Core Theme - The 57th China International Furniture Fair (CIFF Guangzhou 2026) will focus on sustainability and innovation in the office and commercial space sector, taking place from March 18 to 31, 2026, under the theme "CONNECT•CREATE" [1] Office and Commercial Space Exhibition - The Office and Commercial Space Exhibition will occur from March 28 to 31, emphasizing sustainability as a central agenda to drive industry advancement through values and business innovation [1][2] - The exhibition will showcase a comprehensive green workplace model, upgrading office environments, office seating, and public commercial spaces to demonstrate sustainable practices across materials, design, and spatial applications [2] Evolving Office Environments - Office environments are evolving due to hybrid work trends, well-being focus, and the Net-Zero Industry Act, highlighting low-carbon, digitally integrated solutions [3] - The exhibition will present furniture and products that cater to fast-growing sectors such as healthcare, senior care, and smart office applications [3] Health-Oriented Design - Health-oriented design will be a key focus in seating solutions, merging ergonomic innovation with sustainable materials to promote long-term workplace well-being [4] - The sector will demonstrate how seating design can support healthier postures and adaptive workstyles while ensuring environmentally responsible production [4] Public Commercial Space Focus - The exhibition will address the design and operational shifts in public commercial spaces, prioritizing sustainability and resilience [5] - Solutions will cover diverse scenarios including education, healthcare, hospitality, and transport hubs, featuring modular systems and low-carbon materials [5] Thematic Showcases - LUMINOUS PATH 2.0 will be launched, bridging industry collaboration and future-oriented experimentation [6] - Linking Design Star will focus on the commercial transformation of sustainable ideas, while D&A Culture Center installations will explore classic office design concepts and new collaborative scenarios [7] Experimental Office Environment - The 2026 Office Theme Pavilion will present an experimental office environment utilizing sustainable materials and modular design, integrating architecture, products, and art [7] Industry Hub - The Office and Commercial Space Exhibition reinforces CIFF Guangzhou's role as a global industry hub, inviting professionals to explore sustainable solutions and exchange insights [8]

Group 1: Investment Strategy - The combination of high free cash flow yield and dividends is a powerful investment strategy that has been proven over 30 years of data across multiple market cycles [2][26][27] - From 1990 to 2016, stocks in the top quintile for both dividend yield and free cash flow yield generated an annual excess return of 6.03% compared to the market [3][16] - High dividend yield stocks without free cash flow produced only a 0.10% excess return, while high free cash flow yield stocks without dividends achieved 3.57% [4][16] Group 2: Importance of Free Cash Flow - Free cash flow is a more reliable indicator than earnings, as it reflects actual cash available for dividends [8][10] - Companies that generate strong free cash flow but do not pay dividends often waste cash on unproductive projects, which can destroy shareholder value [9][10] - High free cash flow dividend payers have shown superior characteristics, including lower leverage and higher returns on equity [10][11] Group 3: Payout Ratios and Dividend Growth - The optimal payout ratio for dividends is around 40 to 50% of free cash flow, allowing for sustainable dividend growth [12][13] - Companies with a 40 to 50% payout ratio can maintain dividends during economic downturns, while those with higher ratios are at risk of cuts [15][21] - The Pacer Cash Cows Index, focusing on high free cash flow yield companies, has delivered annual dividend growth of 9.2% while maintaining a sustainable payout ratio [13][18] Group 4: Performance During Market Cycles - High free cash flow dividend payers recover faster from market downturns, averaging 15 months compared to 28 months for non-payers [11][22] - The S&P study from 1990 to 2017 found that the top quintile combining dividend yield and free cash flow yield outperformed 75% of the time [16] - During bear markets, this strategy provided meaningful downside protection, outperforming 50% of the time [16] Group 5: Company Examples - Archer-Daniels-Midland (ADM) has a dividend yield of 3.4% and a payout ratio of 24%, demonstrating stability and strong free cash flow generation [28][31] - HNI Corp. has a dividend yield of approximately 3.3% with a payout ratio of 43 to 45%, showing resilience despite market uncertainties [33][37] - OneSpan operates in digital security with a dividend yield of 4.03% and a low payout ratio under 8%, indicating strong cash flow and growth potential [39][41] - Luxfer Holdings has a dividend yield of approximately 4.3% and a payout ratio of 43%, focusing on high-performance materials with steady demand [45][48]

Core Viewpoint - HNI has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - HNI's earnings estimates have increased by 8.7% over the past three months, reflecting a positive trend in its underlying business [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - HNI's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1: Earnings Performance - Steelcase reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and up from $0.16 per share a year ago, representing an earnings surprise of +66.67% [1] - The company posted revenues of $779 million for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 3.05%, compared to year-ago revenues of $727.3 million [2] - Over the last four quarters, Steelcase has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Steelcase shares have declined approximately 8.4% since the beginning of the year, while the S&P 500 has gained 3.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.40 on revenues of $879.9 million, and for the current fiscal year, it is $1.04 on revenues of $3.25 billion [7] Group 3: Industry Context - The Business - Office Products industry, to which Steelcase belongs, is currently in the top 5% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Steelcase's stock performance [5][6]