Core Viewpoint - Guosen Securities has given a "better than market" rating to Shangmei Co., predicting net profit attributable to shareholders of 1.107 billion, 1.388 billion, and 1.702 billion yuan for 2025-2027, with EPS of 2.78, 3.49, and 4.27 yuan per share respectively, and a target price of 104.5-120.9 HKD per share [1] Company Summary - Shangmei Co. is positioned as a leading domestic beauty brand, leveraging inclusive mechanisms, in-depth R&D, and diverse channels to solidify its performance base through its main brand, Han Shu, which has expanded its product categories and achieved significant sales through bundled offerings [1] - The company has developed reusable foundational capabilities in channels, R&D, and marketing, leading to a platform-based development model with multiple categories and brands [2] - The main brand Han Shu has achieved breakthroughs with products like the Hongman Waist Set and X Peptide Cream, while also expanding into hair care, men's products, and cosmetics [2] Industry Summary - The cosmetics industry has entered a stable growth phase post-pandemic, with diminishing channel benefits and increasing competition from new brands, resulting in shorter product growth life cycles [1] - Platform-based operational capabilities are crucial for beauty companies to overcome growth bottlenecks, allowing them to adapt to market changes and build a sustainable multi-brand and multi-category business matrix [1] - Companies like Shanghai Jahwa, Proya, and currently Shangmei have successfully established platform systems to achieve sustainable growth through industry fluctuations [1]