Group 1 - In H1 2025, the company achieved revenue of 14.875 billion CNY, a year-on-year increase of 39.3%, and a net profit attributable to shareholders of 2.693 billion CNY, up 42.9% [1] - The growth in single-store sales revenue is driven by intensified competition in the food delivery market and continuous product innovation, with new product launches including various beverage and ice cream series [1] - For H1 2025, the company's revenue from product sales, equipment sales, and franchise-related services were 13.843 billion CNY, 0.652 billion CNY, and 0.038 billion CNY, respectively, reflecting increases of 39.5%, 42.3%, and 29.8% year-on-year [1] Group 2 - The company accelerated its store expansion, adding 6,535 net new stores globally, bringing the total to 53,014 stores, with a significant increase in mainland China [2] - In mainland China, the net increase of stores was 6,697, with a focus on penetrating lower-tier markets, while adjustments were made in Indonesia and Vietnam, resulting in a slight decrease in store numbers [2] - The gross profit margin slightly decreased to 31.6%, primarily due to rising raw material costs and changes in revenue structure, while the franchise and related services gross margin improved to 82.7% [2] Group 3 - The company has revised its profit forecasts upward, expecting revenues of 33.426 billion CNY, 38.054 billion CNY, and 41.817 billion CNY for 2025-2027, with net profits of 5.880 billion CNY, 6.836 billion CNY, and 7.649 billion CNY for the same period [2] - The latest stock price corresponds to a PE ratio of 27, 23, and 21 for the years 2025, 2026, and 2027, respectively, maintaining a "buy" rating [2]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a revenue of 14.875 billion CNY, representing a year-on-year increase of 39.3%, and a net profit attributable to shareholders of 2.693 billion CNY, up 42.9% [2] - The company has benefited from increased delivery subsidies from platforms like JD, Meituan, and Ele.me, which has driven growth in single-store sales [3] - The company has accelerated its store expansion, with a net increase of 6,535 stores globally, bringing the total to 53,014 stores [4] - The gross margin slightly decreased to 31.6%, while the company maintained good cost control [5] - The earnings forecast has been raised due to better-than-expected performance in the first half of the year, with projected revenues of 33.426 billion CNY, 38.054 billion CNY, and 41.817 billion CNY for 2025, 2026, and 2027 respectively [6] Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 14.875 billion CNY, a 39.3% increase year-on-year, and a net profit of 2.693 billion CNY, up 42.9% [2] - The company's single-store sales revenue is estimated at approximately 280,000 CNY, reflecting a growth of 13.2% [3] Store Expansion - The company added 6,535 stores in the first half of 2025, with a total of 53,014 stores globally, including 7,721 new franchise stores [4] - The company is focusing on penetrating lower-tier markets, with a significant percentage of new stores located in third-tier and below cities [4] Profitability and Cost Management - The gross margin for the first half of 2025 was 31.6%, a slight decrease of 0.2 percentage points, attributed to rising raw material costs [5] - The company maintained a sales expense ratio of 6.1% and a management expense ratio of 2.9% [5] Earnings Forecast - The earnings forecast has been revised upwards, with expected revenues of 33.426 billion CNY, 38.054 billion CNY, and 41.817 billion CNY for 2025, 2026, and 2027 respectively [6] - The projected net profit for the same years is 5.880 billion CNY, 6.836 billion CNY, and 7.649 billion CNY [6]