Summary of Kingsoft Cloud's Earnings Call Company Overview - **Company**: Kingsoft Cloud - **Industry**: Cloud Computing Key Points and Arguments 1. **Profitability Achievement**: Kingsoft Cloud achieved profitability in Q4 2024, two years ahead of market expectations, marking it as one of the only two companies in China's cloud computing sector to achieve full profitability, alongside Alibaba Cloud [3][4] 2. **Gross Margin**: The company's gross margin is close to 20%, comparable to Alibaba Cloud, indicating high operational quality and product value recognition in the market [4][14] 3. **AI Revenue Growth**: In Q4 2024, AI revenue accounted for 35.5% of public cloud revenue, with a year-on-year growth exceeding 500%, significantly outpacing Alibaba Cloud's 20% [4][5] 4. **Impact of Xiaomi Ecosystem**: The strong performance of Xiaomi has positively influenced Kingsoft Cloud, similar to the relationship between AWS and Amazon, leading to a revaluation of the entire ecosystem [4][6] 5. **Internal Demand for AI**: The growth in AI business is primarily driven by strong demand from internal clients like Xiaomi and Kingsoft, with the company prioritizing internal needs while balancing external client demands [4][8] 6. **Cost Structure Optimization**: The shift to a supply-driven model has improved cost efficiency and profit margins, allowing Kingsoft Cloud to enhance its market competitiveness [4][9] 7. **Deployment of AI Services**: New AI computing services are being deployed in western provinces to leverage lower electricity costs and renewable energy, significantly reducing operational costs [4][22] 8. **Funding Strategies**: Kingsoft Cloud employs various strategies to address funding costs, including off-balance-sheet financing and asset leasing, to support computing power construction [4][17] 9. **Response to Supply Chain Risks**: The company has developed strategies to mitigate risks associated with potential supply chain disruptions, such as the rumored halt of NVIDIA H20 supplies [4][18] 10. **IDC Cost Dynamics**: The geographical distribution of Internet Data Centers (IDCs) is shifting due to rising electricity costs, with western provinces becoming more economically viable for data center construction [4][21] 11. **Future Growth in Tech Sector**: The Chinese tech industry is expected to experience rapid growth and revaluation, with Kingsoft Cloud positioned to play a significant role in emerging markets [4][7] 12. **Capital and Operating Expenditure**: Kingsoft Cloud's operating expenditure was approximately 2.9 billion RMB, while capital expenditure ranged from 4 to 5 billion RMB over the past four quarters [4][16] 13. **Profitability Targets**: The company aims to maintain a gross margin of around 20% and expects EBITDA margins to continue improving, with a target for significant profit growth in 2025 [4][24] 14. **Client Demand Dynamics**: The proportion of external client services decreased to about 50% in the latter half of 2024 due to increased internal demand from Xiaomi [4][26] 15. **Market Positioning**: Kingsoft Cloud is exploring opportunities to serve mid-tier clients, which may offer higher profit margins compared to large clients [4][30] Additional Important Insights - **AI Democratization**: The democratization of AI is expanding the external customer base, allowing smaller enterprises to access AI capabilities without significant investment [4][28] - **Strategic Pricing**: The company emphasizes the importance of selecting high-quality clients willing to pay, which has allowed it to maintain margins despite competitive pricing pressures [4][31] - **2025 Outlook**: While specific revenue and profit forecasts for 2025 were not disclosed, the company is confident in outperforming competitors [4][32]

Summary of the Conference Call for Xiansheng Pharmaceutical Industry Overview - Xiansheng Pharmaceutical operates in the field of neuro-specialty pharmaceuticals and is recognized as a leading enterprise in this sector [3][4]. Core Products and Market Performance - Key products include: - **Xianbixin Injection**: Launched in 2020, it has experienced rapid sales growth with a compound annual growth rate (CAGR) of nearly 750% from 2020 to 2024 [3][4]. - **Idaravone R-enantioform Sublingual Tablets**: Approved in December 2024, it completes a comprehensive vascular therapy for stroke treatment, expected to be a significant drug following Idaravone [3][4]. - A new generation of