Huakai Yibai(SZ:300592) Changjiang Securities·2025-09-08 08:15Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - In Q2 2025, the company's operating revenue reached 2.25 billion, representing a year-on-year growth of 23%, while the net profit attributable to the parent company was 52 million, showing a year-on-year decline of 1.4% [2][4]. - The company has actively implemented an inventory clearance plan to optimize inventory structure and improve turnover efficiency, resulting in a significant reduction in inventory pressure [9]. - The company’s subsidiary, Tongtuo Technology, achieved a revenue of 860 million in H1 2025, turning a profit with a net profit of 2.82 million, indicating improved operational conditions and profitability [9]. Summary by Sections Financial Performance - In H1 2025, the company’s revenue from Yibai Network was 3.676 billion, up 4.43% year-on-year, but the net profit dropped by 65% due to inventory optimization efforts [9]. - The inventory level was optimized to 1.27 billion, a decrease of 30% compared to the end of 2024 and a 15% decrease from Q1 2025, alleviating inventory pressure [9]. - The gross profit margin in Q2 2025 decreased by 1.4 percentage points year-on-year, while the sales expense ratio increased by 3.9 percentage points [9]. Future Outlook - The company is expected to benefit from inventory structure optimization and proactive new product replenishment, leading to improved operational efficiency [9]. - The anticipated net profits for the company are projected to be 280 million, 380 million, and 490 million for the years 2025, 2026, and 2027 respectively [9].