Core Insights - Water Sheep Co. reported a revenue increase of 11.96% year-on-year for the first three quarters of 2025, reaching 3.409 billion yuan [1] - The company's net profit attributable to shareholders rose by 44.01% year-on-year, amounting to 136 million yuan [1] Financial Performance - Revenue for the first three quarters: 3.409 billion yuan, up 11.96% year-on-year [1] - Net profit attributable to shareholders: 136 million yuan, up 44.01% year-on-year [1]

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company reported a revenue of 3.409 billion yuan for Q1-Q3 2025, representing a year-on-year increase of 11.96%, and a net profit attributable to shareholders of 136 million yuan, up 44.01% year-on-year [2] - In Q3 2025 alone, the company achieved a revenue of 909 million yuan, a year-on-year increase of 20.92%, with a net profit of 13 million yuan, reflecting a significant year-on-year growth of 210% [2] - The company’s operating cash flow increased by 324.74% year-on-year to 189 million yuan, primarily due to increased cash receipts from sales of goods and services [2] Revenue Analysis - The company experienced steady revenue growth driven by high-end brands, with notable performance from brands like Yifidan and PA, which are expected to maintain high growth rates due to low base effects [3] - The light luxury brand HB is also showing good growth, while the mass-market brand Yuni has begun to recover following a brand upgrade [3] Profitability Analysis - The gross margin for Q1-Q3 2025 was 66.00%, an increase of 2.91 percentage points year-on-year, while the net profit margin was 3.99%, up 0.89 percentage points year-on-year [4] - In Q3 2025, the gross margin reached 69.82%, reflecting a year-on-year increase of 1.83 percentage points and a quarter-on-quarter increase of 4.55 percentage points [4] - The company’s net profit margin for Q3 2025 was 1.38%, showing a year-on-year increase of 2.91 percentage points but a quarter-on-quarter decline of 4.37 percentage points, attributed to increased marketing expenses [4] Expense Analysis - The company’s expense ratio for Q1-Q3 2025 was 60.04%, an increase of 2.31 percentage points year-on-year, with sales expenses, management expenses, R&D expenses, and financial expenses showing respective increases [5] - In Q3 2025, the expense ratio was 67.04%, a decrease of 1.15 percentage points year-on-year, indicating a strategic focus on long-term brand building despite a slight increase in marketing efforts [5] Investment Recommendations - The company is positioned as the only domestic group operating multiple high-end beauty brands, with expectations for continued revenue and profit growth as brand strength and customer reputation improve [6] - Revenue forecasts for 2025-2027 are adjusted to 4.566 billion, 4.920 billion, and 5.315 billion yuan respectively, with net profits projected at 204 million, 288 million, and 375 million yuan [6] - The corresponding earnings per share (EPS) are expected to be 0.52, 0.74, and 0.96 yuan, with price-to-earnings (PE) ratios of 42, 30, and 23 times [6]

Core Viewpoint - Water Sheep Co. reported a steady revenue growth and significant profit increase in the first three quarters of 2025, driven by strong performance in high-end and light luxury brands [1][2]. Revenue Summary - For Q1-Q3 2025, the company achieved revenue of 3.409 billion yuan, a year-on-year increase of 11.96% - In Q3 2025 alone, revenue reached 909 million yuan, up 20.92% year-on-year - High-end brands like Ifidan and PA showed rapid growth, while light luxury brands like HB and VAA also performed well [1][2]. Profit Summary - The gross profit margin for Q1-Q3 2025 was 66.00%, an increase of 2.91 percentage points year-on-year - The net profit margin for Q1-Q3 2025 was 3.99%, up 0.89 percentage points year-on-year - In Q3 2025, the gross profit margin was 69.82%, a year-on-year increase of 1.83 percentage points, while the net profit margin was 1.38%, showing a year-on-year increase of 2.91 percentage points but a quarter-on-quarter decrease of 4.37 percentage points [3][4]. Expense Summary - The expense ratio for Q1-Q3 2025 was 60.04%, an increase of 2.31 percentage points year-on-year - In Q3 2025, the expense ratio was 67.04%, a decrease of 1.15 percentage points year-on-year - The sales expense ratio decreased year-on-year, while the company increased marketing efforts, leading to a higher quarter-on-quarter sales expense ratio [4]. Investment Outlook - As the only domestic group operating multiple high-end beauty brands, Water Sheep Co. is expected to see continued revenue and profit growth due to the strengthening brand power and customer reputation of its proprietary brands - Revenue forecasts for 2025-2027 are adjusted to 4.566 billion, 4.920 billion, and 5.315 billion yuan, with net profits of 204 million, 288 million, and 375 million yuan respectively [5].

