BIEM(SZ:002832) ZHESHANG SECURITIES·2025-08-27 12:08Investment Rating - The investment rating for the company is "Buy" [5] Core Insights - The company reported a revenue of 2.1 billion yuan in H1 2025, representing a year-on-year increase of 8.6%, while the net profit attributable to shareholders was 410 million yuan, down 13.6% year-on-year. In Q2 2025, revenue reached 820 million yuan, up 22.3% year-on-year, with a net profit of 82.8 million yuan, down 29.3% year-on-year. The growth in revenue is attributed to rapid growth in online and direct sales channels, while the profit decline is linked to channel expansion and investment in the KC brand [1][2][3] Revenue and Profit Analysis - In H1 2025, direct sales revenue increased by 10.6% to 1.41 billion yuan, while franchise revenue decreased by 10.3% to 460 million yuan. Online revenue surged by 71.9% to 210 million yuan, with a gross margin of 77.9% [2] - The gross margin for Q2 2025 was 76.7%, down 4.6 percentage points year-on-year, primarily due to the brand's strategy to broaden its price range. The net profit margin for Q2 2025 was 10.1%, down 7.4 percentage points year-on-year [3] Future Growth Projections - The company is expected to achieve revenues of 4.42 billion yuan, 4.85 billion yuan, and 5.28 billion yuan in 2025, 2026, and 2027, respectively, with year-on-year growth rates of 10.3%, 9.9%, and 8.7%. The net profit attributable to shareholders is projected to be 700 million yuan, 790 million yuan, and 880 million yuan for the same years, with corresponding year-on-year changes of -9.9%, +12.1%, and +11.9% [4]