Investment Rating - The report maintains a "Buy" rating for the company with a target price of 17.00 CNY based on a 17x PE ratio for 2025 [3][5]. Core Views - The company is facing pressure on profitability while advancing diversification reforms. The revenue for the first half of 2025 decreased by 4.2% year-on-year, with retail and wholesale revenues declining by 2.9% and 9.2%, respectively [10][11]. - The company plans to enhance store renovations and improve customer purchase frequency and repurchase rates, with a target of renovating 1,000 stores by the end of 2025 [10][11]. - The company is focusing on improving service quality and strengthening new retail operations, with a significant portion of new retail sales coming from online-to-offline (O2O) channels [10][11]. Financial Summary - Revenue projections for 2025-2027 are adjusted to 19,512 million CNY, 21,476 million CNY, and 23,919 million CNY, reflecting growth rates of 8.4%, 10.1%, and 11.4%, respectively [4][13]. - The forecasted net profit for 2025 is 586 million CNY, with a significant year-on-year increase of 413.1% [4][13]. - The company's gross margin is expected to stabilize around 32.4% in 2025, with a slight increase to 32.8% by 2027 [4][13].