Core Viewpoint - The company reported exceptional financial performance for Q2 2025, with significant revenue and profit growth, exceeding market expectations [1] Revenue Summary - Q2 2025 revenue reached 11.762 billion, representing a year-on-year increase of 93.3% - For H1 2025, revenue totaled 22.583 billion, up 106.9% year-on-year - The volume business revenue grew by 95.0% year-on-year, with approximately 869 new stores expected in Q2 2025, accelerating from 300 in Q1 2025 [2] Profitability Summary - In Q2 2025, the company's net profit margin reached 4.7%, significantly above the market expectation of 3.5% - The overall gross margin increased by 0.6 percentage points year-on-year, while sales and management expense ratios decreased by 2.0% and 0.4% respectively - The net profit margin for Q2 2025 was 2.2%, a substantial increase of 2.3 percentage points year-on-year [3] Investment Recommendations - The company maintains a "buy" rating, anticipating further efficiency improvements in sales and management expenses - Future catalysts include the iteration of discount supermarket models and potential overseas expansion following the H-share listing - Revised revenue forecasts for 2025-2027 are 53.864 billion, 64.290 billion, and 77.778 billion respectively, with net profits projected at 1.187 billion, 1.781 billion, and 2.617 billion respectively [4]

Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company achieved a revenue of 32.33 billion yuan in FY24, representing a year-on-year increase of 247.86%, and a net profit of 294 million yuan, up 453.95% year-on-year [2] - The company is focusing on rapid expansion of its discount retail business, with a significant increase in store numbers and operational efficiency [3][4] - A stock incentive plan for 2025 has been announced, aimed at enhancing the company's growth potential [6][7] Summary by Sections Financial Performance - In FY24, the company reported a revenue of 32.33 billion yuan, with a net profit of 294 million yuan, and a non-recurring net profit of 258 million yuan, showing substantial growth compared to the previous year [2] - For Q4 of FY24, revenue reached 11.72 billion yuan, with a net profit of 209 million yuan, marking an impressive year-on-year increase of 894.27% [2] Business Expansion - The company has been actively expanding its store network, with a total of 14,196 stores by the end of FY24, having added 9,776 stores during the reporting period [4] - The company has established 50 warehousing centers nationwide, ensuring efficient supply chain management [4] Profitability - The discount retail business achieved a net profit of 858 million yuan in FY24, with a profit margin of 2.70%, reflecting a year-on-year increase of 2.32 percentage points [5] - The company’s profitability is expected to improve further due to the scale effects of its discount retail operations [5] Growth Prospects - The stock incentive plan involves granting approximately 2.21 million restricted shares to 70 core employees, with performance targets set for net profit growth over the next four years [6][7] - Revenue forecasts for 2025 and 2026 have been revised upwards to 53.88 billion yuan and 62.09 billion yuan, respectively, with EPS estimates also increased [8]

Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company achieved a revenue of 32.33 billion yuan in FY24, representing a year-on-year increase of 247.86%, and a net profit attributable to shareholders of 294 million yuan, up 453.95% year-on-year [2] - The company is focusing on high-quality growth in its discount retail business, with a significant increase in store numbers and operational efficiency [3][4] - The company has announced a restricted stock incentive plan for 2025, aimed at enhancing growth potential [6][7] Summary by Sections Financial Performance - In FY24, the company reported a revenue of 32.33 billion yuan, with a net profit of 294 million yuan, and a non-recurring net profit of 258 million yuan, showing substantial growth compared to the previous year [2] - For Q4 of FY24, the revenue was 11.72 billion yuan, with a net profit of 209 million yuan, marking an impressive year-on-year increase of 894.27% [2] Business Expansion - The company has been rapidly expanding its discount retail business, achieving a revenue of 31.79 billion yuan in FY24, which is a 262.94% increase year-on-year [3] - By the end of FY24, the company had 14,196 stores, adding 9,776 new stores during the year, while maintaining a low closure rate of 2.2% [4] Profitability - The net profit margin for the discount retail business reached 2.70% in FY24, an increase of 2.32 percentage points year-on-year, indicating improved profitability [5] - The company’s net profit for Q1 of FY25 was 412 million yuan, with a profit margin of 3.85% [5] Incentive Plan - The company has introduced a restricted stock incentive plan for 2025, granting approximately 2.21 million shares to 70 core employees, with performance targets set for net profit growth over the next four years [6][7] Future Projections - Revenue forecasts for 2025 and 2026 have been revised upwards to 53.88 billion yuan and 62.09 billion yuan, respectively, with EPS estimates adjusted to 4.82 yuan and 6.50 yuan [8]