non-controlled insomnia medication is set to be launched in Hong Kong in May 2024 and anticipated for domestic release in 2025, showing optimistic market prospects [3][4]. Innovations in Oncology - Major oncology products include: - **Koserra** and **Anlitai**: Both have been included in the national medical insurance directory and are expected to be promoted for hospital use this year [5][6]. - A business development (BD) agreement with Aibowei, with a total contract value of up to 1.055 billion yuan, indicates strong R&D capabilities and future project potential [5][6]. R&D Investment and Financial Impact - R&D investments have significantly increased, totaling 6.42 billion yuan from 2020 to mid-2023. The proportion of innovative revenue rose from 21.4% in 2017 to 72% last year, leading to substantial overall performance improvement [7][8]. Clinical Efficacy and Market Outlook - **Idaravone R-enantioform** shows superior clinical efficacy compared to standard Idaravone, with significant improvements in the ROCK scale scores. It has received Breakthrough Therapy Designation (BTD) in the U.S., indicating potential for international market expansion [8][9]. - **Aideqing**: An anti-inflammatory and anti-rheumatic biological agent, ranked second in hospital use, with sales exceeding 900 million yuan last year, expected to maintain rapid growth [9]. Emerging Therapies in Oncology - The company is focusing on **Sanze Su**, a new generation recombinant humanized VEGF monoclonal antibody, which may provide breakthroughs in cancer treatment. Continuous efforts are being made to expand the oncology treatment portfolio through additional BD projects [10]. Clinical Trials and New Drug Development - A phase III clinical trial achieved its primary endpoint in January 2024, showing a significant progression-free survival (PFS) of 5.49 months. A New Drug Application (NDA) was submitted in March 2024, with approval expected in 2025 [11][12]. Pipeline Products of Interest - The pipeline includes several noteworthy products, such as **Enzeshushu** and a self-developed monoclonal antibody in collaboration with Aibowei, currently undergoing phase I trials in the U.S. and China [12]. Focus on Neurology - A new generation insomnia drug is a key focus for the company, expected to be approved in 2025. The market for such drugs is promising, with significant sales growth observed in similar products [13][14]. Future Development Plans - The company plans to continue advancing clinical R&D and explore new collaboration opportunities while closely monitoring upcoming product approvals to ensure market entry and rapid growth [15].

Summary of China Oriental Education Conference Call Company Overview - **Company**: China Oriental Education - **Industry**: Vocational Education Key Points Overall Performance - The overall performance for 2024 met expectations, with profits significantly exceeding forecasts, indicating a return to normalcy and an upward trajectory [3] - Spring 2025 enrollment data showed record highs in student numbers, revenue, and fees, with growth exceeding 10% compared to previous years [3][4] Enrollment and Growth - Spring 2025 enrollment reached historical highs across all sectors, including cooking, automotive, IT, and beauty, with short-term courses seeing over 30% growth [3] - The company is targeting the market of students not pursuing further education, particularly focusing on the "four school" demographic and unemployed university graduates, leading to over 100% growth in a newly developed 15-month course [3][6] Cost Management and Efficiency - The company has implemented cost reduction strategies, including a 2% decrease in customer acquisition costs and renegotiated rental contracts resulting in savings of several million yuan [3][5] - Enhanced marketing effectiveness through improved ad targeting and efficiency, utilizing advanced data platforms for real-time monitoring [5] Future Projections - Anticipated continued growth in fall 2025 enrollment, driven by favorable market conditions and strategic adjustments made since 2023 [3][10] - Expected revenue growth of approximately 7% in 2025, with student numbers increasing by 5% and tuition fees rising by 2-3% [19] Competitive Landscape - The company remains confident in its competitive position against public institutions, citing superior market alignment and rapid curriculum updates [8] - The company has over 50 academic licenses, contributing to high employment