Investment Rating - The report maintains an "Outperform" rating for ANTA Sports [2][5] Core Insights - ANTA Brand experienced its first low-single-digit negative sell-through growth in 4Q25 after 11 consecutive quarters of positive growth, primarily due to offline sales decline and challenges in the children's category, although it still achieved a full-year low-single-digit growth target [3][10] - FILA Brand achieved mid-single-digit sell-through growth in both 4Q25 and for the full year 2025, with increased discounts and a stock-to-sales ratio slightly above 5x [3][10] - Management is cautious about 2026, planning increased investments in brand and marketing due to significant sporting events such as the Milan Winter Olympics, World Cup, and Asian Games [3][10] Financial Summary - Revenue projections for ANTA Sports from 2025 to 2027 are RMB 78.26 billion, RMB 85.00 billion, and RMB 92.04 billion, representing year-on-year growth of 10.5%, 8.6%, and 8.3% respectively [5][12] - Net profit attributable to parent shareholders is expected to be RMB 12.98 billion, RMB 14.34 billion, and RMB 16.24 billion for the same years, with year-on-year changes of -13.1%, 14.6%, and 13.8% respectively [5][12] - The corresponding P/E ratios for 2025 to 2027 are projected at 16.0x, 14.5x, and 12.8x [5][12]

Market Performance - Southeast Asia ETF rose by 2.93% over the two-week period from January 3, 2026, to January 16, 2026, outperforming China, the UK, the US, and India, but underperforming Japan, Latin America, and Africa[2] - The Southeast Asia Technology ETF increased by 1.51%, lagging behind the broader Southeast Asia ETF by 1.42 percentage points[2] Country-Specific Performance - iShares MSCI Indonesia ETF increased by 2.18%, underperforming the Southeast Asia ETF by 0.75 percentage points, supported by positive growth forecasts and economic recovery data[3] - iShares MSCI Singapore ETF rose by 1.08%, underperforming by 1.85 percentage points, with strong trading data and optimistic economic outlooks providing support[3] - iShares MSCI Thailand ETF gained 0.67%, underperforming by 2.26 percentage points, influenced by expectations of interest rate cuts and weak economic growth prospects[3] - iShares MSCI Malaysia ETF increased by 3.14%, outperforming by 0.20 percentage points, driven by a decline in unemployment to a multi-year low and targeted government financial support measures[3] - Global X MSCI Vietnam ETF edged up by 0.08%, underperforming by 2.85 percentage points, with stable performance supported by strong trade fundamentals[3] Trading Volume and Liquidity - The trading volume for Global X FTSE Southeast Asia ETF reached 529,000 shares, a week-on-week increase of 87.3%[14] - iShares MSCI Singapore ETF saw a trading volume of 8.583 million shares, up by 49.3% week-on-week[14] - iShares MSCI Indonesia ETF trading volume was 4.445 million shares, increasing by 119.8% week-on-week[14] Economic Indicators - Malaysia's unemployment rate fell to 2.9%, the lowest in 11 years, indicating a resilient job market[22] - Indonesia's GDP growth for Q4 2025 was reported at 5.45%, marking a recovery trend[16]

Investment Rating - The report initiates coverage with an OUTPERFORM rating, setting a target price of ₩22,000, while the current price is ₩17,970 [2]. Core Insights - Hite Jinro's strong market position in the soju segment, with nearly 70% market share, provides a solid foundation for stable cash flow and profit growth, even amidst industry challenges [4][7]. - The company is expected to implement a 5% price increase in the soju segment in Q2 2026, which, combined with economies of scale, could push operating profit margins (OPM) closer to 13% [4]. - The overseas expansion strategy, particularly with the upcoming Vietnam factory and entry into the Indian market, is anticipated to drive significant revenue growth, overcoming domestic market saturation [5][30][33]. - The report highlights the defensive characteristics of the essential consumer sector, suggesting that Hite Jinro could attract new capital as the market seeks balanced valuations [6]. Summary by Sections Company Overview - Hite Jinro's revenue structure is heavily reliant on soju, contributing approximately 58% of total revenue, while beer contributes about 32% [27]. - The company has a strong brand presence, with "Chamisul" and "Chamisul" accounting for over 90% of soju revenue [29]. Financial Performance - Revenue projections for 2025-2027 are estimated at ₩25,960 billion, ₩26,580 billion, and ₩27,340 billion, with net profits of ₩1,060 billion, ₩1,230 billion, and ₩1,290 billion respectively [41]. - The report anticipates a stable operating profit margin for soju at 12-13%, while beer margins are expected to remain under pressure at 2.5-3% [36][37]. Market Dynamics - The Korean alcohol market is characterized by a unique dominance of soju, which accounts for 42% of the market, contrasting with global trends where beer typically holds a larger share [8]. - The beer market is facing challenges, with a projected decline in sales due to consumer preference shifts towards lower-priced products [14][15]. Strategic Initiatives - The establishment of a production facility in Vietnam is expected to enhance competitiveness in Southeast Asia by reducing supply costs and avoiding import tariffs [32]. - The entry into the Indian market represents a significant growth opportunity, despite regulatory challenges and the need for consumer education [33].

