Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company has shown significant recovery in domestic sales, leading to a notable improvement in profitability [1][3] - The revenue for H1 2025 reached 430 million yuan, a year-on-year increase of 34.0%, while the net profit attributable to shareholders was 60 million yuan, up 74.9% year-on-year [1] - The report projects a substantial increase in net profit for 2025-2027, with estimates of 115 million yuan, 141 million yuan, and 163 million yuan respectively, reflecting growth rates of 64.8%, 22.7%, and 15.9% [3] Revenue Breakdown - In H1 2025, the company's proprietary brand business generated 360 million yuan, a 43.6% increase year-on-year, accounting for 82.5% of total revenue [2] - The domestic business in China contributed 330 million yuan, growing by 48.4% year-on-year, primarily due to the implementation of the old-for-new policy and internal adjustments [2] - Overseas revenue was stable at 25 million yuan, with a slight increase of 0.71% year-on-year, while OEM/ODM business revenue grew by 2.05% [2] Profitability Metrics - The gross margin for H1 2025 was 49.7%, an increase of 0.8 percentage points year-on-year, with proprietary brand gross margin at 55.9% [3] - The net profit margin for H1 2025 was 12.9%, up 3.0 percentage points year-on-year, indicating improved profitability [3] - The report highlights a significant optimization in management expenses, with a management expense ratio decrease of 3.6 percentage points [3]