LFX(SH:600612) Guoxin Securities·2025-08-29 08:55Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - Despite high gold prices putting pressure on performance, the company is actively optimizing channels and transforming products. The revenue for the first half of 2025 was 33.356 billion yuan, down 16.52% year-on-year, while net profit attributable to shareholders was 1.22 billion yuan, down 13.07% year-on-year. In Q2 alone, revenue increased by 10.51% to 15.835 billion yuan, and net profit rose by 0.88% to 607 million yuan [1][3] - The company is focusing on product innovation and upgrading, with over 80 new products developed in the cultural and artistic sector. The total number of stores at the end of the period was 5,550, with a net increase of 9 stores in Q2, reversing the previous downward trend [2][3] - The company is expected to face continued pressure on revenue due to high gold prices and the transformation of products, leading to a downward revision of net profit forecasts for 2025-2027 [3] Financial Performance Summary - For the first half of 2025, the company reported a revenue of 33.356 billion yuan, a decrease of 16.52% year-on-year, and a net profit of 1.22 billion yuan, down 13.07% year-on-year. The adjusted net profit was 1.053 billion yuan, down 27.86% year-on-year [1] - The revenue from the jewelry business was 27.85 billion yuan, down 18.56% year-on-year, primarily due to high gold prices affecting terminal demand [2] - The company's gross margin for the first half of 2025 was 8.68%, a decrease of 0.53 percentage points year-on-year, influenced by the decline in the proportion of high-margin jewelry business [2] Future Outlook - The overall demand for gold products is expected to steadily increase as gold price fluctuations stabilize and the design and aesthetics of gold jewelry improve. The company is actively developing non-heritage craft jewelry and cross-industry collaborations to drive sales [3] - The company has adjusted its net profit forecasts for 2025-2027 to 1.758 billion yuan, 1.931 billion yuan, and 2.059 billion yuan, respectively, with corresponding P/E ratios of 14.2, 12.9, and 12.1 times [3][4]