Summary of Meitu's 2025 Investor Day Company Overview - **Company**: Meitu (SEHK: 01357) - **Event**: 2025 Investor Day held on October 10, 2025 Key Points and Arguments Product Demonstrations 1. **Product Categories**: Meitu's products are categorized into leisure and productivity tools, including: - **Leisure**: Meitu app for photo editing, Wink for video editing - **Productivity**: XDesign for e-commerce material design, KaiPai for talking video creation, and AI agent RoboNeo [1][2][3] 2. **AI-Powered Features**: - The Meitu app utilizes GenAI for advanced photo editing, including background removal and lighting adjustments, which enhances user experience and quality [3][4][5] - New features like AI Group Photo allow users to combine images seamlessly, showcasing the app's capabilities in creative functions [4][5] 3. **Wink Video Editing**: - Wink focuses on quality restoration and video portrait beautification, demonstrating significant improvements in video clarity and detail [8][9][10] - The app's AI technology enhances video quality, making it a popular choice for users [9][10] 4. **Whirlwind AI Recommendations**: - The Whirlwind app provides personalized outfit recommendations based on user preferences and body types, integrating e-commerce links for easy purchasing [11][12][13][14][15] 5. **XDesign for E-commerce**: - XDesign assists e-commerce practitioners in creating product designs and marketing materials, streamlining the design process through AI [18][19][20][21][22][28] 6. **RoboNeo's Capabilities**: - RoboNeo serves as an AI agent for various applications, including brand design and e-commerce material generation, significantly reducing the time and cost associated with traditional design processes [44][45][46][47][48] Market Position and Strategy 1. **Global Performance**: Meitu ranks among the top five in app stores across multiple regions, indicating strong market presence and user engagement [5][54] 2. **AI Integration**: The company is exploring further integration of AI technologies to enhance product offerings and user experience, positioning itself favorably in the evolving tech landscape [53][54][56] 3. **User-Centric Approach**: Meitu aims to balance free and paid services, ensuring that users receive value without excessive charges, while also retaining a growing user base [58] 4. **Future Outlook**: The management expresses optimism about the growth of AI and its potential to enhance Meitu's product capabilities, emphasizing the importance of specialized applications in a competitive market [56][57] Additional Insights - **Consumer Trends**: The focus on anti-aging and fitness-related features reflects global consumer interests, guiding product development [5][7] - **Competitive Landscape**: The rise of general AI tools poses challenges, but Meitu's specialized applications are expected to maintain a competitive edge due to their tailored functionalities [56][58] Conclusion Meitu's 2025 Investor Day highlighted the company's innovative product offerings, strong market position, and strategic focus on AI integration to enhance user experience and operational efficiency. The emphasis on user needs and competitive differentiation positions Meitu well for future growth in the digital landscape.

Summary of ZTO Express Conference Call Company Overview - **Company**: ZTO Express (Ticker: ZTO US / 2057 HK) - **Industry**: Logistics and Express Delivery in China - **Market Position**: Largest express parcel provider in China with approximately 20% market share as of 2Q25 [44][49] Key Points and Arguments 1. Improved Financial Outlook - **Price Target Increase**: Price targets raised to US$24 for ZTO US ADR and HK$187 for ZTO H-share, reflecting a 27% and 29% upside potential respectively from current levels [1][57] - **Management Confidence**: A marked shift in management's tone indicates greater confidence in the sustainability of price hikes due to the anti-involution campaign and improved regulatory enforcement [1][57] 2. Anti-Involution Campaign Impact - **Regulatory Changes**: The anti-involution campaign has reshaped industry dynamics, moving the sector from volume-driven competition to margin-focused discipline [3][39] - **Price Stability**: Local authorities are actively stabilizing prices and preventing undercutting, which has led to improved profitability across the network [3][39][58] 3. Financial Performance Metrics - **Profitability Gains**: The Guangdong price hike resulted in an increase of approximately RMB 0.3 per parcel at the front-end, translating to RMB 0.025-0.03 at the group level [5][39] - **Volume Growth Expectations**: Management expects parcel volume growth of 14-18% year-over-year for FY25, targeting 38.8-40.1 billion parcels [6][59] 4. Short-Term Challenges - **Net Profit Projections**: Expected non-GAAP net profit for 3Q25 is RMB 2.17 billion, down approximately 9% year-over-year, and for FY25, projected at RMB 8.8 billion, down 13% year-over-year [7][59] - **Volume Headwinds**: The moderation in volume growth is attributed to price