Ge Long Hui·2025-08-28 11:20Core Viewpoint - The company reported a strong performance in H1 2025, with revenue and net profit growth, driven by a recovery in the packaged water business and effective cost management [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 25.622 billion, a year-on-year increase of 15.56%, and a net profit of 7.622 billion, up 22.16% year-on-year [1]. - The gross profit margin for H1 2025 was 60.32%, an increase of 1.55 percentage points compared to the previous year [2]. - The net profit margin for H1 2025 was 29.75%, reflecting a year-on-year increase of 1.6 percentage points [2]. Business Segment Performance - Revenue from the packaged water segment was 9.443 billion, growing by 10.69% year-on-year [2]. - The tea beverage segment generated 10.089 billion in revenue, with a year-on-year increase of 19.68% [2]. - Functional beverages and juice drinks reported revenues of 2.898 billion and 2.564 billion, respectively, with year-on-year growth of 13.62% and 21.28% [2]. - The company added three new water sources in H1 2025, enhancing its competitive advantage in the packaged water business [2]. Investment Outlook - The company has raised its profit forecast for 2025-2027, expecting net profits of 14.7 billion, 16.9 billion, and 19 billion, representing year-on-year growth of 21%, 15%, and 13% respectively [1]. - The latest closing price corresponds to a PE ratio of 33x, 29x, and 25x for 2025-2027 [1]. - The dual business model of "water + tea" is expected to provide stable cash flow and potential for new growth opportunities [1].