Market Overview - The A-share market has shown strong performance, breaking through last year's high, with expectations for continued upward movement supported by reasonable valuations and new positive factors such as a potential interest rate cut by the Federal Reserve and a recovery in public fund issuance [2][3] - The weighted REITs index has decreased by 1.52% during the week of August 18-22, 2025, indicating a downward trend in the secondary market prices of publicly listed REITs [2] Credit Bonds - A total of 375 credit bonds were issued from August 18 to August 22, 2025, with a total issuance scale of 376.74 billion, reflecting a week-on-week increase of 12.45% [3] - The total transaction volume of credit bonds reached 1,286.40 billion, up 16.04% week-on-week, with commercial bank bonds, corporate bonds, and medium-term notes being the top three in transaction volume [3] Convertible Bonds - The CSI Convertible Bond Index increased by 2.8% during the week, with a year-to-date increase of 17.9%, slightly below the equity market performance [4] - Current valuations of convertible bonds are close to or exceed historical highs, yet the equity market remains robust, suggesting continued strong performance in the convertible bond market [4] High-end Manufacturing - Exports of engineering machinery maintained double-digit growth, with excavators, tractors, and mining machinery showing year-on-year increases of 24%, 30%, and 25% respectively [6] - The report suggests focusing on companies like QuanFeng Holdings, JuXing Technology, and Xugong Machinery due to their strong export performance [6] TMT Sector - The company SUTENG has seen rapid growth in its robotics business, indicating a successful strategic transformation [6] - The report highlights the importance of SUTENG's self-research technology and its competitive advantages in the ADAS and robotics ecosystem [6] Agriculture, Forestry, Animal Husbandry, and Fishery - The report notes a slight decline in pig prices, with the average price of live pigs at 13.75 yuan/kg, down 0.07% week-on-week [6] - The government has initiated pork storage measures to boost market sentiment, suggesting a potential recovery in pig prices [6] Medical and Biological Sector - The report recommends increasing allocations to the medical device sector, highlighting undervalued companies in Hong Kong and those with strong growth potential [7] - Companies like Weikang Medical and Mindray Medical are noted for their robust growth and research capabilities [7] Petrochemical Sector - The report indicates a significant market opportunity for the renovation of old refineries, with companies like Sinopec Engineering and PetroChina Engineering expected to benefit [7] - The report emphasizes the trend of "de-involution" in the refining industry, which may lead to a substantial market for dismantling and renovation [7] Basic Chemicals - The second phase of phosphate fertilizer export quotas has been allocated, with leading companies expected to benefit from high overseas prices [7] - The report anticipates continued high demand for high-grade phosphate rock in the short to medium term [7] Non-Banking Financials - AIA Insurance has seen new business value reach new highs, with stable growth in operating profits [10] - The report adjusts profit forecasts for AIA for 2025-2027, maintaining a "buy" rating [10] Real Estate - The property management sector shows steady growth, with a stable dividend outlook from companies like Yuexiu Services [10] - The report notes a slight decline in net profit but maintains a positive outlook due to strong project delivery from related companies [10] Electric New Energy - The report highlights the growth potential in the energy storage battery sector, with companies like Yiwei Lithium Energy expected to benefit from increased demand [24] - The company has adjusted its profit forecasts for 2025, reflecting a strong competitive position in the market [24] Textile and Apparel - The report indicates a decline in profit margins for companies like Li Ning, despite revenue growth [34] - The company is expected to maintain a strong brand presence, with a "buy" rating maintained [34]

