Investment Rating - The report gives a "Buy" rating for the company with a target price of 86 HKD, compared to the current price of 66.3 HKD [6][14]. Core Insights - The company, Up Beauty Co., Ltd. (2145.HK), is transforming from a single-brand platform to a multi-brand, omnichannel group, with significant growth driven by its main brand, KANS, which ranks second among domestic beauty brands in online GMV for 2024 [2][3]. - The company has experienced rapid revenue growth, with a projected revenue of 6.793 billion CNY in 2024, representing a year-on-year increase of 62.1%, and a net profit of 781 million CNY, up 69.4% [2][4]. Company Overview - Up Beauty Co., Ltd. was established in 2004 and went public in 2022. It operates multiple brands, including KANS, One Leaf, Red Elephant, and New Page, covering skincare, maternal and child care, personal care, and makeup products [2][23]. - KANS, the main brand, has become a leading player in the domestic beauty market, achieving significant online sales growth, particularly on platforms like Douyin [2][3][35]. Industry Analysis - The Chinese cosmetics industry has shown fluctuating growth since 2020, with a projected market size of 537.2 billion CNY in 2024, reflecting a 2.0% year-on-year decline. However, mass-market cosmetics are performing better than high-end products, indicating a shift in consumer preference towards cost-effectiveness [3][72]. - The report highlights that the segments of color cosmetics and infant care are performing relatively well compared to the overall market [3][72]. Growth Highlights - KANS is positioned as a mass-market brand focusing on scientific anti-aging, with plans for product innovation and channel diversification to enhance profitability [4][10]. - The New Page brand is capitalizing on the infant care market, with expected triple-digit growth in revenue for 2023 and 2024 [4][10]. - Other potential brands, such as Jifang and NAN beauty, are also being developed to create multiple growth avenues for the company [4][12]. Financial Projections - The company forecasts net profits of 1.057 billion CNY, 1.381 billion CNY, and 1.738 billion CNY for 2025, 2026, and 2027, respectively, with corresponding EPS of 2.65, 3.47, and 4.37 CNY [4][14]. - Revenue is expected to grow at a compound annual growth rate (CAGR) of 23.6%, 20.9%, and 16.2% from 2025 to 2027 [4][11]. Competitive Positioning - The company has successfully leveraged online channels, particularly Douyin, to drive sales, with KANS achieving significant growth in this space [3][35]. - Compared to peers, Up Beauty Co., Ltd. ranks second in revenue and fourth in net profit among domestic cosmetics companies for 2024 [56][58].

Group 1 - The recent performance of Hong Kong and A-shares has been lackluster, with market movements heavily influenced by U.S. events, particularly Trump's tariff actions [1] - Trump's recent threats to impose tariffs on the EU and increase steel tariffs to 50% have created volatility in the markets, reflecting the uncertainty surrounding U.S. fiscal policy [1][2] - The 30-year U.S. Treasury yield remains above 5%, raising concerns about the stability of U.S. debt and its implications for the broader financial market [1][2] Group 2 - The new consumption sector in Hong Kong is gaining attention, characterized by a diverse range of companies from bubble tea to beauty products, indicating a broad interpretation of consumer spending [5][6] - Major internet companies in China, such as Meituan and Xiaomi, reported strong earnings, with Meituan exceeding revenue and profit expectations despite ongoing competition with JD.com [6] - PDD's financial performance has been mixed, with revenue growth but a significant drop in net profit, attributed to government subsidies and market conditions, leading to volatility in its stock price [6] Group 3 - The IPO market in Hong Kong has shown a positive trend, with a low first-day loss rate of 28.6% for new listings, the lowest since 2017 [7] - New stock performance varies significantly, with some companies like Ningde Times and Guanshi Shuduan showing substantial first-day gains, while others like Paige Biopharma experienced significant losses [8] - The strategy for participating in new stock offerings emphasizes quick exits within three days, suggesting a focus on short-term gains rather than long-term holdings [8][9]

