Investment Rating - The report maintains a "Buy" rating for the company [6][5]. Core Views - The company reported a revenue increase of 7.1% year-on-year to 6.84 billion HKD and a net profit increase of 21.5% year-on-year to 0.91 billion HKD, with a net profit margin improvement of 1.6 percentage points to 13.4% [1][6]. - The company is focusing on the running ecosystem, iterating products for the mass market, and accelerating its direct-to-consumer (DTC) strategy, which is expected to drive performance growth [1][4]. - The professional sports brand, Saucony, has seen over 30% revenue growth, benefiting from double-digit same-store sales growth and increased online and apparel sales [2][4]. Summary by Sections Financial Performance - The company's gross margin decreased by 0.1 percentage points to 45.0%, with the main brand and professional sports brand gross margins at 43.6% and 55.2%, respectively [3]. - The overall net profit margin increased by 1.6 percentage points to 13.4%, partly due to losses from the K&P brand in the previous period and growth in other income sources [3]. Brand and Product Development - The main brand's revenue grew by 4.5% year-on-year to 6.05 billion HKD, with e-commerce achieving double-digit growth [2]. - New product launches, such as the 160X champion running shoes and 360X 2.0 carbon plate running shoes, have contributed to an increase in average selling price (ASP) for the running category [2]. Future Outlook - The company plans to upgrade its retail strategy in the second half of 2025 by launching the DTC model, aiming to enhance operational efficiency [4]. - Saucony is expected to accelerate its store openings in high-tier cities, with plans to open 30-50 new stores in 2025, which will likely boost store efficiency and operating profit margin [4]. Earnings Forecast and Valuation - The company maintains its net profit forecasts for 2025-2027 at 1.37 billion, 1.53 billion, and 1.71 billion HKD, respectively, with corresponding EPS of 0.49, 0.55, and 0.61 HKD [5][11]. - The target price has been adjusted upward by 7.6% to 7.08 HKD, reflecting a revised PE ratio of 13.3x for 2025 [5][11].

中新网固安8月19日电 (记者王东宇)8月18日，"永定城818·中国北方秋季服鞋采批节暨永定PRO品牌新 区启幕盛典"在河北固安举行。 永定城此次活动创新性地采用"超级交易场＋超级品牌场"的双引擎模式，致力于打造北方服鞋产业的年 度盛会，不仅为产业链上下游的商户搭建起一座采批桥梁，更通过品牌新区的系统性赋能，推动北方服 鞋产业从"散批"向"品牌"跨越。活动强化了永定城作为中国北方服鞋采批中心的辐射力，"北方市场更 懂北方"的影响力。 面对如何破局行业困境的问题，中国服装协会副秘书长游五洋认为，一是要靠产品创新。虽然整体服装 消费增速变缓，但市场还有结构性机会，企业通过品类创新、产品创新而取得突破的案例有不少。二是 要靠运营体系的创新，连锁大品牌这几年都在从传统的代理，批发模式转移转型为直接零售。以波司 登、安踏、伊芙丽为代表的还在持续增长，这也是服装连锁经营的大势所趋。 游五洋认为，中国的服装市场与欧美、日本与其他发展中国家相比，产业配套更加齐全。放眼全球，中 国具有全球最完善的服装产业链。这也体现在本次采批节中。他表示，本次活动像是一个基础设施，北 方的中小型零售商去南方拿货会产生昂贵的差旅成本，本次活动 ...

Core Viewpoint - The incident involving the "endless noodle" service at a restaurant in Zhengzhou has sparked significant public discussion and inadvertently increased attention towards the clothing brand "Seven Wolves" (002029.SZ) [1][2]. Group 1: Incident Overview - On August 13, three adult women with four children visited a noodle restaurant and engaged in a dispute over the "endless noodle" service, leading to a public altercation and negative reviews on social media [7]. - The restaurant owner posted a video referencing the incident, which included a derogatory mention of "Seven Wolves," further escalating the situation [9]. - Following the incident, the restaurant owner issued an apology but faced backlash from the public, resulting in the restaurant closing temporarily [11]. Group 2: Seven Wolves' Response - On August 19, Seven Wolves released a statement addressing the public's interest in the brand due to the incident, emphasizing their commitment to lawful and ethical business practices [2]. - The brand expressed gratitude for the public's attention while urging for rational discussions focused on their products and services [2]. - During a live stream, the brand experienced a surge in viewer engagement, with discussions about the noodle incident dominating the comments [4][6]. Group 3: Financial Performance - Seven Wolves reported a revenue of 3.14 billion yuan for 2024, with a net profit of 285 million yuan, reflecting a year-on-year growth of 5.35% [6]. - In the first quarter of 2025, the company achieved a total revenue of 844 million yuan and a net profit of 150 million yuan, marking a significant year-on-year increase of 40.63% [6].

