Prada Sees Further Growth as Sales Buck Wider Luxury Slowdown
Prada SpA reported better-than-expected sales for the start of the year, bucking the weakness across the wider luxury industry as growth soared at the Italian fashion group's Miu Miu brand.
Net revenue for the group rose 13% at constant currencies in the first quarter, the Hong Kong-listed company said Wednesday, just beating analyst estimates. Retail sales at Miu Miu, particularly popular among younger customers, grew 60% from a year earlier.
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CNBC
an hour ago
- CNBC
China's EV race to the bottom leaves a few possible winners
China's electric car price war shows little sign of letting up, putting more pressure on companies to survive. Tesla 's China sales fell by 15% in May from a year ago, China Passenger Car Association data showed. BYD , in contrast, reported a 14% year-on-year sales increase as it held onto first place in the market by volume, but even it had to announce sharp discounts as sales growth slowed from April's pace. "We expect additional price competition in the coming weeks as BYD is still lagging behind its sales target," said a team of analyst led by CLSA analyst Xiao Feng in a report Wednesday. While the analysts still have a high conviction, with an outperform rating on BYD's Hong Kong-listed shares, they see Geely as the 'best positioned" for investors as it is striking the optimal balance with its internal business structure and competing on vehicle price. CLSA has a price target of 483 Hong Kong dollars ($61.55) on BYD, and a 23 HKD target on Geely, also listed in Hong Kong. That's upside of nearly 20%, and 28%, respectively, from Friday's close. Geely is a large conglomerate with electric vehicle brands Galaxy, Zeekr and Lynk and Co., which share some of the same tech and manufacturing systems. "Geely's Galaxy NEV brand has successfully targeted BYD's popular models with better specs and lower prices," Macquarie analysts said in a report Thursday, citing a call with an auto dealer who manages dealerships for BYD, Geely and Xpeng in the relatively affluent Suzhou region near Shanghai. "The expert believes Geely's success will continue, as it is still ramping up new models to compete with BYD's entire model line-up," the report said. The Macquarie analysts have a price target of 22 HKD on Geely and rate the stock outperform. But they like U.S.-listed electric car startup Xpeng even more, with a $24 price target. Xpeng is likely to benefit from near-term market share gains given its advanced driver assist system and upcoming car models, the analysts said. The latest delivery data showed Xpeng delivered more than 30,000 cars in May for a seventh straight month, a rare feat among its immediate peers. The company last month also launched a new car under its lower-priced Mona brand. Among publicly listed new energy vehicle companies, a category that includes battery-only and hybrid-powered cars, Leapmotor and Li Auto have proven relatively stable, each with deliveries of more than 40,000 vehicles in May. Both companies have Hong Kong listings, while Li Auto also trades in New York. "Through a continuously expanding product matrix and cost-effective models, Leapmotor has achieved a stable market share in the Chinese mass EV market and has strong growth potential," the CLSA analysts said. They have a price target of 72 HKD, or more than 30% upside from Friday's close. Leapmotor reported a net loss in the first quarter, however, compared with profit in the fourth quarter. But Li Auto maintained profitability in the first quarter, according to results released on May 29. "We still see ample upside as a better-than-feared 1Q should inspire investor conviction about sequential recovery in 2Q," Morgan Stanley analysts said in a May 29 report. They have a price target of $36, for upside of more than 20% from Thursday's close. "The management team has found its pace for a steady and solid comeback, underpinning a more material resurgence of volume/margins into 2H25 amid new model launches," the analysts added. "Li Auto's premium model lineup can steer clear of the fierce pricing competition in the mass market." Li Auto is best known for its SUVs that come with a gas tank for extending the battery's driving range. Prices start around 244,000 yuan ($34,000). Industry giant BYD in contrast now sells some cars at 55,800 yuan, with most models falling in the 100,000 yuan to 200,000 yuan price range. The company also has a high-end sub-brand called Yangwang, which prices cars at well above 1 million yuan. Analysts that still like the stock see potential in BYD's overseas expansion. The narrative on BYD among European investors "sounds more optimistic," contrary to more cautious sentiment in China following the automaker's recent price promotions, JPMorgan's Nick Lai, head of Asia Pacific auto research said in a report Wednesday. Lai and his team also cited conversations with senior BYD management in London in the last week. "All in all, we retain our long-term positive view on the company and believe the (earnings) contribution from the overseas market and BYD's premium portfolio will increasingly play an important role," the JPMorgan analysts said. "We estimate that BYD's overseas business and premium brands will together contribute over 40% of its vehicle earnings in 2025 (up from 20-25% last year) even though they account for only about 20% of volume." The analysts rate BYD overweight, with a price target of 600 HKD. However, the risk of a flood of cheap cars into markets such as Europe have prompted tariff increases. In China, official commentary is also sounding the alarm about excessive competition. "We believe an end to the current price war will come down to simple economics," the Macquarie analysts said, pointing out that production capacity for both electric and traditional vehicles is more than 50 million units, well above the annual wholesale volume of 25 million to 27 million vehicles. "Thus, the market will likely stabilize either via higher demand or right-sized capacity and consolidation," the analysts said. "We believe this may take at least another three to five years." — CNBC's Michael Bloom contributed to this report.
