ZBOM(SH:603801) ZHONGTAI SECURITIES·2025-09-01 08:38Investment Rating - The investment rating for the company is "Increase" (downgraded) [1] Core Views - The company has shown marginal improvement in profitability in Q2 despite significant drag from bulk business, with a notable decline in revenue and net profit in H1 2025 [4] - The retail channel has demonstrated resilience amidst industry pressures, while the bulk channel has seen a substantial decline in revenue [4] - The company is adjusting its profit forecasts downward due to H1 performance, projecting net profits of 340 million, 380 million, and 440 million for 2025-2027 [4] Summary by Relevant Sections Financial Performance - In H1 2025, the company achieved revenue of 1.899 billion, down 14.14% year-on-year, and a net profit of 138 million, down 7.21% year-on-year [4] - The revenue breakdown shows a significant decline in the bulk channel, with revenue of 322 million, down 46.86% year-on-year, while the retail channel showed mixed results [4] - The gross margin for H1 2025 was 35.97%, a decrease of 0.72 percentage points year-on-year, but Q2 showed a gross margin improvement to 38.84% [4] Revenue Breakdown - Retail channel revenue was 768 million, down 34.18%, while direct sales revenue surged by 200.25% to 525 million [4] - The company operates 3,779 stores, a reduction of 315 stores from the end of 2024, attributed to store optimization and transformation efforts [4] Profitability Metrics - The company’s net profit margin improved to 7.27% in H1 2025, an increase of 0.55 percentage points year-on-year [4] - The projected earnings per share (EPS) for 2025 is 0.79, down from previous estimates [5] Future Outlook - The company anticipates a challenging environment due to macroeconomic factors affecting home furnishing demand, leading to a revised "Increase" rating [4][6]