Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a year-on-year growth in retail sales for its main brand in Q1 2025, with a discount range of 70% to 75% and channel inventory at approximately four months [2][3] - Saucony, a brand under the company, achieved about 40% year-on-year growth in retail sales in Q1 2025, benefiting from its strong performance in professional running and outdoor segments [2][3] Summary by Sections Event Overview - The company announced its Q1 2025 operational data, highlighting a year-on-year increase in retail sales for its main brand, with discounts maintained at 70% to 75% and channel inventory around four months [2] Analysis and Judgment - In Q1 2025, the retail sales growth rate for the main brand showed a decline compared to Q4 2024, but the discount levels remained stable [3] - The company’s retail discount rates were consistent across quarters, with channel inventory turnover slightly improving compared to the previous year [3] - Saucony's growth is attributed to its strategic positioning in high-end markets and its brand promotion efforts, including celebrity endorsements and product innovation [3] Investment Recommendations - Short-term investments in the main brand's DTC strategy may negatively impact sales but are expected to enhance consumer interaction and brand loyalty in the long run [4] - The company plans to expand its product range and open approximately 30 new Saucony stores in high-end markets [4] - The financial forecasts for 2025, 2026, and 2027 predict revenues of 142.86 billion, 155.58 billion, and 172.51 billion respectively, with corresponding net profits of 13.74 billion, 15.11 billion, and 16.64 billion [4]

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2]. Core Insights - The company is expected to achieve a revenue growth of 3.9% in 2024, driven by professional categories such as running and fitness [7]. - The gross margin is projected to improve to 49.4%, while net profit is expected to decline by 5.5% to 3.01 billion [7]. - The company is focusing on optimizing channel structures and enhancing operational efficiency to expand its influence in the professional sports market [7]. Financial Data and Forecast - Revenue (in million) for 2023 is 27,598.49, projected to be 28,675.64 in 2024, with a year-on-year growth of 3.9% [6]. - Net profit (in million) for 2023 is 3,186.91, expected to decrease to 3,012.92 in 2024, reflecting a decline of 5.46% [6]. - The diluted EPS for 2024 is projected at 1.17, with a gross margin of 49.37% [6][10]. - The company anticipates a net profit of 27.3 billion and 28.6 billion for 2025 and 2026, respectively, with a PE valuation range of 13-15X for 2025 [7]. Market Performance - The company's stock price closed at 15.78 HKD, with a 52-week price range of 12.56-24.60 HKD [2]. - The total market capitalization is 40,788 million HKD [2]. - The company has faced challenges in offline traffic, with a reported decline in daily customer flow by 10-20% [7]. Revenue Breakdown - The revenue from the Li Ning brand is expected to reach 26.82 billion, with a year-on-year growth of 3.4% [7]. - Revenue from footwear, apparel, and equipment is projected at 14.3 billion, 12.05 billion, and 2.32 billion, respectively, with footwear showing a growth of 6.8% [7]. Inventory and Efficiency - The company maintains a healthy inventory structure with a turnover period of 64 days and an inventory cost increase of 4.2% year-on-year [7]. - The overall inventory turnover ratio is 4.0 months, indicating a stable inventory management strategy [7]. Valuation and Estimates - The estimated reasonable value range for the stock is between 14.92 and 17.22 HKD per share based on the projected earnings [7]. - The company is expected to maintain a dividend yield of approximately 3.71% in 2024 [10].

