Group 1 - The core viewpoint of the article highlights that Dongfang Zhenxuan achieved a revenue of 2.31 billion yuan in 1HFY26, representing a year-on-year increase of 5.7%, and a net profit of 239 million yuan, marking a turnaround from loss to profit due to improved product gross margins [1] - The company's revenue growth is driven by self-operated product sales, while the gross merchandise volume (GMV) decreased by 14.6% year-on-year to 4.1 billion yuan, with self-operated products contributing 2.16 billion yuan and third-party products 1.94 billion yuan [1] - The company has developed 801 new self-operated products, a 9.4% increase from the end of FY25, and expects the gross margin of self-operated products to rise from 21.5% in 1HFY25 to 33.7% in 1HFY26, an increase of 12.3 percentage points year-on-year [1] Group 2 - Dongfang Zhenxuan is implementing a multi-platform sales strategy by opening new accounts on Douyin and planning a long-term recruitment initiative for new hosts, while also establishing online stores on various platforms including WeChat, Tmall, JD, Pinduoduo, and Xiaohongshu [2] - The company anticipates having over 300,000 paid fans on its app in 1HFY26, up from 264,000 at the end of FY25, supported by a large follower base of 42.79 million on Douyin, which lays a solid foundation for expanding paid user numbers [3] - The company maintains a buy rating due to its proactive multi-live room and multi-host strategy, continuous development of high-margin self-operated products, and content advantages in the GEO marketing environment, with adjusted net profit forecasts for FY26 to FY28 raised to 500 million, 590 million, and 720 million yuan respectively [3]
东方甄选(01797.HK)：产品组合优化 经营效益大幅提升