Investment Rating - The report gives the company an "Outperform" rating with a target price of 118.57 HKD, corresponding to a 2025 PE of 26x and a reasonable valuation of 149 billion RMB (approximately 166 billion HKD) [1][7]. Core Insights - The company has been deeply engaged in the oil-based skincare sector for many years, leveraging platforms like Douyin to drive the explosive growth of its flagship products. The expansion of product categories and channels is expected to lead to sustained rapid growth [1][7]. - The company has established itself as a leader in the oil-based skincare market, with a significant market share in facial essence oils, projected to reach 12.4% in 2024, significantly ahead of competitors [3][37]. - The financial forecasts indicate substantial revenue growth, with total revenue expected to reach 23.16 billion RMB in 2025, representing a year-on-year increase of 91.5% [2][12]. Company Overview - The company, Lin Qingxuan, was founded in 2003 and has evolved from offering handmade soaps and aloe vera gels to becoming a pioneer in oil-based skincare with its flagship product, Camellia Oil Essence, launched in 2014 [3][17]. - The management team is experienced and stable, with the founder holding over 70% of the shares, ensuring concentrated ownership and strategic direction [22][26]. Business Performance - The flagship product, the Camellia Oil Essence, has seen rapid growth, with revenue from this category increasing by 176% year-on-year in the first half of 2025, accounting for 46% of total revenue [3][28]. - Online sales have surged, with Douyin driving a 137% increase in online revenue in the first half of 2025, contributing to a 65% share of total revenue [3][36]. Industry Insights - The oil-based skincare segment is experiencing high demand, with the market for facial essence oils projected to grow to 5.3 billion RMB in 2024, reflecting a year-on-year increase of 43% [3][37]. - The overall anti-aging skincare market is expected to reach 119.9 billion RMB in 2024, with a significant portion attributed to high-end products [37][39].

US Macro - The CPI rose by 0.3% in December, meeting expectations, with a year-on-year increase of 2.7%, unchanged from November. The core CPI increased by 2.6%, slightly below the expected 2.7% [6][28] - The overall CPI increase was primarily driven by food prices, which rose by 0.7% in December, marking the largest increase since 2022. Energy prices also saw a slight increase, but gasoline and fuel prices declined [6][8] - The US is likely at the forefront of low inflation globally, with core inflation remaining below the Fed's 2% target for the second consecutive month and lower than the average in most developed markets [7][35] - Tariff-related core goods inflation has shown a clear cooling trend since peaking in September 2025, indicating that the impact of tariffs on inflation has passed its peak and continues to be lower than expected [7][35] - Service inflation remains dominant, with housing prices rising by 0.4% in December, the largest increase since August 2025, contributing significantly to the overall CPI [8][35] CPI and PCE Differences - The Federal Reserve's long-term inflation target is set at 2% annual growth in PCE, making it the primary benchmark for monetary policy, while CPI is more commonly referenced in short-term market reactions [30][18] - PCE has broader coverage than CPI, including government and employer-paid healthcare, which is not reflected in CPI, aligning better with GDP accounting [30][18] - The market typically focuses more on CPI due to its earlier release and historical familiarity, while the Fed uses PCE for long-term trends [21][30]

