Core Viewpoint - The company anticipates a slight decline in revenue for the first half of 2025, while projecting significant profit growth compared to the same period in 2024 [3][4]. Revenue and Profit Forecast - For the first half of 2025, the company expects revenue to be between 1.2 billion to 1.24 billion yuan, representing a year-on-year decline of 1.5% to 4.7%. Profit is projected to be between 90 million to 113 million yuan, a growth of 55.2% to 94.8% compared to 58 million yuan in the first half of 2024 [3]. Operational Adjustments and Reforms - The company has actively adjusted its store structure since 2024, closing underperforming stores, which has led to a stabilization in single-store performance. The revenue decline has narrowed significantly compared to previous periods [4]. - The management has implemented a more flexible organizational structure and clear strategic priorities, which are expected to continue improving operational performance [4]. Specific Reform Actions 1. **Store Closures and Employee Incentives**: The company has closed low-efficiency stores and improved employee motivation by linking sales growth to staff commissions, resulting in over a thousand stores achieving positive sales growth by July 2024 [4]. 2. **Membership System Enhancement**: The company has strengthened its membership program to increase average transaction value and repurchase rates, with membership sales showing a significant increase [4]. 3. **Brand Youthfulness and Store Format Adjustments**: The company is focusing on brand rejuvenation and plans to adjust store layouts in key locations to enhance customer experience and increase transaction values [4]. 4. **Capacity Utilization and New Channel Development**: To improve operational efficiency, the company has established a special department to develop new products for various retail channels, which is expected to contribute to revenue growth [5].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return exceeding the market benchmark by more than 15% over the next 6-12 months [4][6]. Core Views - The company is expected to achieve revenue of 1.2-1.24 billion yuan in the first half of 2025, representing a year-on-year decline of 1.5%-4.7%. However, net profit is projected to increase to 90-113 million yuan, a growth of 55.2%-94.8% compared to 58 million yuan in the first half of 2024 [2][4]. - The company has implemented multi-dimensional operational adjustments, leading to gradual improvements in performance. The revenue decline has narrowed significantly compared to 2024, with same-store sales returning to positive growth [3][4]. Summary by Sections Revenue and Profit Forecast - The company is projected to generate revenues of 2.715 billion yuan in 2025, with a growth rate of 10.8%. The net profit forecast for 2025 is 143 million yuan, reflecting a growth rate of 45.1% [5][10]. Operational Adjustments - The company has closed underperforming stores and improved employee incentives, resulting in a recovery of same-store sales. The management structure has been streamlined for quicker decision-making [3][4]. - A focus on enhancing the membership system has been established, which has led to increased average transaction values and customer retention rates [3][4]. Strategic Initiatives - The company is pursuing brand rejuvenation and adjusting store formats to attract younger consumers. Plans include enhancing store displays and customer experience in key locations [3][4]. - New distribution channels are being developed to improve capacity utilization and operational efficiency, with a focus on supermarkets and convenience stores [3][4]. Valuation Metrics - The updated earnings per share (EPS) estimates for 2025-2027 are 0.07, 0.08, and 0.09 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 36, 30, and 25 times [4][10].