Investment Rating - The report maintains a "Strong Buy" rating for the company [1][2][8]. Core Views - The company's revenue for 2024 is projected to grow by 10%, while the net profit attributable to shareholders is expected to decline by 5% after excluding goodwill impairment. However, the first quarter of 2025 showed a revenue increase of 25% and a net profit increase of 44%, exceeding expectations. This growth is attributed to the recognition of the brand's young and fashionable positioning and differentiated product offerings, such as IP beads and premium gold products [1][7][8]. - The company is expanding its franchise channels, with a net increase of 111 jewelry stores in 2024, including 147 new franchise stores. Franchise revenue is expected to grow by 32% in 2024, with steady channel expansion anticipated for 2025 [1][7][8]. - Due to significant goodwill impairment recognized in 2024, the expected impairment for 2025 is relatively limited. The strong performance in Q1 2025 and the ongoing expansion of differentiated products and channels are expected to drive growth throughout the year. The projected net profits for 2025-2027 are 465 million, 523 million, and 584 million respectively, corresponding to a PE ratio of 18.9 for 2025 [1][2][8]. Financial Performance - In 2024, the company achieved a revenue of 65.18 billion, a year-on-year increase of 10.48%. The net profit attributable to shareholders was 1.94 billion, a decline of 41.91%, primarily due to a goodwill impairment of 1.77 billion related to FION. Excluding this impairment, the net profit showed a decline of 5.11% year-on-year [7][9]. - The first quarter of 2025 saw a revenue of 22.52 billion, a year-on-year increase of 25.36%, and a net profit of 1.89 billion, a year-on-year increase of 44.38% [7][9]. - The sales gross margin for 2024 was 23.60%, a decrease of 2.47 percentage points year-on-year, mainly due to the higher revenue contribution from lower-margin franchise channels and traditional gold products. The net profit margin for Q1 2025 improved to 8.43%, an increase of 1.08 percentage points year-on-year [2][7]. Store Expansion and Channel Strategy - The company added 111 jewelry stores in 2024, with a total of 1511 stores by year-end. The number of franchise stores increased by 147 to 1272, while self-operated stores decreased by 36 to 239 [7][9]. - Franchise revenue for 2024 was 32.84 billion, a year-on-year increase of 32.35%, while self-operated revenue was 30.17 billion, a decline of 7.40% [7][9]. Financial Data and Valuation - The total market capitalization of the company is 8.8 billion, with a circulating market value of 8.6 billion. The current stock price is 9.89 yuan [3][9]. - The projected earnings per share (EPS) for 2025 is 0.52 yuan, with a PE ratio of 18.9. The company is expected to maintain a steady growth trajectory in the coming years [9][11].