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of 82.62 HKD based on a 2025 PE of 25X [2][9]. Core Insights - Miu Miu's retail revenue surged by 93% in 2024, with EBIT margin reaching a 10-year high. Overall revenue increased by 14.9% YoY to 5.43 billion Euros, while net profit rose by 25% YoY to 839 million Euros [2][9]. - The company is expected to continue its strong growth trajectory, with net profit forecasts of 972 million Euros in 2025, 1.088 billion Euros in 2026, and 1.191 billion Euros in 2027, reflecting growth rates of 15.9%, 11.9%, and 9.5% respectively [2][9]. Financial Data Summary - **Revenue Forecast**: - 2023: 4.726 billion Euros - 2024: 5.432 billion Euros (YoY +14.9%) - 2025E: 6.059 billion Euros (YoY +11.5%) - 2026E: 6.646 billion Euros (YoY +9.7%) - 2027E: 7.207 billion Euros (YoY +8.4%) [2][6] - **Net Profit Forecast**: - 2023: 671 million Euros - 2024: 839 million Euros (YoY +25.0%) - 2025E: 972 million Euros (YoY +15.9%) - 2026E: 1.088 billion Euros (YoY +11.9%) - 2027E: 1.191 billion Euros (YoY +9.5%) [2][6] - **EPS Forecast**: - 2023: 0.26 Euros - 2024: 0.33 Euros - 2025E: 0.38 Euros - 2026E: 0.43 Euros - 2027E: 0.47 Euros [2][6] - **Gross Margin**: - 2024: 79.84% - 2025E: 79.80% - 2026E: 79.90% - 2027E: 80.00% [2][6] - **Return on Equity**: - 2024: 19.07% - 2025E: 19.84% - 2026E: 19.93% - 2027E: 19.63% [2][6] Retail Performance Summary - Miu Miu's total channel revenue increased by 82.9% YoY to 1.38 billion Euros, with a significant rise in direct retail efficiency [2][9]. - The company plans to optimize its retail network, with a focus on expanding Miu Miu into new markets while controlling general and administrative expenses [2][9]. - Retail revenue growth in 2024 was notable across regions, with Japan leading at 46% YoY growth, followed by the Middle East at 26% [2][9].

Investment Rating - The investment rating for the company is "Outperform the Market" [2][6]. Core Views - The company is expected to achieve a revenue of 240.1 billion yuan in 2024, representing a year-on-year growth of 19.4%, and a net profit of 38.4 billion yuan, also reflecting a 20% increase year-on-year [6]. - The company has initiated production in three finished shoe factories and one shoe material factory in 2024, which is currently in the ramp-up phase, temporarily affecting profits [6]. - The company has started cooperation with the globally recognized sports brand Adidas, which is expected to provide substantial orders and enhance production capacity [6]. - The company is projected to experience a peak in capacity expansion over the next 3-5 years, with several new factories planned in Indonesia and Vietnam [6]. Financial Data and Forecast - Revenue and net profit forecasts for 2024-2026 are as follows: - 2024E: Revenue of 234.74 billion yuan, net profit of 38.36 billion yuan - 2025E: Revenue of 271.57 billion yuan, net profit of 44.60 billion yuan - 2026E: Revenue of 308.81 billion yuan, net profit of 50.84 billion yuan [5][10]. - The company’s gross margin is expected to remain stable at around 25.9% from 2024 to 2026 [5][10]. - The earnings per share (EPS) is projected to increase from 2.74 yuan in 2023 to 4.36 yuan in 2026 [5][10]. Market Performance - The company's stock closed at 65.25 yuan on March 17, 2025, with a 52-week price range of 55.50 to 85.00 yuan [2]. - The company has shown a relative performance decline compared to the market index, with absolute and relative declines of -2.5% and -3.7% respectively over the past month [3].

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of 82.62 HKD based on a 2025 PE of 25X [2][9]. Core Insights - Miu Miu's retail revenue grew by 93% in 2024, with EBIT margin reaching a 10-year high. Overall revenue increased by 14.9% YoY to 5.43 billion Euros, while net profit rose by 25% YoY to 839 million Euros [2][9]. - The company is expected to continue its strong growth trajectory, with net profit forecasts of 972 million Euros, 1.088 billion Euros, and 1.191 billion Euros for 2025-2027, representing growth rates of 15.9%, 11.9%, and 9.5% respectively [2][9]. Financial Data and Forecasts - Key financial metrics for the company include: - Revenue (million Euros): 2023: 4726, 2024: 5432, 2025E: 6059, 2026E: 6646, 2027E: 7207 [2][6]. - Net Profit (million Euros): 2023: 671, 2024: 839, 2025E: 972, 2026E: 1088, 2027E: 1191 [2][6]. - Gross Margin (%): 2024: 79.84%, 2025E: 79.80%, 2026E: 79.90%, 2027E: 80.00% [2][6]. - Return on Equity (%): 2024: 19.07%, 2025E: 19.84%, 2026E: 19.93%, 2027E: 19.63% [2][6]. Retail Performance and Strategy - The retail network optimization is evident, with a slight decrease in the number of direct stores to 609, and a net opening of 3 stores. The company plans to continue retail investments and expand Miu Miu into new markets [2][9]. - Retail revenue growth in 2024 was notable across regions, with Asia-Pacific, Europe, Americas, Japan, and the Middle East showing growth rates of 13%, 18%, 9%, 46%, and 26% YoY respectively [2][9]. Management Changes - Miu Miu appointed Silvia Onofri as the new CEO, who has extensive experience in the luxury sector, previously holding positions at Bulgari and Bally [2][9].

Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Insights - The report highlights a significant growth in retail revenue for Miu Miu, which increased by 93% in 2024, with EBIT margin reaching a 10-year high. The overall revenue for 2024 is projected to grow by 14.9% to €5.432 billion, with a net profit increase of 25% to €839 million [5][6] - The company is expected to continue its positive trajectory with revenue forecasts of €6.059 billion in 2025, €6.646 billion in 2026, and €7.207 billion in 2027, reflecting year-on-year growth rates of 11.5%, 9.7%, and 8.4% respectively [5][6] - The report also notes the appointment of a new CEO for Miu Miu, which may influence future brand strategies and performance [6] Financial Performance and Forecast - Key financial data and projections include: - Revenue (million euros): 2023: 4,726; 2024: 5,432; 2025E: 6,059; 2026E: 6,646; 2027E: 7,207 - Net profit (million euros): 2023: 671; 2024: 839; 2025E: 972; 2026E: 1,088; 2027E: 1,191 - EPS (euros): 2023: 0.26; 2024: 0.33; 2025E: 0.38; 2026E: 0.43; 2027E: 0.47 - Gross margin: 2024: 79.84%; 2025E: 79.80%; 2026E: 79.90%; 2027E: 80.00% [5][6][10] Market Performance - The report indicates that the company's retail performance is strong, with significant contributions from both direct retail and distribution channels. The direct retail network is being optimized, with a focus on expanding Miu Miu's presence in untapped markets [6][10] - The geographical breakdown of retail revenue growth for 2024 shows: - Asia Pacific: +13% - Europe: +18% - Americas: +9% - Japan: +46% - Middle East: +26% [6] Valuation and Earnings Forecast - The company is expected to maintain a high EBIT margin, with projections for net profit growth of 15.9% in 2025, 11.9% in 2026, and 9.5% in 2027. The report assigns a price-to-earnings (P/E) ratio of 23-25X for 2025, translating to a fair value range of HKD 76.01-82.62 [6][10]

Investment Rating - The investment rating for the company is "Outperform the Market" [2][4]. Core Views - The company reported a revenue of 4.672 billion yuan for 2024, representing a year-on-year growth of 19.6%. The net profit attributable to the parent company was 698 million yuan, reflecting a growth of 25% [3][4]. - The company is focusing on sustainable development and is actively adapting to industry trends, which has led to significant revenue growth in the first half of 2024 [4]. - The acquisition of land for production capacity optimization is a strategic move to enhance manufacturing capabilities and reduce costs [4]. - The company is expanding its global footprint, with ongoing projects in Vietnam and other regions, which supports its internationalization strategy [4]. - Profit forecasts for 2024-2026 indicate a net profit of 6.98 billion yuan in 2024, 7.97 billion yuan in 2025, and 9.40 billion yuan in 2026, with a target price range of 13.64 to 17.05 yuan for 2025 [4]. Financial Data and Forecasts - Key financial data for the company includes: - Revenue: 3.907 billion yuan in 2023, projected to grow to 4.672 billion yuan in 2024, 5.289 billion yuan in 2025, and 6.129 billion yuan in 2026 [3][8]. - Net Profit: 558 million yuan in 2023, expected to rise to 698 million yuan in 2024, 797 million yuan in 2025, and 940 million yuan in 2026 [3][8]. - EPS: Expected to increase from 0.48 yuan in 2023 to 0.60 yuan in 2024, 0.68 yuan in 2025, and 0.80 yuan in 2026 [3][8]. - Gross Margin: Projected to improve from 40.9% in 2023 to 42.5% in 2026 [3][8]. - Return on Equity: Expected to rise from 12.8% in 2023 to 19.8% in 2026 [3][8].