Newsweek
3 hours ago
- Newsweek
Italy's 'Ultra Fast' Hyperloop Train Reaches Major Milestone
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. One of Italy's most ambitious transportation projects is set to begin testing after passing its feasibility study. The Hyper Transfer hyperloop project, on which research first began in 2013, will commence construction work on a test track in Veneto, spanning 10 kilometers (about six miles) between Padua and Venice. Why It Matters The hyperloop project is designed to transport passengers and cargo at record speeds of up to 1,200 kilometers per hour, thanks to the use of magnetic levitation through vacuums. The vacuum means there is no air resistance on the front of the vehicle, allowing transport tubes to move at very high speeds. The technology has been tested in various parts of the world, including India, but the construction of a test site in Italy would be a major breakthrough for the concept in Europe. What To Know The hyperloop project has completed its feasibility study phase, with Luca Zaia, the president of the Veneto region, announcing that the test track would be built in his area. Zaia told the Transportation Logistics Fair in Munich this week: "It is not a futuristic vision but a concrete project born in Veneto...A revolutionary technology, strongly desired by the Veneto Region, which is now entering its operational phase." A consortium of four companies is managing the project: HyperloopTT, a Los Angeles-based technology provider and designer; Webuild, Italy's largest engineering contractor; Leonardo, a multinational aerospace and defense monitor; and Hyperloop Italia, the body that licenses the infrastructure. Rendering of Italy's Hyper Transfer project from HyperloopTT, one of the companies working on the technology. Rendering of Italy's Hyper Transfer project from HyperloopTT, one of the companies working on the technology. HyperloopTT The test track will occupy a 10-kilometer stretch of land. It will be designed to carry both passengers and cargo, allowing the loop's safety systems and energy management technology to be properly tested. What People Are Saying HyperloopTT CEO Andrés de León said in a statement to Newsweek: "This is the moment HyperloopTT has been working towards since 2013. We thank the Italian government, the Veneto region, and CAV for their vision and commitment to sustainable innovation. "We've partnered with some of the best engineering and transportation companies in the world, all with deep roots in the region. We look forward to bringing this first of many hyperloop systems to the world." HyperloopTT COO Andrea La Mendola said: "Italy has always been a cradle of creativity, innovation, and progress, from the artistic brilliance of the Renaissance to the engineering prowess behind their high-speed trains. Today, we stand at the dawn of a new era, poised to redefine mobility once again with the 'Hyper Transfer' project. "This hyperloop system is not just about connecting Venice and Padua in record time; it is a testament to Italy's unwavering spirit of innovation and their commitment to sustainable and efficient transport." What Happens Next The testing process is expected to take several years, although engineers hope that parts of the infrastructure will be operational by 2030.
Associated Press
a day ago
- Associated Press
Tianci International, Inc. Reports Third Quarter 2025 Financial Results
HONG KONG, HK / ACCESS Newswire / June 7, 2025 / Tianci International, Inc. (the 'Company' or 'Tianci'), a global logistics service provider specializing in ocean freight forwarding, announced its financial results for the three and nine months ended April 30, 2025. Third Quarter 2025 Highlights: About Tianci International, Inc. Tianci International Inc., through its subsidiary Roshing, provides global logistics services specializing in ocean freight forwarding, including container and bulk goods shipping. Operating under an asset-light model, Roshing's logistics solutions are tailored to meet the diverse needs of its customers across the Asia-Pacific, including Japan, South Korea, and Vietnam. Beyond logistics, the company generates revenue from the sale of electronic parts and business consulting services. The company's mission is to provide customers with efficient, reliable, and safe shipping services that create value. For more information, please visit the Company's website: Forward-Looking Statements Certain statements in this announcement are forward-looking statements that involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as 'approximates,' 'believes,' 'hopes,' 'expects,' 'anticipates,' 'estimates,' 'projects,' 'intends,' 'plans,' 'will,' 'would,' 'should,' 'could,' 'may' or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results. The Company encourages investors to review other factors that may affect its future results that are discussed in the Company's filings with the U.S. Securities and Exchange Commission. Contact Information Michael Yip [email protected] SOURCE: Tianci International Inc. press release
