GUOTAI HAITONG SECURITIES·2025-08-29 06:45Investment Rating - The report maintains an "Accumulate" rating for the company [1][2]. Core Views - The company has shown good revenue growth in the first half of 2025, with profit margins continuing to expand, leading to an accelerated profit growth. The earnings forecast has been revised upwards while maintaining the "Accumulate" rating [2]. Financial Summary - Total revenue for 2023 is projected at 42.896 billion RMB, with a year-on-year growth of 1%. Revenue is expected to grow to 52.037 billion RMB in 2024, representing a 21% increase, and further to 61.620 billion RMB in 2025, an 18% increase [4]. - Gross profit is forecasted to be 25.407 billion RMB in 2023, with net profit expected to reach 12.123 billion RMB, showing no growth from the previous year. However, net profit is projected to grow by 25% in 2024 and 21% in 2025 [4]. - The company’s PE ratio is expected to decrease from 42.20 in 2023 to 31.49 in 2024, indicating improved valuation [4]. Revenue Breakdown - The company achieved a revenue of 25.622 billion RMB in the first half of 2025, a year-on-year increase of 15.66%. The gross margin improved by 1.55 percentage points to 60.32% due to lower raw material costs [7]. - Revenue from packaged water increased by 10.7% year-on-year to 9.443 billion RMB, while tea beverages saw a 19.7% increase to 10.089 billion RMB. Functional beverages and juice also reported significant growth [7].