Leysen(SH:603900) Huaxin Securities·2025-09-09 09:42Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's profitability has significantly improved, driven by a dual-channel strategy in product distribution [1] - The company has successfully turned losses into profits, with a notable increase in gross margin and net profit margin [5] - The embedded gold segment has shown remarkable growth, becoming a new engine for revenue increase [6] - The franchise business is strong, with ambitious targets for high-performing stores [7] - The company is positioned for continued growth with a focus on "collectible art gold" and brand upgrades [8] Summary by Sections Financial Performance - In H1 2025, total revenue reached 870 million yuan, a year-on-year increase of 37%, with a net profit of 61 million yuan compared to a loss of 37 million yuan in H1 2024 [4] - The gross margin increased by 5 percentage points to 32.37% in Q2 2025, while the net profit margin rose by 11 percentage points to 6.44% [5] Product and Channel Analysis - Revenue from embedded diamonds, jade, traditional gold, and other products in H1 2025 showed varied growth, with embedded gold revenue increasing by 200% [6] - The company’s revenue from direct sales, franchises, and online channels grew by 47%, 109%, and 1% respectively in H1 2025 [7] Growth Forecast - The company has adjusted its earnings per share (EPS) forecasts for 2025-2027 to 0.24, 0.39, and 0.52 yuan respectively, with corresponding price-to-earnings (PE) ratios of 51, 31, and 23 times [8] - Projected main business revenue for 2025 is 2 billion yuan, with a growth rate of 63.6% [10]