2025-10-16 15:11Summary of Conference Call Records Industry and Companies Involved - The conference call discusses the new consumption sector, focusing on leading companies Lao Feng Xiang and Pop Mart [1][2][3][4][5]. Core Insights and Arguments - Performance and Valuation: Lao Feng Xiang and Pop Mart are expected to see significant growth, with projections indicating that if Pop Mart's profit reaches 16 to 18 billion CNY in 2026, its market capitalization could reach 500 billion HKD. Similarly, Lao Feng Xiang's profit is projected to be around 6.5 billion CNY, leading to a market cap of at least 200 billion HKD. Both companies have over 50% upside potential from current valuation levels [1][3]. - Market Sentiment: The new consumption sector has been active recently, driven by the strong performance of Lao Feng Xiang and Pop Mart, both achieving approximately 150% growth in the third quarter. However, there is uncertainty regarding growth expectations for 2026 due to the influence of fashion trends on the sector [2][3]. - Growth Projections: If market sentiment improves and these companies can achieve a growth rate of 30% to 40% in 2026, their valuations may be considered undervalued [2][3]. - Other Beneficiaries: Other new consumption companies such as Mi Xue, Gu Ming, and Da Hang Ke Gong are expected to benefit from the overall positive sentiment in the industry. Da Hang Ke Gong has shown growth rates exceeding 50% for two consecutive years, with a projected valuation of just over 10 times earnings for 2026 [4]. Additional Important Points - Investor Outlook: The new consumption market is expected to maintain a 50% upside potential at least until 2026. Unlike many other sectors, the confidence in new consumption companies increases as their stock prices rise, due to strong fundamentals and their connection to consumer tastes [5]. - Valuation Challenges: The market's uncertainty regarding growth expectations for new consumption companies makes valuation difficult, as these companies are heavily influenced by changing fashion trends [2][5]. - Overall Sentiment: The overall sentiment towards the new consumption sector is optimistic, with expectations of a positive impact on related companies in the A-share market, such as Ruo Yu Chen, Zhong Chong Shares, and Chang Hong Ji [4].