Core Viewpoint - The stock price of Dongfang Zhenxuan has surged over 100% in the past month, indicating a significant recovery and transformation within the company [2][5]. Financial Performance - In the second half of FY2025 (December 2024 to May 2025), Dongfang Zhenxuan's revenue is projected to be approximately $299 million (around 2.16 billion RMB), with an operating profit of about $6.2 million (around 44.71 million RMB) [5]. - In the first half of FY2025 (June to November 2024), the company experienced an operating loss of $15.7 million (around 11 million RMB) [5]. - By FY2025 Q4 (March to May 2025), the operating profit is expected to recover to about $7.2 million (around 51.67 million RMB), with a Non-GAAP operating profit of approximately 79 million RMB [5]. - The operating profit margins for FY25 Q1 to Q4 show significant improvement, moving from -8% to 7% [5]. Strategic Transformation - The recent surge in stock price is attributed to the company's shift in strategy following the departure of key figure Dong Yuhui, allowing the company to refocus on its original vision of becoming a product technology enterprise with supply chain management capabilities [6][12]. - Dongfang Zhenxuan has made notable progress in its self-operated business, increasing its SKU count from under 300 to 600 within a year, with further growth expected [8]. - The launch of self-operated products, such as sanitary napkins, has seen impressive sales, with 180,000 orders and an estimated sales revenue of 20 million RMB within two days on Douyin [9][10]. Market Context - The Chinese retail market is undergoing significant changes, with traditional supermarkets struggling and new retail models gaining traction, exemplified by the rapid growth of Sam's Club in China [13][14]. - Dongfang Zhenxuan's strategy of leveraging online traffic and avoiding physical stores allows for cost-effective operations and a quicker path to profitability [16]. - The company aims to build a sustainable business model focused on self-operated products, benefiting from its brand influence and supply chain advantages [17].
东方甄选还是被低估了