Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential stock price increase of over 15% within the next six months [5]. Core Views - The company has exceeded expectations in its H1 2025 performance, with revenue reaching 4.966 billion yuan in Q2 2025, a 23.1% increase year-on-year, and an adjusted net profit of 6.92 million dollars, reflecting a slight decline in profit margins [1]. - The report highlights the recovery of same-store sales in mainland China and significant growth opportunities in the North American market, which is expected to be a major growth driver due to its large population and high per capita income [1][2]. - The company is focusing on a large store strategy and localized operations overseas, which has shown positive results in the U.S. market, with same-store sales turning positive in Q2 2025 [2]. - The company is increasing its investment in IP, particularly in artist IP, which is expected to drive sales growth significantly in the coming years [3]. Financial Summary - For H1 2025, the company reported revenue of 9.393 billion yuan, a 21.1% increase year-on-year, with an adjusted net profit of 1.279 billion yuan, showing a slight year-on-year increase [1]. - The financial projections for 2025-2027 indicate revenues of 21.242 billion yuan, 25.574 billion yuan, and 29.407 billion yuan respectively, with corresponding net profits of 2.413 billion yuan, 3.467 billion yuan, and 4.323 billion yuan [4][9]. - The report anticipates a net profit margin of 13.6% in 2025, with a projected PE ratio decreasing from 22.14 in 2025 to 12.36 in 2027, indicating improving valuation metrics over time [4][9].
名创优品（09896）：25H1超预期，看好同店恢复+北美快速扩张