Sinolink: confidence in the catering industry gradually recovering, waiting patiently for subsequent quarterly validation.

Sinolink released a research report stating that Luckin Coffee's bottled ready-to-drink products officially launched in April, entering the market with its store network and price advantage, adopting a omni-channel operating strategy. The U.S. tariff refund system will be launched on April 20, refunding about $166 billion in illegal tariffs, which is expected to improve the cash flow of the export industry chain and accelerate the replenishment cycle. Sinolink's main points are as follows: Food and Beverage: Broadening the enterprise's operating space, store iteration enhances operational level Luckin Coffee's bottled ready-to-drink products officially launched in April, with three flavors initially launched. Operating through omni-channels, positioning the products as "coffee equivalent to NONGFU SPRING," with a 300ml size and priced between 6-7 yuan per bottle. The company has entered the ready-to-drink market with a strong store network, having a significant price competitive advantage. Compared to mainstream bottled coffees in the market, the company's 300ml product shows a high cost performance in terms of unit price and average price. On the distribution side, the company adopts an omni-channel approach, not limiting sales to convenience stores, supermarkets, vending machines and other modern channels, as distributors feedback that there are no restrictions on the sales range. This move aims to make up for areas not covered by the stores through high cost-effective products, taking advantage of economies of scale to compete strongly against traditional bottled coffee giants in the era of millions of coffee shops. The bank expects that future tea beverage companies will also broaden their enterprise's operating space, continuously iterate on SKUs, expand consumer profiles, and enhance the overall operating level of individual stores. Cross-border e-commerce: Refunds of U.S. tariffs expected to greatly improve, focusing on overseas targets with performance elasticity According to overseas media reports, the U.S. government plans to officially launch the tariff refund system on April 20, returning $166 billion in illegal tariffs to importers. The first phase of the development of the customs system for large-scale refunds to importers has been completed and relevant tariff refund work will be launched on the 20th. The bank believes that the tax refund policy is expected to significantly improve the cash flow situation of the export industry chain, accelerate the arrival of the replenishment cycle, and increase market risk appetite. In terms of fundamentals, the marginal increase in U.S. CPI in March is expected to continue to bring advantages in price differentials for overseas exports due to the slowing down of interest rate cuts. Meanwhile, the supply chain shocks and inventory backlog caused by the 25-year tariff crisis have gradually dissipated, and export chain companies have the necessary conditions for the release of performance elasticity. Investment advice Duty-free: Optimistic expectations are confirmed by the improvement in data in March. In the short term, reductions in discounts and currency appreciation will drive profit margin growth. In the medium term, the recovery of high-end consumption and the logic of Japanese tourism returning remain unchanged, and future growth is worth expecting. Gold and Jewelry: Top brand performance exceeds expectations, the value-for-money of one-price products highlights continuity of recommendation: 1) LAOPU GOLD: Consumers' acceptance of price hikes is better than expected, and brand strength continues to be verified. Price increases are expected to bring continued optimization of gross profit margin, optimistic about store optimization adjustments and high customer operation strategies in the 26th year, with same-store growth expected to continue. 2) Guangdong CHJ Industry: New products drive strengthening of the single-store model for franchisees, growth in self-produced ratios + product structure optimization, double-driving profit improvement. Risk Warning Business expansion falling short of expectations; domestic consumption falling short of expectations; product performance falling short of expectations; significant fluctuations in international trade policies.