Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - In Q2 2025, the company achieved revenue of 4.966 billion yuan, representing a year-on-year growth of 23%. However, the net profit attributable to the parent company was 490 million yuan, a decrease of 17% year-on-year. The adjusted net profit was 691 million yuan, reflecting an 11% increase year-on-year [2][4]. Revenue Performance - The company reported that both domestic and U.S. same-store sales have turned positive. As of Q2 2025, the company had 4,305 domestic stores, 3,307 overseas stores, and 293 TOPTOY stores, with a net increase of 30, 94, and 13 stores respectively in the quarter. Domestic same-store sales grew by 14% year-on-year, while overseas and TOPTOY saw increases of 29% and 87% respectively [7]. Profitability Analysis - The decline in net profit was primarily due to losses from Yonghui Supermarket, which amounted to 120 million yuan. Despite this, the adjusted net profit showed a double-digit growth of 11% year-on-year, with a gross margin increase of 0.4 percentage points. The sales and management expense ratios changed by -2.9 and -0.4 percentage points respectively, indicating improved operational efficiency [7]. Strategic Developments - The company has optimized its operations significantly in both domestic and overseas markets. The domestic strategy focuses on transitioning from small to large stores and refining inventory management, which has led to improved same-store sales. The overseas business, particularly in the U.S. and Europe, is expected to continue growing due to enhanced direct operations [7]. Future Outlook - The company is expected to maintain a solid growth trajectory, with projected adjusted net profits of 3.12 billion, 3.73 billion, and 4.28 billion yuan for 2025, 2026, and 2027 respectively. The long-term investment highlights include a stable domestic business foundation, expansion of direct overseas operations, and the development of proprietary IP [7].
名创优品（09896）：2025Q2点评：成长和盈利空间重启，自有IP崭露头角