Peacebird(SH:603877) Changjiang Securities·2025-11-10 15:22Investment Rating - The report maintains a "Buy" rating for the company [7][11]. Core Insights - Short-term performance is under pressure, but profit growth is expected to recover due to channel adjustments, retail improvements, and franchise gross margin recovery. Long-term, structural adjustments are anticipated to enhance operational quality and profit elasticity, shifting from retail-driven profit elasticity to a more sustainable and robust internal focus [2][11]. - The company reported revenues of 4.22 billion yuan and a net profit attributable to shareholders of 30 million yuan for the first three quarters of 2025, reflecting a year-on-year decline of 7.2% and a 73.8% drop in net profit [5][11]. Financial Performance Summary - For Q3 2025, the company achieved revenues of 1.32 billion yuan, with a net loss attributable to shareholders of 50 million yuan, marking a year-on-year revenue decline of 5.5% and a reduction in losses of 14 million yuan [5][11]. - The company’s gross margin improved by 1.6 percentage points year-on-year in Q3 2025, despite a challenging retail environment and ongoing franchise store closures [11]. - The projected net profits for 2025, 2026, and 2027 are estimated at 170 million yuan, 210 million yuan, and 230 million yuan, respectively, with corresponding price-to-earnings ratios of 41, 33, and 30 [2][11].