Core Insights - The second Hainan Agarwood and Huanghuali International Trade Fair attracted 67,000 visitors over four days, generating sales of 840 million yuan [1][6] - The event showcased over 800 companies and nearly 10,000 international buyers, highlighting the global interest in Hainan's unique products [1][3] Group 1: Event Overview - The fair, named "Tianxiang Guose," marked a significant improvement in international participation and the representation of Hainan elements compared to the first edition [3] - The exhibition covered an area of 30,000 square meters, featuring renowned artisans and collectors presenting high-quality Huanghuali furniture and top-grade agarwood [3] - The event is now included in the list of key provincial exhibitions for 2025, emphasizing its importance in promoting Hainan's unique industries [3] Group 2: Sales and Competitions - The transition from "International Conference" to "International Trade Fair" reflects a focus on industry empowerment and market needs [4] - The auction held during the fair resulted in 146 high-quality products being sold, with a total transaction value exceeding 12 million yuan [5] - Competitions such as the "Agarwood Competition" and "Agarwood Artisan Competition" provided platforms for showcasing talent and promoting traditional craftsmanship [5] Group 3: Future Prospects - The fair aimed to address industry challenges and trends, featuring forums like the Hainan Agarwood and Health Industry Development Forum to foster new ideas [7] - International cooperation was emphasized, with participants from Saudi Arabia, Pakistan, and Malaysia seeking collaborative opportunities [7] - The event's organizers promoted Hainan's agarwood industry as a promising investment opportunity, leveraging favorable policies to attract global businesses [7]

Core Insights - The demand for agarwood and sandalwood is experiencing a structural shift, with experiential value becoming a key factor in purchasing decisions [1][3] Market Growth - The domestic agarwood market has grown over 35% compared to five years ago, significantly outpacing the growth rate of the sandalwood market [3] - Agarwood is favored by high-end consumers and seasoned collectors due to its rich natural fragrance and rarity, while sandalwood appeals more to entry-level users and beginners [3] Consumer Behavior - Over 70% of surveyed users indicate that the unique fragrance variations and aftertaste of agarwood are primary reasons for their choice, rather than appearance or origin [3] - The increase in agarwood experience zones and tasting events in physical stores has notably improved purchase conversion rates and repurchase intentions [3][4] Experience Economy - Offline experiences are becoming a new trend in the agarwood market, with companies like Xiangzhizun hosting tasting events in major cities to engage consumers [4] - The consumption of agarwood is shifting from simple product purchases to a holistic cultural experience, with a growing trend towards offline tasting and community appreciation [4] Market Segmentation - The high-end trend in the agarwood market is evident, with high-quality wild agarwood prices rising due to its scarcity and unique fragrance, attracting high-net-worth individuals and collectors [6] - In contrast, sandalwood maintains a stable price range and is perceived as suitable for daily use or entry-level collections [6] Future Outlook - The essence of incense consumption is seen as a means of social interaction and personal cultivation, with the real experience of agarwood being irreplaceable [6] - As consumers place greater emphasis on product experience and cultural recognition, offline experience spaces and tasting events will become crucial drivers for industry development [6] - The differentiation and upgrading trends in the agarwood and sandalwood markets will become increasingly pronounced, with brand innovation and experiential services being key competitive factors [6]

Core Insights - The release of the 2025 Agarwood Ranking has sparked widespread interest in incense consumption culture within the industry [1] - Agarwood, as a significant component of traditional Chinese fragrance culture, continues to play a unique role in modern urban life [1] - The trend of incense consumption is shifting towards younger and more diverse demographics, emphasizing the experience and cultural value behind the products [3] Industry Trends - The rise of offline tasting events in cities like Qingdao, Shanghai, and Beijing has further stimulated public interest and aesthetic exploration of agarwood incense [1][3] - High-quality products in the Agarwood Ranking are primarily sourced from rare wild agarwood materials, which are becoming mainstream choices in the appreciation and collection market [3] - The brand "Xiang Zhi Zun" has emerged as a representative of high-end agarwood incense, promoting the idea of "high quality, inheritable, and straightforward selection" [3] Historical Context - Agarwood incense has a deep historical background, becoming an essential part of court, literati, and folk life since the Song and Yuan dynasties [5] - The compact and easy-to-use nature of incense makes it suitable for modern households and office spaces, aligning with contemporary fragrance needs [5] Quality and Standards - Industry experts recommend focusing on the material source when selecting agarwood incense, as wild agarwood offers richer fragrance layers and higher collectible value compared to cultivated varieties [5] - The evaluation criteria for the Agarwood Ranking are continuously improving, considering not only raw material quality but also craftsmanship innovation and cultural heritage [6] Future Outlook - The ongoing rise of the agarwood incense market indicates a future focus on the combination of product quality and cultural value [6] - Offline tasting events are expanding, promoting the revitalization and innovation of agarwood culture, and helping traditional fragrance culture thrive in the new urban consumption wave [6] - For urban consumers seeking a sense of ritual and spiritual enjoyment, agarwood incense serves as an important medium connecting history with modernity, taste with emotion [6]