Group 1 - The core viewpoint of the news is that Shuiyang Co., Ltd. (SZ 300740) is actively engaging with investors, indicating a focus on transparency and communication regarding its business operations [1] - Shuiyang Co., Ltd. reported that its revenue composition for the year 2024 will be entirely from the daily chemical industry, with a 100% share [2] - As of the latest report, Shuiyang Co., Ltd. has a market capitalization of 7.7 billion yuan [3]

Revenue and Business Performance - The company achieved a total revenue of 3.409 billion CNY in the first three quarters, representing a year-on-year growth of 11.96%. The revenue for the third quarter alone was 909 million CNY, up 20.92% year-on-year [2]. - The proportion of self-owned brands in overall revenue increased from 41.5% in the first half to 43.97% in the third quarter [2]. - The overall gross margin rose to 69.82% in Q3, up from 64.61% in the first half, with self-owned brand gross margin exceeding 80% at 82% [2][3]. Brand Performance - The French luxury skincare brand EDB continued to drive revenue growth, with significant sales increases from upgraded products and a focus on high-end channels, achieving over 60% growth in online sales channels [3]. - The American luxury skincare brand RV saw high double-digit growth in North America, with e-commerce sales doubling and expansion into new markets [3][4]. - The French high-end salon repair brand PA maintained a high growth rate, focusing on high-profit channels and achieving significant sales increases on platforms like Tmall and JD [4][5]. Profit and Expenses - The company reported a net profit attributable to shareholders of 136 million CNY for the first three quarters, a year-on-year increase of 44.01%. In Q3 alone, net profit grew by 210% year-on-year [7]. - Sales expenses increased due to rising costs in online channels, prompting a shift towards long-term market strategies and content-driven marketing [7][8]. - R&D expenses in Q3 exceeded 30 million CNY, reflecting a commitment to global R&D expansion and product development [8]. Strategic Focus - The company is concentrating resources on high-end brands while strategically reducing its presence in mass-market brands, aiming for a more concentrated resource allocation [6]. - Long-term investments in high-end brand development are prioritized to counter short-term market uncertainties [10][11]. - The company plans to replicate the success of EDB in other brands like PA and RV by maintaining brand assets and enhancing product systems [18]. Future Outlook - The company anticipates continued growth in high-end brands, with a focus on sustainable development and long-term brand positioning [10][17]. - Upcoming product launches and market expansions are expected to further enhance brand performance and revenue contributions [12][14].

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6] Core Views - The company has shown significant revenue growth, with a reported revenue of 3.409 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 11.96%. The net profit attributable to the parent company reached 136 million yuan, up 44.01% year-on-year [1] - The company is successfully transitioning into a high-end beauty group, enhancing its brand operation capabilities and expanding its product matrix [3] - The company is increasing its R&D investments, having applied for 18 patents in the first half of the year, and is collaborating with Celless to accelerate its global expansion [4] Financial Performance - For Q3 2025, the company reported a revenue of 909 million yuan, a year-on-year increase of 20.92%, and a net profit of 13 million yuan, which is a remarkable increase of 210% year-on-year [1] - The gross margin for Q1-Q3 2025 was 66.00%, up 2.91 percentage points year-on-year, while the net profit margin was 3.99%, an increase of 0.89 percentage points [2] - The company expects revenues to grow to 4.861 billion yuan in 2025, with net profits projected at 197.44 million yuan [4] Brand Development - The company has completed the high-end and global transformation of its proprietary brand system, with new product launches and enhanced brand positioning in the market [3] - The EDB product matrix has been upgraded, and new luxury products have been introduced, including a new top-tier series and limited edition gift boxes [3] R&D and Global Expansion - The company is committed to R&D, having filed multiple patents and established a research laboratory in Osaka with Celless to strengthen its technological competitiveness [4] - The company is enhancing its global presence through strategic partnerships and product innovations [4]

