Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index in the next six months [15]. Core Views - The company is experiencing pressure on store numbers, but cost advantages and expense optimization are driving significant profit growth [1][3]. - The company aims to enhance its brand appeal to younger consumers and focuses on product category development [4]. - Digital transformation initiatives are being implemented to empower terminal operations and improve efficiency [2]. Financial Performance Summary - For 2023, the company is projected to achieve a revenue of 1,921 million yuan, with a year-on-year growth rate of -1.7%. By 2027, revenue is expected to reach 2,407 million yuan, reflecting a growth rate of 9.1% [1]. - The net profit attributable to the parent company is forecasted to be 71 million yuan in 2023, with a significant increase of 129% year-on-year. By 2027, it is expected to grow to 154 million yuan, with a growth rate of 28.8% [1]. - The company's gross margin for the first half of 2025 was 31.96%, with a net profit margin of 7.82%, showing an improvement in profitability despite revenue challenges [3]. Store Operations and Market Strategy - As of June 30, 2025, the company operates 2,898 specialty stores, with a notable reduction in both direct and franchise stores compared to the beginning of the year [2]. - The company plans to optimize its store structure and focus on deepening its existing market while exploring new opportunities [2]. Brand and Product Development - The company is actively engaging in marketing strategies to attract younger demographics, including sponsorships and collaborations with over 200 brands [4]. - The focus on product innovation has led to the elimination of inefficient SKUs, with a significant emphasis on the hand-pulled sauce duck product, which accounted for 22% of sales by mid-2025 [4]. Future Growth Projections - Revenue projections for 2025-2027 are 19.59 billion yuan, 22.06 billion yuan, and 24.07 billion yuan, respectively, with corresponding net profits of 0.88 billion yuan, 1.19 billion yuan, and 1.54 billion yuan [6].