Macro Insights - October CPI year-on-year growth turned positive at 0.2%, with a month-on-month increase of 0.2%, significantly higher than the same period last year [6][7] - Food CPI increased month-on-month by 0.3%, with a year-on-year decline of 2.9%, indicating a narrowing drop compared to September [6][7] - Core CPI continued to rise, maintaining a year-on-year growth of 1.2%, matching the highest growth rate in the past four years [6][7] - PPI showed a month-on-month increase of 0.1%, marking the first positive growth this year, while the year-on-year decline narrowed to 2.1% [7] Computer Industry - The configuration ratio for the computer industry in Q3 2025 decreased again, with a heavy stock configuration ratio of 2.6%, down 0.1 percentage points, indicating a low allocation of 2.2 percentage points [2][9] - The top ten holdings in public funds for Q3 2025 included companies like Kingsoft Office and Inspur Information, with Kingsoft Office having the highest market value at 12.6 billion yuan [10][11] - Public funds increased their holdings in AI computing and financial technology sectors, indicating a focus on these areas for future growth [11] Company Insights: Desay SV - Desay SV reported Q3 2025 revenue of 7.692 billion yuan, a year-on-year increase of 5.63%, while net profit attributable to shareholders decreased by 0.57% to 565 million yuan [12][13] - The company launched a low-speed autonomous vehicle brand, marking a new growth curve, with plans to expand its global presence through partnerships with NVIDIA [12][13] - Revenue projections for 2025, 2026, and 2027 are expected to reach 32.7 billion, 39.8 billion, and 49.4 billion yuan, respectively, with net profits projected at 2.53 billion, 3.26 billion, and 4.08 billion yuan [12][13] Company Insights: Guobang Pharmaceutical - Guobang Pharmaceutical achieved revenue of 4.47 billion yuan in the first three quarters of 2025, a year-on-year increase of 1.2%, with net profit rising by 15.8% to 670 million yuan [15][16] - The company is expected to see revenue growth of 8.8%, 13.6%, and 12.2% for 2025, 2026, and 2027, respectively, with net profit growth of 20.6%, 23.2%, and 18.5% [17][16] - The strategic investment from Zhejiang State Capital Operation Co., Ltd. aims to support innovation in pet medicine and new drug research [16] Company Insights: Dongfang Electric - Dongfang Electric reported a revenue of 54.744 billion yuan for the first three quarters of 2025, a year-on-year increase of 16.41%, with net profit rising by 13.02% to 2.966 billion yuan [18][19] - The company secured new orders worth 88.583 billion yuan, with a focus on clean energy equipment and renewable energy sectors [19][20] - Future revenue projections for 2025, 2026, and 2027 are expected to reach 4.081 billion, 4.876 billion, and 5.409 billion yuan, respectively, driven by a strong order backlog [20] Company Insights: Guoxuan High-Tech - Guoxuan High-Tech achieved revenue of 29.508 billion yuan in the first three quarters of 2025, a year-on-year increase of 17.21%, with net profit soaring by 514.35% to 2.533 billion yuan [22][23] - The company’s energy storage output is projected to reach 65 GWh, with significant growth in both power and energy storage segments [23][24] - Guoxuan High-Tech is set to supply batteries for Volkswagen's upcoming electric vehicles, indicating strong market recognition [23] Company Insights: Anta Sports - Anta Sports reported low single-digit growth for its main brand in Q3 2025, with overall revenue guidance for the year adjusted down to low single digits [26][27] - The company launched several new products and maintained a healthy inventory turnover ratio, despite facing challenges from weak consumer demand [26][27] - Other brands under Anta, such as FILA, showed strong growth, with expectations of maintaining over 40% growth for the year [27] Company Insights: Xtep International - Xtep International's main brand showed low single-digit growth in Q3 2025, while its subsidiary Saucony experienced over 20% growth [29][30] - The company is expanding its outlet strategy and plans to open 30-50 new stores in the coming year [29][30] - Revenue projections for 2025, 2026, and 2027 are expected to reach 14.46 billion, 15.56 billion, and 16.78 billion yuan, respectively [30] Company Insights: Yongxin Co. - Yongxin Co. reported revenue of 2.706 billion yuan in the first three quarters of 2025, a year-on-year increase of 6.56%, with net profit rising by 1.43% to 309 million yuan [32][33] - The company is expanding its production capacity with several new projects expected to come online in the next two years [32][33] - Future revenue projections for 2025, 2026, and 2027 are expected to reach 3.788 billion, 4.135 billion, and 4.542 billion yuan, respectively [33] Company Insights: Kesheng Co. - Kesheng Co. reported a revenue of 1.116 billion yuan in the first three quarters of 2025, a year-on-year decline of 39.93%, with net profit dropping by 84.84% [41][42] - The company is focusing on product diversification to mitigate the impact of declining demand in its core sunscreen business [42][43] - Future earnings per share (EPS) projections for 2025, 2026, and 2027 are expected to be 0.25, 0.38, and 0.50 yuan, respectively [43]