Core Viewpoint - The cosmetics sector experienced a decline of 2.02% on October 30, with Shuiyang Co. leading the drop. The Shanghai Composite Index closed at 3986.9, down 0.73%, while the Shenzhen Component Index closed at 13532.13, down 1.16% [1]. Group 1: Market Performance - The cosmetics sector saw a significant drop, with Shuiyang Co. falling by 10.25% to a closing price of 19.87 [2]. - Other notable declines included Qing Song Co. at -3.38%, Beitaini at -2.79%, and Shanghai Jahwa at -2.67% [2]. - The overall trading volume for the cosmetics sector was substantial, with Shuiyang Co. alone accounting for a trading volume of 399,500 shares and a transaction value of 817 million [2]. Group 2: Capital Flow - The cosmetics sector experienced a net outflow of 111 million from main funds, while retail investors saw a net inflow of 39.41 million [2]. - The main funds showed varying levels of inflow and outflow across different companies, with Qingdao Jinwang receiving a net inflow of 53.98 million, while LaFang Home Care faced a net outflow of 7.27 million [3]. - The overall sentiment in the sector indicates a cautious approach from institutional investors, contrasting with the slight interest from retail investors [2][3].

Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][21] Core Views - The company's revenue showed steady growth, with a year-on-year increase of 21% in Q3, and a net profit turnaround, achieving a net profit of 0.13 billion, compared to a loss in the same period last year [1][2] - The high-end brand transformation strategy is proving effective, with strong performance from brands like Ifidan and PA, and a positive outlook for long-term growth as the company continues to develop its high-end brand matrix [3][5] - Despite some pressure on net profit margins due to one-time expenses, the overall financial health remains strong, with improvements in gross and net profit margins [2][3] Revenue and Profitability - For the first three quarters, the company achieved revenue of 34.09 billion, a year-on-year increase of 11.96%, and a net profit of 1.36 billion, up 44.01% [1] - In Q3 alone, revenue reached 9.09 billion, marking a 20.92% increase year-on-year, with a net profit of 0.13 billion, indicating a successful recovery [1][2] Financial Metrics - The company's gross margin and net margin for Q3 2025 were 69.82% and 1.38%, respectively, showing year-on-year improvements of 1.83 and 2.87 percentage points [2] - The forecast for net profit for 2025-2027 has been adjusted to 1.76 billion, 2.71 billion, and 3.21 billion, respectively, reflecting the impact of one-time management expenses and initial marketing investments for new brands [3][4] Operational Efficiency - Inventory turnover days decreased by 7 days to 200 days, and accounts receivable turnover days also improved by 7 days to 31 days, indicating enhanced operational efficiency [2][4] - The company reported a positive operating cash flow of 0.23 billion in Q3 2025, marking a turnaround from previous losses [2]

Core Viewpoint - Water Sheep Co., Ltd. (300740) announced that it has no overdue external guarantees, no external guarantees involved in litigation, and no losses incurred due to judgments against guarantees [1] Summary by Categories - **Company Status** - The company confirmed the absence of overdue external guarantees [1] - There are no external guarantees currently involved in any litigation [1] - The company has not incurred any losses from judgments related to guarantees [1]

证券代码：300740 证券简称：水羊股份 公告编号：2025-070 关于公司为子公司提供担保的进展公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假 记载、误导性陈述或重大遗漏。 一、向银行等金融机构申请授信额度及担保事项的概述 水羊集团股份有限公司（以下简称"公司"）经 2025 年 4 月 25 日及 2025 年 6 月 20 日召开的第三届董事会 2025 年第一次定期会议及 2024 年年度股东大 会，分别审议通过了《关于公司 2025 年度为子公司担保额度预计的议案》，根 据公司发展计划，为满足子公司日常经营资金需要，降低融资成本，提高资本营 运能力，2025 年度公司及子公司拟向银行等金融机构申请不超过 30 亿元的综合 授信额度，综合授信品种包括但不限于：短期流动资金贷款、中长期借款、银行 承兑汇票、保函、信用证、抵押贷款等。公司拟为子公司银行综合授信内的融资 提供不超过 30 亿元的担保额度，担保方式包括但不限于连带责任保证、抵押、 质押等。 公司股东大会授权公司管理层根据实际经营情况需要，在总额度内办理担保 事宜，上述总额度内的单笔担保不再上报董事会进行审议表决， ...