Investment Rating - The report maintains a "Strong Buy" rating for the company [6] Core Views - The company reported a significant decline in revenue and net profit for H1 2025, with revenue at 2.5 billion yuan, net profit at 570 million yuan, and adjusted net profit at 610 million yuan, representing year-on-year decreases of 39.6%, 23.5%, and 39.8% respectively [1][5] - The company is focusing on maintaining channel health by controlling sales pace, while leveraging consumption scenarios such as weddings and graduations to counteract market downturns [1][5] - The introduction of new products under the "Da Zhen" brand and the alliance model is expected to contribute significantly to revenue in H2 2025, with a focus on price management capabilities [1][5] - The adjusted net profit forecasts for 2025-2027 have been lowered to 1.41 billion yuan, 1.54 billion yuan, and 1.88 billion yuan, respectively, corresponding to a PE ratio of 21.8 for 2025 [1][5] Financial Performance - For H1 2025, the company achieved a gross margin of 59.0%, a slight increase of 0.2 percentage points year-on-year, despite a decline in high-end product revenue [1][5] - The revenue breakdown by brand for H1 2025 shows that "Zhen Jiu" generated 1.49 billion yuan, "Li Du" 610 million yuan, "Xiang Jiao" 280 million yuan, and "Kai Kou Xiao" 80 million yuan, with respective year-on-year changes of -44.8%, -9.4%, -38.7%, and -63.9% [1][5] - The company’s total market capitalization is 3.34 billion yuan, with a current share price of 9.86 HKD [2] Future Outlook - The "Da Zhen" project has signed over 2,100 clients, with expectations for significant revenue contributions in H2 2025 [1][5] - The report emphasizes the importance of the company's ability to manage pricing and channels effectively to enhance brand image and market position [1][5]