Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Insights - The company reported a total revenue of 3.532 billion yuan for H1 2025, a year-on-year decline of 23.4%, while the net profit attributable to shareholders was 737 million yuan, down 17.3%. In Q2 2025, revenue was 1.741 billion yuan, a decline of 11.5%, but net profit increased by 71.4% to 282 million yuan, aligning with market expectations [7] - Due to the ongoing external consumption environment and unstable market competition, the profit forecasts for 2025 and 2026 have been adjusted downwards, with new forecasts for 2027 introduced. The projected net profits for 2025-2027 are 707 million, 813 million, and 934 million yuan, respectively, reflecting year-on-year growth rates of 8.3%, 15.0%, and 14.9% [7] - The company is focusing on high-quality operations and actively reforming online and offline channels to adapt to external changes. Long-term growth is expected as the population's age structure improves and public health awareness increases [7] Financial Data and Profit Forecast - Total revenue projections for 2025 are set at 6.179 billion yuan, with a year-on-year decline of 9.6%. The gross profit margin is expected to be 67.3% [6] - The company achieved a gross profit margin of 68.4% in Q2 2025, an increase of 1.68 percentage points year-on-year, attributed to improved product structure from high-value new products [7] - The net profit margin for Q2 2025 reached 17.1%, up 8.86 percentage points year-on-year, driven by effective cost control [7] Revenue Breakdown - The main brand and "Jianli Duo" benefited from effective operational adjustments, with Q2 revenue for the main brand at 905 million yuan, down 17.0% year-on-year, and "Jianli Duo" at 210 million yuan, down 3.67% [7] - Online channel revenue was 918 million yuan, a decline of 12.07%, while offline channel revenue was 810 million yuan, down 10.69% [7] Price Performance Catalyst - Key catalysts for stock price performance include better-than-expected growth in major products and accelerated online channel development [7]

Core Viewpoint - The report from Huaxin Securities indicates that Tongchen Beijian has narrowed its revenue decline in Q2, optimizing resource allocation dynamically, leading to improved profitability [1] Revenue Performance - In H1 2025, the revenue for the main brand, Jianliduo, Lifespace domestic products, and overseas LSG was down by 28%, 30%, 34%, and up by 13% respectively, amounting to 1.888 billion, 0.411 billion, 0.138 billion, and 0.534 billion yuan [1] Sales Channels - Revenue from offline and online channels in H1 2025 decreased by 32% and 14% respectively, reaching 1.798 billion and 1.684 billion yuan [1] - The online channel is currently undergoing strategic adjustments, including the establishment of a self-broadcasting team to reduce expenses [1] - The offline channel focuses on cost reduction and efficiency improvement, optimizing the distribution system, with a net reduction of 147 distributors to 640 by the end of H1 2025 [1] Future Strategies - The company plans to stabilize its business through multiple strategies, including enriching SKU, lowering price points, and a distributor awakening plan [1] - The internal adjustments are ongoing, with significant improvement in profitability quarter-on-quarter, and expectations for a further narrowing of revenue decline and an increase in profit margins for the full year [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a narrowing decline in revenue, with improved profitability driven by cost control measures [5][7] - The second quarter showed a significant recovery in net profit, with a year-on-year increase of 71% [4][5] - The company is focusing on optimizing its resource allocation and enhancing its operational efficiency [5][6] Financial Performance Summary - For the first half of 2025, total revenue was 3.532 billion yuan, a decrease of 23% year-on-year, while net profit attributable to shareholders was 737 million yuan, down 17% [4] - In Q2 2025, total revenue was 1.741 billion yuan, a decrease of 12% year-on-year, but net profit increased by 71% [4] - The gross margin for H1 2025 was 68.55%, with a slight decrease of 0.01 percentage points, while Q2 2025 saw an increase of 2 percentage points to 68.43% [5] - The company reduced its sales expense ratio by 5 percentage points in H1 and 11 percentage points in Q2, indicating effective cost control [5] Revenue and Profit Forecast - The company expects a further narrowing of revenue decline and an increase in profit margins for the full year 2025 [7] - The adjusted earnings per share (EPS) forecasts for 2025-2027 are 0.46, 0.52, and 0.60 yuan respectively, with corresponding price-to-earnings (PE) ratios of 27, 24, and 21 times [7][10]

Core Viewpoint - The company reported a decline in revenue and net profit for Q1 2025, with revenue at 1.79 billion yuan, down 32.3% year-on-year, and net profit at 455 million yuan, down 37.44%, which aligns with expectations [1]. Revenue Performance - Q1 2025 revenue was 1.79 billion yuan, with major brands experiencing significant declines: main brand down 36.4%,健力多 down 46.2%, and lifespace down 36.2% due to high base effects from the previous year and ongoing challenges in foot traffic at pharmacies [2]. - The company maintained a focus on channel health, reducing inventory compared to the previous year, and expects Q1 revenue to account for a lower proportion of annual revenue than the 38% seen last year [2]. - Online revenue showed a 5.94% increase year-on-year, driven by stable performance in probiotics and cross-border e-commerce [2]. - Offline channel revenue decreased by 43% year-on-year, while online channel revenue decreased by 16%, with the decline rate narrowing [2]. Profitability and Cost Management - The gross margin for Q1 2025 was 68.7%, down 1.2 percentage points year-on-year, primarily due to an increase in low-margin products and the impact of declining revenue on scale effects [2]. - Sales expenses decreased by 34% year-on-year, with the sales expense ratio down by 0.9 percentage points, reflecting strict cost control measures [2]. - Overall profit margin declined by 1.1 percentage points but remained stable [2]. Strategic Initiatives - The company is implementing multiple strategies to drive sales growth, including reshaping the value chain for basic nutrition products and launching new products in collaboration with chain pharmacies [3]. - The introduction of specialized, high-value products and a focus on online channels through high-end product upgrades and brand recognition initiatives are expected to contribute to revenue growth starting in Q2 [3]. - The company anticipates that the most challenging period has passed, with revenue and profit expected to improve quarter by quarter [3]. Earnings Forecast and Valuation - Due to pressure in offline channels, the earnings forecast for 2025 and 2026 has been revised down by 6% to 830 million yuan and 980 million yuan, respectively [4]. - The company is currently trading at 22.5/19.0 times P/E for 2025/2026, with a target price of 12.6 yuan, implying a potential upside of 15.4% [4]. - The long-term potential in the health supplement sector is recognized, maintaining an outperform rating [4].