural exploration [9][11][14] - Uniqlo's initiatives include collaborations with local artists and the introduction of a RE.UNIQLO STUDIO for clothing repair and upcycling, promoting sustainability and community engagement [11][14][18] Group 3: Product Offerings and Local Adaptation - Uniqlo tailors its product offerings to meet local climate needs, providing high-quality, affordable clothing solutions suitable for Changsha's variable weather [24][28][30] - The store features exclusive items that blend global quality with local cultural elements, ensuring that consumers can enjoy both familiarity and uniqueness in their purchases [21][30] Group 4: Brand Philosophy and Future Vision - Uniqlo's approach in Changsha exemplifies a shift from mere commercial transactions to a deeper value co-creation with the community, positioning itself as a partner in urban development [31][33] - The brand's philosophy of "LifeWear" evolves to encompass a commitment to cultural respect and community involvement, aiming to enrich consumer experiences and foster local identity [33]

Core Insights - The German luxury car brands "BBA" (Mercedes-Benz, BMW, Audi) reported significant profit declines in the first half of 2025, with Mercedes-Benz's net profit dropping by 55.8%, Audi's by 37.5%, and BMW's by 29% [2][3][4] - The brands are facing dual challenges from U.S. tariffs and declining sales in the Chinese market, exacerbated by fierce competition from local luxury brands and an overall price war in China [2][3][4] Financial Performance - Mercedes-Benz's revenue fell to €66.377 billion, down 8.6%, with net profit dropping from €6.087 billion to €2.688 billion [3] - BMW's sales revenue decreased to €67 billion, also down 8%, with a net profit of €4 billion, a 29% decline [3] - Audi's revenue increased by 5.3% to €32.57 billion, but net profit fell to €1.346 billion, a 37.5% drop [3] Impact of U.S. Tariffs - The U.S. government's 25% punitive tariffs on EU-imported cars have significantly impacted BBA's profits, with Audi reporting losses exceeding €600 million due to tariffs and transformation costs [3][4] - Mercedes-Benz estimated a loss of €362 million due to the tariffs, which affected its core automotive business profit margin [3][4] Sales Decline in China - BBA's sales in China have been declining, with Mercedes-Benz's sales down 14% to 293,200 units, Audi's down 10.2% to 287,600 units, and BMW's down 15.5% to 318,000 units [4][5] - The shift towards electric and smart vehicles in China has intensified competition, with local brands gaining market share [4][5] Electric Vehicle Sales - Mercedes-Benz's electric vehicle sales fell by 14% to 87,300 units, while Audi's in China dropped by 23.5% to 7,897 units [5] - BMW's electric vehicle sales increased by 18.5% to 318,900 units globally, but it still lacks competitive products in the Chinese market [5] Adjusted Performance Expectations - Both Mercedes-Benz and Audi have lowered their full-year performance expectations due to ongoing challenges, with Audi revising its revenue forecast down to €65-70 billion [5][6] - Mercedes-Benz anticipates a return on sales of 4%-6%, down from an initial forecast of 6%-8% [5][6] Strategic Responses - BBA is increasing local production in the U.S. to mitigate tariff impacts, with Audi planning a $4.6 billion investment in a new factory [6] - In China, BBA is focusing on deep localization of technology, products, and supply chains to strengthen its market position [6][7] Product Development and Partnerships - BBA is accelerating the launch of new products, especially electric vehicles, with BMW planning to introduce over 10 new models in China by 2025 [7] - Collaborations with local suppliers for smart technology are being prioritized, with BMW partnering with Huawei and Audi also collaborating with the tech giant [7][8] Market Outlook - The luxury car market is facing a new competitive landscape, with BBA needing to adapt to the challenges posed by local brands and changing consumer preferences [9] - The era of high double-digit growth for all brands is perceived to be over, necessitating strategic adjustments for sustained development [9]

Core Viewpoint - Kose Group firmly asserts its commitment to the Chinese market, emphasizing its strategic importance for global operations and sustainable growth [2][4]. Group 1: Strategic Shift - Kose Group's three-year strategic plan for China has transitioned from a "defensive" to an "offensive" approach, aiming for long-term development [4][5]. - The company aims to redefine high-end value and enhance brand presence in the competitive Chinese cosmetics market [9][15]. Group 2: Brand Focus and Product Strategy - Kose is focusing on three high-end series, including Decorte AQ and SEKKISEI, to strengthen brand loyalty and consumer desire [9][15]. - The Decorte AQ series has seen significant online engagement, with a 109% increase in online average transaction value and a 125% increase in sales proportion for its three major series [12][15]. Group 3: Market Adaptation and Consumer Engagement - Kose is adapting to the evolving Chinese market by emphasizing localized research and development, as well as enhancing marketing strategies to resonate with local consumers [33][39]. - The company plans to introduce new products targeting high-end segments, including a lip essence and a quantum-computed formula for a new serum [15][22]. Group 4: Channel Expansion and Consumer Base - Kose is expanding its distribution channels, particularly in lower-tier markets, with plans to open 500 new stores by the end of the year and over 2,000 in the next three years [24][27]. - The company is also focusing on digital marketing and social media to engage a broader consumer base, including younger demographics and male consumers [20][21]. Group 5: Long-term Vision and Global Strategy - Kose's long-term vision includes a compound annual growth rate of over 5% by 2030, with a focus on expanding in Southeast Asian markets and India [30][32]. - The company is committed to a localized transformation in marketing and product development to meet diverse consumer needs in China [33][41].

Core Insights - The Vietnamese refrigerator market, previously dominated by Japanese and Korean brands, is experiencing a shift with Chinese brand Haier leading the charge [1][2] - In the first five months of 2025, the overall Vietnamese refrigerator market declined by 5.1%, while Haier's sales surged by 22%, achieving a market share of 21.9% and ranking second in the industry [1] Industry Overview - The Vietnamese refrigerator market has been characterized by a long-standing dominance of brands like Samsung, LG, and Panasonic, which have relied on technological advancements and established distribution channels [1] - The market is currently facing challenges such as slow product updates and severe homogenization, which do not meet the diverse needs of consumers [1] Company Strategy - Haier's success in Vietnam is attributed to its commitment to global branding while focusing on local market needs, including climate, dietary habits, and family structures [1] - The Haier TM700 series refrigerator exemplifies this strategy, featuring design elements tailored to tropical climates and local consumption patterns, such as dual water dispensers and ice-making modules [1] - The TM700 series also includes innovative features like dual MIGIC temperature zones for precise food storage and privacy modules for multi-generational households [1] Product Innovation - The TM700 series refrigerator has a modern aesthetic with a continuous handle and interactive breathing light, enhancing user convenience and appealing to younger consumers [2] - This product has not only achieved sales of over 50,000 units in Vietnam but has also expanded into markets across Southeast Asia, the Middle East, Africa, Australia, Europe, and South America [2] Globalization and Localization - The rise of Chinese refrigerator brands in Vietnam highlights the importance of deep localization as a foundation for successful globalization [2] - The best global products are those that deeply understand and cater to local user needs [2]