Core Viewpoint - The company maintains its net profit forecast for 2025-2026, with the current stock price corresponding to a P/E ratio of 20x and 18x for the non-deductible net profit for 2025-2026, indicating a 29% upside potential to the target price of HKD 37 [1] Financial Performance - The company expects a revenue of no less than HKD 1.45 billion for 1H25, representing a year-on-year increase of at least 27%, and a net profit of no less than HKD 170 million, reflecting a growth of at least 35%. The adjusted net profit is projected to be no less than HKD 175 million, with a growth of at least 33% [2] - The performance exceeds expectations due to revenue structure optimization leading to improved gross margins, scale effects, and operational efficiency enhancing net profit margins [2] Revenue Growth Drivers - The company anticipates a revenue growth of at least 27% for 1H25, driven by both internal and external factors. Internally, customer traffic is expected to grow by over 10%. Externally, the acquisition of Naieryer is projected to contribute approximately HKD 276 million in revenue, with single-store revenue increasing by over 10% compared to pre-acquisition levels [3] - By business segment, the company expects a net consumption growth of about 30% in lifestyle beauty and health, over 10% in medical beauty, and over 100% in sub-health medical services, with internal net consumption also increasing by over 50% [3] Margin Improvement - The company projects a gross margin increase of 0.8 percentage points and a net margin increase of 0.6 percentage points to 11.7% for 1H25. The net profit margins for internal business and Naieryer are expected to increase by 1 percentage point and 3 percentage points, respectively [4] - The improvement in profitability is attributed to a higher proportion of high-margin business revenue, reduced procurement costs from scale purchasing and deeper collaborations, as well as cost reductions in rent and operational efficiencies driven by digitalization [4] Growth Outlook - The company is optimistic about its growth prospects driven by a dual engine of internal and external growth. Internally, it aims to enhance single-store operational efficiency and increase the penetration of value-added services through digital marketing [5] - Externally, the company is actively exploring merger and acquisition opportunities to enhance market share, with expectations of continued expansion of membership assets and nationwide layout [5]