Investment Rating - The report maintains a "Positive" investment outlook for the beauty and personal care industry, emphasizing the potential of domestic brands in the offline channel [3]. Core Insights - The report highlights the transformation of offline channels as a key growth driver for beauty brands, especially in the context of slowing e-commerce growth [4][5]. - It identifies the need for brands to enhance their offline presence to create a differentiated competitive advantage [5][7]. Summary by Sections 1. Online Channel Competition Intensifies, Offline Channel Advantages Emerge - E-commerce growth is slowing, with China's physical goods online retail expected to reach 13.1 trillion yuan in 2024, growing at 6.5% [4][15]. - The number of internet users in China is projected to reach 1.108 billion by the end of 2024, with an internet penetration rate of 78.6% [4][15]. - New consumption policies are being implemented to boost offline consumption, enhancing brand influence and customer engagement [4][27]. 2. Multi-Dimensional Analysis of Offline Channel Formats - Offline channels serve both sales and brand marketing functions, with a variety of formats emerging to meet consumer needs [40]. - High-end beauty counters are experiencing a phase of quality improvement, with a significant increase in average sales per counter from 3.36 million yuan in 2019 to nearly 5 million yuan in 2023 [46][50]. - The report notes that high-end brands are increasingly occupying the beauty counter space, with a 32% increase in high-end counters from 2019 to 2023 [50][53]. 3. Brand Strategies in Offline Channel Development - Domestic brands are actively expanding their offline presence, with several launching flagship stores in major cities [38][39]. - The report recommends specific companies for investment, including: - Shangmei Co., which is developing a balanced multi-brand matrix [5]. - Shanghai Jahwa, known for its extensive presence in supermarkets and counters [5]. - Proya, which is focusing on offline channels with its energy series [5]. - Betaini, leveraging pharmacy channels to establish a professional image [5]. - Maogeping, which has a unique offline counter layout [5]. - Runben, a leading brand in maternal and infant products, expanding its offline market [5].

上海致力于成为时尚出品地、潮流集聚地、创新策源地，正全力打造"上海时尚出品"这一标志性IP，推 进全要素生态构建。 作为其中的核心活动，"上海制造佳品汇"是上海时尚消费品产业高规格供需对接平台，此前已连续成功 举办五届，持续促进供需对接、项目落地、国潮出海，推进海内外企业投资上海时尚。 当地时间5月21日下午，2025"上海制造佳品汇"大阪专场暨"上海之夏"全球推介系列活动大阪站，在日 本大阪梅田Grand Green Osaka开幕。本次活动由工业和信息化部消费品工业司指导，上海市经济信息化 委、商务委、市场监管局主办，上海市长宁区商务委、上海设计周、上海服装设计协会、智通财经承 办。在来自上海、大阪两地的近百位品牌代表、设计师及媒体人士的共同见证下，中国驻大阪总领事馆 副总领事方炜、中国东方航空日本支社社长孙黎、西日本中企连合会会长关志浩、上海设计周联合首席 执行官刘锦耀、上海服装设计协会会长王嵘为活动开幕剪彩。 剪彩仪式 本文图片均由上海设计周提供 这是"上海时尚出品"的一次生态圈组团出海，将上海时尚消费品产业的创新实力和多维价值在日本大阪 梅田商圈精彩呈现。 一次上海时尚生态圈的组团出海 方炜致辞并表 ...

公开信息显示，现任基金经理晏青先生:中国国籍,上海交通大学经济学硕士。曾任交银施罗德基金管理 有限公司研究员、基金经理,上海弘尚资产管理中心(有限合伙)投资经理、海外投资总监。现任永赢基金 管理有限公司权益投资部副总经理。2019年10月16日至2020年11年10月担任永赢创业板指数型发起式证 券投资基金的基金经理;2020年3月25日至2023年10月17日,担任永赢股息优选混合型证券投资基金的基 金经理。2020年9月29日至今,担任永赢港股通品质生活慧选混合型证券投资基金的基金经理。曾任永赢 股息优选混合型证券投资基金基金经理。2021年5月14日担任永赢港股通优质成长一年持有期混合型证 券投资基金的基金经理。 5月19日，永赢港股通优质成长一年混合（011315）下跌0.84%，最新净值0.72元，连续3个交易日下 跌，区间累计跌幅1.67%。 据了解，永赢港股通优质成长一年混合成立于2021年5月，基金规模2.40亿元，成立来累计收益 率-27.57%。从持有人结构来看，截至2024年末，永赢港股通优质成长一年混合的基金机构持有0.02亿 份，占总份额的0.58%，个人投资者持有3.40亿份，占总 ...

