Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved significant revenue and profit growth in the first half of 2025, with revenue reaching 1.459 billion yuan, a year-on-year increase of 28.2%, and net profit of 156 million yuan, up 34.9% [5] - Operating cash flow for the first half of 2025 was 410 million yuan, reflecting an 84.4% year-on-year increase [5] - The company continues to expand its business model through both organic growth and acquisitions, with the integration of the acquired brand NaiRuiEr showing positive results [10] Revenue Performance - The company’s three main business segments showed strong performance: Beauty and Health Services, Medical Aesthetic Services, and Sub-health Medical Services, with respective revenues of 810 million, 500 million, and 150 million yuan, representing year-on-year growth of 29.6%, 13.0%, and 107.8% [6] - Direct sales and franchise models contributed to revenue growth, with direct sales revenue reaching 740 million yuan, up 31.0% year-on-year, and franchise revenue at 70 million yuan, up 16.2% [6] Customer Engagement - Direct sales stores saw a customer footfall of 850,000, a 48.6% increase year-on-year, and active membership grew to 112,000, up 45.7% [6] - The medical aesthetic segment also showed resilience, with foot traffic of 50,000 and active members of 24,000, reflecting year-on-year growth of 28.0% and 27.6% respectively [6] Business Expansion - The company expanded its sub-health medical services, with foot traffic reaching 19,000, a 75.5% increase, and active members growing by 93.4% [7] - The revenue from the functional medicine segment increased by 122.0% year-on-year, driven by new product lines [7] Profitability - The overall gross margin improved by 2.3 percentage points to 49.3%, and the net profit margin increased by 0.5 percentage points to 10.7% [8] - The gross margins for the three business segments were 42.1%, 56.9%, and 63.1%, with respective year-on-year increases of 1.8, 1.8, and 8.7 percentage points [9] Future Outlook - The company plans to continue its dual strategy of organic growth and acquisitions, with a focus on expanding its beauty and health brand matrix and enhancing its medical services [10] - The forecast for net profit for 2025-2027 has been adjusted upwards to 310 million, 350 million, and 410 million yuan, with corresponding EPS estimates of 1.30, 1.48, and 1.72 yuan [10]