Dongwu Securities: Maintains a "buy" rating on Chengdu Lulu, revenue still under pressure, new products make initial contributions.

Dongwu Securities research report pointed out that Chengde Lulu achieved a net profit attributable to the shareholders of the listed company of 2.58 billion yuan in the first half of the year, a year-on-year decrease of 11.97%; in 2025 Q2, the net profit attributable to the shareholders of the listed company was 0.43 billion yuan, a year-on-year decrease of 9.00%. With the weakening overall consumption trend in 2025 and the "small year", the company's revenue continued to be under pressure in the first half of the year, with new products in the water series making initial contributions. The company hopes to make the water series as the second growth curve, with some contributions in Q2. The plant milk series declined, and the bank judged that the main reason was that the company's Q2 marketing investment was more focused on the water series. Based on the half-year performance and the reality of the "small year", the bank adjusted its full-year revenue and profit forecasts. The company is determined to launch new products in 2025, with high expenditure, partially offsetting the benefits of cost reduction. Optimistic about returning to a prosperous year in 2026. The contribution of new products has just begun, and will continue to be observed. If the sales performance is better than expected, the market's view on the company's medium-term growth may change. Based on strong repurchase support and the transition to a busy year at the end of the year, the "buy" rating is maintained.