Group 1 - The "续面事件" controversy has impacted the clothing brand "七匹狼" (Seven Wolves), with a significant number of netizens flooding their live stream to demand legal action against the restaurant owner involved in the incident [1] - On August 16, the restaurant owner referred to seven customers as "阴阳" in a video related to the "续面事件," which has led to public backlash against the brand [1] - As of August 19, netizens continued to discuss the "续面" topic in the live stream, with comments suggesting promotional ideas and expressing dissatisfaction with the brand's response [1][3] Group 2 - The incident has generated a notable amount of online engagement, with users questioning if purchases from "七匹狼" would come with free meals, indicating a blend of humor and criticism [3] - The brand's customer service has urged netizens to remain rational amidst the ongoing discussions, highlighting the potential reputational risk for the company [1]

Core Viewpoint - The company "七匹狼" (Seven Wolves) is addressing a recent public relations incident that has generated significant online discussion and engagement, urging for rational discourse and a focus on their products and services [1] Group 1 - On August 19, "七匹狼" released a statement on their official Weibo account expressing gratitude for the enthusiastic comments from netizens in their live streaming sessions [1] - The incident began on August 16 when a noodle shop owner referred to seven customers as "七匹狼," leading to a viral situation known as the "3 women with 4 children ordering noodles" event [1] - Following the incident, many netizens flocked to "七匹狼"’s live streaming sessions, prompting the company to consider legal action against the noodle shop owner, with some customers stating they would not purchase clothing unless the company pursued legal action [1] Group 2 - "七匹狼" customer service has acknowledged the situation and has requested that netizens maintain a rational approach to the ongoing discussions [1]

Core Viewpoint - The "continuation of face" incident in Zhengzhou, Henan has sparked significant social discussion and increased attention towards the Qipilang brand, with the company emphasizing the importance of rational discourse and product focus while condemning illegal activities [3]. Group 1 - The incident has led to heightened public interest in the Qipilang brand, prompting the company to express gratitude for the enthusiastic comments from netizens [3]. - Qipilang calls for a return to discussions centered on products and services, respecting diverse social values while firmly opposing illegal actions [3].

格隆汇8月19日｜七匹狼就近期舆论事件发布声明称，河南郑州"续面事件"引发社会讨论，也引起众多 网友对七匹狼品牌的热切关注。"感谢公众对七匹狼的关注，同时也借此机会清晰传递品牌的立场：我 们坚持商业行为必须合法合规，坚守社会公序良俗，对任何突破社会价值底线的言行，我们与公众同感 关切。" ...

Core Viewpoint - The incident involving three women and four children at a noodle shop has escalated, inadvertently affecting the clothing brand "Seven Wolves" (002029.SZ) due to social media backlash and demands for legal action against the noodle shop owner [1][4][6] Group 1: Incident Details - On August 13, three adult women with four children visited a noodle shop in Zhengzhou, ordering a bowl of noodles and other items, and took advantage of the shop's "unlimited noodle refill" service, leading to misunderstandings and a heated argument with the shop owner [4] - The shop owner, Mr. Huo, posted a video the next day, which sparked further controversy, as the women later posted a negative review on a group-buying platform, leading to a police involvement [4][6] - A reconciliation agreement was reached on August 15, with the shop apologizing and the negative review being deleted [4] Group 2: Impact on Seven Wolves - On August 16, the noodle shop owner referred to the seven customers as "Seven Wolves," which led to the clothing brand being dragged into the controversy [6] - On the evening of August 18, hundreds of viewers flooded the Seven Wolves live stream, demanding discounts and suggesting the sale of noodles during the broadcast [6] - Seven Wolves' customer service urged viewers to remain rational and highlighted their clothing offerings, despite the ongoing situation [6] Group 3: Company Financials - Seven Wolves was founded in 1990 in Fujian Jinjiang, with its signature product being jackets [6] - According to financial reports, Seven Wolves achieved a revenue of 3.14 billion yuan in 2024, with a net profit of 285 million yuan, reflecting a year-on-year growth of 5.35% [6] - In the first quarter of 2025, the company reported a total revenue of 844 million yuan and a net profit of 150 million yuan, marking a year-on-year increase of 40.63% [6]