increases affecting low-price parcels, but the network remains robust with ongoing investments in automation and fleet expansion [6][59] 5. Competitive Landscape - **Shift in Competition**: The competitive landscape is evolving from aggressive volume growth to maintaining pricing power and outlet profitability [11][12] - **ASP Resilience**: Recent data from Tongda peers indicates a focus on average selling price (ASP) stability, with some companies sacrificing market share for stronger margins [13][14][58] 6. Long-Term Strategy - **Sustainable Growth**: Outlets are collaborating more closely with headquarters on cost reduction and quality improvement, indicating a shift towards sustainable growth practices [10][39] - **Market Adaptation**: ZTO is maintaining flexibility to adapt to shifting competitive dynamics while focusing on direct customer business growth through differentiated pricing and service quality [6][59] Additional Important Insights - **Regulatory Support**: The broad adoption of anti-involution measures across major provinces signals a persistent and expanding regulatory support for price stability [8][39] - **Management's Optimism**: The tone of management has shifted from cautious to optimistic, reflecting greater clarity about the industry's direction and ZTO's ability to navigate the new competitive landscape [12][58] Conclusion ZTO Express is positioned for potential growth driven by improved pricing discipline and regulatory support, despite facing short-term volume challenges. The company's strategic focus on profitability and sustainable practices is expected to enhance its competitive edge in the logistics market.

October 9, 2025 06:31 AM GMT Trip.com Group Ltd | Asia Pacific Total growth data matter more than daily average. We think the total travel receipts growth (8 days combined data against 7 days last year) is not directly comparable to the market's expected annual travel market growth run rate of 7%. We think the overall holiday data (+15%) is way much more meaningful to daily average spending growth. We think this should read positive to TCOM and also Tongcheng. Daily average domestic cross border travel and ...

Summary of CATL Conference Call Company Overview - **Company**: CATL (Contemporary Amperex Technology Co., Limited) - **Industry**: New Energy Vehicles and Energy Storage Key Points Industry and Market Trends - **Electric Vehicle Demand**: Expected to grow by 25% in 2025, reaching 22.6 million units, with corresponding battery demand growth exceeding 50% [2][3] - **Battery Sales Growth**: Anticipated sales growth of over 60% year-on-year for batteries, with future growth rates for batteries projected at around 30%, outpacing the growth of electric vehicles [2][3] - **Energy Storage Demand**: Despite the cancellation of mandatory storage policies, demand remains strong, particularly in data centers and renewable energy projects, leading to a supply shortage [2][5] Company Performance - **Market Share**: CATL holds approximately 42% of the domestic market share, with a slight year-on-year decline, while global market share reached 37.5% as of July, showing a slight increase [2][5] - **Profitability**: In Q2, the net profit per watt-hour was approximately 0.1 RMB, with net cash flow from operations being 1.5 to 2 times the profit, indicating strong profitability [2][6] - **Sales Projections**: Expected sales of 600-700 GWh in 2025, with net profit projected to exceed 65 billion RMB. For 2026, sales could reach 800-900 GWh, with net profit potentially exceeding 80 billion RMB, and possibly reaching 100 billion RMB considering price increases [2][6] Technological Advancements - **Battery Technology**: CATL continues to lead in battery technology with products like the Shenxing supercharging battery, Kirin battery, and Xiaoyao battery, which are expected to capture more high-end market share [4][7] - **Solid-State Battery Development**: A dedicated R&D team of over 1,000 people has been established to focus on solid-state battery technology, with confidence in maintaining a competitive edge in the next 5-10 years [8] Pricing Strategies - **Price Adjustments**: Recent price increases in the battery sector include adjustments in commercial vehicle pricing, recovery of customer rebates, and cost transfers due to export tax policy changes [11] - **Energy Storage Pricing**: Domestic energy storage cell prices remain stable, while overseas prices are rising, with expectations for energy storage cell sales to increase from over 90 GWh to at least 130 GWh in 2025 [11] Competitive Positioning - **Supply Chain Integration**: CATL's strong supply chain capabilities enhance its competitive edge, attracting new equipment and material suppliers [9][10] - **Differentiated Competition**: In the energy storage sector, CATL focuses on integrated solutions overseas while primarily selling bare cells domestically, which is expected to improve ASP (average selling price) [10][13] Future Outlook - **Core Catalysts**: Key future developments include advancements in solid-state battery technology and the introduction of sodium-lithium hybrid batteries, which are expected to improve market share [15][16] - **Market Dynamics**: The ongoing supply shortages in the industry may lead to price increases in the energy storage segment, while the valuation of CATL remains attractive at around 20 times earnings, indicating no bubble risk [17] Conclusion - **Investment Recommendation**: Given the strong competitive position, growth potential, and current valuation, CATL is considered a key investment opportunity in the new energy sector, with projected profits for 2026 expected to reach at least 80-85 billion RMB, and potentially exceeding 90 billion RMB in optimistic scenarios [17]

