Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company reported a significant revenue growth of 22.3% year-on-year in Q2 2025, driven by strong performance in its main brand and e-commerce channels [7] - The company has demonstrated resilience in a challenging market environment, with a high gross margin of 75.9% in H1 2025, despite a slight decline compared to the previous year [7][12] - The company is actively cultivating a second growth curve while maintaining leadership in its main brand, indicating strong long-term growth potential [7] Financial Data and Profit Forecast - Total revenue for 2025 is projected to be 4,406 million yuan, with a year-on-year growth rate of 10.0% [6] - The net profit attributable to the parent company is expected to be 701 million yuan in 2025, reflecting a decrease of 10.2% year-on-year [6] - The company’s earnings per share (EPS) is forecasted to be 1.23 yuan in 2025, with a projected price-to-earnings (PE) ratio of 14 [6] Channel Performance - E-commerce revenue surged by 71.8% year-on-year to 210 million yuan in H1 2025, maintaining a high gross margin of 77.9% [7] - Direct sales revenue reached 1,410 million yuan in H1 2025, with a year-on-year growth of 10.6% [7] - The company has expanded its store network to 1,328 locations, enhancing its channel structure for long-term development [7] Asset Quality and Financial Strength - The company reported a significant cash inflow of 3.4 billion yuan in operating cash flow for H1 2025, with available funds exceeding 2.6 billion yuan [7] - Inventory increased to 1.04 billion yuan, with a healthy age structure, indicating strong inventory management [7]

Core Viewpoint - The report by China Galaxy Securities on Biyinlefen highlights the company's leadership in high-end fashion sportswear and its multi-brand international expansion strategy, initiating coverage with a "buy" rating [1] Group 1: Company Overview - Biyinlefen, established in 2003, focuses on high-end golf and outdoor sports apparel, operating multiple brands including Biyinlefen, Biyinlefen Golf, and international brands like KENT & CURWEN and CERRUTI 1881 [2][3] - The company has shown consistent revenue growth, with a CAGR of 20.38% from 2015 to 2024, achieving revenue of 4.404 billion yuan in 2024, a year-on-year increase of 13.24% [2] - Net profit increased from 123 million yuan in 2015 to 781 million yuan in 2024, with a CAGR of 22.80%, although it saw a decline of 14.28% in 2024 due to new brand investments and brand rejuvenation efforts [2] Group 2: Brand Strategy - The company is implementing a multi-brand strategy to establish itself as a leader in niche apparel markets, with Biyinlefen targeting the lifestyle and affordable luxury segments, while Biyinlefen Golf focuses on professional golf apparel [3] - Recent acquisitions of KENT & CURWEN and CERRUTI 1881 aim to enhance brand diversity and international presence, complementing Biyinlefen's existing brand portfolio [3][4] Group 3: Sales Channels - Biyinlefen has a strong offline channel presence, combining direct sales and franchising, with 2024 direct sales revenue reaching 2.568 billion yuan, accounting for 64.12% of total sales [4] - The franchise channel experienced a 24.14% growth in 2024, contributing 28.45% to total sales, while e-commerce sales grew by 35.03% to 263 million yuan, representing 6.57% of total sales [4] - The company operates 1,294 physical stores as of 2024, with a net increase of 39 stores year-on-year [4] Group 4: Investment Outlook - The company focuses on high-end apparel design, brand management, and supply chain optimization, aiming to meet the diverse dressing needs of elite consumers [5] - Despite short-term profit pressures, the company is expected to maintain steady growth in its main brand and expand its international brand presence, with projected net profits of 703 million yuan, 799 million yuan, and 901 million yuan for 2025, 2026, and 2027 respectively [5] - The current market valuation corresponds to 13.38, 11.78, and 10.44 times the estimated earnings for 2025, 2026, and 2027 [5]