Investment Rating - The report assigns a "Buy" rating for the stock, expecting a relative return of over 20% within the next six months [11] Core Insights - The company achieved total net revenue of 12.359 billion yuan in Q2 2025, representing a year-on-year growth of 47.1%. Product sales revenue was 9.491 billion yuan, up 44.9%, while franchise store revenue reached 2.867 billion yuan, growing by 55.0% [1][3] - The company continues to expand its store network, adding 2,109 new stores in Q2 2025, bringing the total to 26,206 stores. The average monthly transaction customer count increased by over 22 million, reaching 91.7 million, a year-on-year growth of 31.6% [2][3] - The company reported a Non-GAAP net profit of 1.399 billion yuan in Q2 2025, with a net profit margin of 11.3%. The operating profit for self-operated stores was 1.922 billion yuan, with an operating profit margin of 21.0% [4] Revenue Summary - The company’s revenue growth is driven by both self-operated and franchise stores. Self-operated store revenue reached 9.136 billion yuan, up 45.6%, while same-store sales growth was 13.4%. Franchise store revenue was 2.867 billion yuan, up 55.0% [3] - The company has launched several innovative products, contributing to increased sales, including the "Feather Light Fruit and Vegetable Tea" which sold 11.2 million cups within two weeks of launch [3] Profit Summary - The profitability of franchise stores has improved, and the company is strengthening its supply chain. A long-term procurement agreement has been signed with Brazil, and a new roasting facility is expected to increase annual roasting capacity to 155,000 tons [4] Investment Recommendations - The report suggests that the company will benefit from the growth strategy focused on scale, with a positive outlook on the coffee and new tea beverage sectors. Short-term attention is recommended on new products and supply chain optimization [5]