Summary of Tian Gong International Conference Call Company Overview - Tian Gong International focuses on high-end equipment materials, including tool steel, high-speed steel, cutting tools, and titanium alloys, with product prices significantly higher than ordinary alloy steels, targeting the high-end market and entering downstream applications such as new energy vehicles [2][3][10] Key Points and Arguments Growth Potential - The company's future growth hinges on breakthroughs in powder materials technology, which could replace traditional materials. The selling price of powder materials is approximately 7.5 times that of traditional materials, with potential annual revenue of 1.5 billion RMB if 10,000 tons of production capacity is achieved [2][3][10] - The stock price has increased by about 50% from 2 RMB to nearly 3 RMB since mid-August, reflecting market confidence in the company's growth logic and potential [3][10] Nuclear Fusion Sector - Tian Gong International is actively involved in the nuclear fusion sector, participating in key projects like the Shanghai HL-4 and Hefei EAST, with leading advantages in critical materials such as low-activation martensitic steel [2][5][7] - The company has developed boron steel and low-activation martensitic steel, with significant revenue potential from these materials in nuclear fusion applications, estimated to bring in tens of millions to billions of RMB [5][7] Demand in Humanoid Robotics - There is a strong demand for powder steel materials in the humanoid robotics sector, particularly for manufacturing screw and harmonic reducers. The company has partnered with several enterprises and received government validation, indicating a promising market outlook [2][8] Titanium Alloy Market - The titanium alloy market is expected to grow significantly, especially with potential increased usage in Apple's future products. The company is also investing in 3D printing technology for titanium alloys to reduce costs and enhance competitiveness [2][9] Additional Important Insights - The company's current valuation is low, with a TTM P/E ratio of about 1, and management has been actively buying shares, indicating confidence in future growth [3][10][11] - The company is positioned across multiple high-potential sectors, including nuclear fusion, humanoid robotics, and titanium alloys, which could lead to substantial business growth and profitability [11][12] - Upcoming developments in the second half of the year, including new projects in nuclear fusion and humanoid robotics, are expected to drive positive momentum for the company [13][14] Investment Outlook - The current investment climate is favorable, with expectations for the company's stock price to potentially double. The projected valuation for 2026 is between 15 to 20 times earnings, indicating significant upside potential [12][15]

Summary of the Conference Call Company and Industry Involved - **Company**: 富博集团 (Fubo Group) - **Industry**: Generative AI, Video Content Creation, Copyright Management Key Points and Arguments Sora 2 Overview - Sora 2 allows users to generate videos through text or image prompts, similar to TikTok, with initial content quality being well-received. However, copyright management has tightened, limiting daily video generation and restricting prompts involving well-known IPs [2][3][4] - Sora 2 represents a new milestone in generative AI, with significant improvements in generation effects, image control, and clarity, creating investment opportunities in content production and computing power [2][5] Market Impact - The launch of Sora 2 has led to a surge in downloads, surpassing GenAI and ChatGPT, indicating strong market interest [3] - The application has made notable improvements in copyright protection, implementing stricter measures as user numbers grow, which is expected to enhance its position in the global market [4][7] Technological Advancements - Sora 2's technology marks a shift towards multimodal generation, requiring higher computational power compared to traditional models, thus presenting new challenges and opportunities in the market [6][9] - The Diffusing Transformer used in video generation faces memory constraints, necessitating large HBM or future DDR5 support, highlighting the need for advanced hardware [9] Business Growth and Strategy - Fubo Group anticipates