煌上煌（002695）：经营调整，静待改善

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [6]. Core Views - The company reported a revenue of 984 million yuan in the first half of 2025, a year-on-year decrease of 7.19%, while the net profit attributable to shareholders increased by 26.90% to 77 million yuan [1]. - The company is undergoing operational adjustments, with expectations for improvement as terminal demand stabilizes and store operations gradually recover [4]. - The report highlights a reduction in store numbers, with a total of 2,898 stores as of June 2025, down by 762 from the beginning of the year, indicating ongoing challenges in the retail segment [2]. Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 538 million yuan, down 10.72% year-on-year, while net profit rose by 16.08% to 33 million yuan [1]. - The gross margin for H1 2025 was 31.96%, with a decline in Q2 to 29.27%, primarily due to lower margins in rice products [3]. - The company has adjusted its expense structure, leading to a decrease in sales expense ratio to 10.97% in H1 2025, down 2.84 percentage points year-on-year [3]. Revenue Breakdown - The rice product segment generated 312 million yuan in revenue, a slight decline of 1.36%, while the meat product segment saw a more significant drop of 11.65%, totaling 617 million yuan [2]. - Regional performance varied, with Jiangxi, Guangdong, and Zhejiang reporting revenues of 438 million, 85 million, and 316 million yuan respectively, all showing year-on-year declines [2]. Profit Forecast and Valuation - The profit forecast for 2025-2027 has been revised upwards, with expected net profits of 88 million, 102 million, and 111 million yuan respectively, reflecting a significant increase from previous estimates [4]. - The report projects earnings per share (EPS) of 0.16, 0.18, and 0.20 yuan for 2025-2027, with corresponding price-to-earnings (P/E) ratios of 101, 88, and 81 [4].