Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown significant improvement in Q1 2025, with revenue reaching 190 million yuan, a year-on-year increase of 14.5%, and a net profit of 13 million yuan, a remarkable increase of 2806.3% compared to the previous year [5] - The decline in 2024's performance was primarily due to the termination of partnerships with key distributors, the transition of the climbing mouse business to joint ventures, and substantial asset impairment provisions [5] - The report anticipates a positive impact from the company's brand transformation strategy and core brand growth momentum, leading to revised profit forecasts for 2025-2027 [5] Financial Summary - Revenue for 2024 is projected at 800 million yuan, a decrease of 5.5% year-on-year, while 2025 revenue is expected to rise to 1,009 million yuan, reflecting a growth of 26.1% [9][10] - The net profit for 2025 is estimated at 48 million yuan, a significant recovery from a loss of 21 million yuan in 2024, with further growth expected in subsequent years [9][10] - The gross margin is expected to stabilize around 56.7% in 2025, with net margins improving to 4.8% [11] - The company's P/E ratio is projected to decrease from 40.3 in 2025 to 24.0 by 2027, indicating a more attractive valuation over time [11] Brand Strategy and Market Outlook - The company is committed to deepening its brand operation strategy, having established four major business units to enhance the growth of both proprietary and exclusive agency brands [6] - The introduction of innovative products and the establishment of flagship stores for exclusive brands are expected to drive sales and improve customer retention rates [6] - The outdoor sports industry is anticipated to continue benefiting from policy support and increasing public health awareness, with the market expected to expand further [7]