Core Viewpoint - The company reported a mixed performance in Q1 2025, with slight revenue growth but a decline in profit, indicating ongoing challenges in the domestic market and the impact of high base effects in North America [1][2][3]. Financial Performance - Total revenue for Q1 2025 reached 954 million yuan, a year-on-year increase of 0.28% - Total profit amounted to 64.86 million yuan, reflecting a year-on-year decrease of 6.44% - Net profit attributable to shareholders was 68.64 million yuan, up 8.9% year-on-year, while the non-recurring net profit was 65.06 million yuan, a slight increase of 0.21% [1]. Domestic and International Business Dynamics - Domestic business pressures are gradually easing, while the Americas region faces growth challenges due to high base effects. Revenue in China is under pressure primarily due to the impact of medical insurance payment policies on core customer pharmacy channel businesses and the loss of some low-margin beverage orders [2]. - The company is actively exploring new retail channels, membership supermarkets, and private domain sales to mitigate domestic business pressures. The establishment of local factories in Germany and the U.S. is expected to enhance overseas business performance and reduce the impact of tariff changes [4]. Profitability and Cost Structure - The net profit margin increased by 0.57 percentage points year-on-year to 7.19%, and the gross profit margin rose by 2.47 percentage points to 33.09%. However, the operating profit margin decreased by 0.86 percentage points due to increased operating expenses [3]. - The decrease in operating expenses and income tax contributed to the rise in net profit margin, primarily due to high base effects from the previous year [3]. Future Outlook - The company expects net profits attributable to shareholders to reach 370 million yuan, 438 million yuan, and 491 million yuan for the years 2025, 2026, and 2027, respectively. Corresponding EPS is projected to be 1.56, 1.84, and 2.07 yuan, with PE ratios of 16, 14, and 12 times [4].

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a total revenue of 954 million yuan in Q1 2025, reflecting a year-on-year increase of 0.28%. The total profit amounted to 64.86 million yuan, down 6.44% year-on-year. The net profit attributable to the parent company was 68.64 million yuan, up 8.9% year-on-year, while the net profit excluding non-recurring items was 65.06 million yuan, showing a slight increase of 0.21% year-on-year [2][4]. Summary by Sections Financial Performance - In Q1 2025, the company achieved total revenue of 9.54 billion yuan, with a total profit of 648.6 million yuan and a net profit attributable to the parent company of 686.4 million yuan [2][4]. - The gross profit margin increased by 2.47 percentage points year-on-year to 33.09%, while the net profit margin rose by 0.57 percentage points to 7.19% [10]. Business Outlook - Domestic business pressures are gradually easing, with the company actively exploring new retail channels and membership-based supermarkets to mitigate the impact of structural adjustments in the health product industry [10]. - The company is also expanding its global footprint, with local factories in Germany and the United States, which are expected to reduce the impact of tariff changes on its overseas business [10]. Profit Forecast - The company forecasts net profits of 370 million yuan, 438 million yuan, and 491 million yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.56, 1.84, and 2.07 yuan [10].