Breo(SH:688793) GOLDEN SUN SECURITIES·2025-08-22 13:12Investment Rating - The report maintains a "Buy" rating for the company [3][6] Core Views - The company reported a significant decline in revenue and net profit for the first half of 2025, with revenue at 380 million yuan, down 36.2% year-on-year, and a net loss of 40 million yuan, down 238.2% year-on-year [1] - The gross margin improved slightly, attributed to a higher proportion of high-margin service business and new product launches, with gross margins at 62.6% for H1 2025 and 64.1% for Q2 2025 [2] - The company is accelerating the development of a new business model combining "technology products + effective massage" in its stores, transitioning from solely selling products to offering services as well [2] Financial Performance Summary - For H1 2025, the company experienced a net profit margin of -9.4% and -18.2% for Q2 2025, reflecting a significant decline in profitability [2] - The company expects a gradual recovery in net profit, forecasting net profits of 5 million yuan in 2025, 22 million yuan in 2026, and 44 million yuan in 2027, with year-on-year growth rates of -51%, +347.8%, and +94.5% respectively [3] - The financial projections indicate a revenue of 1.089 billion yuan for 2025, with a slight increase from the previous year [5]