rates for graduates, with a notable 98% college admission rate for certain programs [8] Impact of COVID-19 - The pandemic accelerated the elimination of weaker competitors, allowing the company to strengthen its market position and achieve profitability starting in 2024 [9] Capital Expenditure and Dividends - Projected capital expenditures will decrease from over 900 million yuan in 2024 to 200-300 million yuan by 2027, with operating cash flow exceeding 1 billion yuan annually [18] - Dividends are expected to increase, with a minimum of 0.2 yuan per share in 2024 [18] School Utilization and Expansion - Current school utilization rates have improved to over 70%, with specific centers achieving up to 90% [16] - Plans for new schools in regions like Hangzhou and Jinan, with a focus on maintaining quality and efficiency [21] Employment Trends - Employment rates vary by sector, with automotive and IT fields showing strong demand, while the culinary sector remains stable despite emerging trends [13] Tuition Trends - Tuition fees are expected to rise modestly, with an average increase of about 1% in 2025, driven by the introduction of new programs [15] Long-term Growth Potential - The company aims to maintain a revenue growth rate of over 5%, with potential to approach 10% by 2026 through strategic expansions and program enhancements [22][23]

Summary of the Conference Call for YouRan Dairy Industry Company Overview - YouRan Dairy is a leader in the upstream dairy industry in China, covering cow breeding, feed production, and raw milk production, with raw milk accounting for approximately 75% of its business and feed accounting for 24% [3][5][6] - The company has over 600,000 dairy cows and a market share of nearly 10% in raw milk production, making it the largest dairy farming company in China [3][5] Industry Characteristics - The dairy farming industry is characterized by supply rigidity and strong cyclicality, with a minimum of 26 months required for cows to start lactating after birth, leading to significant delays in capacity adjustments [3] - The average production cost of raw milk in China is approximately 3.46 RMB/kg, while the latest fresh milk price is 3.08 RMB/kg, resulting in losses for many dairy companies [13] Financial Performance - YouRan Dairy has experienced steady revenue growth, but net profit has been volatile, primarily due to the fair value assessment of biological assets, with losses of 2.3 billion RMB in 2022 and 3.1 billion RMB in 2023 [3][9][10] - The company’s revenue is projected to be 22.84 billion RMB in 2025 and 26.26 billion RMB in 2026, with net profits of 930 million RMB and 2.3 billion RMB, respectively [20] Market Dynamics - The current raw milk price cycle has been declining for 45 months, with a total drop of 31.3% from the peak price of 4.5 RMB/kg in July 2021 to the current price of approximately 3.08 RMB/kg [12][18] - The supply-demand balance is expected to improve by the second half of 2025, with a projected price of around 4.2 RMB/kg by 2026 [19] Strategic Partnerships - YouRan Dairy is closely tied to Yili Group, which is both its largest shareholder (33.93%) and its largest customer, accounting for 96% of its raw milk sales in 2023 [3][6][7] - The partnership allows YouRan to maintain a high sales price, approximately 20% above the market average, while only meeting 20% of Yili's demand, indicating significant growth potential [3][7] Investment Outlook - The investment outlook for YouRan Dairy is positive, especially as the raw milk price cycle is expected to reverse, presenting potential investment opportunities despite inherent risks such as low raw milk prices and disease outbreaks [21][23] - The company’s stock price volatility is largely influenced by changes in the fair value of biological assets, which can lead to significant losses during price downturns [21] Additional Insights - The dairy farming sector is facing challenges due to increased supply and declining demand, with a 6.52% drop in dairy product revenue over the past three years [15] - The industry is divided into three categories: large dairy enterprises with self-owned farms, large dairy groups, and socialized farms, with the latter experiencing a significant decline in stock [17] This summary encapsulates the key points from the conference call regarding YouRan Dairy and the broader dairy industry, highlighting the company's market position, financial performance, and future outlook.

