Investment Rating - The report maintains an "Outperform" investment rating for the company [2][7]. Core Insights - The company's performance in Q3 2025 was below expectations, with total revenue of 552 million yuan, a year-on-year decline of 34%. The net profit attributable to the parent company was -66 million yuan, a significant drop of 601% year-on-year [7]. - The company is diversifying its sales channels, with the "Light Relaxation Moment" brand contributing to incremental growth. It is actively expanding in overseas markets and collaborating with major e-commerce platforms like Tmall and JD [7]. - The company has increased its offline presence, with 125 direct stores globally as of H1 2025, focusing on high-traffic areas. The "Light Relaxation Moment" brand aims to enhance service quality through a combination of smart devices and traditional therapies [7]. - The company has adjusted its profit forecasts downward due to rising expense ratios and lower-than-expected sales performance, projecting net profits of -27 million, 28 million, and 46 million yuan for 2025-2027 [7]. Financial Data and Profit Forecast - Total revenue for Q1-3 2025 was 552 million yuan, with a year-on-year decrease of 34.1%. The gross profit margin was 60.86%, down 5.94 percentage points year-on-year [6][7]. - The company recorded a net profit margin of -17.80% in Q3 2025, a decline of 12.21 percentage points year-on-year [7]. - The projected earnings per share for 2025 is -0.31 yuan, with a recovery expected in subsequent years [6][7].

Investment Rating - The report maintains an "Outperform" investment rating for the company [2][7]. Core Insights - The company's performance in the first half of 2025 was below expectations, with a revenue of 385 million yuan, a year-on-year decline of 36%, and a net profit attributable to shareholders of -36 million yuan, indicating a significant downturn [7]. - The company is diversifying its sales channels, with the "Light and Easy" brand expected to contribute incremental revenue. The company has established 125 direct-operated stores globally, focusing on high-traffic areas [7]. - The gross profit margin improved to 64.09% in Q2 2025, up 3.17 percentage points year-on-year, primarily due to the higher margin from the "Light and Easy" stores [7]. Financial Data and Earnings Forecast - Total revenue projections for 2025 are set at 984 million yuan, with a year-on-year decline of 9.3%. The net profit forecast for 2025 is 49 million yuan, reflecting a significant recovery from the previous year's losses [6][9]. - The earnings per share (EPS) is expected to be 0.57 yuan for 2025, with a projected growth of 373.6% year-on-year [6][9]. - The company anticipates a gradual recovery in profitability, with net profits expected to reach 78 million yuan in 2026 and 93 million yuan in 2027 [6][9].

Investment Rating - The report maintains an "Outperform" investment rating for the company [2][7]. Core Views - The company's performance in H1 2025 was below expectations, with total revenue of 385 million yuan, a year-on-year decline of 36%, and a net profit attributable to shareholders of -36 million yuan, indicating a negative turnaround [7]. - The decline in performance is attributed to a drop in online revenue and decreased foot traffic in offline stores, coupled with high fixed costs [7]. - The company is diversifying its sales channels, with the "Light and Easy Moment" brand expected to contribute incremental growth, and is actively expanding into overseas markets [7]. - The gross margin improved to 64.09% in Q2 2025, up by 3.17 percentage points year-on-year, primarily due to the higher margin from "Light and Easy Moment" stores [7]. - The report slightly lowers the profit forecast for 2025-2027 but maintains a positive outlook with projected net profits of 49 million, 78 million, and 93 million yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 374%, 60%, and 20% [7]. Financial Data and Earnings Forecast - Total revenue for 2025 is estimated at 984 million yuan, with a year-on-year decline of 9.3% [6]. - The net profit for 2025 is projected to be 49 million yuan, a significant recovery from the previous year's loss [6]. - The earnings per share (EPS) for 2025 is expected to be 0.57 yuan, with a projected price-to-earnings (P/E) ratio of 62 [6]. - The company’s gross margin is forecasted to improve gradually, reaching 64.4% by 2027 [6].