Leysen(SH:603900) Huaxin Securities·2025-08-07 01:50Investment Rating - The report assigns a "Buy" investment rating for the company [5] Core Insights - The company has turned a profit with a projected net profit of 0.59 billion yuan for H1 2025, compared to a loss of 0.37 billion yuan in H1 2024, driven by over 30% revenue growth from its gold business [3][4] - The company is focusing on high-margin, high-value embedded gold products and has successfully launched new product lines, contributing to revenue growth [4] - The company aims to maintain its direct store count while expanding through provincial partnerships, targeting at least 50 high-revenue direct stores and 15 franchise stores [4] Financial Performance - The company expects significant revenue growth, with projected revenues of 2 billion yuan in 2025, up from 1.22 billion yuan in 2024, representing a growth rate of 63.6% [8] - The net profit is expected to reach 0.63 billion yuan in 2025, a substantial recovery from a loss of 0.184 billion yuan in 2024 [8] - Earnings per share (EPS) are projected to improve from -0.54 yuan in 2024 to 0.18 yuan in 2025, indicating a positive trend in profitability [8] Business Strategy - The company is enhancing its product matrix and optimizing its business processes, which has led to a decrease in overall expense ratios [3][4] - The focus on high-margin gold products and a strategic upgrade of the brand is expected to sustain revenue growth and improve operational efficiency [4] - The company is implementing a selective and stringent approach to franchise partnerships, ensuring quality and performance in its expansion strategy [4]