Group 1 - Morgan Stanley predicts pressure on Prada's stock price, lowering the target price from HKD 66 to HKD 62 while maintaining an "Overweight" rating and listing it as an industry favorite [1] - The group performed well in the luxury goods sector during Q2, with continued optimism for the appeal and future growth potential of the Prada and Miu Miu brands [1] - The negative impact of international tourism is expected to peak in the summer, leading to potential downward adjustments in Q3 sales forecasts, with the latest prediction showing a fixed exchange rate growth of 8.3%, down from a previous forecast of 10.4% [1] Group 2 - Prada's Q2 performance fell short of expectations, with a year-on-year sales growth of 6.1% at fixed exchange rates, compared to 12.5% in Q1 and market expectations of 9% [1] - Revenue from both the Prada and Miu Miu brands was slightly below expectations, and although same-store sales grew by approximately 9%, there appeared to be a lack of operating leverage, resulting in adjusted EBIT for the first half being 3.1% lower than anticipated [1]

Core Viewpoint - Macquarie's report indicates that Prada's (01913) sales for the first half of the year increased by 9% year-on-year at constant exchange rates, aligning closely with the bank's forecast [1] Financial Performance - Net profit increased by 0.6% year-on-year, which was 7% lower than Macquarie's prediction [1] - Macquarie has revised down its net profit forecasts for Prada for the years 2025 to 2027 by 7.6%, 7.1%, and 6.6% respectively, accounting for the first half performance and brand investments [1] - Target price has been reduced by 8% from HKD 65 to HKD 60, while maintaining an outperform rating [1] Management Insights - Management expects overall tourist traffic in Japan and Europe to stabilize year-on-year by the end of August [1] - The company aims to enhance brand value and believes there is still room for improvement in profitability through operational leverage [1] - Management sees potential for further improvement in product categories and combinations, particularly for MiuMiu, which has low penetration in many countries [1]

Core Viewpoint - Morgan Stanley anticipates pressure on Prada's stock price, lowering the target price from HKD 66 to HKD 62 while maintaining an "Overweight" rating, highlighting the brand's strong performance in the luxury goods sector during Q2 [1] Group 1: Company Performance - Prada's Q2 sales growth was 6.1% year-on-year at constant exchange rates, which was below expectations compared to Q1's 12.5% and market expectations of 9% [1] - Revenue from both Prada and Miu Miu brands slightly missed expectations, with same-store sales growth around 9% but lacking operational leverage, resulting in adjusted EBIT for the first half being 3.1% lower than anticipated [1] Group 2: Market Outlook - The negative impact of international tourism is expected to peak in the summer, leading to potential downward adjustments in Q3 sales forecasts, with the latest prediction showing an 8.3% growth at constant exchange rates, down from a previous forecast of 10.4% [1]

Core Viewpoint - Macquarie's report indicates that Prada's (01913) sales for the first half of the year increased by 9% year-on-year at constant exchange rates, aligning closely with the bank's forecasts [1] Financial Performance - Net profit rose by 0.6% year-on-year, which was 7% lower than Macquarie's predictions [1] - The bank has revised down its net profit forecasts for Prada for the years 2025 to 2027 by 7.6%, 7.1%, and 6.6% respectively, to account for the first half performance and brand investments [1] - Target price has been reduced by 8% from HKD 65 to HKD 60, while maintaining an outperform rating [1] Market Outlook - Management expects that by the end of August, overall tourist traffic in Japan and Europe will stabilize year-on-year [1] - The company aims to enhance brand value and believes there is still room for improvement in profitability through operational leverage [1] - Management also believes that Miu Miu's penetration rate remains low in many countries, indicating potential for further improvement in product categories and combinations [1]

