Core Insights - H&M is focusing on expanding into emerging markets like Brazil and India due to weakening consumer spending in Europe and U.S. tariffs affecting demand in the U.S. [1][4] Expansion Strategy - The expansion into new territories is part of CEO Daniel Erver's strategy to enhance brand appeal and respond more quickly to fashion trends, aiming to improve profitability and performance [2] - H&M is facing competition from Inditex-owned Zara and Shein, prompting the need for strategic adjustments [2] Brazil Expansion - H&M opened its first store in Brazil in August and plans to open two more by the end of November, with an additional four stores planned for 2026, including locations in Rio de Janeiro [3] - The company sees significant growth opportunities in Brazil and other Latin American markets, as well as in India [3] Store Count and Market Presence - H&M has reduced its global store count by 19% from its peak at the end of 2019, with 4,118 stores worldwide, marking the lowest number since mid-2016 [5] - The company plans to close 200 stores in mature markets by 2025, reflecting a strategic shift in its global footprint [5] Flagship Stores and Market Positioning - H&M has opened flagship stores in key tourist and shopping districts, such as Paris and Shanghai, to attract style-conscious consumers [6] - The premium brand Cos is set to launch in India, targeting the affordable luxury segment, with a store opening in Delhi planned for the fourth quarter [7]

Investment Rating - The report maintains a "BUY" rating for SANY Heavy, with a target price revised to RMB22 from RMB21, indicating a potential upside of 15.4% from the current price of RMB19.06 [1][3]. Core Insights - SANY Heavy's net profit for 2024 is projected at RMB5.97 billion, reflecting a 32% year-over-year increase, which aligns closely with estimates [1]. - The company is focusing on emerging markets such as Asia Pacific, Africa, the Middle East, and South America, while remaining cautious about the US and European markets due to geopolitical concerns [1]. - The management highlighted the growth potential in large-size and mining excavators, positioning SANY as a key player in the excavator upcycle [1]. Financial Performance - Revenue for FY24 is expected to reach RMB78.38 billion, a 5.9% increase from FY23, with further growth projected to RMB88.84 billion in FY25 and RMB97.80 billion in FY26 [2]. - Adjusted net profit is forecasted to grow to RMB7.72 billion in FY25 and RMB8.88 billion in FY26, with corresponding EPS increasing to RMB0.91 and RMB1.05 respectively [2]. - The proposed dividend for FY24 indicates a 51% payout ratio, up from 41% in FY23, marking the highest payout since 2017 [1]. Regional Revenue Breakdown - In 2024, overseas revenue is expected to grow by 12% year-over-year, contributing 64% of total revenue, with Africa showing a significant 44% increase [6][8]. - The revenue breakdown for overseas markets in 2024 includes Asia Pacific (42%), Europe (25%), America (21%), and Africa (11%) [8]. Earnings Forecast Adjustments - The earnings forecasts for 2025 and 2026 have been slightly revised upwards by 5% and 7% respectively, reflecting the anticipated earnings upcycle [1][13]. - The target price adjustment to RMB22 is based on an unchanged target P/E of 24x, which is 0.5 standard deviations above the average of 20x since 2017 [1][3]. Share Performance - The market capitalization of SANY Heavy is approximately RMB161.74 billion, with an average turnover of RMB1.51 billion over the past three months [3]. - The stock has experienced a 1-month decline of 6.7% but a 3-month increase of 23.6% [5].