BIEM(SZ:002832) Changjiang Securities·2025-11-12 10:12Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - In the first three quarters of 2025, the company achieved a total revenue of 3.2 billion yuan, representing a year-on-year increase of 6.7%. However, the net profit attributable to the parent company was 620 million yuan, down 18.7% year-on-year, and the net profit excluding non-recurring items was 580 million yuan, down 21.4% year-on-year. For Q3 alone, revenue was 1.1 billion yuan, up 3.2% year-on-year, while net profit attributable to the parent company was 210 million yuan, down 27.4% year-on-year, and net profit excluding non-recurring items was 190 million yuan, down 32.0% year-on-year [2][6]. Summary by Sections Revenue and Profitability - The company reported a revenue of 3.2 billion yuan for the first three quarters of 2025, with a year-on-year growth of 6.7%. The net profit attributable to the parent company was 620 million yuan, reflecting a decline of 18.7% year-on-year. The net profit excluding non-recurring items was 580 million yuan, down 21.4% year-on-year. In Q3, revenue reached 1.1 billion yuan, a 3.2% increase year-on-year, while net profit attributable to the parent company was 210 million yuan, down 27.4% year-on-year [2][6]. Cost and Margin Analysis - The gross margin for Q3 improved by 1.3 percentage points to 75.1%. The increase in sales expenses was attributed to the company's ongoing store openings and high marketing investments. The net profit margin decreased by 7.9 percentage points to 18.7% [11]. Inventory and Cash Flow - The company's inventory increased by 27% year-on-year to 1.13 billion yuan, while accounts receivable decreased by 14% to 310 million yuan. The inventory turnover days increased by 55 days year-on-year to 360 days. The net cash flow from operating activities was 480 million yuan, down 26% year-on-year, but still significantly higher than profit levels [11]. Future Outlook - The company is expected to see revenue growth driven by direct store openings and e-commerce channel expansion. The multi-brand strategy is anticipated to yield positive results, with projected net profits attributable to the parent company of 640 million yuan, 730 million yuan, and 820 million yuan for 2025, 2026, and 2027, respectively. The current price corresponds to a PE ratio of 14, 13, and 11 times for the respective years [11].