Core Viewpoint - The company has demonstrated significant growth in revenue and profit in the first half of 2025, driven by store expansion and improved operational efficiency [1][2][3] Financial Performance - In H1 2025, the company achieved a revenue of 5.66 billion yuan, representing a year-on-year increase of 41.2% [1] - The net profit attributable to shareholders reached 1.63 billion yuan, up 121.5% year-on-year [1] - Adjusted profit for the same period was 1.09 billion yuan, reflecting a growth of 42.4% [1] Business Segmentation - Revenue from sales of goods and equipment was 4.50 billion yuan, accounting for 79.4% of total revenue, with a year-on-year increase of 41.8% [2] - Franchise management service revenue was 1.16 billion yuan, making up 20.5% of total revenue, with a growth of 39.2% [2] - Direct store sales revenue was 7.84 million yuan, representing 0.1% of total revenue [2] Store Expansion - The company added a net of 1,265 stores in H1 2025, significantly accelerating its expansion pace compared to the previous year [2] - Total store count reached 11,179 by the end of H1 2025, with a revised annual net store addition target increased from 2,100 to 2,500 [2] - The proportion of stores in lower-tier cities reached 80.9%, with town stores accounting for 43% of the total [2] Operational Efficiency - Average GMV per store was 1.371 million yuan, reflecting a year-on-year increase of 20.6% [2] - The number of cups sold per store was 79,400, up 16.6% year-on-year, with an estimated average price per cup increasing by approximately 4% [2] Profitability Metrics - Gross margin stood at 31.5%, with a slight decrease of 0.1 percentage points [3] - Operating profit margin improved by 1.6 percentage points to 23.7% [3] - Adjusted net profit margin increased by 0.2 percentage points to 19.2% [3] Future Outlook - The company has revised its adjusted net profit forecasts for 2025-2027 to 2.22 billion, 2.74 billion, and 3.31 billion yuan, respectively, reflecting increases of 10%, 9%, and 7% [3] - The company is expected to continue benefiting from product innovation and expansion in lower-tier markets, potentially leading to sustained valuation premiums [3]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][24]. Core Views - The company achieved a 42.4% year-on-year increase in adjusted net profit for H1 2025, with total revenue reaching 5.66 billion yuan, a 41.2% increase [1][8]. - The company has accelerated its store expansion, adding 1,265 net new stores in H1 2025, with a total of 11,179 stores by the end of the period [2][13]. - The company is expected to continue enjoying a high growth phase, supported by product innovation and expansion into lower-tier cities [3][24]. Financial Performance - In H1 2025, the company reported a gross merchandise volume (GMV) of 14.1 billion yuan, reflecting a 34.4% increase year-on-year [1][8]. - The revenue breakdown for H1 2025 shows that sales of goods and equipment generated 4.5 billion yuan (79.4% of total revenue), while franchise management services contributed 1.16 billion yuan (20.5% of total revenue) [10][19]. - The company's operating profit margin improved by 1.6 percentage points to 23.7%, and the adjusted net profit margin increased by 0.2 percentage points to 19.2% [3][19]. Store Expansion and Market Strategy - The company plans to increase its net store addition target for the year from 2,100 to 2,500 stores, reflecting a strong commitment to expansion [2][13]. - The proportion of stores in lower-tier cities has increased to 80.9%, with town-level stores making up 43% of the total, indicating successful penetration into these markets [2][13]. - The average GMV per store reached 1.371 million yuan, with a year-on-year increase of 20.6% [2][16]. Future Earnings Forecast - The adjusted net profit forecasts for 2025-2027 have been raised to 2.22 billion, 2.74 billion, and 3.31 billion yuan, respectively, with corresponding PE ratios of 23.0, 18.6, and 15.4 [3][24]. - The company is expected to maintain a strong growth trajectory, driven by product matrix innovation and enhanced delivery services [3][24].