Core Viewpoint - The daily chemical industry in China is experiencing significant growth, driven by rising consumer demand and an increase in living standards, with projections indicating substantial revenue and profit growth in the coming years [1][4][6]. Group 1: Industry Overview - The daily chemical industry is a vital part of the national economy and a significant segment of the fast-moving consumer goods sector, providing essential products for daily use [1][4]. - The industry is expected to see sales revenue from large-scale enterprises increase from CNY 404.14 billion in 2018 to CNY 413.84 billion in 2024, with profits projected to rise from CNY 43.04 billion to CNY 38.63 billion in the same period [1][4][6]. - By 2025, sales revenue is anticipated to reach CNY 435 billion, with total profits expected to hit CNY 40 billion [1][6]. Group 2: Industry Chain - The upstream of the daily chemical industry includes raw materials such as surfactants, matrix materials, natural/plant materials, and packaging materials, with surfactants being crucial for product efficacy [8]. - The midstream involves the production and manufacturing of daily chemical products, while the downstream encompasses sales channels and end consumers, including supermarkets, convenience stores, specialty shops, and e-commerce platforms [8]. Group 3: Development Environment and Policies - The government has implemented various policies to support the development of the daily chemical industry, enhancing the regulatory framework and promoting sustainable growth [10]. - Key policies include the "Cosmetics Sampling Inspection Management Measures" and announcements aimed at optimizing the registration and inspection processes for ordinary cosmetics, which contribute to a more robust industry structure [10][12]. Group 4: Competitive Landscape - The Chinese daily chemical market is characterized by intense competition, with both international brands like L'Oréal and Unilever and domestic brands like Shanghai Jahwa and Proya coexisting [13][15]. - Domestic brands are gaining traction by leveraging their understanding of local markets and flexible strategies, while international brands maintain consumer trust through established reputations [13][15]. Group 5: Industry Trends - The daily chemical industry is witnessing a surge in brand proliferation, with local companies increasingly capturing market share and developing competitive advantages [19]. - There is a growing trend towards personalization in consumer demands, necessitating companies to adapt to diverse regional preferences and consumer behaviors [20]. - The male grooming market is emerging as a new competitive frontier, with increasing demand for male-targeted daily chemical products [20]. - Safety and health concerns are driving consumer preference towards natural and organic products, prompting companies to focus on reducing harmful additives in their offerings [20].

Core Viewpoint - Marubi Biological achieved a revenue growth of 30.83% year-on-year, contrasting with a mere 5.21% increase in net profit, indicating a structural adjustment in the beauty industry where the company is prioritizing online direct sales over profitability [2][7]. Revenue Performance - In the first half of the year, Marubi Biological reported a revenue of 1.769 billion yuan, up from 1.352 billion yuan in the same period last year, marking a significant acceleration in growth [2][4]. - The overall cosmetics retail sales in China grew by only 2.9%, significantly lower than the 5% increase in total retail sales, highlighting Marubi's outperformance in a sluggish market [2]. Brand Strategy - The main brand Marubi continues to strengthen its position in eye care, while the new makeup brand Lianhuo focuses on foundation products, contributing to a diversified product matrix [4]. - Marubi's core products, such as the peptide eye cream and collagen essence, have driven substantial revenue, with the new collagen mask achieving top sales on Tmall [4]. Channel Performance - Online sales accounted for 89% of total revenue, growing by 37.9%, while offline sales declined by 7.1%, indicating a strong shift towards online channels [6]. - Tmall serves as the primary online platform for Marubi, with top products accounting for 73% of sales, and membership transactions increasing by 28% [6]. Profitability Challenges - The company's net profit for the first half was 186 million yuan, a modest increase of 5.21%, with a significant drop in net profit in the second quarter [7][8]. - Sales expenses surged to 1 billion yuan, with a sales expense ratio of 56.53%, far exceeding competitors, driven by high marketing costs [8][10]. Marketing and Cost Structure - Advertising expenses reached 905 million yuan, a 42.97% increase from the previous year, contributing to the disparity between revenue growth and profit [10][12]. - The overall gross margin slightly decreased to 74.6%, with a more pronounced decline in the second quarter, indicating pressure on profit margins due to pricing strategies and cost structures [10][12]. Industry Context - The trend of "spending to gain volume" is prevalent in the beauty industry, where companies must continuously invest in marketing to avoid revenue stagnation [12].

