FLYCO(SH:603868) Huachuang Securities·2025-09-12 06:15Investment Rating - The report maintains a "Recommendation" rating for the company with a target price of 41.7 yuan [1]. Core Views - The company reported a revenue of 2.12 billion yuan for the first half of 2025, a year-on-year decrease of 8.8%, while the net profit attributable to shareholders was 320 million yuan, an increase of 1.77% year-on-year [1]. - In Q2 2025, the company achieved a revenue of 960 million yuan, down 16.2% year-on-year, and a net profit of 140 million yuan, up 3.5% year-on-year [1]. - The decline in revenue is attributed to the company's strategic choice to reduce marketing expenses and optimize its business structure for higher profitability [8]. - The overall gross margin improved to 57.5%, an increase of 1.9 percentage points year-on-year, with Q2 2025 gross margin reaching 59.1%, up 5.0 percentage points year-on-year [8]. - The net profit margin for the first half of 2025 was 15.2%, an increase of 1.6 percentage points year-on-year, with Q2 2025 net profit margin at 14.6%, up 2.8 percentage points year-on-year [8]. - The company is recognized as a leading player in the domestic personal care small appliance sector, with significant channel transformation and continuous product innovation to meet diverse consumer needs [8]. - Future earnings per share (EPS) are projected to be 1.5 yuan in 2025, 1.8 yuan in 2026, and 2.0 yuan in 2027, with corresponding price-to-earnings (PE) ratios of 25, 21, and 19 respectively [8]. Financial Summary - Total revenue for 2024 is estimated at 4.147 billion yuan, with a year-on-year growth rate of -18.0%, followed by 4.243 billion yuan in 2025 with a growth rate of 2.3% [4]. - The net profit attributable to shareholders is projected to be 458 million yuan in 2024, with a significant decline of 55.1%, and is expected to recover to 646 million yuan in 2025, reflecting a growth of 41.0% [4]. - The company’s total assets are expected to grow from 3.776 billion yuan in 2024 to 5.258 billion yuan in 2027 [9].