Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 28.5 CNY [2][6]. Core Views - The company reported a revenue of 2.752 billion CNY for H1 2025, a decrease of 5.05% year-on-year, and a net profit of 89 million CNY, down 73.68% year-on-year. The Q2 revenue was 1.181 billion CNY, an increase of 9.69% year-on-year, but the net profit dropped significantly by 88.17% year-on-year [2][6]. - The company is actively adjusting its operations in response to market challenges, focusing on product innovation and channel expansion, particularly in e-commerce and overseas markets [6][2]. - Despite short-term profit pressures due to rising raw material costs, the company is expected to improve its operational performance in the coming year, supported by a high dividend yield of approximately 4.5% [6][2]. Financial Summary - For 2024A, the total revenue is projected at 7.131 billion CNY, with a year-on-year growth rate of 4.8%. The net profit is expected to be 849 million CNY, reflecting a growth rate of 5.8% [2][12]. - The company’s earnings per share (EPS) for 2025E is forecasted to be 1.14 CNY, with a price-to-earnings (P/E) ratio of 21 [2][12]. - The gross margin for H1 2025 was 20.9% for sunflower seeds and 14.8% for nuts, indicating a decline compared to previous periods due to cost pressures [6][2]. Market Performance - The current stock price is 23.57 CNY, with a market capitalization of approximately 11.923 billion CNY [3][2]. - The company has experienced fluctuations in stock performance, with a 12-month high of 33.53 CNY and a low of 21.39 CNY [3][2]. Strategic Initiatives - The company is focusing on enhancing its traditional channels while increasing its digital presence, with a significant rise in the number of managed outlets [6][2]. - New product launches are aimed at diversifying the product line and capturing market trends, including the introduction of five new products in July 2025 [6][2].