Core Viewpoint - The company has entered a stable development phase with a clear strategy, focusing on enriching its product lines and building a product matrix centered around self-operated products [1][2] Product Development - The company has expanded its self-operated product categories from fresh food to include nutritional health products, pet food, clothing, and home goods, resulting in a more diversified product structure. As of May 31, 2025, the company has launched a total of 732 self-operated SPUs [1] - Self-operated products have become a significant growth engine, with the GMV of self-operated products accounting for approximately 43.8% of total GMV in FY25, an increase of about 3.8 percentage points year-on-year. The management aims to increase the self-operated product GMV share to over 60% in FY26 without affecting third-party GMV [1] Multi-Channel Strategy - The company is deepening its online and offline multi-channel strategy. Online, it has expanded beyond Douyin to platforms like WeChat Mini Programs, Tmall, JD.com, Pinduoduo, and Xiaohongshu. The Oriental Selection APP, as a strategic core, contributed 15.7% to GMV as of May 31, 2025, a year-on-year increase of 7.3 percentage points, with paid APP memberships growing to 264,000, up 33.1% year-on-year [2] - Offline, the company leverages New Oriental Group's learning center network and explores various methods such as vending machines and display stands to enhance brand awareness. It has also opened small shops to pilot sales of ready-to-eat foods and household essentials, gradually expanding its offline presence [2] Financial Forecast and Valuation - Due to better-than-expected performance in live streaming, the company has raised its FY26 revenue forecast by 11.6% to 5.03 billion yuan. Adjusted net profit for FY26 is also increased by 49.5% to 339 million yuan. FY27 revenue is projected at 5.63 billion yuan, with adjusted net profit of 407 million yuan [2] - The target price has been raised by 20% to 24.0 HKD, reflecting a more optimistic growth outlook. The GMV forecast for FY26 has been adjusted from 7.80 billion yuan to 9.85 billion yuan, corresponding to a 4.5 times FY26 price-to-sales ratio. The company is currently trading at 3.4 times FY26 price-to-sales ratio, indicating a 30% upside potential [2]
东方甄选(01797.HK)：产品与渠道双重发力 构建品牌力量