KPC(SH:600422) KAIYUAN SECURITIES·2025-08-18 03:14Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company is undergoing deep reforms in its channels to solidify its development foundation, despite facing operational pressures. The report maintains a "Buy" rating due to the potential growth from its health initiatives targeting the elderly and the transformation of its business model [4][6] Financial Performance Summary - In H1 2025, the company achieved revenue of 3.351 billion yuan, a year-on-year decrease of 11.68%. The net profit attributable to the parent company was 198 million yuan, down 26.88%, while the non-recurring net profit was 151 million yuan, a decline of 5.57%. The gross margin was 39.85%, down 1.25 percentage points, and the net margin was 7.46%, up 0.88 percentage points [4][8] - The report projects net profits for 2025-2027 to be 630 million, 759 million, and 912 million yuan respectively, with corresponding EPS of 0.83, 1.00, and 1.21 yuan. The current stock price corresponds to PE ratios of 17.5, 14.5, and 12.1 for the respective years [4][8] Market Participation and Procurement - The company actively participated in the national procurement of traditional Chinese medicine, with its series of products successfully selected. The execution of procurement results in various provinces is expected to accelerate in H2 2025 [5] Channel Reform and Strategy - The company is committed to a thorough restructuring of its channel system, transitioning from a decentralized sales model to a highly centralized and clearly defined business model. This transformation aims to establish a stable, efficient, and long-term commercial channel system [6]