Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company achieved a revenue of 895 million yuan in H1 2025, representing a year-over-year increase of 20.31%, with a net profit of 188 million yuan, up 4.16% year-over-year [1] - The growth in the baby care business is driven by new product launches and increased marketing efforts, with over 40 new products introduced in the first half of the year [2] - The company is expected to see a recovery in performance in the second half of the year due to new product launches and increased investment across all channels [2] Financial Performance - In Q2 2025, the company reported a revenue of 655 million yuan, a year-over-year increase of 13.46%, but a slight decline in net profit by 0.85% [1] - The gross profit margin for H1 2025 decreased by 0.63 percentage points to 58.01%, primarily due to increased sales and management expenses [1] - The company plans to distribute a mid-term dividend of 2.00 yuan per 10 shares, totaling 80.92 million yuan [1] Revenue Breakdown - For H1 2025, revenue from mosquito repellent, baby care, and essential oil products was 375 million yuan, 405 million yuan, and 92 million yuan, respectively, with year-over-year growth rates of 13.43%, 38.73%, and -14.60% [2] - The online and offline channels saw revenue growth of 20% and 21% respectively in H1 2025, with significant contributions from new partnerships and channel expansions [3] Future Projections - The company is projected to achieve revenues of 1.62 billion yuan, 1.97 billion yuan, and 2.41 billion yuan for the years 2025, 2026, and 2027, with year-over-year growth rates of 22.5%, 22.2%, and 22.2% respectively [4] - Net profit is expected to reach 330 million yuan, 420 million yuan, and 519 million yuan for the same years, with growth rates of 10.5%, 26.0%, and 24.3% respectively [4]