Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The introduction of bank fund supervision enhances the safety of advance payments, providing a more secure consumer experience and potentially reducing decision-making time and costs for customers [3] - The company aims to elevate service standards and trust mechanisms in the maternal and infant industry, positioning itself as a benchmark for safety and quality, especially in light of recent industry challenges [3] - The company is expected to benefit from a light asset model and a strategy of management first followed by acquisitions, with adjusted net profit forecasts of 1.21 billion, 1.98 billion, and 3.02 billion for 2025, 2026, and 2027 respectively [3] Financial Summary - Total revenue is projected to grow from 560 million in 2023 to 1,710 million by 2027, with a compound annual growth rate (CAGR) of approximately 27.2% [2] - The company is expected to turn a profit in 2025 with a net profit of 121 million, increasing to 302 million by 2027, following a significant loss in 2023 and 2024 [2] - The gross margin is expected to stabilize around 36.4% to 38.2% from 2025 to 2027, indicating a focus on maintaining profitability as revenues grow [2] Industry Context - The maternal center industry is undergoing a consolidation phase, with the company’s initiatives likely to accelerate supply clearing and set higher operational standards [3] - Recent closures in the industry highlight the need for improved service quality and operational standards, which the company is addressing through its new banking partnership [3] - The company’s strategy to implement independent fund custody is expected to enhance consumer trust and safety, potentially leading to a competitive advantage in a challenging market [3]