Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 23.29 [1][5][7] Core Views - The company reported a revenue of RMB 40.4 billion for 1H25, representing a year-over-year increase of 8.7%, and a net profit of RMB 1.9 billion, up 11.0% year-over-year. The revenue growth was impacted by U.S. tariffs and a shift in the VC model, but improvements in logistics efficiency and a decrease in shipping costs contributed to a rise in net profit margin [1][4] - The company is actively advancing its overseas supply chain and has completed 50% of its capacity transfer to Southeast Asia for shipments to the U.S. This strategic move is expected to enhance logistics efficiency and open new growth avenues [4][5] Summary by Sections Financial Performance - In 2Q25, the company achieved revenue of RMB 19.5 billion, a year-over-year increase of 3.9%. The slowdown in growth was attributed to U.S. tariff impacts and adjustments in sales models, particularly the transition to the VC model [2][3] - The gross profit margin in 2Q25 decreased by 0.96 percentage points to 34.4% quarter-over-quarter, but increased by 0.6 percentage points year-over-year, benefiting from lower shipping costs and improved logistics [3] Supply Chain and Logistics - The company has diversified its supply chain to reduce costs and enhance efficiency. As of 1H25, the transfer of shipping capacity to Southeast Asia is progressing well, with a 70% order completion rate [4] - The logistics network has been optimized, with a focus on enhancing the distribution network in Europe and North America, which is expected to mitigate shipping cost fluctuations [4] Profitability Forecast - The company maintains its net profit forecasts for 2025-2027 at RMB 3.9 billion, RMB 5.5 billion, and RMB 7.4 billion respectively. The target price reflects a revised PE ratio of 17x for 2026, indicating a recovery in sentiment due to easing tariff risks [5][9]
致欧科技（301376）：1H净利同增11%，供应链全球化加速