significant business growth from Sora's overseas expansion, particularly in copyright management, through partnerships with major platforms [7][8] - The Solo 2 product, launched as an independent app, achieved 140,000 downloads in its first two days, indicating strong user demand for AI-generated video content [12] Future Collaborations and Trends - Future collaborations for Solo 2 may include partnerships with IP owners and content creators, expanding into various video formats and social media platforms [13] - The rise of AI-generated content is expected to increase the demand for copyright protection and management, impacting multiple related industries [11][25] Financial Outlook - Fubo Group's revenue is projected to grow significantly, with AI-generated content expected to dominate active assets by the end of the year [33] - The company recently completed a financing round of 1.6 billion HKD to support R&D and team expansion, positioning itself for future growth [34] Challenges and Opportunities - The evolving copyright landscape poses challenges, but also opportunities for companies like Fubo Group to establish themselves as leaders in copyright management and content generation [19][20] - The potential for traditional media companies like Disney to adapt to digital content trends could reshape the industry, emphasizing the importance of flexible copyright strategies [35][38] Conclusion - Fubo Group is well-positioned to leverage advancements in generative AI and video content creation, with a focus on copyright management and strategic partnerships to drive future growth and innovation in the industry [44][45]

Summary of Microsoft 3Q25 CIO Survey Takeaways Company Overview - **Company**: Microsoft - **Market Capitalization**: $3,917.829 billion as of October 8, 2025 - **Current Stock Price**: $524.85 - **Price Target**: $625.00 - **Fiscal Year Ending**: June 2025 Key Industry Insights 1. IT Budget Growth Expectations - 2025 IT budget growth is expected to be stable at **+3.6%**, consistent with prior levels - Software is projected to grow at **+3.8%** in 2025, making it the fastest-growing sector - 2026 budget growth expectations show a modest acceleration to **+3.8%**, up **21 basis points** year-over-year, but still below the historical average of **+4.1%** [1][40][46] 2. Generative AI (GenAI) Spending - GenAI and AI/ML remain top priorities for CIOs, with Microsoft positioned as the leading vendor for GenAI deployment - **33%** of CIOs expect Microsoft to gain the largest incremental share of GenAI spend in 2025, significantly higher than the next vendor at **14%** - Over the next three years, **37%** of CIOs anticipate Microsoft will capture the largest share of GenAI spending [2][10][12] 3. Microsoft’s Competitive Position - Microsoft is viewed as the top IT budget share gainer, with **42%** of CIOs expecting share gains, up from **41%** in the previous survey - The company is also recognized for its strong alignment with key spending priorities such as AI/ML, security, and digital transformation [2][10][54] 4. Project and Task Management Solutions - Microsoft Teams and Planner are the most popular project management solutions, with **62%** of CIOs using them, up from **55%** in 3Q24 - **61%** of CIOs report their companies are standardized on a single project management solution, with Microsoft being the leading choice at **32%** [7][10][27] Financial Performance and Projections 1. Earnings Per Share (EPS) Estimates - EPS for fiscal year ending June 2025 is projected at **$13.64**, with estimates increasing to **$21.22** by June 2028 - The P/E ratio is expected to decrease from **36.5** in 2025 to **24.7** by 2028, indicating potential for multiple expansion [4][70] 2. Revenue Growth Drivers - Azure revenue growth is projected at **29.7%** for 2025, with a gradual decline to **22.4%** by 2028 - Operating margins are expected to expand from **45.6%** in 2025 to **47.2%** by 2028, driven by strong cloud adoption and operational efficiencies [82][89] Additional Insights 1. CIO Spending Priorities - Top spending priorities for CIOs include AI/ML, security software, and digital transformation, indicating strong demand for Microsoft’s offerings in these areas [54][56] - Security software is viewed as the most defensive area of IT spend, with **15%** of CIOs indicating it is least likely to be cut [56] 2. Market Positioning - Microsoft is seen as underpriced relative to peers, with a valuation at less than **26x** GAAP CY27 EPS multiple compared to the large-cap software average of **33x** [8][70] 3. Risks and Opportunities - Risks include potential macroeconomic impacts on IT spending and competition in the cloud space - Opportunities lie in the continued adoption of AI technologies and cloud services, which are expected to drive revenue growth [89][90] This summary encapsulates the key findings from the Microsoft 3Q25 CIO Survey, highlighting the company's strong positioning in the software and cloud markets, particularly in relation to GenAI and project management solutions.

