智通财经网·2025-11-26 02:49Core Viewpoint - Jianyin International has slightly lowered the target price for China Wangwang (00151) by 1.7% from HKD 5.8 to HKD 5.7 while maintaining an "outperform" rating, primarily due to weaker-than-expected mid-year performance for the fiscal year 2026 and more conservative profit margin assumptions under channel reforms [1] Financial Performance - For the first half of the fiscal year 2026, China Wangwang's net profit decreased by 8% to RMB 1.717 billion, mainly due to weak gross margins, despite a reduction in the effective tax rate [1] - The company is expected to see a revenue growth of 2.4% in the second half of fiscal year 2026, with gross margin and operating profit margin declining by 0.7 and 1.6 percentage points respectively, leading to a net profit decline of 4.2% [1] Strategic Outlook - The company has restructured multiple channel units in early 2025 to seize opportunities from channel transformation, indicating a focus on adapting to changing consumer demands [1] - Despite short-term pressure on profit margins, the strategy of channel reform and innovation is believed to support long-term sustainable sales growth [1] - It is anticipated that profit growth will resume in fiscal year 2027 as the cost environment becomes more favorable and channel execution improves [1]