Group 1 - The core viewpoint is that the high sales expenses in the daily chemical skincare industry significantly erode profits, leading to high gross margins but low net margins [1][3] - In 2024, over half of the selected companies in the daily chemical skincare industry have a sales expense ratio exceeding 40%, indicating that they allocate more than 40% of their revenue to marketing [1] - Yatsen E-commerce has the highest sales expense ratio at 60.1%, followed by Shangmei Co. and Marubi Biotechnology with ratios of 58.11% and 55.04% respectively [1] Group 2 - Many listed companies in the daily chemical skincare industry invest heavily in marketing while underinvesting in research and development, leading to severe product homogeneity and insufficient innovation [3] - The heavy reliance on marketing has resulted in a price war within the industry, which diminishes profitability and creates a vicious cycle [3] - Companies like Betaini have become overly dependent on a single brand, with over 90% of their main business revenue coming from the "Winona" brand, which has seen a sales decline of 5.45% in 2024 [3] Group 3 - The challenge for many companies in the daily chemical skincare industry in 2025 will be to balance marketing and research and development expenditures, transitioning from a marketing-driven approach to a product-driven one [4]

Investment Rating - The report maintains an "Overweight" rating for the industry [4][6]. Core Insights - The 618 promotional event has been advanced, with Tmall's pre-sale period shortened compared to the previous year's Double Eleven event. The first wave of Tmall's 618 sales runs from May 13 to May 26, 2025, with a pre-sale deposit payment phase from May 13 to May 16, and a final payment and early purchase phase from May 16 to May 26. This is a 7-day advance compared to last year's 618 event and a 4-day reduction compared to last year's Double Eleven pre-sale period [2][11]. - The promotional mechanisms have been simplified, with Tmall and JD.com eliminating cross-store discounts and increasing platform subsidies. Tmall's official discounts range from 15% to 50%, and the number of coupons issued to 88VIP members has increased significantly from 2 to 6 compared to last year [2][12]. - The first hour of sales in Li Jiaqi's live stream saw a GMV increase of over 10% year-on-year, with notable performances from domestic brands such as Proya and Kefu Mei [3][15]. Summary by Sections 1. 618 Promotional Event - The promotional event's schedule has been advanced, with Tmall's pre-sale period shortened compared to the previous year [2][11]. - JD.com has canceled the pre-heating period, maintaining the same sales period as last year [2][11]. 2. Li Jiaqi's Live Stream Sales Performance - The first hour of the "Explosive Beauty Festival" in Li Jiaqi's live stream saw a GMV increase of over 10% year-on-year, with multiple brand collaborations [3][15]. - Domestic brands such as Proya and Kefu Mei performed exceptionally well during the first day of sales [3][16]. 3. Tmall 618 Pre-sale Rankings - Proya ranked first in the beauty sales during the first four hours of Tmall's pre-sale, with Kefu Mei entering the top three [3][21]. - The rankings indicate a strong performance from domestic brands, with Proya maintaining its leading position and Kefu Mei rising three spots [3][21].

