Huaxi Securities: Maintains Buy rating on Chao Hongji, brand development scale and quality advancing simultaneously.

Huaxi Securities' research report pointed out that Chaohongji's performance has significantly increased, with both the scale and quality of brand development improving. The company achieved revenue of 9.318 billion yuan in 25 years, an increase of 42.96%, and a net profit attributable to shareholders of 497 million yuan, an increase of 156.66%. The main brand has seen simultaneous growth in scale and quality, driving high performance. The company continues to deepen the construction of franchise channels, advancing online and offline integration. By the end of 2025, Chaohongji jewelry stores totaled 1,668, with a net increase of 163 stores for the year. On the other hand, the company's product and brand strength continue to improve, launching series such as "Forbidden City Culture", "Zhenjin Vanhua", "Flower Silk Peony", and "Sanrio". In addition, the company actively extends its "1+N" brand combination for incremental growth, among which the "Jewelry Gift Expert" brand Souffl has achieved initial scale in the market, with 96 stores by the end of 2025; the high-end jewelry brand "Zhen ZHEN" experiential hall officially opened at the Zhenbao Museum. The latest stock price corresponds to a PE ratio of 12/10/8X, maintaining a "buy" rating.