Core Viewpoint - Prada's stock price fell by 14.32% to HKD 40.1 per share, marking a new low since January 2024, primarily due to disappointing earnings results [1] Financial Performance - For the first half of 2025, Prada reported net revenue of €2.74 billion, a year-on-year increase of 9%, with actual growth at 8% [1] - Retail sales reached €2.45 billion, reflecting a 10% year-on-year growth, while adjusted EBIT was €619 million, maintaining a profit margin of 22.6% [1] - Gross margin improved to 80.1%, up by 0.3 percentage points compared to the same period last year [1] Brand Performance - Sales for the Prada and Miu Miu brands were slightly below expectations, with Prada's sales down by 3.6% and Miu Miu's up by 40% [1] - The company is facing significant year-on-year comparison pressure for the Miu Miu brand due to ongoing challenges in tourism consumption [1] Market Reactions and Forecasts - Analysts from various firms have adjusted their profit forecasts for Prada, with a 5% to 6% reduction in net profit predictions for 2025 to 2027 [2] - Morgan Stanley noted a slowdown in luxury goods consumption among cross-border travelers, leading to a 6.1% year-on-year sales growth in Q2, down from 12.5% in Q1 [2] - Target prices for Prada's stock have been revised downwards, with estimates dropping from HKD 72 to HKD 50 by one firm and from HKD 66 to HKD 62 by Morgan Stanley [2]

Core Viewpoint - The luxury goods growth model is being questioned as Prada Group's recent performance raises concerns, following disappointing results from other luxury giants like LVMH and Kering [1][8]. Financial Performance - Prada Group reported an adjusted EBIT of approximately €618.5 million, a year-on-year increase of 7.55% [2]. - Net income was around €386 million, reflecting a 0.62% year-on-year rise [2]. - Earnings per share stood at €0.151 [2]. - Retail sales net revenue increased by 10.1% year-on-year, accounting for 89.5% of total net revenue [2]. Brand Performance - Prada brand's retail sales net revenue slightly decreased by 2% when calculated at constant exchange rates, while Miu Miu's retail sales net revenue surged by 49% [3]. - Miu Miu's sales growth in the second quarter slowed down significantly compared to previous quarters, which saw growth rates of 93%, 105%, and 84% [7]. Regional Performance - All major markets showed growth: Asia-Pacific retail sales net revenue increased by 10.4%, Europe by 8.6%, the Americas by 12.4%, Japan by 4.3%, and the Middle East by 25.7% [7]. Market Challenges - Morgan Stanley noted that Prada's second-quarter performance was below expectations due to a slowdown in luxury consumption among cross-border travelers, with a year-on-year sales growth rate of 6.1%, down from 12.5% in the first quarter [7]. - Prada's CEO highlighted that the current market challenges are more cyclical rather than structural [1]. Strategic Outlook - For the second half of the year, Prada issued a warning about uncertainties in the recovery of the tourism sector but emphasized three certainties: maintaining a full-price sales strategy, reviewing operational efficiency quarterly, and avoiding shortcut growth strategies [7]. - Prada aims to sustain growth through precise retail strategies and new store openings, while Miu Miu plans to expand its market share in leather goods and introduce new store experiences globally [7].

Core Viewpoint - The luxury goods growth model is being questioned as Prada Group's recent performance raises concerns following disappointing results from other industry giants like LVMH and Kering [2][6]. Financial Performance - Prada Group reported an adjusted EBIT of approximately €618.5 million, a year-on-year increase of 7.55% [3]. - Net income was around €386 million, up 0.62% year-on-year, with earnings per share at €0.151 [3]. - Retail sales net revenue increased by 10.1% year-on-year, accounting for 89.5% of total revenue [3]. - Retail sales net revenue for the Prada brand slightly decreased by 2% when calculated at constant exchange rates, while Miu Miu's retail sales net revenue surged by 49% [3]. Regional Performance - All major markets showed growth: Asia-Pacific retail sales net revenue grew by 10.4%, Europe by 8.6%, the Americas by 12.4%, Japan by 4.3%, and the Middle East saw a remarkable increase of 25.7% [5]. - Morgan Stanley noted that Prada's second-quarter performance fell short of expectations due to a slowdown in luxury consumption among cross-border travelers, with a year-on-year sales growth rate of 6.1%, down from 12.5% in the first quarter [5]. Market Challenges - The luxury sector is facing significant challenges amid economic uncertainty and cultural shifts, potentially leading to the largest setback in 15 years [6]. - Even leading brands like LV and Dior are showing signs of fatigue, with LVMH's core fashion and leather goods revenue declining by 9% and net profit dropping by 22% [6]. Consumer Trends - Younger consumers, particularly Generation Z, are increasingly questioning the value of luxury goods, moving away from the traditional perception of luxury as a status symbol [7]. - Brands with less prominent logos, such as Loro Piana and Brunello Cucinelli, are experiencing growth, indicating a shift towards understated luxury [8].