Macro Insights - October CPI turned positive year-on-year, exceeding market expectations, driven by the weakening high base effect, seasonal food price increases, holiday effects, and medical price reforms impacting service prices [2] - PPI recorded its first month-on-month increase this year, attributed to improved supply-demand dynamics in industrial products and rising international metal prices [2] Trade Data - In October 2025, China's exports fell by 1.1% year-on-year, significantly down from the previous month, primarily due to high base effects. Integrated circuits and automobiles were key export drivers, while labor-intensive products contributed negatively [3] - The export growth rate is expected to remain affected by high base effects in the remaining months of the year, but supportive non-US economies and easing US-China trade relations are likely to maintain a favorable export outlook [3] Market Strategy - The current market position is seen as a potential starting point for a long-term bull market, with gradual improvements in fundamentals and industry highlights as the foundation. The inflow of resident funds and policy support will influence market trends [4][10] - The market may enter a wide-ranging consolidation phase in the short term, with a focus on defensive and consumer sectors, while mid-term attention remains on TMT and advanced manufacturing sectors [10] Bond Market - The secondary market for REITs showed a downward trend, with the weighted REITs index closing at 182.3, reflecting a return rate of -0.48% for the week [5] - Credit bond issuance totaled 334 bonds with a total scale of 363.4 billion yuan, a decrease of 7.66% week-on-week, while industrial bonds saw a 5.36% increase in issuance [6] Industry Research TMT Sector - The narrative around AI investments is shifting from "need to invest" to "need for returns," leading to a revaluation of AI visibility and realization. Major tech companies are experiencing accelerated growth in cloud computing revenue, validating AI demand [11] - Recommended stocks include Microsoft, with a focus on Google, Amazon, and Meta [11] Basic Chemicals - Strong demand for energy storage is tightening the supply-demand situation for iron phosphate, leading to improved prices and profitability for leading phosphate chemical companies [12] - Suggested stocks include Yuntianhua, Chuanheng, and Xingfa Group [12] Oil and Gas - OPEC+ announced a pause in production increases, which is expected to alleviate concerns over oil supply. Geopolitical tensions are likely to support oil prices [13] - The report highlights risks related to upstream capital expenditure growth and price volatility [13] Food and Beverage - Recommendations include strong brands with high dividend returns like Kweichow Moutai and Shanxi Fenjiu, as well as companies benefiting from structural upgrades in the beer sector [14] - Suggested stocks include Yihai International and Mengniu Dairy [14] Automotive - The automotive market showed strong performance in October, with NIO's monthly sales surpassing 40,000 units. Recommended stocks include NIO and XPeng Motors [15] - Suggested components include Fuyao Glass and Wuxi Zhenhua [15] Textile and Apparel - The textile and apparel sector is focusing on mitigating tariff impacts and enhancing market share among leading companies. Recommended stocks include Shenzhou International and Anta Sports [16] - The cosmetics sector is expected to highlight the capabilities of leading companies amid intensified competition [16] Company Research Hong Kong Stock Exchange - The company reported record high revenue and profit for the first three quarters of 2025, driven by active trading in the Hong Kong stock market [17] - The forecast for net profit from 2025 to 2027 is 17.3 billion, 18.5 billion, and 19.5 billion HKD, maintaining a "buy" rating [17] Farah Electronics - The company achieved a revenue of 1.445 billion yuan in Q3 2025, with a year-on-year growth of 9.31%. The market share in the new energy sector continues to rise [18] - The stock is rated as a "buy" with a projected PE of 20X, 16X, and 14X for 2025-2027 [18] Huahong Semiconductor - The company is entering a price increase cycle due to sustained demand recovery, with adjusted net profit forecasts for 2025-2027 of 70 million, 150 million, and 190 million USD [19] - The stock is rated as a "buy" based on market share growth and long-term revenue potential [19] Meili Tianyuan Medical Health - The acquisition of Siyanli is expected to enhance the company's performance, with revised net profit forecasts for 2025-2027 of 320 million, 440 million, and 490 million yuan [20] - The stock is rated as a "buy" with a focus on shareholder returns [20]

