Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 75 yuan [2][7]. Core Views - The company reported a revenue of 6.95 billion yuan for H1 2025, a decrease of 4.8% year-on-year, and a net profit attributable to shareholders of 2.23 billion yuan, down 9.5% year-on-year. In Q2 alone, revenue was 1.85 billion yuan, down 29.7%, and net profit was 580 million yuan, down 37.1% [2][7]. - The report indicates that the company is actively managing its inventory and has begun a phase of destocking, which is expected to relieve pressure in the coming year. The company is focusing on deepening market penetration in provincial areas and expanding its presence in key markets outside the province [7][8]. - The report highlights that the company has increased its marketing and promotional expenses, which has impacted profitability. The gross margin for Q2 was 72.8%, a slight decrease of 0.2 percentage points year-on-year [7][8]. Financial Summary - The total revenue forecast for 2025 is 10.11 billion yuan, reflecting a year-on-year decline of 12.4%. The net profit forecast for 2025 is 2.89 billion yuan, down 15.5% year-on-year [3][7]. - The earnings per share (EPS) for 2025 is projected to be 2.31 yuan, with a price-to-earnings (P/E) ratio of 19 times [3][7]. - The company’s total assets are estimated to reach 25.71 billion yuan by 2025, with a debt-to-equity ratio of 10.6% [3][7].