Changjiang Securities·2025-07-22 13:40Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported its Q2 2025 operational data, indicating low single-digit growth in overall channel revenue, a decline in direct sales, low single-digit growth in wholesale, and mid-single-digit growth in e-commerce, with retail performance meeting expectations [5][6]. - Short-term operational pressures are increasing, significantly impacting revenue and gross margin levels, and achieving annual targets will require further effort. Future marketing activities will need to be observed for their growth impact, and there is a need to balance expenses with growth in the short term [6]. - The company is increasing brand promotion spending to seek growth points amid intensifying competition, although the effectiveness of this spending remains to be seen. The operational environment has been under pressure for a prolonged period, but improvements in Nike's operations may gradually alleviate negative industry pressures, potentially allowing the company to restart a healthy upward trajectory, with performance showing high elasticity [6]. Financial Projections - The company is expected to achieve net profits attributable to shareholders of 2.39 billion, 2.54 billion, and 2.71 billion yuan for the years 2025, 2026, and 2027, representing year-on-year changes of -21%, +6%, and +7% respectively. The corresponding price-to-earnings ratios are projected to be 16, 15, and 14 times [6][10].