Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported a revenue of 3.2 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 6.7%, while the net profit attributable to shareholders decreased by 18.7% to 620 million yuan [1] - The report highlights that the increase in expense ratio has outpaced gross margin growth, leading to a decline in profitability [2] - Due to uncertainties in terminal demand, the profit forecasts for 2025-2027 have been revised downwards by 11%, 10%, and 10% respectively, with projected net profits of 701 million, 774 million, and 848 million yuan for those years [3] Financial Performance Summary - Revenue for Q1, Q2, and Q3 of 2025 was 1.29 billion, 820 million, and 1.1 billion yuan respectively, with year-on-year growth rates of +1.4%, +22.3%, and +3.2% [1] - The gross margin for the first three quarters decreased by 0.8 percentage points to 75.6%, with quarterly gross margins of 75.4%, 76.7%, and 75.1% [2] - The expense ratio increased by 6.3 percentage points to 52.6% for the first three quarters, primarily due to rising sales expenses [2] - Inventory as of September 2025 increased by 18.7% from the beginning of the year to 1.13 billion yuan, with a turnover period of 360 days, an increase of 55 days year-on-year [2] - Operating cash flow for the first three quarters was 480 million yuan, a decrease of 26.1% year-on-year [2] Profitability and Valuation - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 1.23, 1.36, and 1.49 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 13, 12, and 11 [3] - The company is positioned in the high-end golf sports fashion segment, with multiple brands being actively cultivated [3]