Investment Rating - The report maintains an "Outperform" rating for several companies, including Jiangsu Heng Rui Medicine, Hansoh Pharmaceutical Group, 3SBio, Sichuan Kelun Pharmaceutical, and Jiangsu Nhwa Pharmaceutical [6][7]. Core Insights - The annual J.P. Morgan Healthcare Conference concluded successfully, with positive information from global pharmaceutical companies, including new pipeline disclosures and major deals. The report highlights the high prosperity in the innovative drug sector and recommends continuous investment in innovative drugs and the industry chain [25][26]. - The A-Shares pharmaceutical sector underperformed the market in the third week of January 2026, with the Shanghai Composite Index falling by 0.4% and the SW Pharmaceutical and Biological sector declining by 0.7% [8][27]. - The Hong Kong stock pharmaceutical sector performed in line with the market, while the U.S. pharmaceutical sector underperformed. The Hang Seng Healthcare index increased by 2.4%, and the S&P 500 Healthcare Select Sector decreased by 1.1% [28]. Summary by Sections Section 1: Continuous Recommendation of Innovative Drugs and Industry Chain - The report emphasizes the high prosperity of innovative drugs and maintains overweight ratings for key pharmaceutical companies. It also recommends Biopharma/Biotech companies with promising pipelines and volume increases, as well as CXO and upstream companies benefiting from innovation [6][25]. Section 2: A-Shares Pharmaceutical Sector Performance - In the third week of January 2026, the A-Shares pharmaceutical sector's performance was ranked 17th among Shenwan primary industries, with a decline of 0.7%. The medical service sub-sector showed a positive performance of +3.3% [8][12][27]. Section 3: Hong Kong and U.S. Pharmaceutical Sector Performance - The Hong Kong pharmaceutical sector performed similarly to the market, while the U.S. sector underperformed. Notable gainers in the U.S. included MODERNA (+22%) and QUEST DIAGNOSTICS (+9%), while major decliners included BIOGEN (-12%) and BOSTON SCIENTIFIC (-10%) [28].

Investment Rating - The report maintains a "Neutral" rating for Monster Beverage Corp (MNST US) with a current price of $77.91 and a target price of $71.64 [2][5]. Core Insights - The company is set to launch its largest innovation pipeline in 2026, which includes new product lines targeting women, juice and functional beverages, and multiple zero-sugar products [3][12]. - International revenue and profit contributions have reached record highs, with international revenue growing 23% year-over-year in Q3 2025, now accounting for 43% of total revenue [4][13]. - A new pricing strategy implemented in the U.S. market is expected to enhance profit margins with limited negative impact on sales volume [14]. Financial Performance Summary - Revenue projections for 2025-2027 are $8.16 billion, $8.75 billion, and $9.45 billion, respectively, with growth rates of 9%, 7%, and 8% [2][10]. - Net profit is forecasted to be $2.11 billion, $2.34 billion, and $2.56 billion for the same period, reflecting growth rates of 15.6%, 10.9%, and 9.3% [5][15]. - The diluted EPS is expected to increase from $2.14 in 2025 to $2.63 in 2027 [2][10]. Market Expansion Strategy - The company is enhancing its distribution partnership with Coca-Cola to penetrate new channels such as foodservice and universities, particularly in EMEA, Asia-Pacific, and Latin America [4][13]. - The affordable energy drink line, represented by brands like Predator and Fury, is targeting lower-income markets and has expanded to 36 markets [4][13].