1. Report Industry Investment Rating - The industry rating is "Bullish" [1] 2. Core Views of the Report - The cosmetics industry continues to show differentiation, with brand demand being weak in the off - season, agents seeking change in difficult situations, and producers seizing supply - chain reconstruction opportunities. The medical aesthetics industry has new entrants with better - than - expected shipments, and new product catalysts are worth attention [3][4] 3. Summaries According to Relevant Catalogs 3.1 Cosmetics: Continued Differentiation 3.1.1 Brand Merchants - In 1 - 3Q25, beauty brand merchants' revenue was 28.4 billion yuan, a year - on - year decrease of 0.6%; personal care brand merchants' revenue was 5.7 billion yuan, a year - on - year increase of 12.4%. In 3Q25, beauty and personal care brand merchants' revenues were 8.05 billion and 1.805 billion yuan, a year - on - year decrease of 1.3% and an increase of 7.6% respectively. Beauty revenue weakened quarter - on - quarter, while personal care remained flat [18] - Beauty: Affected by the earlier Double Eleven promotion, consumer enthusiasm declined in September, and brands reduced live - streaming activities. In terms of single - quarter revenue growth, Shuiyang Co., Ltd. and Shanghai Jahwa increased by over 20%, Marubi Co., Ltd. had double - digit growth, Proya had low - double - digit decline, and Betaine and Freda had high - single - digit decline [18] - Personal care: Runben Co., Ltd.'s Q3 revenue increased by 17% year - on - year, with a slight increase in growth rate quarter - on - quarter. Baiya Co., Ltd.'s 3Q25 revenue improved, and Dengkang Oral Care had steady growth [18] - In 1 - 3Q25, beauty brand merchants' net profit after non - recurring items was 2.33 billion yuan, a year - on - year decrease of 15%; personal care brand merchants' was 604 million yuan, a year - on - year decrease of 3.4%. Some companies showed initial cost - control effects [24] 3.1.2 Agents - Agents are seeking change in difficult situations by exploring three paths: incubating self - owned brands (represented by Ruoyuchen), using AI to reduce costs and increase efficiency (represented by Yiwow), and expanding high - growth categories (such as Qingmu Technology expanding into trendy toy agency operations) [30] - Ruoyuchen's self - owned brands Feicui and Zhanjia continued to gain momentum. In Q3, self - owned brand revenue was 451 million yuan, a year - on - year increase of 344.5%, accounting for 55.1%. Zhanjia's Q3 revenue was 227 million yuan, a year - on - year increase of 119%, and 1 - 3Q revenue was 680 million yuan. Feicui's Q3 revenue was 203 million yuan, a quarter - on - quarter increase of over 98.8%, and 1 - 3Q revenue was 362 million yuan [30] 3.1.3 Producers - Demand continued to recover, and the revenue of the producer sector increased by 9%, 17%, and 30% year - on - year from Q1 to Q3, with the growth rate increasing quarter by quarter [33] - QingSong Co., Ltd. focused on optimizing customers and product structure, and its profit turned positive for four consecutive quarters from 2Q24 to 1Q25. Jieya Co., Ltd. had increasing orders from overseas big customers, and its Q3 performance growth accelerated. Jiaheng Home Co., Ltd. increased revenue but not profit, mainly due to the short - term impact of the Huzhou base's capacity ramp - up [33] 3.2 Medical Aesthetics: New Entrants with Better - than - Expected Shipments 3.2.1 Upstream Consumables - The growth rate of demand expansion slowed down, and supply - side competition intensified. In terms of the cumulative number of Class III medical device approvals, hyaluronic acid > regenerative (Sculptra/Poly - L - Lactic Acid) > botulinum toxin > recombinant collagen. Old products of hyaluronic acid and regenerative types faced growth pressure, and the growth rate of recombinant collagen Class III medical device products slowed down significantly quarter - on - quarter [38] - Hyaluronic acid: Aimeike's revenue growth rate from 24Q1 to 25Q3 was + 28.2%/+2.3%/+1.1%/ - 7%/ - 18%/ - 25%/ - 21% year - on - year, showing a quarterly decline since 24Q2 [38] - Collagen: Jinbo Biotech's revenue growth rate from 24Q1 to 25Q1 was + 76%/+100%/+92%/+73%/+63% year - on - year, and in 2Q25/3Q25, it was + 30%/+13% year - on - year. On October 23, the "Recombinant Type I α1 Subtype Collagen Freeze - Dried Fiber" Class III medical device certificate of Giant Biogene was approved by NMPA [38] - Leapmed Medical's medical aesthetics shipments were better than expected, with Q3 medical service and health management