Jiangshan Oupai(SH:603208) Huachuang Securities·2025-09-19 07:01Investment Rating - The report maintains a "Strong Buy" rating for Jiangshan Oupai, expecting it to outperform the benchmark index by over 20% in the next six months [2][13]. Core Views - The company reported a significant decline in performance for the first half of 2025, with revenue of 868 million yuan, down 39.82% year-on-year, and a net profit attributable to shareholders of 10 million yuan, down 90.39% year-on-year [2]. - Despite short-term pressure on earnings, the company is making progress in channel transformation and new business development, which are expected to stabilize growth in the future [2][7]. Financial Performance Summary - Revenue and Profitability: In H1 2025, the company achieved total revenue of 868 million yuan, a decrease of 39.82% year-on-year. The net profit attributable to shareholders was 10 million yuan, down 90.39% year-on-year. The gross margin was 17.6%, a decline of 3.5 percentage points [2][7]. - Future Projections: The company is projected to have revenues of 2.334 billion yuan in 2025, with a year-on-year decline of 22.2%. The net profit is expected to be 69 million yuan, down 36.5% year-on-year [2][8]. - Earnings Per Share (EPS): The EPS for 2025 is projected to be 0.39 yuan, with a PE ratio of 38 times [2][8]. Business Strategy and Market Position - Channel Transformation: The company is actively transforming its channel strategy, reducing direct engineering channels to control accounts receivable risks, while expanding its agency and franchise service channels, which have shown strong growth [2][7]. - International Expansion: The company is focusing on international markets, particularly in the Middle East, by establishing subsidiaries in regions like Saudi Arabia and Hong Kong [2][7]. Valuation - The target price for Jiangshan Oupai is set at 17.9 yuan per share, based on a discounted cash flow (DCF) analysis [2][3].