Core Viewpoint - The company reported a strong performance in the first half of 2025, with significant revenue and profit growth despite challenges in certain sales channels [1][2]. Financial Performance - For H1 2025, the company achieved revenue of 2.941 billion yuan, a year-on-year increase of 19.58%, and a net profit attributable to shareholders of 373 million yuan, up 16.7% [1]. - In Q2 2025, revenue reached 1.403 billion yuan, reflecting a year-on-year growth of 13.54%, while net profit was 195 million yuan, an increase of 21.75% [1]. - The company's gross profit margin for Q2 2025 was 30.97%, a decrease of 1.98 percentage points year-on-year, attributed to changes in channel structure [3]. Revenue Breakdown - Revenue from direct supermarkets, distribution, and e-commerce channels for H1 2025 was 0.63 billion, 2.303 billion, and 0.574 billion yuan, showing a year-on-year change of -42%, +30.09%, and -0.97% respectively [2]. - The company’s key revenue driver was the konjac product line, which generated 791 million yuan in revenue, a remarkable increase of 155.1% year-on-year [2]. Cost and Expense Management - The company experienced a reduction in sales, management, and R&D expense ratios, with sales expense ratio down by 2.70 percentage points year-on-year [3]. - The net profit margin for Q2 2025 was 13.79%, an increase of 0.79 percentage points year-on-year, indicating improved profitability [3]. Strategic Initiatives - The company is focusing on high-growth product categories and expanding its distribution channels, including new product launches and overseas market penetration [4]. - The introduction of new flavors and products, such as the "Mowon" brand, aims to enhance market presence and drive revenue growth [4]. Investment Outlook - The company maintains strong growth potential, with adjustments in e-commerce strategies and a focus on high-margin products expected to support long-term profitability [5]. - The earnings forecast for 2025-2027 has been slightly adjusted to 800 million, 990 million, and 1.19 billion yuan, reflecting the impact of e-commerce channel adjustments [5].

Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 95 yuan [2][6]. Core Views - The company reported a revenue of 2.941 billion yuan for H1 2025, representing a year-on-year increase of 19.58%, and a net profit of 373 million yuan, up 16.7% year-on-year. The adjusted net profit was 334 million yuan, reflecting a 22.5% increase year-on-year [2][6]. - The company is adjusting its e-commerce strategy, which has led to a slight decline in revenue from this channel, while the direct sales and other channels have shown growth. The core revenue driver has been the sales of konjac products, which saw a significant increase of 155.1% year-on-year [2][6][3]. - The report highlights that the company has improved its gross profit margin and net profit margin, with a net profit margin of 13.79% in Q2 2025, up 0.79 percentage points year-on-year [2][6]. Financial Summary - For the fiscal years 2024A to 2027E, the projected total revenue is as follows: 5.304 billion yuan (2024A), 6.304 billion yuan (2025E), 7.593 billion yuan (2026E), and 8.925 billion yuan (2027E), with corresponding year-on-year growth rates of 28.9%, 18.9%, 20.5%, and 17.5% [2][6]. - The projected net profit for the same period is: 640 million yuan (2024A), 801 million yuan (2025E), 993 million yuan (2026E), and 1.197 billion yuan (2027E), with year-on-year growth rates of 26.5%, 25.2%, 23.9%, and 20.6% [2][6]. - The earnings per share (EPS) are expected to increase from 2.35 yuan in 2024A to 4.39 yuan in 2027E, with a corresponding price-to-earnings (P/E) ratio decreasing from 32 to 17 over the same period [2][6]. Market Performance - The company has shown a strong market performance compared to the benchmark index, with a notable increase in stock price over the past year [5][6]. - The total market capitalization of the company is approximately 20.175 billion yuan, with a circulating market value of about 18.174 billion yuan [3][6].