Core Viewpoint - The company reported strong revenue growth in the first half of 2025, driven by the synergistic development of its dual brands, Marumi and PL Lianhuo, alongside a focus on innovation and digital transformation [2][4]. Financial Performance - In H1 2025, the company achieved revenue of 1.769 billion yuan, representing a year-on-year increase of 30.8% [1][2]. - The net profit attributable to shareholders was 186 million yuan, up 5.2% year-on-year, while the non-recurring net profit was 177 million yuan, reflecting a 6.6% increase [1][2]. - The sales expense ratio increased to 56.5%, up 3.44 percentage points year-on-year, while the management expense ratio decreased to 2.85%, down 0.58 percentage points [2]. Brand Strategy - The company continues to deepen its focus on core products through a big single product strategy, enhancing brand effectiveness and market presence [3]. - Marumi's brand revenue reached 1.25 billion yuan, growing by 34.36% year-on-year, while PL Lianhuo's revenue was 516 million yuan, with a year-on-year increase of 23.87% [2][3]. Future Projections - Revenue forecasts for 2025-2027 are 3.872 billion yuan, 4.857 billion yuan, and 5.923 billion yuan, with corresponding growth rates of 30.4%, 25.5%, and 22.0% [4]. - Net profit projections for the same period are 414 million yuan, 530 million yuan, and 644 million yuan, with growth rates of 21.1%, 28.0%, and 21.6% [4]. - Earnings per share (EPS) are expected to be 1.03 yuan, 1.32 yuan, and 1.61 yuan for the years 2025, 2026, and 2027, respectively [4].

Core Insights - The domestic beauty industry in China is entering a phase of deeper development, with market competition shifting from channel expansion to R&D innovation and precise positioning [1][3]. Company Performance - In the first half of 2025, domestic beauty companies showed significant performance differentiation. Shanghai Jahwa achieved revenue of 3.48 billion yuan, a year-on-year increase of 4.7%, and a net profit of 270 million yuan, up 11.7% [3]. - Marubi Biotech reported revenue of 1.769 billion yuan, a 30.83% increase, with a net profit of 186 million yuan, up 5.21%. The company focused on a big product strategy [3]. - Up Beauty Holdings projected revenue between 4.09 billion and 4.11 billion yuan, a year-on-year growth of 16.8% to 17.3%, with net profit expected to reach between 540 million and 560 million yuan, up 30.9% to 35.8% [3]. - Beitaini has not yet released its semi-annual report, but its Q1 revenue was 949 million yuan, down 13.51%, with a net profit of 28.34 million yuan, down 83.97% [4]. Market Trends - The market for functional skincare products in China is projected to reach approximately 48.743 billion yuan in 2024, with Beitaini holding an 11.71% market share [5]. - The sensitive skin market is becoming a hot sector, with consumer numbers expected to approach 100 million and a market size of around 45 billion yuan in 2024, reflecting a compound annual growth rate of 21.7% over the past three years [7]. - The demand for sensitive skin care is evolving, with consumers seeking products that offer multiple benefits beyond basic repair, such as whitening and anti-aging [7]. Technological Challenges - The sensitive skin market faces core technological bottlenecks, particularly in the area of whitening products, which often struggle to balance effectiveness and gentleness for sensitive skin [8]. - Companies like Ximu Yuan are focusing on R&D in sensitive skin whitening, with new ingredients aimed at addressing these challenges, although large-scale application remains difficult [8]. Competitive Landscape - The competition in the sensitive skin market has shifted from initial market entry to a deeper technological contest, where brands must address advanced needs like whitening and anti-aging while ensuring scientific validation [9].

