CHJ(SZ:002345) Huaxin Securities·2025-09-09 09:42Investment Rating - The report maintains a "Buy" investment rating for the company [1][9] Core Views - The company has shown a stable recovery in performance with significant profit improvement, driven by a strategic focus on its main brand and expansion of franchise channels [5][9] - The company has successfully expanded its franchise network, exceeding its targets, and is making progress in the Southeast Asian market [7][9] - The company is targeting young and fashionable consumer groups with a differentiated product strategy, which is expected to lead to substantial future profits [9] Financial Performance - In H1 2025, the company reported total revenue of 4.102 billion yuan, a year-on-year increase of 20%, and a net profit of 331 million yuan, up 44% [4] - The gross margin in Q2 2025 increased by 2 percentage points to 24.88%, primarily due to rising gold prices [5] - The company’s net profit margin increased by 2 percentage points to 7.71% [5] Product and Brand Development - The company has successfully launched the "Soufflé" brand, with 60 stores established by June 30, 2025, and positive market feedback on its product lines [6] - Revenue from fashion jewelry and traditional gold products increased by 20% and 24% respectively in H1 2025 [6] Channel Expansion - Revenue from franchise channels grew by 36% to 2.244 billion yuan in H1 2025, while self-operated channels saw a 5% increase [7] - The company has made significant strides in its international strategy, successfully opening two stores in Cambodia [7] Earnings Forecast - The company’s EPS is projected to be 0.56 yuan in 2025, 0.70 yuan in 2026, and 0.86 yuan in 2027, with corresponding PE ratios of 28, 22, and 18 times [9]