Summary of MINISO Conference Call Company Overview - **Company**: MINISO Group - **Brands**: MINISO and Top Toy - **Revenue Contribution**: MINISO accounts for approximately 95% of total revenue, while Top Toy contributes about 5% [3][4] Key Points and Arguments - **Global Revenue Distribution**: In 2023, MINISO's revenue was approximately 64% from the Chinese market and 36% from overseas markets, with equal contributions from agency and direct sales in the overseas segment [4][5] - **Business Model**: MINISO employs a light asset model, primarily using partner/franchise stores domestically and agency stores overseas. The average store operating profit margin is around 30% [4][6] - **Market Growth**: From 2019 to 2023, revenue growth in the Chinese market was steady at about 7%, while North America, Latin America, and Europe experienced rapid growth. The Chinese market remains the main contributor to gross and net profits [4][7] - **Strategic Upgrades**: The strategic upgrade initiated in Q4 2022 has shown positive effects, with overseas markets recovering first, leading to a rise in stock prices. However, revenue growth is expected to slow from 25% to 20% in 2024, raising concerns about same-store sales growth, particularly in North America [4][12] - **Store Expansion Plans**: The company plans to open 350-450 new stores annually in China and aims for 500-1,000 stores in North America in the long term [4][13] - **Diversified Channel Strategy**: MINISO enhances competitiveness through a diversified channel strategy, including flagship stores and online instant retail, collaborating with major IP players like Disney and Warner [4][14] - **Challenges in North America**: The company faces tariff and supply chain challenges in North America but is adapting through supply chain adjustments. Same-store sales were weak in the first three quarters of 2024, with a focus on the fourth quarter for potential recovery [4][16] Additional Important Insights - **Top Toy Brand**: Launched in 2020, Top Toy focuses on trendy toys, with blind box sales accounting for 40% of its revenue. Despite its small revenue share, it is growing rapidly [4][8] - **Historical Milestones**: Key milestones include the founding of the first MINISO store in 2013, global expansion starting in 2015, and the brand upgrade strategy initiated in 2022 [4][9] - **Ownership Structure**: The company has a concentrated ownership structure, primarily held by co-founder Ye Guofu and his wife, contributing to stable management [4][10] - **Stock Performance**: Recent stock performance has lagged behind other new consumer brands due to concerns over revenue growth slowing and same-store sales performance [4][11] - **Future Growth Potential**: The company has significant growth potential, particularly in the IP sector, with low per capita IP consumption in China compared to Japan and the US. The expansion strategy in North America is also promising [4][13][17] - **Competitive Advantages**: MINISO's competitive advantages include strong channel capabilities and retail selection, which are expected to improve with experience and market insights [4][18]

Summary of Kingsoft Cloud Conference Call Company Overview - **Company**: Kingsoft Cloud - **Date**: March 19, 2025 Key Points Industry and Company Structure - Kingsoft Cloud's shareholding structure includes major shareholders Xiaomi and Kingsoft, holding approximately 50% combined, with Lei Jun as the actual controller [3] - Xiaomi and Kingsoft contribute about 20% to Kingsoft Cloud's total revenue, with this percentage gradually increasing [4][3] - A related transaction agreement with Xiaomi will provide Kingsoft Cloud with 4.4 billion yuan annually for the next three years, including financing leasing and guarantees, ensuring strong support in resource acquisition, market expansion, and funding [4][3] Financial Performance - Kingsoft Cloud's revenue returned to double-digit growth in Q3 2024, with adjusted EBITDA margin reaching 10% [4][5] - Expectations for Q4 2024 include further improvements in key financial metrics, including gross margin and adjusted operating profit, with a noticeable reduction in net loss, indicating potential for regional profitability [4][5] Business Segmentation - Kingsoft Cloud's operations are divided into AI and non-AI segments, with AI revenue accounting for nearly 20% and growing rapidly, potentially reaching half of total revenue in the next couple of years [4][6] - Non-AI business includes public cloud and industry cloud, with industry cloud revenue recovering to