The research report from Kaiyuan Securities points out that on June 18, LSTY signed a strategic cooperation agreement with China Resources Sports. Both parties will leverage their respective advantages in the sports industry (core stocks) resources, event operations, venue operations, digital technology, and urban services to explore innovative paths for the development of the sports industry. China Resources Sports has experience in serving multiple international events such as the Universiade, National Games, Asian Games, World Games, and Asian Winter Games. By December 2025, its venue operation business will cover 10 core cities including Beijing, Shenzhen, Shanghai, Guangzhou, and Chengdu, with 20 projects under management. We believe that the strategic cooperation will help the company expand into diversified sports events and comprehensive sports venue operations. We are optimistic about the company's advantageous position in racing events and the broad growth potential brought by its diversified sports layout, maintaining the forecast for net profit attributable to the parent company for 2026-2027, and adding 2028, to be 62 million, 112 million, and 135 million yuan, respectively. The current stock price corresponds to PE ratios of 37.3, 20.8, and 17.2 times, maintaining a "Buy" rating.

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