Investment Rating - The report maintains a "Positive" outlook on the beauty and personal care industry, highlighting the resilience of domestic brands and the impact of new consumption trends [2]. Core Insights - The beauty and personal care sector experienced a robust recovery in H1 2025, with a retail sales growth of 2.9%, reversing the previous decline due to favorable consumption policies and improved income expectations [5][6]. - Domestic brands are gaining market share, with top local brands now competing closely with international counterparts, indicating a significant shift in consumer preferences [10][11]. - The report categorizes companies into three groups based on performance: those with strong brand matrices benefiting from multi-brand strategies, those capitalizing on consumer trends like domestic brands and collagen products, and those showing signs of strategic improvement [20][23]. Summary by Sections Industry Overview - The beauty market is projected to grow steadily, with a forecasted retail sales decline of 1.1% in 2024, followed by a recovery in H2 2025 [5][6]. - The domestic market share is expected to increase, with local brands achieving significant breakthroughs in both skincare and makeup segments [10][11]. Company Performance - **Cosmetics Sector**: - Major companies like Up Beauty and Proya reported revenue growth of 17.3% and 7.2% respectively in H1 2025, with net profits increasing by 30.6% and 13.8% [20][21]. - Other notable performers include Marubi and Water Sheep, with revenue growth of 30.8% and 9.0% respectively [21][22]. - **Personal Care Sector**: - Companies like Ruibin and Zhenjia showed remarkable growth, with Ruibin's revenue increasing by 67.6% and Zhenjia's by 157.11% in H1 2025 [5][20]. - **Medical Aesthetics Sector**: - Companies like Aimeike and Langzi reported mixed results, with Aimeike's revenue declining by 21.6% while Langzi's net profit surged by 64.1% [20][24]. Investment Recommendations - The report recommends investing in companies with strong brand matrices and low PE multiples, such as Up Beauty and Proya, as well as those benefiting from the Douyin traffic boost like Marubi and Water Sheep [20][24]. - It also suggests focusing on high-value segments and innovative products from brands like Ruibin and Furuida, and highlights opportunities in the maternal and infant sector with companies like Shengbeila and Haiziwang [20][24].

Group 1 - The core announcement is about the share pledge and repurchase situation of the company, specifically regarding the actions taken by its controlling shareholder, Hunan Yujia Investment Management Co., Ltd. [1] - Tingting Consulting has released a pledge on 8 million shares, with the pledge starting on September 23, 2024, and set to be released on September 19, 2025, with Guotai Junan Securities Co., Ltd. as the pledgee [2] - The repurchase of the pledged shares by Tingting Consulting has been postponed, with the same number of shares (8 million) involved, representing 17.97% of its holdings and 2.05% of the company's total share capital [3] Group 2 - As of the announcement date, the cumulative pledged shares of major shareholders include Dai Yuefeng with 18.8 million shares pledged (48.10% of his holdings), Yujia Investment with 41.64 million shares pledged (43.42% of its holdings), and Tingting Consulting with 16 million shares pledged (35.94% of its holdings) [4] - The total pledged shares among these three shareholders amount to 76.44 million, which is 42.58% of their combined holdings and 19.60% of the company's total share capital [4] - The announcement clarifies that the share pledge and repurchase do not relate to the company's operational needs, and Tingting Consulting is in good credit standing, indicating no risk of forced liquidation that would adversely affect the company's operations or governance [4]

证券代码：300740 证券简称：水羊股份 公告编号：2025-065 债券代码：123188 债券简称：水羊转债 | | 汀汀 咨询 | 是 | 5,500,000 | 12.35% | | 1.41% | 2024 年 9 月 23 日 | 2025 年 9 19 日 | 月 | 国泰海通证 券股份有限 公司 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | 二、本次控股股东之一致行动人部分股份质押延期购回的基本情况 | | | | | | | | | 是否为 | | | | | | | | | | | | | 控 | | | | | | | | | | | | | 股股东 | | | | | | | | | | | | | 或 | | | | | | | | | | | | 股东 | 第一大 | 本次延期 购回质押 | 占其所 持股份 | 占公司 总股本 | 是否 为限 | 是否 为补 | 质押起始 | 质押原到 | 延期后质 | 质权 | 质押 | | 名称 | 股 | 股 ...