double-digit growth and non-AI public cloud stabilizing [4][6] Capital Expenditure - Since the second half of 2023, capital expenditures have primarily focused on AI, totaling approximately 5 billion yuan by Q3 2024, reflecting expectations for revenue growth in AI [4][7] - Non-AI capital expenditure depreciation has largely been completed, resulting in a clean balance sheet that supports a focus on high-growth areas [4][7] AI Demand and Future Opportunities - AI demand in 2025 is expected to arise from Xiaomi's large model training needs, as well as increased inference demands from mobile and automotive sectors [4][8] - Xiaomi plans to invest 30 billion yuan in AI research and development, with a quarter allocated to AI, positioning Kingsoft Cloud as a strategic beneficiary [4][8] - The increase in inference computing demand and potential customer expansion from investments by Shunwei Capital present significant growth opportunities for Kingsoft Cloud in the coming years [4][8] Investment Considerations - Current stock price adjustments present a noteworthy opportunity for investors to focus on Kingsoft Cloud, especially with Xiaomi's increased investment in AI and the growing industry demand for inference computing [4][9] - Long-term prospects suggest that this period is a critical opportunity for positioning in the market [4][9]

Summary of the Conference Call for Lianlian Digital Technology Co., Ltd. Company Overview - **Company**: Lianlian Digital Technology Co., Ltd. - **Industry**: Cross-border payment services - **Milestone**: Successfully listed on the Hong Kong Stock Exchange in 2024, becoming the first Chinese cross-border payment stock, reflecting recognition from capital markets and regulatory bodies for the company's long-term value and compliance [3][4] Key Financial Highlights - **Total Payment Volume (TPV)**: - 2024 TPV reached RMB 3.30 trillion, a year-on-year increase of 64.7% [3][4] - Global payment business TPV grew by 63.1% to RMB 281.5 billion [3][4] - Domestic payment TPV increased by 64.9% to RMB 300 billion [3][4] - **Revenue**: - Total revenue for 2024 was RMB 13.15 billion, up 27.9% year-on-year [3][4] - Global payment revenue was RMB 8.08 billion, a 23.1% increase [3][6] - Domestic payment revenue reached RMB 3.43 billion, growing by 57.1% [3][6] - Value-added services revenue was RMB 1.46 billion, up 9.5% [3][6] - **Profitability**: - Adjusted profit improved from a loss of RMB 4.03 billion to a profit of RMB 78.7 million [3][4] - Gross profit for the year was RMB 6.8 billion, an increase of 18.2% [6] Strategic Initiatives - **Global Licensing Strategy**: - As of December 31, 2024, the company held 65 payment licenses, including a virtual asset trading platform license from Hong Kong SFC and an EMI license from Luxembourg, enhancing compliance and market coverage [3][5] - **Technological Innovation**: - Focus on AI and blockchain to improve payment and settlement efficiency, reduce customer fund transit time and costs, and integrate digital currencies with fiat currencies [3][5][21] - **Investment in Core Business**: - Sale of part of the stake in Unicom for RMB 1.6 billion to strengthen working capital and core business development [3][11] Future Outlook - **2025 Plans**: - Continue global expansion and enhance AI technology applications in compliance and risk control [3][7] - Anticipate revenue growth exceeding 20% for 2025 [3][7] - **Market Positioning**: - Cautious approach towards the U.S. market due to trade uncertainties, while maintaining strong growth in other regions [3][17] - Focus on B2B and service trade sectors, with expectations of stable growth in domestic business [3][23] Additional Insights - **Cost Management**: - General and administrative expenses increased by 16.7% to RMB 561 million, while R&D expenses rose by 19% to RMB 319 million, reflecting ongoing investment in technology [8][9] - **Tax Strategy**: - Deferred tax assets expected to optimize future tax burdens, with a focus on employee stock option expenses [18][20] - **Competitive Advantage**: - Extensive licensing and compliance capabilities create a significant barrier to entry, positioning the company favorably in the evolving digital asset landscape [22][24] Conclusion Lianlian Digital Technology Co., Ltd. has demonstrated strong financial performance and strategic growth initiatives in the cross-border payment industry, with a focus on technological innovation and global expansion. The company is well-positioned to navigate future challenges and capitalize on emerging opportunities in the market.

