Investment Rating - The report upgrades the investment rating of the company to "Recommended" with a target price of 48.92 CNY [2][8]. Core Insights - The company has turned profitable, showing signs of operational improvement with a focus on cash flow enhancement. For the first three quarters of 2025, total revenue was 3.464 billion CNY, down 14% year-on-year, while net profit attributable to shareholders was 272 million CNY, a decrease of 34% year-on-year. The gross margin improved to 74.3% [2][8]. - The company is actively adjusting its product and channel strategies to enhance profitability, focusing on core products and optimizing channel operations [2][8]. - The sub-brand Aikeman is expanding through multiple channels, targeting high-end consumers and leveraging the company's R&D capabilities to strengthen its market position [2][8]. Financial Performance Summary - For 2025, the company is projected to have total revenue of 5.406 billion CNY, a decrease of 5.8% year-on-year, with a net profit of 412 million CNY, down 18% year-on-year. The earnings per share (EPS) is expected to be 0.97 CNY [4][5]. - The company’s gross margin is expected to improve slightly to 74.9% in 2025, with a net margin of 7.6% [4][5]. - The company’s cash flow from operating activities is projected to be 416 million CNY in 2025, indicating a significant improvement in cash flow management [9].