Earnings forecasts and valuation
We maintain our 2026/2027/2028 revenue forecasts at RMB30,426/32,084/ 33,669mn and our attributable NP forecasts at RMB2,207/2,552/2,811mn. The comparable companies’ average 2027E PE is 7.5x on Wind consensus. While core brand sell-through faced near-term pressure in 3Q26, the company has abundant catalysts under multi-category operations, and if channel adjustments show results and expense ratios are well controlled, earnings upside potential could emerge; we maintain a premium valuation and apply a 2027E PE of 17.6x. Considering an HKD/RMB exchange rate of 0.86 (previous: 0.87), we raise our target price to HKD20.28 (previous: HKD18.75, based on 19x 2026E PE). Maintain BUY.