business revenue of 320 million yuan, a year - on - year increase of 28%, and the revenue of Sculptra and Hydrodermabrasion reaching 86.1367 million yuan [36] 3.2.2 Downstream - The new model of Xinoxygen Medical Clinics showed high - growth potential. The Q3 revenue guidance was 150 - 170 million yuan, a year - on - year increase of 231% - 275%, and a quarter - on - quarter increase of 4% - 18%. It plans to implement the "100 - City, 1000 - Store" plan in the long term [40] - Stores are expanding from first - tier cities to new first - tier and second - tier cities. As of November 6, it covered 42 stores in 10 cities. The promotion of self - owned brands was remarkable, and it cooperated with Xihong Miracle Sculptra 3.0, priced at 2999 yuan, which was officially launched on September 25 [43] 3.3 Investment Recommendations - Brands with upward potential and both growth and certainty: Recommend Maogeping (Oriental aesthetics, dual - wheel drive of makeup and skincare, and the second - curve of perfume is worth looking forward to) and Shangmei Co., Ltd. (with one cornerstone brand, five growth brands, and N seed businesses) [8][46] - Companies with new product pipelines and expected performance elasticity: Pay attention to Giant Biogene and Leapmed Medical [8][46] - Companies in strategic adjustment and expected to reach an inflection point: Recommend Shuiyang Co., Ltd. (the effect of high - end transformation is gradually emerging), and pay attention to Shanghai Jahwa, Betaine, and Freda [8][46]

Core Insights - The China International Import Expo (CIIE) has become a significant platform for global enterprises to share opportunities and expand cooperation, highlighting China's role as a global innovation launchpad and application hub [1][2] Group 1: Company Participation - Schneider Electric has participated in the CIIE for eight consecutive years, showcasing its commitment to the Chinese market and global outreach, with multiple original Chinese innovations launched during this year's expo [1] - Amorepacific Group from South Korea presented nearly 300 exhibits, including over 20 new products launched in China, indicating a trend among foreign companies to debut new products at the CIIE [2] - Bosch globally launched the LeTrak magnetic drive transmission system at the expo, while Medtronic and Pfizer also introduced several new products, emphasizing the event's role in product innovation [2] Group 2: Market Opportunities - The CIIE is not only a platform for product display but also a strategic opportunity for market transformation and upgrades, as noted by Hansgrohe's transformation from a household water purification brand to a provider of comprehensive water treatment solutions [2] - The event facilitates deepened cooperation among enterprises, with Wilo Group signing multiple strategic agreements during the expo to enhance its green initiatives in the Chinese market [2] - The CIIE reflects China's strong market appeal and commitment to high-level openness, as highlighted by the Ministry of Commerce's research, showcasing China's integration into the global economy [2]

Core Viewpoint - The company reported its Q3 2025 results, showing a revenue increase of 25.5% year-on-year, with a net profit growth of 2.13% [1][2]. Financial Performance - For Q1-Q3 2025, the company achieved revenue of 2.45 billion yuan, with a net profit of 240 million yuan [1]. - In Q3 alone, revenue reached 690 million yuan, reflecting a 14.3% year-on-year growth, while net profit was 69.48 million yuan, up 11.6% year-on-year [1]. - The non-recurring net profit decreased by 20% year-on-year in Q3 [1]. Segment Performance - In Q3 2025, revenue by product category was as follows: eye care (150 million yuan, +20%), skincare (310 million yuan, +42%), cleansing (70 million yuan, +23%), and beauty products (150 million yuan, -27%) [2]. - The main brand is expected to maintain good growth, while the sub-brand "Lianhuo" is under pressure [2]. - Average prices for skincare products increased due to a higher sales proportion of eye care products and a decrease in lower-priced eye care product sales [2]. Profitability Analysis - For Q1-Q3 2025, the net profit margin decreased by 2.3 percentage points to 10% [2]. - Gross margin slightly increased by 0.3 percentage points to 74.9% [2]. - The increase in sales, management, and R&D expense ratios contributed to a total expense ratio increase of 3.1 percentage points [2]. Investment Outlook - The company continues to implement a big product strategy, with its two main brands, "Marubi" and "Lianhuo," showing sustained growth [3]. - New products like "Little Gold Needle Cream" and "Little Gold Needle Mask" are expected to contribute to growth [3]. - EPS forecasts for 2025, 2026, and 2027 are 0.95, 1.12, and 1.29 yuan per share, respectively, maintaining a "buy" rating [3].