Market Overview - The Shanghai Composite Index rose by 0.22% on September 22, with 11 sectors experiencing gains, led by the electronics and computer sectors, which increased by 3.71% and 1.70% respectively [1] - The total net outflow of capital from the two markets was 18.892 billion yuan, with only four sectors seeing net inflows [1] Sector Performance - The electronics sector had the highest net inflow of capital, amounting to 9.357 billion yuan, coinciding with its 3.71% increase [1] - The computer sector followed with a net inflow of 2.081 billion yuan and a daily increase of 1.70% [1] - The power equipment sector experienced the largest net outflow, totaling 4.662 billion yuan, while the pharmaceutical and biological sector saw a net outflow of 3.371 billion yuan [1] Beauty and Personal Care Industry - The beauty and personal care sector declined by 1.36%, with a net outflow of 223 million yuan [2] - Out of 29 stocks in this sector, 8 rose while 21 fell [2] - The top three stocks with the highest net outflow included Aimeike, Pola, and Qingdao King, with outflows of 73.5801 million yuan, 27.1153 million yuan, and 24.1188 million yuan respectively [2] Capital Flow in Beauty and Personal Care - The top stock with net inflow in the beauty sector was Shuiyang Co., with an inflow of 13.0672 million yuan [3] - Other notable inflows were from Runben Co. and Jinsong New Materials, with inflows of 4.8789 million yuan and 2.4414 million yuan respectively [3] - The overall capital flow data indicates a challenging environment for the beauty and personal care sector, with significant outflows from major companies [2][3]

Company Overview - Shuiyang Co., Ltd. is located in Changsha, Hunan Province, and was established on November 1, 2012. The company went public on February 8, 2018. Its main business involves the research, production, and sales of cosmetics [1][2] - The revenue composition of the main business includes: 81.84% from lotions and creams, 17.32% from masks, and 0.84% from other products [1] Financial Performance - For the first half of 2025, Shuiyang Co., Ltd. achieved operating revenue of 2.5 billion yuan, representing a year-on-year growth of 9.02%. The net profit attributable to shareholders was 123 million yuan, with a year-on-year increase of 16.54% [2] - Since its A-share listing, the company has distributed a total of 142 million yuan in dividends, with 77.81 million yuan distributed over the past three years [3] Stock Performance - As of September 22, the stock price of Shuiyang Co., Ltd. increased by 2.00%, reaching 21.93 yuan per share, with a total market capitalization of 8.553 billion yuan [1] - The stock has risen by 65.89% year-to-date, with a slight decline of 0.86% over the last five trading days, and a 30.93% increase over the past 60 days [1] Shareholder Information - As of September 10, the number of shareholders for Shuiyang Co., Ltd. was 27,000, with an average of 13,296 circulating shares per person [2] - Notable institutional shareholders include BlackRock China New Horizons Mixed A and Hong Kong Central Clearing Limited, both of which are new entrants among the top ten circulating shareholders [3] Market Activity - The company has seen a net inflow of main funds amounting to 6.1559 million yuan, with significant buying activity from large orders [1] - Shuiyang Co., Ltd. has appeared on the trading leaderboard once this year, with a net purchase of 24.4889 million yuan on May 28 [1] Industry Context - Shuiyang Co., Ltd. operates within the beauty and personal care sector, specifically in the branded cosmetics segment. It is associated with concepts such as margin financing, share buybacks, and e-commerce [2]

