Huaxi Securities: Maintains a "buy" rating on Haier King, believing the company will experience a Davis double hit.

Huaxi Securities research report pointed out that Kids King is expected to achieve a year-on-year growth of 50%-100% in performance in the first half of 2025, by increasing investment in new formats, channels, and product categories. The high growth in performance mainly comes from the steady growth of direct operations, the inclusion of 35% equity of Leyou International, and cost optimization. The franchise business is progressing smoothly, with a total of over 200 stores already in operation, under construction, or planned, which will provide momentum for long-term performance growth. It is believed that the company's stores have differentiation in the sinking market and are expected to continuously increase market share. In the future, the company is likely to enhance its supply chain and digital capabilities through both direct operations and franchise formats to ensure long-term performance growth. In the long term, the driving factors for the company's performance growth include: 1) continuous integration of the industry chain; 2) joint venture companies to boost future online business growth; 3) continuous expansion of the franchise business; 4) improvement in store profitability through same-store sales and cost control; 5) business growth brought about by the AI toy business. There are many highlights in the company's growth, combined with the catalysis of the birth policy, it is believed that the company will experience a "double-click" effect, maintaining a "buy" rating.