Hua Yuan Zheng Quan·2025-08-22 06:38Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company's H1 2025 performance met expectations, supported by professional sports resources for long-term development [5] - The company reported a revenue of 14.82 billion RMB in H1 2025, a year-on-year increase of 3.3%, with a gross profit of 7.42 billion RMB, up 2.5% year-on-year [7] - The net profit attributable to shareholders was 1.74 billion RMB, down 11.0% year-on-year, with a net profit margin of 11.7%, a decrease of 1.9 percentage points [7] - The company has a strong dividend policy, with an interim dividend of 0.3359 RMB per share, representing a payout ratio of 50% [7] - E-commerce contributed the largest incremental revenue, with a year-on-year growth of 7.4%, accounting for 29.0% of total revenue [7] - The company signed player Yang Hansheng, who was selected in the first round of the NBA draft, which is expected to enhance brand sales and improve the popularity of basketball in China [7] - The company focuses on a "single brand, multiple categories, multiple channels" strategy, with ongoing investment in R&D to enhance product competitiveness [7] Financial Summary - Revenue projections for 2025-2027 are 29.03 billion RMB, 30.77 billion RMB, and 32.85 billion RMB, respectively, with growth rates of 1.2%, 6.0%, and 6.8% [6][8] - The net profit attributable to shareholders is projected to be 2.65 billion RMB in 2025, 2.85 billion RMB in 2026, and 3.10 billion RMB in 2027 [6][8] - The company's return on equity (ROE) is expected to decline from 11.54% in 2024 to 8.95% in 2027 [6][8] - The company maintains a healthy balance sheet with a debt-to-asset ratio of 26.13% [3]