Ge Long Hui A P P·2025-09-26 08:09Core Viewpoint - The report from Dongfang Securities indicates that YXTT experienced a decline in revenue and net profit in the first half of 2025, attributed to proactive business adjustments and the current operating environment [1] Financial Performance - YXTT achieved revenue of 8.91 billion yuan in H1 2025, a year-on-year decrease of 4.2% [1] - Retail business revenue was 6.52 billion yuan, down 2.9% year-on-year, while wholesale business revenue was 2.11 billion yuan, down 9.2% year-on-year [1] - The company reported a net profit attributable to shareholders of 250 million yuan, a decline of 11.4% year-on-year, influenced by tax guidance and the operating environment for 2023-2024 [1] Profitability Metrics - YXTT's gross margin for H1 2025 was 32.5%, an increase of 1.1 percentage points year-on-year [1] - The net profit margin was 2.9%, a decrease of 0.3 percentage points year-on-year, primarily due to rigid costs associated with store growth [1] Store Operations - As of H1 2025, YXTT operated 11,372 stores, with 203 new openings, 88 relocations, and 241 closures, resulting in a net decrease of 126 stores [1] - The company is focusing on store adjustments to enhance customer purchase frequency and repurchase rates, improve service quality, and strengthen new retail business development [1] Valuation - Based on comparable companies, YXTT is assigned a target price of 17.00 yuan, corresponding to a 17 times PE ratio for 2025, maintaining a "buy" rating [1]