Summary of Alibaba Group Holding Conference Call Company Overview - **Company**: Alibaba Group Holding - **Ticker**: BABA (US), 9988.HK (HK) - **Market Cap**: US$432.3 billion / HK$3.39 trillion Key Industry Insights - **E-commerce and Cloud Services**: The company is focusing on aggressive subsidies in its Shangou business, which is impacting its financials but is expected to lead to a rebound in future quarters as demand for AI cloud services increases. Core Financial Insights - **FY2Q26 Revenue and Profit Estimates**: - Total consolidated revenues are projected at **Rmb242.8 billion**, reflecting a **2.7% YoY increase** [3] - Non-GAAP net profit is estimated at **Rmb9.05 billion**, with a **3.7% margin**, significantly lower than previous estimates [3][57] - China E-commerce Group revenues are expected to be **Rmb126.6 billion**, with a **10.2% YoY growth** in CMR [3][52] - Cloud revenues are projected to grow by **28% YoY** to **Rmb37.9 billion** [3] - **Revisions in Estimates**: - Adjustments made to reflect aggressive subsidies and increased costs associated with AI model upgrades [2][57] - For FY2Q26, revenue estimates were revised up by **0.5%**, while non-GAAP profit estimates were revised down by **59%** [57] - For FY26-28E, total revenues and non-GAAP net profits were adjusted by **+0.4%/-10.9%**, **+0.7%/-5.7%**, and **+0.8%/-12.3%** respectively [57] Strategic Initiatives - **Double 11 Promotions**: Tmall's presale for the Double 11 shopping festival is set to begin on **October 15th**, aiming to enhance consumer experience through a comprehensive shopping approach [10] - **Taobao Global Initiatives**: Investment of **Rmb1 billion** in marketing to boost overseas user growth during Double 11, with cross-border free shipping and returns [11] - **Amap Local Services**: Amap's AI agent has surpassed **400 million MAU**, enhancing user engagement with local services [43] Cloud and AI Developments - **AliCloud Partnerships**: Collaborations with SAP and Xpeng to enhance cloud solutions and security capabilities [46] - **Product Launches**: Introduction of new AI-native products and upgrades to existing services, including a new server operating system and database technology [48] Market Position and Future Outlook - **Target Prices**: Slight adjustments to target prices, now set at **US$218** and **HK$216** [1] - **Investment Rating**: Maintained a "Buy" rating, indicating confidence in the company's long-term growth potential despite short-term challenges [1] Additional Insights - **User Growth Metrics**: Taobao's MAU showed a consistent upward trend, with a peak growth of **12% YoY** in August [20] - **Online Retail Sales**: YTD online sales reached **Rmb9.98 trillion**, reflecting a **9.6% YoY growth** [27] This summary encapsulates the key points from the conference call, highlighting Alibaba's current financial status, strategic initiatives, and market outlook.

Summary of Contemporary Amperex Technology Co. Ltd. (CATL) Conference Call Company Overview - **Company**: Contemporary Amperex Technology Co. Ltd. (CATL) - **Stock Codes**: 300750.SZ (A-shares), 3750.HK (H-shares) - **Market Cap**: Rmb1,837,796 million - **Industry**: Energy & Chemicals, specifically focusing on Energy Storage Systems (ESS) Key Points Industry Dynamics - China's commitment to decarbonization by 2035 is expected to drive a significant increase in ESS deployment, with a requirement of **1.4TWh** by 2030 and **3.6TWh** by 2035 from 2024 levels, indicating a **21% CAGR** in annual incremental development over the next five years and a **14% CAGR** over the next decade [2][11][30]. - The ESS market is anticipated to enter a **decade-long supercycle**, diverging from solar installations, as ESS becomes increasingly prioritized for grid security and to mitigate brownout risks due to the emerging "duck curve" in China's energy consumption [2][26][30]. Company Performance and Market Position - CATL is projected to consolidate its position in the domestic ESS market, with market share expected to rise from approximately **10%** to over **50%** within three years [3][58]. - The company’s products are expected to yield a **7-15 percentage point** premium in internal rate of return (IRR) for ESS projects compared to smaller battery manufacturers [3]. - CATL's A-shares have risen **63%** and H-shares **89%** since late June, outperforming the CSI300 and HSI indices [8]. Financial