Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's performance is expected to marginally improve, driven by the rapid development of its proprietary brands despite a short-term impact from tariffs [5][6] - The company reported a revenue of 728 million yuan for H1 2025, a year-on-year decrease of 13.94%, and a net profit attributable to shareholders of 79 million yuan, down 19.23% year-on-year [5][6] - The gross margin has shown stable growth, indicating resilience in the business model, with a significant reduction in operating costs by 20.52% during the same period [5] Financial Performance Summary - As of H1 2025, the company's asset-liability ratio stands at 33.02%, a decrease of 1.24 percentage points from the end of the previous year [5] - Sales expenses increased by 9.56% year-on-year due to higher investments in proprietary brands, while management expenses rose by 24.7% primarily due to operational costs from New Zealand's natural products [5] - R&D expenses remained stable, with significant investments in staple food products [5] Product Development and Brand Strategy - The company is accelerating product iteration and focusing on brand development, launching multiple new freeze-dried products targeting small dogs under the "Jueyan" brand [5] - The "Haoshijia" brand has also introduced various new products, filling market gaps in the mid-range price segment and creating a synergistic effect between the two brands [5] - The company plans to continue advancing its proprietary brand business, aiming for quality and scale to drive brand growth [5] Earnings Forecast and Valuation - The revenue projections for 2025-2027 are adjusted to 1.749 billion yuan, 2.009 billion yuan, and 2.336 billion yuan, respectively, with net profits of 174 million yuan, 226 million yuan, and 264 million yuan [5][7] - The corresponding price-to-earnings ratios are estimated at 25, 19, and 17 times for the respective years [5][7] - The long-term growth potential remains strong, particularly in the domestic proprietary brand sector, justifying the "Buy" rating [5]