YanKershop(SZ:002847) HTSC·2025-10-28 03:40Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 89.52, up from the previous target of RMB 88.50 [6][4]. Core Insights - The company has shown a revenue growth of 14.7% year-on-year for the first three quarters of 2025, with a net profit increase of 22.6% and a non-recurring net profit growth of 30.5% [1]. - In Q3 2025, the company reported a revenue of RMB 14.9 billion, a 6.0% increase year-on-year, while net profit rose by 33.5% [1][2]. - The company is focusing on optimizing its product categories and channel structures, which has led to improved profit margins [3]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a gross margin of 30.3%, down 1.5 percentage points year-on-year, while Q3 gross margin improved to 31.6%, up 1.0 percentage point [3]. - The net profit margin for Q1-3 2025 was 13.7%, increasing to 15.6% in Q3, reflecting a year-on-year increase of 0.9 and 3.2 percentage points respectively [3]. Strategic Initiatives - The company is actively adjusting its e-commerce channels, focusing on high-value membership supermarkets and quantitative distribution channels, which has led to a significant optimization of its product and channel structure [1][2]. - The introduction of new products, such as flavored konjac products and the Sam's Club brand, is expected to drive revenue growth and enhance profit margins [2]. Earnings Forecast and Valuation - The earnings per share (EPS) estimates for 2025-2027 have been revised upwards to RMB 3.09, RMB 3.73, and RMB 4.34, respectively, reflecting an increase of 5%, 5%, and 4% from previous estimates [4]. - The company is projected to maintain a strong growth trajectory, with expected revenue growth rates of 12.86%, 15.98%, and 14.02% for the years 2025 to 2027 [10].