Core Insights - The Ministry of Commerce has officially announced the list of "New Consumption Pilot Cities" and "International Consumption Environment Construction Pilot Cities," with Qingdao successfully included, which will bring a total of 5 billion yuan in financial subsidies to the city [1][3][4] Group 1: Financial Support and Policy Implementation - Qingdao will receive 400 million yuan for the "New Consumption Pilot" and 100 million yuan for the "International Consumption Environment Construction" [1][3] - The implementation period for both pilot policies is two years, aimed at guiding systematic upgrades in consumption through financial support and precise policy direction [4] Group 2: Objectives and Focus Areas - The "New Consumption Pilot" aims to enhance the service system for new economic launches, innovate diverse service consumption scenarios, and support cross-industry collaborations to improve consumption quality and stimulate consumer activity [3][4] - The "International Consumption Environment Construction" will focus on cultivating an international consumption environment, enhancing the "Buy in China" brand, and innovating international and diversified consumption scenarios to attract foreign tourists [3][4] Group 3: Qingdao's Economic Performance - Qingdao's total retail sales of consumer goods reached 658.45 billion yuan in 2024, maintaining its position as the "second consumption city in the north" [6] - The city has implemented various initiatives to boost consumption, including issuing 130 million yuan in consumer vouchers, which stimulated 3.66 billion yuan in consumption [6] - New consumption formats are emerging, with 95 new brand stores established this year, and online retail sales growing by 9.5% from January to October [6] Group 4: Strategic Planning and Future Goals - The "14th Five-Year Plan" for Shandong Province emphasizes supporting Qingdao in becoming an international consumption center and enhancing its economic scale [8][13] - The plan includes upgrading consumption clusters and developing high-quality commercial districts, which will benefit from the central government's financial support [13]

Core Viewpoint - The company anticipates a significant increase in net profit for the first half of 2025 compared to the same period last year, despite a decline in operating income due to market conditions [2][3][9]. Financial Performance Summary - The company expects a net profit attributable to shareholders of the parent company to be between 13.31 million and 14.31 million yuan, representing an increase of 4.61 million to 5.61 million yuan, or a growth of 53.02% to 64.52% year-on-year [3][5]. - The expected net profit after deducting non-recurring gains and losses is projected to be between 9.95 million and 10.95 million yuan, which indicates a decrease of 1.92 million to 2.91 million yuan, or a decline of 14.89% to 22.66% year-on-year [3][5]. Previous Year Comparison - In the first half of 2024, the total profit was 10.14 million yuan, with a net profit attributable to shareholders of the parent company at 8.70 million yuan, and a net profit after deducting non-recurring gains and losses at 12.87 million yuan [7]. Reasons for Profit Increase - The increase in net profit is primarily attributed to the recovery of the securities market, which has positively impacted the investment income and fair value changes of the company's financial assets [9]. - However, the operating income has slightly decreased due to the impact of consumer upgrades and channel transformations in retail products [9].

Investment Rating - The report assigns an "Accumulate" rating for OSL Group, marking the first coverage of the company [6] Core Insights - OSL Group has achieved profitability for the first time since its strategic transformation in 2018, with a revenue increase of 78.6% year-on-year to HKD 375 million in 2024, and a net profit of HKD 54.8 million, reversing a loss of HKD 250 million from the previous year [1][4] - The company is accelerating its global expansion, particularly in Asia, the Middle East, and Europe, with recent acquisitions including CoinBest, now OSL Japan, and a target company in Italy [2] - A new PayFi business line has been introduced, with an investment of up to USD 30 million to develop a global PayFi ecosystem, bridging traditional finance and Web3 [3] Financial Forecast and Valuation - The forecast for OSL Group's net profit from 2025 to 2027 is projected at HKD 60 million, HKD 82 million, and HKD 681 million, with year-on-year growth rates of 7.59%, 36.72%, and 728.29% respectively [4][10] - The estimated earnings per share (EPS) for the same period are HKD 0.10, HKD 0.13, and HKD 1.09, with a price-to-sales (P/S) ratio of 10x for 2025, leading to a target price of HKD 11.98 [4][10]