Investment Rating - The investment rating for the company is "Buy" [5] Core Insights - The company reported a revenue of 2.1 billion yuan in H1 2025, representing a year-on-year increase of 8.6%, while the net profit attributable to shareholders was 410 million yuan, down 13.6% year-on-year. In Q2 2025, revenue reached 820 million yuan, up 22.3% year-on-year, with a net profit of 82.8 million yuan, down 29.3% year-on-year. The growth in revenue is attributed to rapid growth in online and direct sales channels, while the profit decline is linked to channel expansion and investment in the KC brand [1][2][3] Revenue and Profit Analysis - In H1 2025, direct sales revenue increased by 10.6% to 1.41 billion yuan, while franchise revenue decreased by 10.3% to 460 million yuan. Online revenue surged by 71.9% to 210 million yuan, with a gross margin of 77.9% [2] - The gross margin for Q2 2025 was 76.7%, down 4.6 percentage points year-on-year, primarily due to the brand's strategy to broaden its price range. The net profit margin for Q2 2025 was 10.1%, down 7.4 percentage points year-on-year [3] Future Growth Projections - The company is expected to achieve revenues of 4.42 billion yuan, 4.85 billion yuan, and 5.28 billion yuan in 2025, 2026, and 2027, respectively, with year-on-year growth rates of 10.3%, 9.9%, and 8.7%. The net profit attributable to shareholders is projected to be 700 million yuan, 790 million yuan, and 880 million yuan for the same years, with corresponding year-on-year changes of -9.9%, +12.1%, and +11.9% [4]

Core Insights - The report from Guosheng Securities indicates that Biyinlefen's revenue in H1 2025 is expected to grow by 9% year-on-year, while net profit attributable to shareholders is projected to decline by 14% [1] - Q2 revenue shows significant growth, with the e-commerce segment leading the industry, highlighting the brand's resilience [1] - The company is committed to expanding its offline stores and enhancing its e-commerce presence, demonstrating confidence in long-term business development through new brand investments [1] Revenue and Profit Projections - The company is expected to maintain rapid revenue growth in 2025, with an overall revenue increase of over 10% anticipated for the year [1] - The projected net profits for the years 2025 to 2027 are estimated at 707 million, 797 million, and 890 million yuan respectively, with a corresponding PE ratio of 13 times for 2025 [1] Brand Strategy and Market Position - The main brand is positioned in the high-quality sports fashion segment, while other brands are expected to contribute to long-term growth potential [1] - The company has shown a strong commitment to new brand investments, reflecting confidence in its future business trajectory [1]

Investment Rating - The report maintains a "Buy" rating for the company, with a target PE of 14 times for 2025 [6][8]. Core Views - The company's revenue is projected to grow by 13% year-on-year in 2024, reaching 4 billion yuan, while net profit is expected to decline by 14% to 780 million yuan [1]. - The company is focusing on enhancing its main brand's competitiveness and nurturing a second growth curve through the development of sub-brands [4][6]. - E-commerce is experiencing high-quality and rapid growth, while offline stores are expanding steadily [3]. Revenue and Profitability - In 2024, the company's revenue is expected to be 4 billion yuan, with a net profit of 780 million yuan, resulting in a net profit margin of 19.5%, down 6.3 percentage points year-on-year [1]. - For Q1 2025, revenue is projected to be 1.29 billion yuan, with a net profit of 330 million yuan, reflecting a year-on-year decline of 8% [2]. Sales Channels - In 2024, sales revenue from various channels is expected to be: e-commerce 263 million yuan (+35%), direct sales 2.568 billion yuan (+7.2%), franchise 1.139 billion yuan (+24.1%), and others 34 million yuan (+19.9%) [3]. - The company plans to open approximately 100 new stores in 2025, contributing to its growth strategy [3]. Brand Strategy - The main brand is focusing on youth-oriented marketing and product differentiation, while the sub-brand K&C is progressing well in store openings [4]. - The company is enhancing its brand image through strategic partnerships and sponsorships in sports [4]. Cash Flow and Inventory Management - The company has maintained healthy cash flow management, with operating cash flow of 750 million yuan in 2024, approximately 1.0 times the net profit [5]. - Inventory levels increased by 34.3% year-on-year to 950 million yuan by the end of 2024, with inventory turnover days improving [5]. Financial Projections - The company expects steady revenue growth of over 10% in 2025, driven by ongoing store expansion and new brand investments [5]. - Projected net profits for 2025-2027 are 707 million yuan, 797 million yuan, and 890 million yuan, respectively [6].

