SIRIO(SZ:300791) CMS·2025-10-29 03:59Investment Rating - The report maintains a "Strong Buy" rating for the company [2][4]. Core Views - The company has shown significant improvement in its Chinese operations and accelerated growth in overseas markets, with Q3 revenue and net profit increasing by 18.11% and 16.20% year-on-year, respectively, slightly exceeding expectations [1][3]. - The company is benefiting from new consumption trends and channels in China, while its Americas export business is experiencing high growth despite long-term uncertainties related to tariffs. The European market continues to contribute positively with new business breakthroughs [1][3]. - The report emphasizes the importance of monitoring the progress of the BF personal care business divestiture, which is expected to enhance profit elasticity in 2026 [1][3]. Financial Performance Summary - For the first three quarters of 2025, the company achieved total revenue of 3.291 billion and net profit attributable to shareholders of 260 million, reflecting year-on-year growth of 7.96% and 8.53%, respectively [3][5]. - In Q3 alone, the company reported revenue of 1.250 billion and net profit of 99 million, with year-on-year increases of 18.11% and 16.20% [3][5]. - The gross margin improved to 30.76%, up by 1.12 percentage points year-on-year, attributed to optimized pricing strategies and cost reduction efforts [3][5]. - The company expects EPS of 1.17 yuan and 1.33 yuan for 2025 and 2026, respectively, with a valuation of 20X for 2025 [1][4].