YYTM(SH:600655) Xinda Securities·2025-08-20 02:14Investment Rating - The investment rating for the company is "Buy" [2] Core Insights - The report highlights that the company, Yuyuan Group, is a platform-type consumer industry company with a diversified business layout, including jewelry fashion, cultural dining, national trend watches, beauty and health, and composite functional real estate. The company aims to create a happy life for global family customers and is actively embracing consumption structure adjustments and new trends in national trends [5][15] - The jewelry fashion business is positioned to lead the consumption trend, with the company leveraging its multi-brand and all-channel strategy to build competitive barriers [7][14] - The report provides a profit forecast for the company, estimating net profits attributable to the parent company for 2025, 2026, and 2027 to be 463 million, 1.259 billion, and 2.07 billion yuan respectively, with corresponding P/E ratios of 48.9X, 18.0X, and 10.9X [8][10] Summary by Sections Company Overview - Yuyuan Group is actively adjusting its business layout and deepening its "Oriental Lifestyle Aesthetics" strategy, focusing on family consumption and adapting to market changes [15][19] - The company has experienced significant fluctuations in operating performance, with revenue and profit growth from 2018 to 2022, but facing pressure in 2023 and 2024 due to external factors [15][19] Jewelry Fashion Business - The jewelry business, primarily under the brands "Laomiao" and "Yayi," has a strong market presence with 4,615 retail outlets by the end of 2024. The company employs a franchise model for rapid market expansion while enhancing brand image through direct stores [7][14] - The report notes a shift in consumer demand towards self-purchase and cultural significance in gold jewelry, with the company innovating in product design and marketing strategies [6][7] Other Consumer Segments - The report discusses the company's restaurant management and service sector, emphasizing the importance of traditional Chinese brands and a focus on light asset expansion [8] - The food, department store, and craft sectors are expected to transition from traditional craftsmanship to modern industrialization, with a focus on pre-prepared meals and health supplements [8] - The fashion watch segment shows stable revenue with improving profitability, while the property development and sales segment is anticipated to contribute positively in the future due to a solid project reserve [8][19] Financial Forecast and Investment Rating - The financial forecast indicates a recovery in net profit from 2025 onwards, with significant growth expected in subsequent years. The report assigns a "Buy" rating based on the company's strategic positioning and market potential [8][10][14]