Group 1: LVMH Performance and Strategy - LVMH's revenue for the first half of the year decreased by 4% to €39.8 billion, with operating profit dropping 15% to €9 billion [1] - The fashion and leather goods segment saw a 9% decline in sales, significantly impacting overall performance [1] - LVMH is considering divesting non-core assets, including the potential sale of Marc Jacobs for approximately $1 billion, to streamline its brand portfolio [3] Group 2: Moncler Financial Results - Moncler reported a slight revenue increase of 1% to €1.226 billion, but net profit fell by 15% to €153.5 million, indicating signs of fatigue after ten consecutive quarters of double-digit growth [6] - The profit decline is attributed to increased marketing expenses and uneven market recovery, highlighting ongoing profitability pressures [6] - Moncler plans to implement a small price increase of around 5% in the second half of 2025 to offset initial tariff impacts [6] Group 3: Longchamp's New Venture - Longchamp has signed an exclusive licensing agreement with Interparfums to enter the perfume market, with the first fragrance expected to launch in 2027 [7] - The partnership with Interparfums will cover the creation, production, and distribution of the fragrance line, with the licensing period lasting until 2036 [7] - Longchamp's core product line, the Le Pliage bag, has contributed to a projected 20% sales growth in the fiscal year 2024, with significant increases in Europe and the U.S. [9]

Core Viewpoint - Morgan Stanley reports that Prada's second-quarter performance was below expectations due to a slowdown in luxury goods consumption among cross-border travelers, with sales growth at 6.1% year-on-year compared to 12.5% in the first quarter and market expectations of 9% [1] Group 1: Financial Performance - Prada and Miu Miu brand revenues were slightly below expectations, with same-store sales growth around 9%, indicating a lack of operating leverage, resulting in adjusted EBIT for the first half being 3.1% lower than expected [1] - The latest sales forecast for the third quarter has been downgraded to a growth of 8.3% from a previous estimate of 10.4% [1] Group 2: Market Outlook - Morgan Stanley anticipates that the negative impact of international tourism will peak in the summer, leading to potential downward adjustments in sales forecasts [1] - The target price for Prada's stock has been reduced from HKD 66 to HKD 62, although the "overweight" rating is maintained, with the firm still viewing Prada and Miu Miu as strong performers in the luxury goods sector [1]

Group 1: Market Overview - The Hang Seng Index closed down 347 points or 1.4%, ending at 25,176, while the Hang Seng Tech Index fell 2.7% to 5,490 [3][4] - The total trading volume for the day was 319.65 billion [3] - Northbound capital inflow was 11.71 billion [3] Group 2: Company Performance - HSBC Holdings reported a 27% decline in pre-tax profit, with its stock price dropping 3.8% to 96.95 [4] - Hang Seng Bank's mid-term profit decreased by 30%, leading to a 7.4% drop in its stock price to 113.8 [4] - Prada's mid-term profit increased by 0.6% to 386 million euros, with revenue rising by 7.51% to 2.74 billion euros [12] - CATL's mid-term profit rose by 33% to 30.51 billion yuan, with revenue increasing by 7.27% to 178.89 billion yuan [14] - Sinopec Oilfield Services won a pipeline project worth approximately 3.597 billion yuan, representing 4.44% of its projected 2024 revenue [15] Group 3: Regulatory and Economic Developments - The Hong Kong government released a report highlighting the advantages of its business environment, emphasizing its role in attracting global investment [7] - The Hong Kong Financial Development Bureau welcomed the government's report, underscoring Hong Kong's unique position as a leading international financial center [8] - The China Interbank Market Dealers Association announced new regulations to curb pricing distortions in bond underwriting, effective from August 11 [9] - The Chinese government plans to allocate approximately 90 billion yuan for childcare subsidies, with applications opening in late August [10]