Group 1 - The eighth China International Import Expo (CIIE) features 67 participating countries and international organizations, with Thailand, UAE, Nigeria, Georgia, Sweden, and Colombia as guest countries [1] - The event serves as a platform for showcasing unique products and innovative achievements, promoting cooperation and mutual development among participating nations [1][2] - Colombia's participation includes 29 companies from agriculture, handicrafts, and cosmetics, marking a record number for the country at the expo [2] Group 2 - Kyrgyzstan, as a first-time participant, highlights natural products like honey and handmade soap, emphasizing the expo as an excellent platform for visibility and collaboration [2] - Sweden focuses on green technology, digital transformation, and high-end manufacturing, viewing the expo as a vital opportunity for bilateral trade and cultural exchange [2][3] - The expo facilitates connections for African SMEs, with the Democratic Republic of Congo's exhibitor expressing optimism about leveraging the event for business growth [3][4] Group 3 - Sri Lanka promotes its Ceylon tea at the expo, viewing it as a bridge for discovering business opportunities and enhancing cooperation among global southern countries [4] - Armenia showcases products like mineral water and wine, with participants expressing hope for increased recognition and orders from Chinese consumers [4] - The expo blends commerce and culture, with immersive experiences in various national pavilions, enhancing cultural exchange and understanding [5] Group 4 - The "Charming Friendly Cities" section at the expo highlights local cooperation achievements, featuring twin city exhibitions that showcase diverse cultural and economic ties [5]

Group 1 - The eighth China International Import Expo (CIIE) showcased 461 new products, technologies, and services, highlighting a strong emphasis on innovation and consumer engagement [1] - Vipshop's booth featured an immersive online shopping experience through its app, allowing visitors to browse international brands [1] - Yili Group emphasized its commitment to global industrial collaboration and high-quality product offerings, leveraging the CIIE as a platform for supply chain enhancement [1] - Nissan announced the establishment of Nissan Import and Export (Guangzhou) Co., Ltd., reinforcing its dedication to the Chinese market and global business expansion [1] - China National Pharmaceutical Group utilized the CIIE to deepen trade cooperation and establish a drug and medical device transformation center in Hainan [1] - BMW showcased multiple products, including a two-door coupe, and plans to introduce more innovative products and technologies to meet diverse consumer needs in China [1] Group 2 - Ctrip Group provided comprehensive travel services for overseas visitors at the CIIE, including flight bookings, hotel accommodations, and local experiences [2] - L'Oréal launched several first-of-their-kind products at the expo, emphasizing the importance of the Chinese market in its global strategy [2]

Core Insights - The China International Import Expo (CIIE) has become a platform for foreign companies to transition from exhibitors to investors, reflecting China's commitment to development and openness [1][2][4] - Major companies like Estée Lauder, Danone, Samsung, and Zeiss are significantly increasing their investments in China, indicating strong confidence in the Chinese market [1][2][3] Company Summaries - Estée Lauder signed a procurement intention order worth $480 million at CIIE, emphasizing the importance of the Chinese market as a growth engine for the company [1] - Danone aims to make China its largest global market within five years, planning to establish a research center in China to drive innovation [2] - Samsung has invested nearly $55 billion in China since entering the market in 1992, with plans to continue expanding its production and R&D capabilities [2] - Zeiss is enhancing its local investment strategy, with significant projects like a new headquarters in Shanghai and a manufacturing base in Suzhou, aiming to boost service capabilities and innovation [3] Industry Trends - The latest "World Open Report 2025" indicates that China offers one of the highest investment returns globally, with foreign direct investment returns averaging around 9% over the past five years [4] - A report by