Core Viewpoint - The domestic beauty industry in China is entering a phase of deeper development, with a shift in competition from channel expansion to R&D innovation and precise positioning [1] Group 1: Industry Performance - In the first half of 2025, domestic beauty companies showed significant performance differentiation, reflecting a competitive landscape that emphasizes R&D and innovation [2][3] - Shanghai Jahwa achieved revenue of 3.48 billion yuan, a year-on-year increase of 4.7%, and a net profit of 270 million yuan, up 11.7% [3] - Marubi Biological reported revenue of 1.769 billion yuan, a year-on-year increase of 30.83%, with a net profit of 186 million yuan, up 5.21% [3] - Up Beauty Holdings expects revenue between 4.09 billion and 4.11 billion yuan, a year-on-year increase of 16.8% to 17.3%, with net profit projected to be between 540 million and 560 million yuan, up 30.9% to 35.8% [3] Group 2: Market Trends - The sensitive skin market is becoming a hot sector, with the consumer base expected to approach 100 million by 2024, and the market size estimated at 45 billion yuan, with a compound annual growth rate of 21.7% over the past three years [6][7] - The sensitive skin market is projected to exceed 200 billion yuan, indicating a broad development prospect [6][7] - Consumers are increasingly seeking multi-functional products that combine repair with whitening, anti-aging, and sun protection [7] Group 3: Competitive Landscape - Brands are focusing on addressing the needs of sensitive skin, with companies like Giant Biological and Shanghai Jahwa targeting deeper skin barrier issues [7][8] - The market is witnessing a shift from generic solutions to more personalized care approaches, although the effectiveness and feasibility of these strategies still require market validation [8] - The sensitive skin whitening segment remains a core technical challenge, as traditional whitening ingredients often irritate sensitive skin, creating a dilemma for consumers [8]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Views - The retail industry is experiencing a recovery, with high growth in premium and fashionable segments, particularly in gold jewelry and beauty care [23][27] - The report emphasizes the importance of emotional consumption themes driving growth in high-quality companies within the sector [30] Summary by Sections Retail Market Review - The retail industry index rose by 4.21% during the week of August 18-22, 2025, outperforming the Shanghai Composite Index by 2.20 percentage points [12][20] - The internet e-commerce sector showed the highest growth, with a weekly increase of 7.71% [13][17] - Year-to-date, the jewelry sector has led with a 33.74% increase [13][17] Retail Insights: Mid-Year Reports - Gold jewelry companies like Laopuhuang and Chaohongji reported significant revenue growth, with Laopuhuang achieving a revenue of 12.354 billion yuan (+251.0%) and a net profit of 2.268 billion yuan (+285.8%) [23][35] - Beauty care brands such as Shanghai Jahwa and Runben also showed positive performance, with Shanghai Jahwa reporting a net profit of 266 million yuan (+11.7%) [27][38] Focus on High-Quality Companies - Investment focus includes: - Gold jewelry brands with differentiated product offerings, recommending Laopuhuang and Chaohongji [30][32] - Offline retail companies adapting to trends, recommending Yonghui Supermarket and Aiyingshi [30][32] - High-quality domestic beauty brands, recommending Maogeping and Pola [30][32] - Medical beauty product manufacturers, recommending Aimeike and Kedi-B [30][32] Company-Specific Highlights - Laopuhuang: Achieved a revenue of 12.354 billion yuan (+250.9%) and a net profit of 2.268 billion yuan (+285.8%) in H1 2025, with strong brand expansion and channel upgrades [35][36] - Runben: Reported a revenue of 895 million yuan (+20.3%) and a net profit of 188 million yuan (+4.2%) in H1 2025, focusing on expanding its product matrix [38][40] - Aiyingshi: Achieved a revenue of 1.835 billion yuan (+8.3%) and a net profit of 46.74 million yuan (+10.2%) in H1 2025, with steady store expansion [42]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's main brand continues to drive performance growth, with a revenue increase of 30.8% year-on-year in H1 2025, reaching 1.769 billion yuan, while net profit grew by 5.2% [4][5] - The company has adjusted its profit forecast due to intense industry competition, projecting net profits of 400 million, 523 million, and 667 million yuan for 2025, 2026, and 2027 respectively [4][5] - The dual-brand strategy is expected to sustain performance growth, and the current valuation is considered reasonable [4] Financial Performance - In H1 2025, the company achieved revenue of 1.769 billion yuan, with a net profit of 186 million yuan [4] - For Q2 2025, revenue was 923 million yuan (up 33.5%), but net profit decreased by 23.1% to 