Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 35.42 RMB [7]. Core Views - The company reported a revenue of 6.519 billion RMB in Q3 2025, representing a year-on-year increase of 7.52%, and a net profit of 391 million RMB, up 0.63% year-on-year. For the first three quarters, the total revenue was 17.328 billion RMB, a 1.25% increase year-on-year, while the net profit was 948 million RMB, down 7.18% year-on-year. The Q3 revenue recovery is attributed to a sequential acceleration in revenue growth, stable performance in retail large stores, and a narrowing decline in traditional core business revenue [1][3][4]. Summary by Sections Q3 Performance - In Q3 2025, the company achieved a revenue of 6.519 billion RMB, marking a 7.52% increase year-on-year, and a net profit of 391 million RMB, which is a 0.63% increase year-on-year. The revenue for the first three quarters reached 17.328 billion RMB, reflecting a 1.25% year-on-year growth, while the net profit was 948 million RMB, down 7.18% year-on-year [1][7]. Business Segments - The traditional core business revenue for Q1-Q3 2025 was 5.476 billion RMB, down 8.1% year-on-year, with Q3 showing a reduced decline of 4.7%. The company is actively expanding into premium cultural and children's art products, and has launched several IP collaborations and events to enhance its traditional business recovery [2][3]. Retail Business - The retail large store segment reported a revenue of 1.194 billion RMB for Q1-Q3 2025, a 6.9% increase year-on-year. The company has over 870 retail large stores nationwide, with a net increase of approximately 91 stores since the beginning of the year [3]. Profitability and Margins - The gross margin for the first three quarters of 2025 decreased by 0.16 percentage points to 19.62%. The increase in government subsidies contributed to a rise in net profit, with non-operating income reaching 73.05 million RMB, up significantly from the previous year [4][5]. Earnings Forecast - The company maintains its earnings forecast, expecting net profits of 1.422 billion RMB, 1.573 billion RMB, and 1.744 billion RMB for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.54 RMB, 1.71 RMB, and 1.89 RMB [5][11].