Investment Rating - The report initiates coverage with a "Buy" rating for the company Water Sheep Co., Ltd. [14] Core Insights - The cosmetics and medical beauty sector has underperformed the market, with the Shenwan Beauty Care Index declining by 2.5% from September 12 to September 19, 2025 [3][4] - The upcoming Double 11 shopping festival is expected to drive significant growth for domestic brands, with recommendations to focus on strong alpha stocks [9][10] - Water Sheep Co., Ltd. is highlighted for its dual business model of proprietary and CP brands, with stable revenue projections of 4-5 billion yuan from 2021 to 2024 and an expected gross margin of 63.01% in 2024 [10][11] Summary by Sections Industry Performance - The cosmetics and medical beauty sector has shown weaker performance compared to the market, with specific indices declining [3][4] - The Shenwan Cosmetics Index fell by 2.6%, while the Shenwan Personal Care Index decreased by 0.6% [4][6] Upcoming Events - The Double 11 shopping festival preparations are in full swing, with domestic brands like Up Beauty and Proya launching new products to capture market share [9] - Key influencers are negotiating promotional strategies to enhance sales during the festival [9] Company Focus: Water Sheep Co., Ltd. - Water Sheep Co., Ltd. is positioned as a leading tech-driven beauty company with a stable revenue forecast and improving profit margins [10][11] - The company has a well-structured brand matrix and is expanding its high-end product lines, with significant growth in its proprietary brands [11][12] - Expected net profits for Water Sheep Co., Ltd. are projected to be 258 million, 331 million, and 398 million yuan for 2025, 2026, and 2027, respectively, indicating substantial growth [14] Market Trends - The Chinese beauty market is witnessing a shift towards domestic brands, with significant market share gains for local players [27] - The overall retail sales of cosmetics showed a growth of 5.1% in August 2025, indicating a recovery in consumer spending [18][21] International Recognition - Chinese beauty brands performed notably at the IFSCC conference, showcasing their advancements in cosmetic science and securing significant awards [22][24]

Core Insights - The company is focusing on high-end brand development and global expansion, particularly through partnerships with luxury hotels and the establishment of exclusive spa experiences [1][2] - The launch of the first EDB brand castle store in Shanghai is expected to enhance the brand's luxury image and has already shown promising sales performance [1] - The company aims to strengthen its brand assets and improve its product system to drive sustained growth for the PA brand, leveraging its high-end brand management capabilities [1][2] Group 1 - The company is collaborating with several five-star hotels globally, including Rosewood, St. Regis, and Waldorf, to expand its EDB spa services [1] - The management highlighted a significant focus on high-end hotel and cinema channels to penetrate luxury consumer segments [1] - The PA brand has experienced rapid growth in the first half of the year, supported by the company's strong brand assets and management expertise [1] Group 2 - The company is optimizing its business layout under the strategy of "high-end and globalization," prioritizing the development of high-end brands like EDB, PA, and RV [2] - There is a continuous improvement in the overall gross margin, indicating enhanced operational quality and efficiency [2] - The company is committed to achieving high-quality revenue growth and improving profitability through meticulous expense management as the share of high-end brands in revenue increases [2]

Summary of Water Sheep Co. Conference Call Company Overview - Water Sheep Co. has undergone significant transformation focusing on high-end and global strategies, creating a product matrix that includes mass, premium, and high-end brands [4][5][6] Key Points and Arguments - **Core Brand Performance**: The mass brand YuniFang achieved single-digit sales growth in H1 2025, with losses significantly narrowing to a few million per quarter, indicating successful brand upgrade and channel adjustment strategies [2][5] - **Growth of Premium Brands**: The premium brand HB saw growth nearly doubling, with annual revenue expected to reach tens of millions. The VAA brand also showed significant growth, with annual revenue projected to exceed 100 million [2][5] - **High-End Brand Profitability**: The high-end brand Ifidan improved its profit margin to over 18% in H1 2025, achieving a 20% growth rate through channel structure adjustments, enhancing profitability [2][6][7] - **Acquisition of High-End Makeup Brand**: The high-end makeup brand PA, after acquisition, showed rapid growth with a profit margin exceeding 5%, indicating potential as a new growth point [2][6] - **Focus on Overseas Market**: RV is concentrating on optimizing overseas teams and channels, with losses expected not to impact overall group profits [2][6] Future Strategies - **Product Promotion**: The company plans to increase promotion of sunscreen products and new face creams, expand offline direct stores, and enhance user experience with SPA areas to boost repurchase rates [2][8] - **Sales Target**: The mid-term sales target for Ifidan is set to exceed 2 billion [9] - **Channel Optimization**: The company aims to continue optimizing channel structures and enriching the product matrix for sustained growth [8] Financial Projections - **Profit Expectations**: The company is expected to achieve over 250 million in profits for 2025 and at least 300 million in 2026, with current valuations being attractive within the cosmetics sector [3][15] Additional Insights - **SPA Store Performance**: SPA stores typically break even in the second quarter after opening in department stores, with all direct stores equipped with SPA areas, contributing to both profitability and brand promotion [9] - **Global Management Advantage**: Water Sheep Co. has transformed into a global luxury management group, leveraging its international platform for resource accumulation and brand operation, enhancing its reputation in the global beauty market [10] - **R&D and Supply Chain Capabilities**: The company possesses strong R&D and supply chain capabilities, supporting product iterations post-acquisition [11][12] - **Stable Cash Flow from Operations**: The company plans to retain its operational business for stable cash flow and as a window for potential acquisition targets [13] Growth Drivers - **Beauty Market Trends**: The growth of MeisiDike in 2025 is driven by opportunities in the oral beauty segment and resource concentration on MeisiLick, with a focus on long-term brand development [14]