Core Viewpoint - Bosideng has established itself as the leading down jacket brand in China, but it struggles to find a second growth curve, leading to concerns about diversification strategies [4][5][6]. Group 1: Historical Diversification Attempts - Bosideng's previous diversification efforts have largely failed, with a significant portion of its revenue from non-core businesses leading to value destruction [9][10]. - The company has faced challenges due to the seasonal nature of down jackets, which limits revenue generation to a few months each year [9]. - Past acquisitions and expansions into various clothing categories have not yielded the expected results, with non-core revenue still accounting for 4% of total income [9][12]. Group 2: Current Diversification Efforts - The company is currently focusing on two new areas: outdoor apparel and luxury down jackets, aiming to leverage its existing strengths in down materials [14][15]. - Bosideng's outdoor product line, particularly in sun protection, initially saw rapid growth but has since stagnated due to high pricing and lack of differentiation [15][19]. - The competitive landscape in the outdoor apparel market is intense, with many brands vying for market share, making it difficult for Bosideng to maintain its premium positioning [16][17]. Group 3: Comparison with Moncler - Unlike Moncler, which successfully diversified into luxury segments while maintaining a strong brand identity, Bosideng's attempts at diversification have diluted its core brand focus [20][22]. - Moncler's success is attributed to its strong ties to the fashion industry and a focus on high-end design, which Bosideng lacks [20][22]. Group 4: Focus on Core Business - Bosideng's recent strategic shift emphasizes returning to its core brand and enhancing its high-end market presence through improved supply chain management and direct sales [24][26]. - The company has reduced its number of stores significantly, focusing on efficiency and higher-quality retail experiences [24][26]. - There is potential for growth in the mid-range market, where Bosideng's other brands have not performed as well as expected, indicating room for improvement [30][31]. Group 5: Future Strategies - The company should consider a "down + other" strategy, combining down materials with other outerwear to strengthen its market position [32][33]. - Acquisitions of high-end niche brands within the same sector could enhance Bosideng's operational capabilities and market reach [32][33]. - The focus should remain on the down jacket segment, as the company has not fully capitalized on its existing market share and brand strength [33].

Global Market Overview - The Hang Seng Index closed at 25,177, down 0.37% for the day but up 25.51% year-to-date [1] - The S&P 500 closed at 6,449, down 0.01% for the day and up 9.65% year-to-date [1] - The Shanghai Composite Index rose by 0.85% to 3,728, with a year-to-date increase of 11.23% [1] Industry Insights - The healthcare sector showed resilience, with major life sciences companies reporting better-than-expected performance in 2Q25, leading to upward revisions in annual guidance [5][6] - The pharmaceutical industry is facing pressure on profit margins due to external factors, but major pharmaceutical companies continue to invest in R&D, indicating a stable outlook for innovation [8] - The retail sector in the U.S. demonstrated resilience with a monthly growth rate increase from 0% in the first half of the year to 0.7% in July, indicating strong consumer spending [4] Company Analysis - Tongcheng Travel reported a total revenue of RMB 4.7 billion in 2Q25, a 10% year-on-year increase, with adjusted net profit rising by 18% to RMB 775 million, exceeding expectations [8] - Xtep's sales for the first half of 2025 grew by 7% to RMB 6.8 billion, with net profit increasing by 21% to RMB 913 million, surpassing forecasts [13] - Leap Motor achieved a revenue of RMB 14.2 billion in 2Q25, a 42% quarter-on-quarter increase, marking its first positive operating profit [14] Investment Ratings - Leap Motor is rated as a "Buy" with a target price of HKD 80, reflecting a strong growth outlook driven by new model launches and expanding sales [14] - Xtep maintains a "Buy" rating with a target price of HKD 7.39, supported by robust sales performance and operational efficiency [12] - Tongcheng Travel is also rated as a "Buy," with a target price of HKD 24.00, based on its strong core business performance [8]