Key Points Summary of 康哲药业 Conference Call Company Overview - **Company**: 康哲药业 (Kangzhe Pharmaceutical) - **Year**: 2024 Industry and Market Context - **Impact of 集采政策 (Centralized Procurement Policy)**: - Major products like 不一定 and 优思弗 faced price reductions of 20% in the first half and 10% in the second half of 2024, leading to a 50% revenue drop for three centralized procurement drugs compared to their peak in 2022 [4][20] - Despite these challenges, the company expects to stabilize and recover to 50% profit levels by 2025 [20] Financial Performance - **Revenue Growth**: - Overall revenue increased by approximately 10% year-on-year in 2024, but operational profit decreased by around 1 billion due to centralized procurement impacts and increased promotional expenses for new products [3][6] - **R&D and Profit Margins**: - R&D expenditure was 888.8 million, accounting for 20% of revenue, with a decline in both EBITDA and net profit margins [6][36] - The company maintains a cash reserve of approximately 3.7 billion and a dividend payout ratio of 40% [6][31] Product Development and Innovation - **Current and Future Products**: - The company has seven exclusive products, with plans to launch 11 innovative products over the next three years, which currently account for 52.8% of total revenue [3][5][10] - Notable upcoming products include 芦可替尼乳膏 (Lukotini Cream) and 德西杜司他片 (Desidustat Tablets), targeting conditions like vitiligo and chronic kidney anemia [10][12] Strategic Initiatives - **Market Expansion**: - 康哲药业 is actively expanding into Southeast Asia through 康联达健康体系 (Kanglian Health System) and 法玛津工厂 (Pharmazine Factory), with expectations of significant revenue contributions starting in 2025 [16][17] - **Commercialization Efforts**: - The academic promotion team has grown to approximately 4,700 members, covering 300,000 retail terminals, enhancing the company's market presence [11] Challenges and Future Outlook - **Profitability Concerns**: - The company anticipates that while revenue will grow at double digits in 2025, profit margins may not keep pace due to ongoing R&D investments [36][44] - **Long-term Goals**: - 康哲药业 aims to achieve sales peaks by 2026 and profit highs by 2027, with a focus on maintaining a stable dividend policy despite the need for significant reinvestment [19][31][44] Additional Insights - **Supply Chain Management**: - The company is investing in supply chain stability, including transferring production to lower-cost regions to mitigate cost pressures from centralized procurement [26][42] - **Focus on Specialty Areas**: - 康哲药业 is concentrating on niche markets such as dermatology and cardiovascular treatments, with plans to develop innovative solutions in these areas [41][43] This summary encapsulates the key points discussed in the conference call, highlighting 康哲药业's current performance, strategic initiatives, and future outlook in the pharmaceutical industry.

Summary of Kingdee International's Conference Call Company Overview - **Company**: Kingdee International Software Group Co., Ltd. - **Fiscal Year**: 2024 - **Total Revenue**: RMB 3.93 billion, with cloud service revenue accounting for 81.6%, a year-on-year increase of 13.4% [2][3][4] - **Net Loss**: Reduced by 32.3% to RMB 142 million [2][3] - **Operating Cash Flow**: Increased by 42.9% to RMB 934 million [2][3] - **Cash Reserves**: RMB 4.65 billion at year-end, indicating a healthy financial position [2][3] Key Financial Metrics - **Profit Margin**: Increased from 3% in 2023 to 6% in 2024 [2][5] - **Research and Development (R&D) Investment**: Stable with a slight increase of 0.4% [2][6] - **Administrative Expenses**: Increased by 9.9% due to personnel restructuring [2][5] Cloud Service Performance - **Cloud Service Revenue Growth**: 13.4% increase, contributing to 81.6% of total revenue [2][4] - **Annual Recurring Revenue (ARR)**: Grew by 20% to RMB 3.43 billion, with a 5.4 times increase since 2020 [2][4] - **Contract Liabilities**: High levels indicating potential future revenue [4] Large Enterprise Market - **Contract Growth**: Number of contracts over RMB 10 million doubled, totaling RMB 2.1 billion [2][7] - **New Customers**: 652 new large enterprise customers [2][7] - **ARR Growth for Large Clients**: Increased by 30% [2][7] - **Net Renewal Rate**: Improved to 108% [2][7] AI Integration and Innovations - **AI Applications**: Significant improvements in client management and operational efficiency, e.g., a 70% reduction in workload for China