Investment Rating - The report assigns an "Outperform" rating to multiple companies including Nike, Midea Group, JD Group, and Anta Sports, among others [1]. Core Insights - Concerns regarding the independence of the Federal Reserve and future monetary policy stability have led to a collective decline in overseas consumer sectors [4][11]. - The snack sector has shown resilience, outperforming the MSCI China index, while other sectors such as luxury goods and overseas sportswear have faced significant declines [4][11]. - The report highlights that most sectors are currently undervalued compared to their historical averages, indicating potential investment opportunities [9][15]. Sector Performance Summary - **Snack Sector**: Increased by 1.7%, with Wei Long's revenue guidance for 2026 projected to grow over 15% due to innovative products and channel expansion [6][14]. - **Jewelry Sector**: Rose by 1.6%, driven by Chow Tai Fook's strong operational performance expectations for FY26Q3 [6][14]. - **Overseas Cosmetics**: Gained 1.1%, with E.L.F Beauty's sales growth exceeding previous guidance [6][14]. - **Domestic Sportswear**: Increased by 1.5%, with Li Ning's revenue meeting expectations and a positive outlook for net profit margins [8][14]. - **Pet Sector**: Grew by 0.3%, with strong annual growth despite a slight decline in December [8][14]. - **Gambling Sector**: Slight decline of 0.1%, with Galaxy Entertainment showing resilience as a preferred investment choice [8][14]. - **Domestic Cosmetics**: Decreased by 0.3%, with expectations for recovery in 2026 [8][14]. - **Retail Sector**: Fell by 1.5%, with Target's positive leadership changes noted [8][14]. - **Luxury Goods**: Declined by 2.9%, impacted by market concerns over credit risks following Saks Global's bankruptcy [8][14]. - **Overseas Sportswear**: Experienced a significant drop of 4.0%, with major brands like Nike and Adidas facing declines [8][14]. - **Credit Card Sector**: Decreased by 5.1%, influenced by proposed caps on credit card interest rates [8][14]. Valuation Analysis - The report indicates that the expected PE ratios for various sectors in 2025 are below their historical averages, suggesting potential undervaluation: - Overseas Sportswear: 30.4x (57% of historical average) - Domestic Sportswear: 13.5x (71% of historical average) - Jewelry: 22.8x (43% of historical average) - Luxury Goods: 27.4x (49% of historical average) - Gambling: 16.2x (26% of historical average) - Overseas Cosmetics: 41.0x (61% of historical average) - Domestic Cosmetics: 27.3x (51% of historical average) - Pet Sector: 36.9x (50% of historical average) - Snack Sector: 29.8x (72% of historical average) - Retail: 29.9x (54% of historical average) - US Hotels: 34.8x (21% of historical average) - Credit Cards: 28.3x (54% of historical average) [9][15].

Investment Rating - The report assigns an "Outperform" rating to several companies including Pop Mart, Anta Sports, Huazhu Group, Li Ning, Miniso, Atour Group, and Xtep International, with target prices ranging from 6.99 to 354.00 [1]. Core Insights - The integration of AI and advertising models is gradually taking effect, with Generative Engine Optimization (GEO) expected to dominate the traffic competition in the AI-driven search era. The GEO market is projected to grow significantly, with a forecasted global market size of USD 11.2 billion in 2025, reaching USD 100.7 billion by 2030 [3][13]. - Key companies in the sector, such as Qingmu Technology, are actively developing their e-commerce ecosystems and leveraging proprietary systems to enhance their market position [4]. Company Performance - Top performers this week include Guoquan (+11.9%), Haidilao (+10.7%), Nayuki (+6.5%), SuperHi (+5.4%), and Hisense (+3.8%). Conversely, underperformers include JS Global Life (-4.6%), Roborock (-5.2%), TCL Electronics (-6.3%), Chagee (-8.2%), and Pop Mart (-9.3%) [6][14]. - Haidilao has appointed Zhang Yong as CEO, aiming to bring new perspectives and enhance board efficiency [8][15]. Industry Dynamics - Qdama and YUEN KEE FOOD have submitted listing applications to the Hong Kong Stock Exchange, with projected revenues showing growth [11][12]. - Big Catering has also submitted a listing application, with significant revenue growth reported for 2024 and Q3 2025 [12].

Investment Rating - The report maintains a "Neutral" rating for Coca-Cola Co (KO US) with a current price of US$70.48 and a target price of US$71.38 [2]. Core Insights - The franchise restructuring is expected to be completed by 2026, aiming for an operating profit margin of 30-35%. Key steps include the sale of a 40% stake in Indian bottling operations and partial interests in African bottling businesses [3][12]. - Coca-Cola China's bottling partners are projected to achieve mid-single-digit revenue growth, supported by significant upgrades to production facilities, including a smart green production base in Guangdong [4][13]. - A smooth CEO transition is anticipated as COO Henrique Braun is set to succeed James Quincey on March 31, 2026, with expectations for continued strategic execution [5][14]. - The company is expected to unlock new growth opportunities in India and enhance its total beverage portfolio through the performance of its protein drink brand, Fairlife [6][15]. Financial Summary - Revenue projections for Coca-Cola are as follows: - 2025: US$48.046 billion - 2026: US$51.221 billion - 2027: US$53.836 billion - Corresponding net profits are projected at US$12.874 billion, US$13.951 billion, and US$14.775 billion for the same years [2][10]. - The diluted EPS is forecasted to be US$2.98 in 2025, US$3.24 in 2026, and US$3.45 in 2027, with a P/E ratio of 24 for 2025 and decreasing to 20 by 2027 [2][10].