KPMG highlights a notable increase in M&A activities by multinational companies in China, with many planning to maintain or increase investments despite global economic uncertainties [5] - Over half of the surveyed multinational companies express optimism about China's economic growth for 2025, with expectations for this sentiment to rise in the next three to five years [5]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company reported a revenue of 2.45 billion yuan for Q1-Q3 2025, representing a year-on-year growth of 25.5%. The net profit attributable to shareholders was 240 million yuan, up 2.13% year-on-year. In Q3 alone, revenue reached 690 million yuan, a 14.3% increase year-on-year, while net profit attributable to shareholders was 69.48 million yuan, growing by 11.6% year-on-year. However, the non-recurring net profit saw a decline of 20% year-on-year [2][4]. Summary by Sections Revenue Performance - For Q3 2025, the company achieved revenue of 1.5 billion yuan from eye care products, 3.1 billion yuan from skincare, 0.7 billion yuan from cleansing products, and 1.5 billion yuan from beauty products, with year-on-year growth rates of 20%, 42%, 23%, and -27% respectively. The main brand is expected to maintain good growth, while the beauty category is under pressure [9]. Profitability Analysis - In the first three quarters of 2025, the net profit margin decreased by 2.3 percentage points to 10%. This was attributed to a slight increase in gross margin by 0.3 percentage points to 74.9%, while sales, management, and R&D expense ratios increased by a total of 3.1 percentage points [9]. Investment Recommendations - The company is expected to continue its large product strategy, with the main brands, Marubi and Lianhuo, maintaining growth momentum. New products such as the "Little Gold Needle" cream and mask are being introduced, indicating significant growth potential. The forecasted EPS for 2025-2027 is 0.95, 1.12, and 1.29 yuan per share respectively, with a "Buy" rating maintained [9].

Core Viewpoint - The beauty and personal care sector is experiencing significant differentiation, with personal care products and channel innovations continuing to perform strongly, while the domestic cosmetics market is seeing a slowdown in growth. The medical aesthetics sector is facing intensified competition, leading to a deceleration in growth [1][2]. Group 1: Industry Performance - In the first three quarters of 2025, revenue and net profit attributable to shareholders increased by 2.7% and 4.9% respectively, with personal care outperforming cosmetics and medical aesthetics [3]. - The personal care segment achieved revenue and net profit of 5.2 billion and 0.5 billion respectively, with year-on-year growth of 33.7% and 5.7%. In Q3 alone, revenue and net profit reached 1.8 billion and 0.17 billion, showing year-on-year growth of 41.1% and 3.3% [3]. - The cosmetics segment reported revenue and net profit of 30.8 billion and 3 billion respectively, with year-on-year changes of -0.4% and -2.3%. In Q3, revenue and net profit were 8.9 billion and 0.75 billion, with year-on-year changes of -0.5% and +50.8% [3]. - The medical aesthetics segment generated revenue and net profit of 7.5 billion and 2.7 billion respectively, with year-on-year changes of -0.7% and +14.5%. In Q3, revenue and net profit were 2.5 billion and 1.2 billion, with year-on-year changes of +1.8% and +96.6% [3]. Group 2: Investment Recommendations - The overall consumer market is in a slow recovery phase, with the beauty and personal care sector benefiting from product innovations and the rise of domestic brands, indicating strong growth potential. It is anticipated that the beauty and personal care sector will maintain stability in 2026, but differentiation will further intensify [2]. - The recommendation is to selectively invest in high-growth targets that exhibit product and channel changes, while also monitoring marginal improvement opportunities [2]. Group 3: Market Trends - The market share of the beauty and personal care sector is expected to increase due to the long-term logic of domestic brand growth, with high-growth targets continuing to attract incremental capital [4]. - The third quarter saw a decrease in market share to 7.29%, down 5.3 percentage points, influenced by factors such as intensified competition and reduced efficiency in traffic conversion [4][5].