Joyoung(SZ:002242) HTSC·2026-03-27 13:43Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 10.00 RMB [6]. Core Views - The company reported a revenue of 8.21 billion RMB in 2025, a year-on-year decrease of 7.23%, and a net profit attributable to shareholders of 118 million RMB, down 3.85% year-on-year. However, the non-recurring net profit increased by 78.41% to 212 million RMB [1]. - Despite short-term profit pressures, the long-term recovery trend remains intact, driven by product structure optimization and potential growth in domestic demand policies [1][2]. - The company experienced a significant decline in overseas sales, with a 48.83% drop to 825 million RMB, primarily due to increased tariffs in the U.S. Domestic sales grew modestly by 2.04% to 7.39 billion RMB [2]. Summary by Sections Financial Performance - The company's gross margin improved to 26.77%, up 1.27 percentage points year-on-year, attributed to product structure optimization. The sales expense ratio was 16.95%, a slight decrease of 0.07 percentage points [3]. - The company faced fair value losses of 123 million RMB and foreign exchange losses, impacting overall profit performance [3]. Profit Forecast and Valuation - The forecast for net profit attributable to shareholders for 2026 and 2027 is adjusted to 307 million RMB and 376 million RMB, respectively, with an expected EPS of 0.40 RMB for 2026 [4]. - The company is valued at a PE ratio of 25 times for 2026, maintaining a target price of 10 RMB [4].