Investment Rating - The report initiates coverage on Ying Tong Holdings with a "Buy" rating and a target price of HKD 2.86, corresponding to a 14X FY26E PE [1][6][8]. Core Insights - Ying Tong Holdings is a leading high-end perfume brand management company in China, providing distribution and market deployment services for 73 external brands as of FY25. The company is expected to benefit from the recovery in high-end consumption and the increasing penetration of perfumes and fragrances [1][3][20]. - The Chinese perfume market is projected to reach RMB 26.5 billion in 2024, with a CAGR of 15.1% from 2019 to 2024, significantly higher than the global expected growth rate of 3.5% during the same period [2][20]. - The company has established a diverse brand matrix, extending from perfumes to skincare, home fragrances, and personal care, enhancing its market coverage across various consumer segments [3][22]. Summary by Sections Company Overview - Ying Tong Holdings is recognized as the largest non-brand owner perfume group in China, with a market penetration rate of 9.30% as of 2023, ranking third in the market [24][25]. - The company has a stable supply chain, with its top two suppliers, EuroItalia and Yite, accounting for 59.4% of total procurement in FY25, indicating strong long-term partnerships [3][22]. Growth Drivers - The company is expanding its self-operated retail stores and proprietary brands, which are expected to create new revenue and profit growth points. The self-operated brand "Shi Fen Qi He" aims to enhance customer experience through a multi-price product display [4][20]. - Ying Tong is also exploring external acquisitions to diversify its brand matrix and strengthen its market presence, particularly in lower-tier cities [4][23]. Market Dynamics - The report highlights the significant growth potential in the Chinese perfume market, with current penetration rates in the single digits compared to over 20% in the U.S. and 50% in Europe. This indicates substantial room for growth as consumer education progresses [2][20]. - The expansion of fragrance categories into personal care and home cleaning products is expected to further enlarge the market size, with the fragrance personal care market projected to reach RMB 50 billion by 2025 [20]. Financial Projections - The forecast for Ying Tong Holdings' net profit attributable to the parent company for FY26E, FY27E, and FY28E is RMB 261 million, RMB 327 million, and RMB 412 million, respectively, with corresponding EPS of RMB 0.19, RMB 0.24, and RMB 0.30 [6][12].

Core Insights - The second Hainan Agarwood and Huanghuali International Trade Fair, named "Tianxiang Guose," will take place from November 27 to 30, presenting significant opportunities for the Hainan agarwood industry and promoting its development [2] Industry Overview - The agarwood industry is expanding beyond its traditional luxury status, with increasing recognition of its medicinal value and potential applications in health [2] - The fair will feature a forum hosted by the Chinese Academy of Medical Sciences to discuss the medicinal properties of agarwood and explore its daily applications [2] Exhibition Highlights - The Hainan National Fragrance Culture Research Center will showcase numerous valuable collections and host the first "Tianxiang Guose" Cup Fragrance Master Competition, promoting agarwood culture [3] - The Hainan Agarwood Industry Association will organize a forum during the fair, gathering experts and industry leaders to discuss the future direction of the agarwood industry [3] Special Features - The Hainan Incense Association will present a complete industrial chain of the Xiangzhen incense, with over 500 square meters of exhibition space dedicated to showcasing exquisite products and materials [4] - The fair aims to enhance public awareness of Xiangzhen incense and promote the development of the "Three Incenses" industry, including Hainan Huanghuali and agarwood [4] Organizers - The event is co-hosted by Hainan Daily Media Group, Hainan Provincial Chamber of Commerce, and the China Collectors Association [5]

Core Points - The "Tianxiang Guose" Cup National Incense Art Master Competition is set to start registration in September 2023, with selection rounds from September to November and the finals on November 28 at the Hainan International Convention and Exhibition Center [1] - The competition aims to create a platform for national incense artists to exchange skills and aesthetics, discover talented individuals in incense culture, and enhance the quality and artistic level of practitioners [1] - The event promotes the integration of "incense culture + tourism + health" industries, supporting the global outreach of Chinese incense culture [1] Industry Summary - The competition is organized by the Tianxiang Guose Exhibition Committee and the Hainan National Incense Cultural Research Center, highlighting the importance of incense culture in Hainan [1] - Participants will include incense practitioners, representatives of intangible cultural heritage, enthusiasts, and students from educational institutions, showcasing traditional incense arts such as fire-free incense and seal incense [1] - The event is expected to elevate public awareness of traditional incense studies and standardize industry skill evaluations [1]