Leysen(SH:603900) Xinda Securities·2025-11-03 09:13Investment Rating - The investment rating for the company is not explicitly stated in the provided documents, but the analysis indicates a positive outlook based on performance metrics and growth potential. Core Insights - The company reported a revenue of 1.2 billion yuan for the first three quarters of 2025, representing a year-over-year increase of 35.95%, and a net profit of 69 million yuan, marking a return to profitability [1] - The third quarter revenue was 330 million yuan, with a year-over-year growth of 33.26%, and a net profit of 8 million yuan, also indicating a return to profitability [1] - The company is experiencing strong growth in various product categories, particularly in embedded diamond jewelry, which saw a revenue increase of 60.73% [2] - The company is optimizing its channel structure, with a total of 335 stores, including 223 direct-operated and 112 franchised stores, despite some closures [2] - Profitability is under short-term pressure due to seasonal factors and non-operating losses, but the core business remains resilient [2] - The company is expected to continue its growth trajectory, with projected net profits of 82 million yuan, 140 million yuan, and 200 million yuan for 2025, 2026, and 2027 respectively [2] Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved total revenue of 1.2 billion yuan, with a year-over-year growth of 35.95% [1] - The net profit for the same period was 69 million yuan, indicating a turnaround from previous losses [1] - The third quarter alone generated revenue of 330 million yuan, reflecting a 33.26% increase year-over-year [1] Product and Channel Analysis - Revenue by product category includes 661 million yuan from embedded diamond jewelry, 434 million yuan from traditional gold products, 38 million yuan from jade products, and 60 million yuan from other products [2] - Revenue by channel shows direct sales at 815 million yuan, franchise sales at 139 million yuan, and online sales at 238 million yuan, with franchise sales experiencing significant growth [2] - The company’s main revenue driver is the Jiangsu region, which generated 605 million yuan in the third quarter, a 66.44% increase year-over-year [2] Store Expansion and Optimization - As of the end of Q3 2025, the company had 335 stores, with 223 direct-operated and 112 franchised [2] - The company opened 13 new direct-operated stores and closed 46, resulting in a net reduction of 33 stores [2] - Franchise stores saw a net decrease of 9, with 21 new openings and 30 closures [2] Profitability and Future Outlook - The company’s profitability is currently under pressure due to seasonal factors and fluctuations in gold prices, but the core business remains profitable [2] - The company is expected to maintain a strong growth trajectory, with significant product innovation and channel optimization planned for the future [2] - Projected net profits for the next three years are 82 million yuan in 2025, 140 million yuan in 2026, and 200 million yuan in 2027, with corresponding P/E ratios of 38.7x, 23.2x, and 15.6x [2]