LFX(600612) EBSCN·2025-05-05 15:22Investment Rating - The report maintains a "Buy" rating for the company [4][6] Core Views - The company experienced a significant decline in revenue and net profit in Q1 2025, with revenue down 31.64% year-on-year to 17.52 billion yuan and net profit down 23.55% to 613 million yuan [1] - The company continues to optimize its channel strategy and has launched cross-industry collaboration products, including partnerships with various gaming companies [3] - Despite the challenges posed by rising gold prices affecting sales, the company is expected to maintain its position as a leading brand in the gold jewelry industry through continuous product innovation [4] Summary by Sections Financial Performance - In Q1 2025, the company reported a revenue of 17.52 billion yuan, a decrease of 31.64% year-on-year, and a net profit of 613 million yuan, down 23.55% [1] - For the full year 2024, the company achieved a revenue of 56.79 billion yuan, a decline of 20.50%, and a net profit of 1.95 billion yuan, down 11.95% [1] - The comprehensive gross margin for Q1 2025 was 9.06%, an increase of 0.69 percentage points year-on-year [2] Cost and Expense Management - The company’s expense ratio in Q1 2025 was 2.20%, up 0.18 percentage points year-on-year, with sales, management, R&D, and financial expense ratios showing varied changes [2] Product and Channel Strategy - The company has optimized its store quality, reducing the total number of marketing outlets to 5,838 by the end of 2024, with a focus on self-operated and franchised stores [3] - New product lines include collaborations with popular IPs and themed collections, enhancing the product offering [3] Profit Forecast and Valuation - The profit forecasts for 2025 and 2026 have been revised down by 46% and 47% respectively, with expected net profits of 1.55 billion yuan and 1.77 billion yuan [4] - The company is projected to achieve a net profit of 1.92 billion yuan in 2027 [4] Market Data - The current stock price is 47.99 yuan, with a total market capitalization of 25.11 billion yuan [6]