Group 1 - The trend of refined parenting is emerging as a new generation of parents, primarily those born in the 1990s and 2000s, are driving changes in child-rearing concepts and consumption patterns, leading to an increased demand for children's skincare products [1] - The baby and toddler skincare market in China is expected to reach nearly 50 billion yuan by 2026, with the skincare segment projected to reach 18 billion yuan, expanding from basic cleaning and moisturizing to more functional areas such as sensitive skin, eczema, sun protection, and mosquito repellent [1] - Domestic beauty companies are increasingly entering the baby skincare market, with brands like Jichu launching products that address common skin issues in infants, such as eczema, through patented micro-ecological balance technology [1] Group 2 - Sales of baby skincare products on major e-commerce platforms are reaching new highs, with companies like Shiseido's subsidiary, Up Beauty, launching multiple baby skincare brands, including Red Elephant and Newpage, which reported significant revenue growth [4] - Newpage achieved a revenue of 376 million yuan in 2024, marking a year-on-year growth of 146.3%, while its revenue growth in 2023 was nearly five times [4] - Other brands like Winona Baby and Qichu are also gaining traction, with Winona Baby generating 201 million yuan in revenue in 2024, reflecting a year-on-year increase of 34.03% [4]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][6]. Core Insights - The company has established itself as a leading domestic beauty group through a multi-brand strategy, with a strong focus on product innovation and market responsiveness [2][18]. - The company is expected to achieve steady revenue growth driven by its main brand, Han Shu, and the gradual ramp-up of its sub-brands [4][31]. Summary by Sections Company Overview - The company has been deeply engaged in the beauty industry for over 20 years, launching multiple brands including Han Shu, Yi Ye Zi, and Hong Se Xiao Xiang, and is preparing to introduce new high-end and baby care brands [1][18]. Financial Analysis - The company experienced a significant revenue increase in 2023, with projected revenues of 67.93 billion and a net profit of 7.81 billion in 2024, reflecting growth rates of 62.08% and 69.42% respectively [5][25]. Business Operations - The company operates a diverse product matrix, with Han Shu accounting for 82% of revenue in 2024, while sub-brands are gradually gaining traction [30][31]. - The company is expanding its channel presence, particularly in Tmall, to complement its strong performance on Douyin [44][47]. Core Advantages - The company has established a robust R&D and marketing framework, with significant investments in proprietary research and a strong marketing presence on platforms like Douyin [3][22]. - The company’s main brand, Han Shu, has positioned itself effectively in the market, leveraging high-quality, cost-effective products to capture consumer interest [35][42]. Profitability Forecast - The company forecasts revenues of 84.90 billion, 102.89 billion, and 123.07 billion for 2025, 2026, and 2027 respectively, with corresponding net profits of 10.04 billion, 12.50 billion, and 15.20 billion [4][5].

Core Insights - The performance of domestic beauty companies in China is showing significant divergence, with some achieving remarkable growth while others face declines, indicating a reshaping of the market landscape [1][4][42] Group 1: Company Performance - Proya has become the first domestic beauty company to enter the 10 billion yuan club, with a revenue of 10.778 billion yuan, growing by 21.04% [2] - Other companies like Shangmei and Juzi Biological also reported substantial revenue increases of 62.08% and 57.17% respectively, while Shanghai Jahwa experienced a revenue decline of 13.93% [2][3] - Six beauty companies have revenues exceeding 5 billion yuan, suggesting that this threshold will soon become a significant benchmark for the top 10 domestic beauty brands [1] Group 2: Profitability Trends - Juzi Biological leads in profitability with a profit of 2.062 billion yuan, up 42.06%, while Proya's profit reached 1.552 billion yuan, growing by 30% [3] - In contrast, Shanghai Jahwa reported a loss of 833 million yuan, marking a 266.60% decline, highlighting the stark differences in profitability among companies [3][11] Group 3: Market Dynamics - The current market dynamics indicate a shift towards efficacy-driven products, with companies that successfully launched standout products seeing better performance [4][5] - The competition is intensifying, with new entrants emerging and established brands needing to adapt to changing consumer preferences and market trends [7][30] Group 4: R&D and Strategic Focus - Companies are increasingly focusing on R&D, with most reporting a rise in R&D expenditures, indicating a strategic shift towards innovation and efficacy [20][21] - The trend of acquisitions and investments in technology is becoming a key strategy for companies aiming to enhance market share and scale [23][24] Group 5: Emerging Opportunities - The male skincare market is growing rapidly, presenting new opportunities for brands to capture this segment [36] - The aging population is creating demand for products targeting older consumers, which remains largely untapped [39] - As online sales plateau, brands are shifting focus to offline channels, indicating a potential new battleground for market share [40]