GTHT Securities has issued a research report setting a target price of HK$4.35 for CHEERWIN GP (06601) and maintaining an "Add" rating. CHEERWIN GP plans to acquire a 100% equity stake in Hebei Kangda for up to 450 million yuan to bolster its home care business. Hebei Kangda is a leading brand with over three decades of deep presence in the northern market; this acquisition is expected to help CHEERWIN GP optimize its industrial layout in the north, leveraging the synergies of its dual-brand strategy "Chaowei + Qiangshou" to enhance market share and operational efficiency. Key viewpoints from GTHT Securities are as follows: The company intends to acquire a 100% stake in Hebei Kangda for a maximum of 450 million yuan. Hebei Kangda has been deeply entrenched in the northern Chinese market for more than thirty years and is a leading enterprise in the home care sector in the region. Its core business encompasses the research, development, production, and sales of household insecticides, detergents, daily chemical products, and aerosol products, having accumulated substantial customer resources. Financially, Hebei Kangda has demonstrated stable performance in recent years, achieving revenue of 468 million yuan in 2024, a year-on-year increase of 6.6%, and a net profit of 86 million yuan, up 32.3% year-on-year. As of September 30, 2025, its audited total consolidated assets were approximately 225 million yuan, with a net asset value of about 176 million yuan. The acquisition is beneficial for enhancing the market competitiveness of the company's home care product categories in the northern region. As a leader in the home care sector in northern China, the acquisition of Hebei Kangda can assist the company in further optimizing its industrial layout in the northern area, building a multi-dimensional synergistic growth ecosystem. Leveraging Hebei Kangda's extensive customer resources and mature channel network can shorten the market cultivation cycle, reduce upfront investment costs, increase product penetration in the northern market, and enhance the breadth and depth of coverage in the domestic end-market. The acquisition promotes complementary advantages of the dual brands, aiming for leadership in product categories. It realizes synergies between the "Chaowei + Qiangshou" dual brands, driving product innovation, technological R&D, and supply chain coordination across multiple dimensions to boost market competitiveness and operational efficiency. Through this acquisition, the company can rapidly increase its market share in categories such as household insecticides and home cleaning, consolidating its leading position in the industry. Risk warnings include end-consumer demand falling short of expectations and industry competition exceeding anticipations.