Merchants [2][8] - **AI Product Launches**: Introduction of EBC digital employee solutions and the Cangqiong GPT platform [2][11] - **Future AI Spending**: Expected global IT spending on AI to reach USD 500 billion by 2027 [2][10] Strategic Direction - **AI Development Goals**: Aim to become a leading enterprise management AI company by 2030 [2][10] - **Internal AI Utilization**: Initiatives to enhance efficiency and reduce costs through AI [2][20] - **Market Positioning**: Focus on becoming a benchmark for AI usage within the software industry [2][20] Challenges and Outlook - **Market Sensitivity**: The small and medium enterprise market is sensitive to economic conditions, impacting growth [2][19] - **Future Growth Expectations**: Anticipated improvement in performance due to increased demand for digital transformation among SMEs [2][19] - **Profitability Outlook**: Continued profitability expected, with a conservative approach to future guidance [2][21] Conclusion - **Investment Potential**: Kingdee International is positioned as a valuable player in the enterprise management AI sector, with a focus on sustainable growth and innovation in cloud services and AI applications [2][29]

Summary of the Conference Call for Miniso Company Overview - The conference call focuses on Miniso, a retail company, discussing its valuation and business performance in the context of the broader market and its competitor, Yonghui Superstores [3][5]. Key Points Valuation and Market Perception - Miniso's current market capitalization is approximately 50 billion HKD, while projected net profits for 2025 and 2026 are 3.45 billion and 4.2 billion RMB respectively. Based on a 20x P/E ratio, Miniso should be valued at over 80 billion RMB, around 90 billion HKD. The market's pessimistic outlook on Yonghui's losses is a primary reason for Miniso's undervaluation [3][4][5]. Yonghui Superstores Impact - The market anticipates Yonghui will incur a loss of 6 billion RMB next year, which is considered overly pessimistic. Historical data shows Yonghui's maximum loss was around 4.5 billion RMB, and the company is undergoing store adjustments and supply chain restructuring to improve profitability [4][5]. Domestic Business Performance - Miniso's domestic revenue share is expected to fall below 55% this year. Despite a 4% year-on-year decline in same-store sales, recovery is strong, with sales returning to 96%-100% of previous levels. The company plans to open 450 to 550 new stores to drive growth, minimizing reliance on same-store sales [4][6]. Overseas Business Growth - The overseas segment is identified as a core growth driver, benefiting from accelerated expansion, foreign exchange gains, and tax refunds. The depreciation of the RMB is projected to yield tens of millions in net profit, and the U.S. tax refund policy will continue to positively impact finances [4][7]. Market Conditions and Consumer Confidence - Recent consumer policies and increased foreign investment in Hong Kong stocks are favorable for new consumption sectors, enhancing investor confidence in Miniso and similar companies. The new consumption sector is undergoing a revaluation after two years of being undervalued [4][8]. Future Performance Expectations - Positive catalysts are expected following the Q2 earnings release, particularly in May. The market is focused on future guidance and expectations regarding Yonghui. The Q4 performance is already prepared, and the domestic business has experienced a downturn, leading to a currently low valuation [4][9]. Potential Risks - A recent safety issue regarding disposable underwear has minimal impact on Miniso, as this product accounts for a very small portion of revenue. Even if sales of this product were halted, the profit impact would be negligible [4][10][11]. Operational Strategy in the U.S. - Following the appointment of a new CEO in the U.S., the focus will be on optimizing revenue and costs, controlling store opening speed, and reducing rent and labor costs to enhance profitability. The overseas business is expected to grow at 40%, with direct stores growing at 60% and agency stores at 20% [4][12]. Profit Forecast and Valuation Outlook - Profit forecasts for the next two years suggest net profits corresponding to P/E ratios of 14x and 11x. The current valuation is around 10-11x, indicating significant undervaluation. A correction to a reasonable valuation of around 20x is anticipated, making Miniso one of the most promising companies this year [4][13].