CBEST(SH:600729) SINOLINK SECURITIES·2025-10-30 05:28Investment Rating - The report maintains a "Buy" rating for the company [5][13]. Core Insights - The company reported a revenue of 3.589 billion yuan in Q3 2025, a year-on-year decrease of 10.81%, while the net profit attributable to shareholders was 217 million yuan, an increase of 2.82% year-on-year [2]. - The company has implemented effective adjustments in its department store and supermarket operations, leading to a narrowing decline in revenue for both segments [3]. - Investment income for Q3 2025 reached 196 million yuan, a significant year-on-year increase of 33% [3]. Summary by Sections Performance Review - In Q3 2025, the company's revenue was 3.589 billion yuan, down 10.81% year-on-year, while the net profit attributable to shareholders was 217 million yuan, up 2.82% year-on-year. The net profit excluding non-recurring items was 231 million yuan, an increase of 17.90% year-on-year [2]. Operational Analysis - Despite a decline in total revenue, the revenue drop in the department store and supermarket segments showed signs of narrowing. Supermarket revenue fell by 3.99% year-on-year in Q3 2025, an improvement from a 5.02% decline in Q2 2025. Department store revenue decreased by 2.16%, compared to a 9.06% decline in Q2 2025 [3]. - The gross margin improved by 2.1 percentage points, with a rise in sales expense ratio by 1.7 percentage points and management expense ratio by 0.2 percentage points, while financial expense ratio decreased by 0.2 percentage points, indicating an overall improvement in operational efficiency [3]. Store Count and Dividends - As of the end of Q3, the company had 42 department stores, unchanged from the beginning of the year, and 145 supermarkets, a decrease of 3 stores. The company also initiated a mid-term dividend, proposing a cash dividend of 0.1589 yuan per share, totaling 70 million yuan, which accounts for 9.04% of the net profit attributable to shareholders for the first half of 2025 [4]. Profit Forecast and Valuation - The company is projected to generate revenues of 16.385 billion yuan, 17.073 billion yuan, and 18.307 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of -4.40%, +4.20%, and +7.23%. The net profit attributable to shareholders is expected to be 1.445 billion yuan, 1.568 billion yuan, and 1.738 billion yuan for the same years, with growth rates of +9.92%, +8.47%, and +10.89% respectively [5][10].