SYG(SZ:300740) EBSCN·2025-08-23 07:46Investment Rating - The report upgrades the investment rating of the company to "Buy" [1] Core Views - The company has shown a quarter-on-quarter improvement in revenue growth and net profit in Q2 2025, indicating effective business structure optimization [5][9] - The company's self-owned brand revenue has increased to 41.6% of total revenue, with significant growth in key product categories such as lotions and masks [6] - The high-end beauty group strategy is progressing well, with expectations for continued revenue and profit growth from key brands [9] Financial Performance - In H1 2025, the company achieved a revenue of 2.5 billion yuan, a year-on-year increase of 9%, and a net profit attributable to shareholders of 120 million yuan, up 16.5% [5] - The gross margin improved by 3.1 percentage points to 64.6% in H1 2025, with self-owned brands achieving a gross margin of 76.8% [7] - Operating cash flow turned positive with a net inflow of 170 million yuan, reflecting improved operational efficiency [8] Business Segmentation - Self-owned brands generated 1.04 billion yuan in revenue, while agency brands accounted for 1.46 billion yuan [6] - Online sales contributed 90% of total revenue, with significant growth in third-party platforms like Taobao and Douyin [6] Future Projections - The company expects to achieve net profits of 290 million yuan, 350 million yuan, and 430 million yuan for the years 2025, 2026, and 2027 respectively, with corresponding EPS of 0.74, 0.90, and 1.10 yuan [10] - The report anticipates a revenue growth rate of 17.5% in 2025, followed by 16.4% and 16.8% in the subsequent years [10]