Market Overview - The cosmetics sector experienced a decline of 2.24% on September 18, with Lafang Jiahua leading the drop [1] - The Shanghai Composite Index closed at 3831.66, down 1.15%, while the Shenzhen Component Index closed at 13075.66, down 1.06% [1] Individual Stock Performance - Lafang Jiahua (603630) closed at 25.75, down 6.74% with a trading volume of 100,500 shares and a turnover of 263 million yuan [1] - Shuiyang Co. (300740) closed at 21.41, down 3.65% with a trading volume of 225,300 shares [1] - Shanghai Jahwa (600315) closed at 26.41, down 3.51% with a trading volume of 106,700 shares [1] - Other notable declines include Jiaheng Jiahua (300955) down 3.22% and Beitaini (300957) down 2.55% [1] Capital Flow Analysis - The cosmetics sector saw a net outflow of 385 million yuan from institutional investors, while retail investors contributed a net inflow of 363 million yuan [1] - The table indicates that retail investors were more active, with a net inflow of 21.49 million yuan in Lafang Jiahua despite its overall decline [2] - Notable net outflows from institutional investors were observed in companies like Beitaini and Furuida, with outflows of 15.90 million yuan and 20.48 million yuan respectively [2]

Market Overview - On September 17, the cosmetics sector declined by 0.24% compared to the previous trading day, with Qingsong Co. leading the decline [1] - The Shanghai Composite Index closed at 3876.34, up 0.37%, while the Shenzhen Component Index closed at 13215.46, up 1.16% [1] Individual Stock Performance - Notable stock performances in the cosmetics sector included: - Tian Cai Ya (603605) closed at 81.77, up 0.85% with a trading volume of 44,700 shares and a transaction value of 364 million [1] - Fu Rui Da (600223) remained unchanged at 7.91 with a trading volume of 70,100 shares [1] - Shanghai Jahwa (600315) closed at 27.37, down 0.04% with a trading volume of 44,200 shares [1] - Other stocks like Marubi (603983) and Beitaini (300957) also experienced slight declines of 0.05% and 0.88% respectively [1] Capital Flow Analysis - The cosmetics sector saw a net outflow of 105 million from institutional investors, while retail investors experienced a net inflow of 54.72 million [2] - The overall capital flow for individual stocks showed varied trends, with some stocks like Jia Heng Jia Hua (300955) experiencing significant net outflows from institutional investors [3] Detailed Capital Flow for Selected Stocks - Jia Heng Jia Hua (300955) had a net outflow of 13.34 million from institutional investors, while retail investors contributed a net inflow of 17.15 million [3] - Other stocks like Fu Rui Da (600223) and Shui Yang Co. (300740) also showed mixed capital flows, with institutional outflows and retail inflows [3]