Core Viewpoint - The company maintains its profit forecast for 2025-2026, with a target price increase of 8% to HKD 40, indicating a 21% upside potential based on its strong business model and growth opportunities [1] Financial Performance - The company reported 1H25 revenue of RMB 1.46 billion, a year-on-year increase of 28.2%, and a net profit attributable to shareholders of RMB 160 million, up 34.9% [2] - Adjusted net profit reached RMB 190 million, reflecting a 37.8% year-on-year growth, exceeding previous forecasts due to scale effects and operational efficiency improvements [2] Business Segments - Beauty and wellness services generated RMB 810 million in revenue, a 29.6% increase, with direct store traffic rising 48.6% to 850,000 visits [3] - Medical beauty services achieved RMB 500 million in revenue, up 13.0%, with active membership increasing 27.6% to 24,000 [3] - Sub-health medical services saw a remarkable revenue growth of 107.8% to RMB 150 million, with active members increasing 93.4% to 7,014 [3] Margin and Efficiency - The company's gross margin improved by 2.4 percentage points to 49.3% in 1H25, driven by scale effects and the inclusion of higher-margin businesses [4] - The adjusted net profit margin reached a historical high of 13.1%, with a year-on-year increase of 0.9 percentage points [4] Growth Strategy - The company is focused on enhancing operational efficiency and increasing service penetration through digital marketing [4] - It is also exploring acquisition opportunities to boost market share, with recent shareholder structure optimization expected to support long-term growth [4]

Core Viewpoint - Company maintains profit forecasts for 2025-2026, with a target price increase of 8% to HKD 40, indicating a 21% upside potential based on strong business model advantages and growth opportunities [1] Financial Performance - Company reported 1H25 revenue of RMB 1.46 billion, a year-on-year increase of 28.2%; net profit attributable to shareholders reached RMB 160 million, up 34.9%; adjusted net profit was RMB 190 million, reflecting a 37.8% increase, exceeding previous forecasts and expectations due to scale effects and operational efficiency [2] Business Segments - Beauty and wellness services generated RMB 810 million in revenue, a 29.6% increase, with direct store traffic up 48.6% to 850,000 and active membership rising 45.7% to 112,000; medical beauty services revenue was RMB 500 million, up 13.0%, with active members increasing 27.6% to 24,000; sub-health medical services revenue surged 107.8% to RMB 150 million, now accounting for over 10% of total revenue, with active members growing 93.4% to 7,014 [3] - The company expanded its store network, adding 69 direct/franchise beauty and wellness stores to reach 238/276, 3 medical beauty stores to total 27, and 2 sub-health stores to 11 [3] Profitability and Efficiency - Gross margin improved by 2.4 percentage points year-on-year to 49.3%, driven by scale effects that reduced procurement costs and diluted fixed costs; adjusted net profit margin reached a historical high of 13.1%, up 0.9 percentage points year-on-year [4] Growth Outlook - The company is focused on enhancing single-store operational efficiency and increasing value-added service penetration while exploring acquisition opportunities to boost market share; recent shareholder structure optimization is expected to support long-term quality growth [5]