ZHOU HEI YA recently released its 2025 interim financial results, reporting total revenue of RMB 12.23 billion and net profit of RMB 108 million, representing a remarkable 228.0% year-over-year increase and demonstrating significant improvement in profitability. Following the earnings release, several leading brokerages including Citi, CLSA, China Merchants Securities, CITIC Securities, and Guoyuan International have collectively raised their target prices or investment ratings, showing unanimous confidence in the company's store reform effectiveness and future growth potential.

**ZHOU HEI YA's Interim Results Show Strong Profit Growth with Margins Exceeding Expectations**

According to the interim financial report, ZHOU HEI YA achieved operating revenue of RMB 12.23 billion and net profit of RMB 108 million in the first half of 2025, with net profit surging 228% year-over-year. The net profit margin improved significantly by 6.2 percentage points to 8.8%, with core profitability metrics far exceeding market expectations.

During the first half, ZHOU HEI YA focused on enhancing single-store operational quality by optimizing service processes and consumer experiences to continuously strengthen store profitability. On one hand, the company expanded consumption scenarios by encouraging frontline staff to participate in live-streaming sales, facilitating effective conversion from online traffic to offline consumption. The company established a "staff-private domain" collaboration mechanism, leveraging big data and digital intelligence tools for precision marketing while strengthening membership and private domain operations to improve member repurchase rates and loyalty.

On the other hand, ZHOU HEI YA continued advancing product optimization and iteration, building differentiated competitive advantages through its signature "ZHOU HEI YA flavor." The company launched new products including sauced duck, braised squid, sauced duck wing roots, and regionally limited Sichuan spicy duck necks. These new products not only continue ZHOU HEI YA's iconic classic flavors but also cater to consumers' current demands for diversity and personalization. After launch, they quickly gained market recognition and further drove store traffic and sales growth, providing significant support for single-store efficiency improvements.

During the reporting period, ZHOU HEI YA's average single-store output increased 15.5% year-over-year, with store operational quality showing marked improvement.

While consolidating its store foundation, ZHOU HEI YA actively expanded circulation channel business beyond its own retail channels, elevating this to strategic importance as the company's second growth curve. In the first half, ZHOU HEI YA successfully collaborated with Sam's Club to develop customized ZHOU HEI YA classic marinade packages and flavored duck sauce. The company also reached strategic partnerships with Yonghui, Fat Donglai and others, effectively expanding consumption scenarios through vacuum-packed and bulk products combined with dedicated displays and joint marketing.

Additionally, ZHOU HEI YA accelerated its Southeast Asian market expansion and leveraged new products such as "Ga Ga Xiang" seasonings and "Ya Ya Ye" coconut water to build a diversified product matrix, gradually breaking through traditional braised food category boundaries and opening broader space for future revenue growth.

**Leading Brokerages Show Collective Optimism, Raising Target Prices and Ratings**

Following the earnings release, multiple leading brokerages issued research reports acknowledging ZHOU HEI YA's development momentum across dimensions including store efficiency, new channel expansion, and overseas expansion.

Citi noted in its August 29 report that ZHOU HEI YA achieved substantial net profit growth through cost control and operational efficiency optimization, with profit margin recovery exceeding expectations. Citi maintained its "Buy" rating and raised the target price from HK$2.66 to HK$2.70. With store adjustments completed, single-store efficiency improving, and new business advancing, Citi forecasts ZHOU HEI YA's full-year 2025 net profit could reach RMB 211 million.

CLSA emphasized in its report that ZHOU HEI YA has essentially completed its store network adjustment, with over 80% of stores now profitable, and operational focus shifting toward store upgrades and cross-channel expansion. CLSA maintained its "Outperform" rating with high conviction and raised the target price from HK$2.30 to HK$2.80.

China Merchants Securities mentioned in its research report that ZHOU HEI YA's first-half single-store efficiency turned positive year-over-year, with rapid membership growth and significant contributions from new products in new channels like Sam's Club, Yonghui, and wholesale markets, as well as overseas market expansion. China Merchants Securities believes the company's strategy is firm with reform effectiveness gradually emerging, upgrading its rating to "Strongly Recommended."

Beyond the aforementioned institutions, CITIC Securities and Guoyuan International also published reports, both assigning "Buy" ratings and expressing optimism about the company's sustained performance growth through multiple initiatives including refined store operations, product structure optimization, and new channel and overseas market expansion.

Institutions generally believe that ZHOU HEI YA's leading position in the braised food industry is further consolidated, with broad future growth prospects.