Projections - Price targets have been adjusted: - CATL-A: Rmb490.00 (up from Rmb425.00) - CATL-H: HK$585.00 (up from HK$465.00) [1][4]. - Revenue projections for CATL are as follows: - FY2025: Rmb419,342 million - FY2026: Rmb512,186 million - FY2027: Rmb624,481 million [6]. - EBITDA estimates have been raised, reflecting the anticipated growth in ESS deployment and market share gains [4][83]. Risks and Considerations - Upside risks for CATL-H include potential market liquidity and sentiment that could extend price targets into 2027/28 [5]. - Downside risks involve overly optimistic earnings forecasts from analysts, which may inflate market expectations [5][13]. Valuation and Comparisons - CATL's valuation is based on an **EV/EBITDA** multiple of **17x** for 2026E, reflecting improved earnings forecasts and a strong long-term outlook for ESS deployment [85]. - CATL currently trades at a **15% premium** to BYD-A, justified by superior earnings growth and a stronger position in the ESS market [86]. - Compared to LGES, CATL is trading at a **15% discount** on 2026E EV/EBITDA, which is viewed as undervalued given CATL's leading market share and profitability [87]. Future Outlook - The demand for ESS is expected to be bolstered by the new renewable energy trading mechanism in China, which will allow for profitable arbitrage opportunities [34][37]. - CATL is also positioned to capitalize on long-term opportunities in the robotics segment, with a projected total addressable market (TAM) for robotics batteries reaching **4TWh** by 2050 [76]. Conclusion - CATL is well-positioned to benefit from China's decarbonization efforts and the anticipated growth in the ESS market, with strong financial projections and a significant increase in market share expected in the coming years. The company's focus on high-quality products and innovative technologies will likely enhance its competitive edge in the evolving energy landscape.

Summary of Alibaba Group Holding Conference Call Company Overview - **Company**: Alibaba Group Holding (BABA.N) - **Industry**: China Internet and Other Services - **Market Cap**: US$430.69 billion - **Current Stock Price**: US$181.33 (as of October 7, 2025) - **Price Target**: US$200.00 with a potential upside of 10% [8][6] Key Financial Metrics - **2QF26 Revenue**: Expected to be Rmb241.4 billion, a 2.1% increase YoY [14] - **Adjusted EBITA**: Projected to decline 85% YoY to Rmb6 billion [5][11] - **Net Income**: Expected to be Rmb109.2 billion for FY Mar 2026 [15] - **EPS**: Projected at Rmb46.0 for FY Mar 2026 [15] Core Insights - **Cloud Revenue Growth**: Anticipated to accelerate to 32% YoY in 2QF26, driven by increased investment in AI and data center capacity [3][11] - **Customer Management Revenue (CMR)**: Expected to grow 10% YoY, supported by improved take-rate and quick commerce initiatives [4][11] - **Earnings Pressure**: Near-term earnings are under pressure due to significant losses in quick commerce (Rmb37 billion) and other segments [5][11] Investment Thesis - **Overweight Rating**: The company is reiterated as an "Overweight" investment due to strong cloud growth and potential recovery in core business [6][22] - **Valuation Methodology**: DCF-based price target of US$200 and SOTP valuation of US$250, with US$84 attributed to the cloud business [6][17] Risks and Opportunities - **Opportunities**: - Strong demand for AI-related products, which accounted for 20% of cloud revenue in 1QF26 [3] - Easing online regulatory environment, positioning Alibaba as a key beneficiary [27] - **Risks**: - Increased competition and higher reinvestment costs could impact margins [36] - Slower consumer recovery post-COVID and potential regulatory scrutiny [36] Additional Insights - **Capex Plans**: Alibaba plans to increase global data center power capacity by 10x by 2032, building on a previous Rmb380 billion AI investment [3] - **Market Position**: Alibaba is positioned as "China's Best AI Enabler," leveraging its cloud infrastructure to capture market share in the evolving AI landscape [1][26] Conclusion - Alibaba Group Holding is navigating through a challenging earnings environment but is expected to benefit from robust cloud growth and a recovering core business. The investment outlook remains positive, supported by strategic investments in AI and cloud infrastructure, despite potential risks from competition and regulatory pressures.