According to the Guosheng Securities Research Report, the 2026Q3 net profit after deducting non-return to mother increased by 40%, exceeding expectations. E-commerce continues to grow rapidly, and the performance of direct sales is estimated to be better than joining. 1) By channel: 2026H1 online/direct/franchise sales revenue was 4.3/16.6/49 billion yuan respectively, up 102%/18%/5% year-on-year respectively. We judge that the 2026Q3 trend will basically continue. E-commerce continues to grow rapidly, and direct management is growing faster than joining. 2) Looking at volume and price breakdown: At the end of the 2026H1 period, there were 783/645 direct-operated/franchised stores, respectively, a net increase of 22 or 6 compared to the beginning of the year. Based on recent store opening performance, we expect a net increase of about 80 to 100 stores in 2026. The increase in new stores plus the rise in secondary stores and rapid e-commerce growth is expected to drive the same increase in the company's revenue by more than 20% in 2026. Later efficiency improvements are expected to drive the optimization of store profitability. The company's brands are clearly differentiated, increasing the coverage of sports and outdoor scenes. The company's main brand is Card Sports Fashion Circuit. Other brands have opened up space for long-term development, and their performance is expected to continue to be released. According to the operating situation, the net profit forecast is expected to be 8.1/10.1/1.17 billion yuan from 2026 to 2028, respectively, 19.3 times PE in 2026/15.5 times PE in 2027, maintaining a “buy” rating.

According to the Guosheng Securities Research Report, the 2026Q3 net profit after deducting non-return to mother increased by 40%, exceeding expectations. E-commerce continues to grow rapidly, and direct sales are estimated to be better than joining. 1) By channel: 2026H1 online/direct/franchise sales revenue was 4.3/16.6/49 billion yuan respectively, up 102%/18%/5% year-on-year respectively. We judge that the 2026Q3 trend will basically continue. E-commerce continues to grow rapidly, and direct management is growing faster than joining. 2) Looking at volume and price breakdown: At the end of the 2026H1 period, there were 783/645 direct-operated/franchised stores, respectively, a net increase of 22 or 6 compared to the beginning of the year. Based on recent store opening performance, we expect a net increase of about 80 to 100 stores in 2026. The increase in new stores plus the rise in secondary stores and rapid e-commerce growth is expected to drive the same increase in the company's revenue by more than 20% in 2026. Later efficiency improvements are expected to drive the optimization of store profitability. The company's brands are clearly differentiated, increasing the coverage of sports and outdoor scenes. The company's main brand is Card Sports Fashion Circuit. Other brands have opened up space for long-term development, and their performance is expected to continue to be released. According to the operating situation, the net profit forecast for 2026 to 2028 is expected to be 8.1/10.1/1.17 billion yuan, respectively, 19.3 times PE in 2026/15.5 times PE in 2027, maintaining a “buy” rating.