RYC(SZ:003010) NORTHEAST SECURITIES·2025-08-21 08:50Investment Rating - The report initiates coverage with a "Buy" rating for the company [6]. Core Views - The company has demonstrated strong growth in its proprietary brand management, with a significant increase in revenue and net profit in the first half of 2025 [2]. - The company is in a phase of rapidly increasing penetration of its proprietary brands in the domestic market, which is expected to gradually release profits as business scales up [3]. - The global expansion strategy is progressing steadily, potentially opening up overseas growth opportunities [3]. Financial Performance Summary - For the first half of 2025, the company achieved revenue of 1.319 billion yuan, representing a year-on-year increase of 67.55%, and a net profit attributable to shareholders of 72 million yuan, up 85.60% [1]. - The revenue breakdown shows that brand management business revenue was 335 million yuan (+52.53%), accounting for 25.42% of total revenue, while the self-owned brand "Zhanjia" generated 444 million yuan (+157.11%), making up 33.63% of total revenue [2]. - The company’s gross margin improved significantly to 56.92% (+11.39 percentage points) in the first half of 2025, while the net profit margin remained relatively stable at 5.48% (+0.53 percentage points) [3]. Future Projections - Revenue projections for 2025-2027 are estimated at 2.898 billion yuan, 3.784 billion yuan, and 4.723 billion yuan, respectively, with net profits expected to be 182 million yuan, 257 million yuan, and 344 million yuan [5]. - The corresponding price-to-earnings (PE) ratios are projected to be 71 times, 51 times, and 38 times for the years 2025, 2026, and 2027, respectively [3].