Investment Rating - The report maintains a "Buy" rating for the company, expecting continued performance resilience and growth potential in the coming years [6]. Core Insights - The company reported a total revenue of 4.004 billion RMB for 2024, reflecting a year-on-year growth of 13.24%, while the net profit attributable to shareholders decreased by 14.28% to 781 million RMB [3][10]. - In Q1 2025, the company achieved a revenue of 1.286 billion RMB, a slight increase of 1.41%, with a net profit of 331 million RMB, down 8.47% year-on-year, aligning with expectations [3][4]. - The company plans to distribute a cash dividend of 5 RMB per 10 shares, totaling 285 million RMB, with a payout ratio of 36.55% [3]. Performance Analysis - The profit performance in 2024 was weaker than revenue growth, primarily due to increased brand marketing investments [4]. - The company experienced a significant revenue increase of 35% in Q4 2024, driven by strong customer loyalty and enhanced brand presence [4]. - The gross margin for 2024 was 77%, a decrease of 1.6 percentage points, while the net profit margin fell by 6.3 percentage points to 19.5% due to rising sales and management expenses [4]. Brand Development - The KENT&CURWEN brand is positioned as a second growth curve for the company, with new store openings and a focus on appealing to Gen Z consumers [5]. - The brand aims to enhance its visual identity and market presence, with new product launches planned for Spring/Summer 2025 [5]. Profit Forecast and Valuation - The company is expected to achieve net profits of 714 million RMB, 874 million RMB, and 1.038 billion RMB for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 14, 11, and 9 [6][10]. - The anticipated growth rates for revenue and net profit reflect a robust outlook for the company's main brand and new international brand initiatives [6].

Investment Rating - The report maintains a "Buy" rating for the company, expecting continued performance resilience and growth potential in the coming years [6]. Core Insights - The company reported a total revenue of 4.004 billion RMB for 2024, reflecting a year-on-year growth of 13.24%, while the net profit attributable to shareholders decreased by 14.28% to 781 million RMB [3][10]. - In Q1 2025, the company achieved a revenue of 1.286 billion RMB, a slight increase of 1.41%, with a net profit of 331 million RMB, down 8.47% year-on-year, aligning with expectations [3][4]. - The company plans to distribute a cash dividend of 5 RMB per 10 shares, totaling 285 million RMB, with a payout ratio of 36.55% [3]. Performance Analysis - The profit performance in 2024 was weaker than revenue growth, primarily due to increased brand marketing investments [4]. - The company experienced a significant revenue increase of 35% in Q4 2024, driven by strong customer loyalty and enhanced brand presence [4]. - The gross margin for 2024 was 77%, a decrease of 1.6 percentage points, while the net profit margin fell by 6.3 percentage points to 19.5% due to rising sales and management expenses [4]. Brand Development - The KENT&CURWEN brand is positioned as a second growth curve for the company, with new store openings and a focus on appealing to Gen Z consumers [5]. - The brand aims to enhance its visual identity and market presence, with new product launches planned for Spring/Summer 2025 [5]. Profit Forecast and Valuation - The company is expected to achieve net profits of 714 million RMB, 874 million RMB, and 1.038 billion RMB for 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 14, 11, and 9 [6][10]. - The main brand is anticipated to continue gaining influence, supported by the successful launch of international new brands and improved operations [6].