Jiajiayue(SH:603708) Changjiang Securities·2025-09-14 11:12Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - In the first half of 2025, the company achieved a revenue of 9.01 billion, a year-on-year decline of 3.8%, while the net profit attributable to shareholders was 180 million, a year-on-year increase of 7.8%. In Q2 alone, the revenue was 4.07 billion, down 2.6% year-on-year, but the net profit attributable to shareholders surged by 82.6% to 40 million, with a non-recurring net profit growth of 120.5% to 40 million [2][4]. Summary by Sections Financial Performance - The company reported a total revenue of 90.1 billion for the first half of 2025, down 3.8% year-on-year, with a net profit of 1.8 billion, up 7.8%. In Q2, revenue was 40.7 billion, down 2.6%, while net profit reached 0.4 billion, up 82.6%, and non-recurring net profit increased by 120.5% to 0.4 billion [2][4]. Operational Adjustments - The company optimized its store layout by closing 16 stores, resulting in a total of 1,084 stores, while opening 29 new stores and closing 45. The revenue from comprehensive supermarkets and community fresh supermarkets saw a limited decline of 2% and 4% respectively, while rural supermarkets experienced a 12% drop. The company completed upgrades on 30 stores, enhancing shopping environments and product quality [9]. Supply Chain and Cost Management - The company focused on streamlining expenses, reducing four types of period costs by 73.76 million. The logistics costs decreased by 6.16% year-on-year, and the satisfaction rate of logistics to stores improved by 6%. The company is also advancing the construction of a logistics base in Hohhot and a modern bakery factory [9]. Future Outlook - The company aims to strengthen its core categories such as fresh and processed fresh products while expanding its supply chain coverage. The expected EPS for 2025-2027 is projected to be 0.31, 0.38, and 0.45 respectively, maintaining a "Buy" rating [9].