Core Insights - The company reported a revenue of 835 million yuan for the first half of 2025, representing a year-on-year growth of 9.31%, and a net profit attributable to shareholders of 132 million yuan, up 18.08% year-on-year [1] - The company achieved significant improvements in its product technology and optimization of its product system, completing upgrades on 45 products and making breakthroughs in frozen dough technology [1] Revenue Breakdown - In H1 2025, revenue from various product categories included 328 million yuan from noodle products, 230 million yuan from filling products, 194 million yuan from purchased food, 52 million yuan from packaging and auxiliary materials, and 28 million yuan from service fees, with year-on-year growth rates of 6.58%, 16.29%, 7.25%, 10.70%, and -4.67% respectively [1] - In Q2 2025, revenue from noodle products was 176 million yuan, filling products 130 million yuan, purchased food 112 million yuan, packaging and auxiliary materials 28 million yuan, and service fees 16 million yuan, with year-on-year growth rates of 10.24%, 20.29%, 10.00%, 17.61%, and 4.35% respectively [1] Sales Channels - In H1 2025, the company generated 613 million yuan from franchise sales, 11 million yuan from direct sales, 199 million yuan from group meal channels, and 12 million yuan from other sales, with year-on-year growth rates of 7.00%, 0.44%, 18.99%, and -6.23% respectively [2] - In Q2 2025, franchise sales reached 348 million yuan, direct sales 5 million yuan, group meal channels 106 million yuan, and other sales 6 million yuan, with year-on-year growth rates of 10.49%, 14.12%, 26.20%, and -4.34% respectively [2] Regional Performance - In H1 2025, revenue from different regions included 687 million yuan from East China, 72 million yuan from South China, 49 million yuan from Central China, and 25 million yuan from North China, with year-on-year growth rates of 9.69%, 11.60%, 6.56%, and -0.07% respectively [3] - In Q2 2025, revenue from East China was 383 million yuan, South China 40 million yuan, Central China 28 million yuan, and North China 14 million yuan, with year-on-year growth rates of 14.17%, 14.61%, 5.44%, and 9.32% respectively [3] Profitability and Expenses - The company achieved a gross margin of 27.01% and a net margin of 15.77% in H1 2025, with increases of 0.84 and 1.17 percentage points year-on-year [4] - In H1 2025, the company’s sales expenses, management expenses, R&D expenses, and financial expenses were 33 million yuan, 60 million yuan, 6 million yuan, and -11 million yuan respectively, with year-on-year changes of -0.08%, +0.09%, -0.07%, and -0.33% [4] Future Outlook - The company expects its single-store revenue to stabilize and grow, supported by the increasing number of franchise stores, with projected revenues of 1.843 billion yuan, 2.052 billion yuan, and 2.313 billion yuan for 2025-2027, and net profits of 267 million yuan, 289 million yuan, and 316 million yuan respectively [5]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has achieved its national expansion strategy, significantly enhancing its regional market capabilities. It has completed strategic layouts in 16 key cities and covers over 100 cities across 26 provinces/municipalities, becoming the first private enterprise in the public construction sector to achieve nationwide coverage [8] - The company's revenue for 2024 is projected to be 3.39 billion yuan, representing an 8.3% year-on-year growth, while the net profit attributable to shareholders is expected to decline by 29.0% to 113.78 million yuan due to various factors affecting profit margins [8] - The company has consistently increased its cash dividend payout ratio since its listing in 2019, with a proposed total cash dividend of 64.08 million yuan for 2024, reflecting a 16.3 percentage point increase in the dividend payout ratio to 56.3% [8] Financial Forecasts and Valuation - Revenue and profit forecasts indicate a steady growth trajectory, with total revenue expected to reach 4.11 billion yuan by 2027, while net profit is projected to recover to 144 million yuan by the same year [1][9] - The earnings per share (EPS) is forecasted to be 0.63 yuan by 2027, with corresponding price-to-earnings (P/E) ratios decreasing from 19.43 in 2024 to 15.40 in 2027, indicating potential value appreciation [1][9] - The company maintains a strong financial position with a projected asset-liability ratio of around 39.63% by 2027, reflecting prudent financial management [9]