First to give Toys "R" Us a "buy" rating, with the prospect of a significant increase in performance.

Huaxin Securities recently pointed out in their research report that in the first half of 2025, the performance of Child King exceeded expectations against the backdrop of overall pressure in the mother and baby industry. This was mainly due to the company's focus on the "three expansion" strategy, which includes annual "repurchase, franchise, and city digitalization" as the three key battles for success. They continue to upgrade store scenes and optimize the supply chain, strengthen individual customer operations and refined operations, deeply explore the value of individual customers, while also fully integrating with Leyou international to leverage integration synergies. In addition, the company is actively developing in the AI+ consumer sector, implementing intelligent digitization of operations and management internally, and partnering with the Volcano Engine to jointly build a smart hardware incubator, creating the AIAgent and large category models. In the first half of the year, they successfully launched a self-developed AI intelligent emotional companion series of dolls, which are expected to continue to empower the company's business, enhance product value and customer stickiness, and contribute to incremental growth. The company focuses on retailing and value-added services for mother and baby children's products, providing a one-stop shopping and comprehensive growth service for children aged 0-14 and pregnant women. In the second half of the year, with the increase in franchise business volume and the consolidation of Siyu Industrial, the company's performance is expected to achieve significant growth. It is the first coverage and has been given a "buy" investment rating.