NanJi E-Commerce(SZ:002127) HTSC·2025-08-27 05:27Investment Rating - The report maintains a "Buy" rating for the company [6][4]. Core Views - The company achieved profitability in Q2 2025 after three consecutive quarters of losses, indicating a potential for continued operational improvement [1][3]. - Revenue for the first half of 2025 was 1.353 billion RMB, a year-on-year decrease of 13.1%, primarily due to increased marketing expenses during the brand transformation phase [1][2]. - The company is expected to see revenue growth as it expands its product offerings and online presence across platforms like Douyin, Pinduoduo, and JD.com, alongside the positive momentum from its multi-brand strategy [1][2]. Summary by Sections Financial Performance - In Q2 2025, the company reported revenue of 624 million RMB, down 25.9% year-on-year, but achieved a net profit of 27 million RMB, a decrease of 9.7% year-on-year, marking a turnaround from previous losses [1][3]. - The comprehensive gross margin for the first half of 2025 was 13.2%, a decline of 2.4 percentage points year-on-year, attributed to intensified competition in the mobile internet sector [3]. Revenue Breakdown - The mobile internet media placement platform generated 1.176 billion RMB in revenue, down 13.1% year-on-year, with a gross margin of 3.7% [2]. - The brand comprehensive service business saw revenue drop to 75 million RMB, a 42.5% decrease year-on-year, with a high gross margin of 93.8% [2]. - The authorized distribution business reported a revenue increase of 73.2% year-on-year, reaching 23 million RMB, driven by the opening of over 1,000 online stores [2]. - Revenue from product sales surged by 152% year-on-year to 53 million RMB, with a gross margin of 36.7%, reflecting an improvement in product offerings [2]. Profitability Forecast - The company forecasts net profits of 331 million RMB, 575 million RMB, and 796 million RMB for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.13, 0.23, and 0.32 RMB [4][10]. - The target price is set at 6.00 RMB, based on a PE ratio of 26 times for 2026 [4][6].