Bestore(SH:603719) EBSCN·2025-10-30 02:59Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [6]. Core Views - The company is experiencing significant operational pressure, leading to continuous adjustments in its business strategy. The revenue for the first three quarters of 2025 is reported at 4.14 billion yuan, a year-on-year decline of 24.45%, with a net loss attributable to shareholders of 122 million yuan compared to a profit of 19 million yuan in the same period last year [1][4]. - The online and offline channels are both under pressure, with Q3 2025 revenues from online and offline channels at 561 million yuan and 902 million yuan, respectively, reflecting declines of 14.02% and 20.15% year-on-year [2]. - The company is adjusting its product structure, which has negatively impacted its gross margin. The gross margin for Q1-Q3 2025 is 24.96%, with a year-on-year decrease of 1.81 percentage points [3]. Summary by Sections Financial Performance - For Q3 2025, the company reported a single-quarter revenue of 1.31 billion yuan, down 17.72% year-on-year, and a net loss of 29 million yuan compared to a loss of 4.5 million yuan in Q3 2024 [1][2]. - The total number of stores decreased to 2,227 by the end of Q3 2025, with a net reduction of 218 stores in the year [2]. Revenue and Profitability Forecast - The forecast for 2025 has been revised down to a net loss of 145 million yuan, with previous estimates predicting a profit of 20 million yuan. The 2026 and 2027 net profit forecasts have also been reduced to 28 million yuan and 93 million yuan, respectively [4]. - The report indicates that the company has a certain brand strength and that ongoing reforms and adjustments may benefit long-term development [4]. Valuation Metrics - The estimated earnings per share (EPS) for 2025 is projected at -0.36 yuan, with corresponding price-to-earnings (P/E) ratios for 2026 and 2027 at 177 and 53 times, respectively [4].