Investment Rating - The report maintains an "Outperform" rating for the company [2][13]. Core Insights - The company reported a revenue of RMB 2.31 billion for 1HFY26, a year-on-year increase of 5.7%, with a net profit attributable to shareholders of RMB 239 million, marking a turnaround from a loss [5][9]. - Revenue growth is primarily driven by increased sales of proprietary (1P) products, while profitability improvement is attributed to enhanced product gross margins [5][9]. - The company continues to innovate and expand its range of 1P products, with the number of new products reaching 801, a 9.4% increase from the previous fiscal year [10][12]. - The gross margin for 1P products rose to 33.7% in 1HFY26, up 12.3 percentage points from 21.5% in 1HFY25, indicating significant operational efficiency improvements [10][12]. - The company is implementing a multi-platform sales strategy, expanding its presence on various online platforms and planning to open its first offline experience store in Beijing [11][12]. Financial Data and Profit Forecast - The company’s revenue projections for FY26 to FY28 have been adjusted to RMB 5.518 billion, RMB 6.274 billion, and RMB 7.146 billion respectively, with corresponding adjusted net profits of RMB 499 million, RMB 593 million, and RMB 722 million [8][15]. - The gross margin is expected to improve, with FY26 gross margin projected at 35.8%, up from the previous forecast of 33.2% [15]. - The company anticipates continued growth in paid subscribers, with the number expected to rise from 300,000 in 1HFY26, contributing to further GMV growth [12][13].
东方甄选（01797）：产品组合优化，经营效益大幅提升：东方甄选（01797）：