Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company has seen a positive turnaround in Q2 revenue, particularly in direct sales and children's clothing, and is looking forward to improvements in winter clothing sales [2][8] - The company has been adjusting its operations for three years, closing unprofitable stores and focusing on enhancing brand image and store efficiency [3][8] - The company aims to implement a "2-5-10" strategy focusing on product innovation, channel restructuring, technology empowerment, and digital transformation to drive brand upgrades [8] Financial Performance Summary - For H1 2025, the company's revenue, net profit attributable to the parent, net profit excluding non-recurring items, and operating cash flow were 2.898 billion, 78 million, 14 million, and -262 million yuan, respectively, showing year-on-year declines of 7.86%, 54.61%, 78.91%, and 1425.54% [2] - In Q2 2025, the company's revenue was 1.23 billion yuan, with a year-on-year decrease of 8.17%, while net profit was a loss of 46 million yuan [2] - The company's gross margin for H1 2025 was 59.8%, an increase of 3.7 percentage points year-on-year, while the net profit margin decreased by 2.8 percentage points to 2.7% [5] Revenue Breakdown - In H1 2025, revenue from women's wear, men's wear, and children's wear was 1.06 billion, 1.18 billion, and 380 million yuan, respectively, with year-on-year declines of 10.45%, 7.42%, and 3.73% [3] - The company closed 194 stores in H1 2025, with a net closure of 137 stores in Q2 [4] Inventory and Cash Flow - The company's inventory as of H1 2025 was 1.515 billion yuan, a year-on-year increase of 9.84%, with inventory to revenue ratio at 52.28%, up 8.43 percentage points [6] - The cash flow from operating activities was negative due to increased settlements with suppliers, leading to a decrease in accounts payable [2][7] Earnings Forecast and Valuation - The earnings forecast for 2025 has been revised down, with projected revenues of 6.912 billion yuan and net profit of 247 million yuan [10] - The projected EPS for 2025 is 0.52 yuan, with corresponding PE ratios for 2025, 2026, and 2027 being 28, 17, and 13 times, respectively [8][10]

Core Insights - The collaboration between PEACEBIRD, designer MING MA, and W Magazine China showcases a unique fashion preview event titled "Quality in Search of Light" in Shanghai, featuring new product lines [1][10] Group 1: Product Launches - The "PEACEBIRD X MING MA Little Black Dress Capsule Collection" draws inspiration from Audrey Hepburn's iconic look in "Breakfast at Tiffany's," utilizing three-dimensional pleating and hollow designs to redefine elegance [3] - The collaboration with British graffiti artist Jon Burgerman incorporates his signature spray-painted IP patterns, blending vibrant colors and therapeutic elements into the collection [5] - The innovative Fashion Sunscreen Soft Light Series merges sunscreen technology with fashion design, featuring lightweight materials that provide UPF50+ protection and a cooling sensation for summer wear [8] Group 2: Brand Philosophy - The summer 2025 collection emphasizes a "multi-scenario fashion narrative," breaking traditional dressing boundaries and allowing each piece to serve as a medium for women's self-expression [10] - Both the classic Little Black Dress capsule and the lightweight sunscreen series reflect the brand's commitment to high-quality materials and practical design, promoting a balance of elegance and comfort [15]