51 million yuan [4] - The company's gross margin for H1 2025 was 74.6%, remaining stable year-on-year [5] Product and Market Strategy - The company reported strong performance in eye care products, with revenue of 420 million yuan (up 76.2%), while skincare and beauty categories also showed growth [5] - The online sales channel saw a significant increase, with online revenue reaching 1.571 billion yuan (up 37.9%), while offline sales declined by 7.1% [5] - The company is focusing on enhancing brand awareness and product innovation, with a notable new product launch achieving top sales rankings [6] Financial Projections - Revenue projections for 2025 to 2027 are 3.852 billion, 4.852 billion, and 5.906 billion yuan respectively, with year-on-year growth rates of 29.7%, 26.0%, and 21.7% [7][9] - The projected net profit for 2025 is 400 million yuan, with an expected EPS of 1.00 yuan [7][9] - The company's P/E ratio is projected to decrease from 45.4 in 2025 to 27.2 in 2027, indicating improving valuation over time [7][9]

Core Insights - The company reported a revenue of 1.769 billion yuan for the first half of 2025, representing a year-on-year growth of 30.83% [1] - The net profit attributable to shareholders was 186 million yuan, with a year-on-year increase of 5.21% [1] - The company plans to distribute a cash dividend of 2.50 yuan for every 10 shares to all shareholders [1] Financial Performance - The company's cash flow from operating activities increased by 97.41% year-on-year [1] - Online channels accounted for 88.87% of total revenue, driving the overall performance [1] - The overall gross margin remained stable at 74.60% [1] Brand Performance - The "Marubi" brand generated revenue of 1.250 billion yuan, up 34.36% year-on-year [1] - The "Lianhuo" brand achieved revenue of 516 million yuan, reflecting a year-on-year growth of 23.87% [1] Research and Development - R&D expenses reached 40.6958 million yuan, an increase of 13.53% year-on-year [1] - The company developed multiple innovative recombinant functional proteins and launched new products like the "Super Mask" [1] - A total of 25 new patent applications were filed, bringing the total authorized patents to 365, including 255 invention patents [1] Strategic Initiatives - The company adopted a "multi-platform collaboration and refined operation" strategy, achieving user growth and sales efficiency [2] - The flagship store on Tmall saw core product sales account for 73%, with member transaction amounts increasing by 28% [2] - The brand's search index on Douyin increased by 72.07% due to the "planting and harvesting" strategy [2] - Digital transformation efforts included the launch of a product operation system and MES system, creating a closed-loop system for business data and intelligence [2] Future Outlook - The company aims to continue focusing on the beauty and health sectors, strengthening R&D barriers and promoting multi-brand and multi-channel collaborative development for sustainable growth [2]

Core Insights - The domestic beauty industry in China is entering a phase of deeper development, with market competition shifting from channel expansion to R&D innovation and precise positioning [1][2] - The performance of domestic beauty companies shows significant divergence, reflecting the competitive landscape and the impact of consumer awareness and purchasing power on functional skincare products [1][3] Company Performance - Shanghai Jahwa reported revenue of 3.48 billion yuan, a year-on-year increase of 4.7%, and a net profit of 270 million yuan, up 11.7% [2] - Marubi achieved revenue of 1.769 billion yuan, a 30.83% increase, with a net profit of 186 million yuan, growing by 5.21% [2] - Up Beauty Holdings expects revenue between 4.09 billion and 4.11 billion yuan, a growth of 16.8% to 17.3%, with net profit projected between 540 million and 560 million yuan, an increase of 30.9% to 35.8% [2] Market Trends - The functional skincare market in China is projected to reach approximately 48.743 billion yuan in 2024, with Betaini holding an 11.71% market share at 5.707 billion yuan [3] - The sensitive skin market is becoming a hot sector, with an expected consumer base nearing 100 million and a market size of around 45 billion yuan, reflecting a compound annual growth rate of 21.7% over the past three years [4] Innovation and Consumer Demand - There is a growing emphasis on "skin-specific care" rather than a one-size-fits-all approach, with brands focusing on personalized solutions for different skin types [5] - The sensitive skin market faces challenges in achieving effective and gentle whitening solutions, as traditional ingredients often irritate sensitive skin [5] - Brands that can address advanced needs such as whitening and anti-aging while ensuring scientific validation will be better positioned to capture market share in this expanding sector [5]