Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its performance and growth potential [5]. Core Views - The company is experiencing significant growth, with a projected revenue increase from 3,180 million in 2023 to 43,114 million by 2027, reflecting a compound annual growth rate (CAGR) of approximately 145.7% to 20.4% over the forecast period [7]. - Adjusted net profit is expected to rise from 416 million in 2023 to 7,725 million by 2027, showcasing a robust growth trajectory with a peak growth rate of 340.4% in 2023 [7]. - The company is expanding its brand influence and retail presence, with a focus on high-end markets both domestically and internationally, including a successful store opening in Singapore [5][6]. - The report highlights the company's strategic initiatives in product innovation and brand building, which are expected to enhance customer engagement and market penetration [5]. Financial Summary - Revenue projections for the company are as follows: 3,180 million in 2023, 8,506 million in 2024, 26,176 million in 2025, 35,822 million in 2026, and 43,114 million in 2027, with corresponding year-on-year growth rates of 145.7%, 167.5%, 207.8%, 36.8%, and 20.4% [7]. - Adjusted net profit is forecasted to grow from 416 million in 2023 to 7,725 million in 2027, with growth rates of 340.4%, 253.9%, 227.1%, 35.2%, and 18.6% respectively [7]. - The company's earnings per share (EPS) are projected to increase from 3.05 in 2023 to 44.74 in 2027, indicating strong profitability growth [7]. Market Expansion - The company has opened 41 stores as of July 27, 2025, with a focus on high-end shopping districts in major cities and international markets [6]. - The Singapore store has shown strong performance, with expectations for sales growth driven by increased foot traffic and a dedicated membership system [5]. - The report emphasizes the company's commitment to enhancing its brand presence and customer experience through strategic store placements and product offerings [5].

Company Overview - On May 30, 2025, the company launched new products, the Gourd Baby and Seven Sons Gourd series, effectively combining traditional Chinese cultural elements with exquisite craftsmanship [1] - The new Seven Sons Gourd product showcases the brand's innovation in creativity and craftsmanship, utilizing traditional gourd elements and featuring seven colors, enhancing both individual and collectible value [1] Store Expansion - The company is accelerating its store openings in 2025, with new locations in high-end shopping areas such as Shenzhen MixC, Beijing SKP-S, and Shanghai Harbour City, with some stores reaching 300-400 square meters [2] - The improved location and larger store size are expected to enhance brand influence, product display, and customer experience, maintaining the brand's high-end positioning [2] Market Conditions - Gold prices experienced a brief decline from late April to mid-May but returned to an upward trend, benefiting the company as its products are sold at fixed prices [2] - In Q1 2025, gold prices increased by 19%, and by 7% in Q2 as of June 3, 2025, which is favorable for the sales of the company's gold products [2] Financial Forecast and Valuation - Due to strong sales performance and contributions from new stores, the company raised its net profit forecast for 2025/26 by 42%/48% to 4 billion/5.7 billion yuan, with current stock price corresponding to 39/27 times P/E for 2025/26 [2] - The target price has been increased by 22% to 1,079.06 HKD, reflecting a 12% upside potential from the current price, while maintaining an outperform rating in the industry [2]