Investment Rating - The report rates the investment in Leshu Comfort (乐舒适) as "Buy" with projected EPS of 0.16 in 2024, increasing to 0.25 by 2027, and a PE ratio decreasing from 24.20 in 2024 to 133.60 in 2027 [6]. Core Insights - The report highlights that SenDa Group is a leading Chinese enterprise in Africa, leveraging its capabilities to empower Leshu Comfort through its channel, product, and market structure [1]. - SenDa Group has established a comprehensive industrial group that integrates overseas manufacturing, international trade, and industrial investment, with a strong presence in various sectors including home decoration materials, fast-moving consumer goods, and hardware [1][12]. - The report draws parallels between SenDa Group's expansion in Africa and Charoen Pokphand Group's (正大集团) historical success in China, suggesting that SenDa Group is poised to replicate this success in emerging markets [5][4]. Summary by Sections SenDa Group: Deepening Localization in Africa - SenDa Group has been operating in Africa for over 20 years, transitioning from traditional trade to localized manufacturing, creating jobs, and driving industry development [12][29]. - The company has established 32 manufacturing operations globally, with sales covering over 60 countries, showcasing its strong global operational capabilities [12][14]. - Key factors for SenDa's success include early identification of the integrated trade and manufacturing model, local production, and strong government-business relationships [32][33]. Empowering Leshu Comfort - SenDa Group provides financial support to Leshu Comfort through loans and advances, enhancing its capital turnover efficiency [3]. - The group offers supply chain and management support, including raw materials, technical assistance, and administrative services [3]. - Leshu Comfort has established a wide sales network across 12 countries with 18 branches and over 2800 wholesalers and retailers [3][39]. Learning from Charoen Pokphand Group's Journey - The report identifies several successful strategies from Charoen Pokphand Group's history, such as seizing market opportunities, extending the industrial chain, and diversifying financing channels [4]. - SenDa Group's current trajectory mirrors that of Charoen Pokphand Group, indicating potential for significant growth in Africa [5]. Market Position and Competitive Advantage - Leshu Comfort's products are competitively priced, with a gross margin of around 30%, making them attractive compared to international brands [38][39]. - The company's localized production strategy allows for rapid response to market demands, reducing shipping times and costs [38][41]. - SenDa Group's investments in local manufacturing not only enhance brand acceptance but also contribute to local economic development [41][42].

Core Insights - The 51st CCBE Chengdu Beauty Expo has commenced with a focus on "New Beauty Industry, Creating Business Opportunities," featuring 752 companies and over 4500 domestic and international brands [1] - The "National Brand Accompanying Plan" aims to provide a comprehensive growth platform for national brands through an innovative exhibition-media integration model [1] Group 1: Empowerment and Brand Development - The "National Brand Accompanying Plan" employs a rigorous four-level screening mechanism to evaluate brands based on enterprise qualifications, product strength, and social responsibility, offering tailored empowerment plans over 3-5 years [3] - The plan integrates resources from national media such as CCTV and Xinhua News Agency, creating a full-service system from content production to effect conversion, enhancing brand value in the beauty industry [3][5] - The plan addresses the pain point of beauty brands focusing more on products than branding, providing professional solutions to convert technological advantages into brand value [3] Group 2: Strategic Partnerships and Media Exposure - A strategic agreement was signed between the Sichuan Beauty and Hairdressing Industry Association and the "National Brand Accompanying Plan" to provide rare resources such as special reports and documentary filming for participating brands [5] - The expo featured a "Brand Service Consultation" area, where over 100 companies booked one-on-one brand diagnostics, highlighting the importance of media endorsement in enhancing brand trust [5] Group 3: Case Study of Empowerment - Shengzhuang brand, a leader in technology-enabled health management in the beauty industry, has over 20 years of experience in cosmetic and pharmaceutical R&D, with annual revenue exceeding 2 billion [8] - The company collaborates with Sichuan Agricultural University on customized services and products, achieving a 40% increase in average transaction value and over 65% customer repurchase rate [9] - Shengzhuang has been recognized as one of the "Top Ten Brands in Beauty Health Management" in China for three consecutive years, with a 45% year-on-year revenue growth in 2024 [9] Group 4: Industry Transformation and Expo Evolution - The CCBE has evolved from a product trading platform to an industry ecological hub, marking a critical shift from price competition to value competition in the beauty industry [11] - The integration with the "National Brand Accompanying Plan" signifies a new path for national brands to expand nationwide and move towards high-end markets through exhibition-media collaboration and professional empowerment [11]