SYG(SZ:300740) Guoxin Securities·2025-08-24 13:33Investment Rating - The investment rating for the company is "Outperform the Market" [7][22][5] Core Views - The company has shown significant growth in Q2, with a year-on-year increase in net profit attributable to shareholders of 24%, driven by a focus on high-end brand development and improved brand structure [1][2][10] - The self-owned brand segment generated revenue of 1.039 billion, accounting for 41.55% of total revenue, with a gross margin of 76.83%, reflecting a 5.7 percentage point increase year-on-year [3][11] - The company is enhancing its high-end and global strategies, with brands like Ifidan and Revive contributing positively to revenue growth [3][5] Financial Performance Summary - For the first half of 2025, the company achieved revenue of 2.5 billion, a year-on-year increase of 9.02%, and a net profit of 123 million, up 16.54% [2][10] - In Q2 alone, revenue reached 1.414 billion, marking a 12.16% increase year-on-year, while net profit rose to 81 million, a 23.76% increase [2][10] - The gross margin for Q2 2025 was 65.27%, an increase of 3.67 percentage points year-on-year, indicating improved profitability [4][12] Business Segment Analysis - The self-owned brand segment is performing strongly, with significant contributions from high-end brands and a focus on expanding product lines [3][11] - The agency operation business is stabilizing, with a focus on high-efficiency brands, leading to an overall improvement in profit margins [3][11] - Revenue from the skincare category reached 1.997 billion, up 11.70% year-on-year, while mask sales increased by 17.96% to 423 million [3][11] Future Earnings Forecast - The company has slightly adjusted its net profit forecasts for 2025 to 227 million, while increasing projections for 2026 and 2027 to 296 million and 352 million, respectively [5][22] - The projected price-to-earnings ratios for 2025, 2026, and 2027 are 35, 27, and 23 times, respectively [5][22] Market Position and Valuation - The company's market capitalization is approximately 8 billion, with a closing price of 20.52 yuan [7][23] - The company is positioned favorably in the market, with a strong focus on high-end beauty products and a recovery in its operational business [5][22]