Investment Rating - The investment rating for the company is maintained at "Buy" [1] Core Views - The company has shown continuous improvement in orders, indicating a turning point in operations. The revenue for 1H25 reached 9.528 billion RMB, a year-on-year increase of 2.49%, with a net profit attributable to shareholders of 358 million RMB, up 3.95% year-on-year [1] - The company’s decoration business revenue grew, with a notable recovery in the scale of income, attributed to a continuous increase in order growth over the past nine quarters [2] - The company achieved new signed orders of 12.46 billion RMB in 1H25, marking a year-on-year increase of 2.5%, with significant growth in orders from Guangdong and Sichuan regions [4] - The company maintains a target price of 4.31 RMB, reflecting a 20x PE valuation for 2025, with projected net profits of 574 million RMB for 2025 [5] Summary by Sections Financial Performance - In 1H25, the company reported a total revenue of 95.28 billion RMB, with a net profit of 3.58 billion RMB and a non-recurring net profit of 3.31 billion RMB, showing a year-on-year increase of 14.19% [1][2] - The comprehensive gross margin for 1H25 was 13.71%, a slight increase of 0.04 percentage points year-on-year, with the decoration and design business gross margins at 12.52% and 31.26%, respectively [2] Cost and Efficiency - The expense ratio for 1H25 was 7.68%, a decrease of 0.20 percentage points year-on-year, with improvements in accounts receivable turnover ratio to 0.74 times [3] - The company reported a net cash flow from operating activities of -1.023 billion RMB, which was a reduction in outflow by 167 million RMB year-on-year [3] Order and Market Dynamics - The company has signed new orders for nine consecutive quarters, with a significant increase in overseas revenue by nearly 29% year-on-year [4] - The company’s order growth is driven by enhanced regional focus and optimization of business structure, including urban renewal and clean technology development [4] Profit Forecast and Valuation - The company’s projected net profits for 2025-2027 are 574 million, 602 million, and 624 million RMB, respectively, with a CAGR of 4.28% [5] - The company is valued at a PE of 20x for 2025, with a target price set at 4.31 RMB, indicating a potential upside from the current market price [5]

Core Viewpoint - Blue Moon has launched its new product, the Net Enjoy Foam Shower Gel, marking a significant expansion from laundry and handwashing products into the personal care market, aiming to enhance its brand presence and meet consumer needs for cleanliness and convenience [2][5]. Group 1: Product Launch and Innovation - The launch of the Net Enjoy Foam Shower Gel was highlighted by a live stream featuring top Douyin influencer Zhu Xiaohan, which utilized AI-generated promotional videos, showcasing a new approach to product marketing [2]. - The shower gel emphasizes a quick and efficient bathing experience, with features such as rapid foaming, easy application, and quick rinsing, aligning with the fast-paced lifestyle of younger consumers [3][4]. - The product's technology allows for over 10 million micro-bubbles to be released with a single pump, enhancing user convenience and effectiveness [3]. Group 2: Market Expansion and Strategy - Blue Moon's entry into the shower gel category is a strategic move to diversify its product offerings and tap into the growing personal care market, which has shown a compound annual growth rate of 3.4% since 2019, surpassing global growth rates [5]. - The company has developed a comprehensive brand matrix, now featuring 110 SKUs across various categories, including laundry, personal care, and home cleaning, reinforcing its commitment to "full-scene cleanliness" [6][7]. - Blue Moon's multi-brand strategy is designed to enhance market share and resilience against competition, positioning the company for sustainable growth [7]. Group 3: Brand Vision and Cultural Engagement - Blue Moon aims to transition from being a "cleaning expert" to a "creator of beautiful living," reflecting its commitment to enhancing consumer lifestyles through innovative products and cultural initiatives [8]. - The introduction of the Net Enjoy Foam Shower Gel is seen as a step towards fulfilling the company's vision of providing a clean, healthy, and comfortable living environment for families [8].