aiyingshi(SH:603214) Changjiang Securities·2025-09-04 23:30Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a revenue of 1.835 billion yuan for the first half of 2025, representing a year-on-year growth of 8.31%, with a net profit attributable to shareholders of 47 million yuan, up 10.17% year-on-year. In the second quarter alone, the company achieved a revenue of 976 million yuan, a year-on-year increase of 9.89%, and a net profit of 40 million yuan, growing 10.87% year-on-year. The net profit excluding non-recurring items was 34 million yuan, reflecting a significant year-on-year growth of 20.98% [2][6]. Summary by Sections Financial Performance - In the second quarter, the company maintained a gross margin of 27.77%, which is stable compared to the previous year. The sales expense ratio decreased by 0.98 percentage points to 18.31%, while the management expense ratio increased by 0.28 percentage points to 3.24%. The financial expense ratio saw a decline, contributing to an overall improvement in profitability [12]. Business Strategy - The company is focusing on both external store expansion and internal store upgrades. In the first half of 2025, it opened 34 new quality maternal and infant stores across 22 cities, enhancing its market presence in key economic areas. The internal improvements include optimizing store space, enhancing product offerings, upgrading store images, and increasing customer satisfaction, which have collectively improved customer acquisition and operational efficiency, with foot traffic and sales increasing by nearly 20% year-on-year [12]. Future Outlook - The company is expected to continue its strategy of integrating and optimizing new internal stores, with profitability stabilizing. The ongoing development of proprietary brands is anticipated to strengthen supply chain capabilities and store profitability. Collaborations with popular IPs, such as Bandai, are expected to create new growth opportunities, with the first Bandai model store already operational [12]. The projected EPS for 2025, 2026, and 2027 are 0.94 yuan, 1.14 yuan, and 1.40 yuan respectively [12].