[Zhejiang Securities Light Manufacturing | Key Recommendation] Zhiou Tech: Reform Payoff Period, Strong Operating Trend, Pullback Offers Entry Opportunity

English summary

# Operating trend unchanged; focus on entry opportunities. The stock pulled back significantly today, but we track that Q2 operating trends are improving. Considering revenue concessions under VC/VOC models, actual GMV growth is better. The European base is stable, and a turning point has emerged in the US, with the previous recommendation logic continuing to deliver. # High certainty of full-year earnings growth. Despite the impact of Prime Day timing shift in July, the strong operating trend continues. After strategy adjustment, the success rate of product expansion has improved. In 2026, the contribution from new products is significantly better than in 2025, and the company has re-entered a phase of launching new products and expanding categories to gain market share. # Growth is smooth; maintain recommendation. The company currently covers only about 10% of Amazon's home third-level categories, leaving ample room for new category expansion, US share recovery, and multi-channel layout. We maintain our key recommendation, expecting profit of RMB 500 million/650 million for 2026/2027, corresponding to PE of 14.8x/11.4x. Risk warnings: Demand in Europe and the US may miss expectations, tariff policy changes, exchange rates and shipping price fluctuations, and new product expansion may miss expectations.