Ge Long Hui·2025-08-26 20:07Core Viewpoint - The company reported a steady revenue growth in H1 2025, but a decline in net profit due to various financial challenges, including impairment losses and increased tax rates [1][3]. Revenue and Profit Performance - In H1 2025, the company achieved revenue of 14.817 billion yuan, a year-on-year increase of 3.3%, while the net profit attributable to shareholders was 1.737 billion yuan, a decrease of 11.0% [1]. - The company's EBITDA for H1 2025 was 3.513 billion yuan, reflecting a 2.0% year-on-year growth [1]. Product Performance - Revenue from footwear, apparel, accessories, and equipment in H1 2025 was 8.231 billion, 5.193 billion, 1.393 billion, and 0.139 billion yuan respectively, with footwear showing a growth of 4.9% [2]. - The sales volume of core running shoes exceeded 5.26 million pairs in H1 2025, indicating strong performance in the running category [2]. Channel Performance - Direct sales revenue in H1 2025 decreased by 3.4% to 3.383 billion yuan, while e-commerce revenue grew by 7.4% to 4.300 billion yuan [2]. - The company closed 33 direct stores, ending H1 2025 with 1,278 stores, while the wholesale channel saw a revenue increase of 4.4% to 6.883 billion yuan [2]. Profitability and Cost Structure - The gross margin for H1 2025 was 50.0%, down 0.4 percentage points, primarily due to a decrease in the proportion of high-margin direct sales [3]. - The operating profit margin declined by 0.3 percentage points to 16.5%, and the net profit margin decreased by 1.9 percentage points to 11.7% [3]. Inventory and Cash Flow - As of the end of H1 2025, the company's inventory amounted to 2.428 billion yuan, a 5.0% increase year-on-year, with inventory turnover days at 61 days, a decrease of 1 day [3]. - The net cash flow from operating activities was 2.411 billion yuan, down 11.7% year-on-year [3]. Investment Outlook - The company is expected to maintain steady revenue and operating profit growth, with strong performance in the running category and healthy inventory levels [4]. - EPS forecasts for 2025-2027 are 1.02, 1.14, and 1.21 yuan, with corresponding PE ratios of 17.5, 15.8, and 14.9 times [4].