Core Insights - The report highlights the performance of major global stock markets, with the Hang Seng Index closing at 26,159, down 0.70% for the day but up 30.40% year-to-date [1] - The report notes a significant net sell-off of HKD 4.069 billion in southbound funds, with major sell-offs in the Tracker Fund, Hang Seng China Enterprises, and Pop Mart, while Alibaba saw net buying [3] - The report emphasizes the strong growth potential in the Chinese perfume market, predicting a growth rate of 9-14% over the next 4-5 years, driven by increasing penetration rates and changing consumer behaviors [4] Market Performance - The Hang Seng Financial Index rose by 0.13% year-to-date, while the Hang Seng Industrial Index fell by 1.12% [2] - The report indicates that the A-share consumer services, retail, and software services sectors experienced significant declines, while banking, coal, and utilities saw gains [3] Company Analysis - The report covers Ying Tong Holdings, a pioneer in luxury fragrance management, which has a market share ranking third in China, with 81% of its revenue coming from fragrance business [4] - Ying Tong's multi-brand operation strategy allows it to maintain strong relationships with over 70 international brands, providing a one-stop solution for beauty brand entry into core channels [5] - Concerns regarding the potential loss of core brand operating rights and competition from domestic brands are deemed overstated, as most suppliers have long-term contracts with major brands [6] Investment Recommendations - The report initiates coverage on Ying Tong Holdings with a "Buy" rating and a target price of HKD 3.49, corresponding to a 14.2x FY26E P/E ratio, reflecting a 30% valuation discount based on comparable peers [6]