Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company has shown impressive performance in H1 2025, with revenue reaching 4.108 billion RMB, a year-on-year increase of 17.3%, and a net profit of 556 million RMB, up 34.7% year-on-year [8] - The multi-brand strategy is effectively driving revenue growth, with the main brand, 韩束 (Han Shu), generating 3.344 billion RMB in revenue, a 14.3% increase, and maintaining a leading position in online beauty sales [8] - The company is implementing a "Six Six Strategy" to focus on six major segments, aiming for sustainable development and expanding its business boundaries [8] - The net profit margin has improved, with a net profit margin of 13.5% in H1 2025, an increase of 1.7 percentage points year-on-year [8] - Future earnings forecasts indicate a strong growth trajectory, with expected net profits of 1.024 billion RMB in 2025, representing a 31.1% year-on-year increase [9] Financial Summary - Revenue projections for 2025 are estimated at 8.679 billion RMB, with a growth rate of 27.8% [7] - The company’s gross margin is projected to be 76.8% in 2025, reflecting a slight increase from previous years [9] - The return on equity (ROE) is expected to be 31.8% in 2025, indicating strong profitability [7]

Summary of Shangmei Co., Ltd. Conference Call Company Overview - Shangmei Co., Ltd. operates in the beauty and personal care industry, focusing on multiple segments including mass skincare, premium skincare, personal care, medical beauty, maternal and infant care, and cosmetics [2][3][4]. Key Points and Arguments Multi-Brand Strategy - The company employs a multi-brand matrix strategy to cater to diverse consumer needs, enhancing profitability and sustainable growth [2][5]. - The Han Shu brand targets the mass market and has achieved rapid growth through category expansion and channel diversification, particularly on e-commerce platforms like Douyin [2][4]. Sales Performance - During the 2025 618 shopping festival, the cosmetics series sales exceeded 100 million RMB, marking a new growth point for the company [2][3]. - The high-end infant care brand New Page is projected to reach sales of 800-1,000 million RMB by 2025, while the anti-hair loss brand Ji Fang quickly became the top seller on Douyin [2][6]. Future Growth Strategy - The company aims to achieve a sales target of 30 billion RMB by 2030 through its "Six Six Strategy," which focuses on strengthening the Han Shu brand and expanding into men's care and other areas [2][7]. - Anticipated growth in the second half of 2025 is expected to outperform the first half due to new channels, teams, product categories, and emerging brands [2][8]. Financial Metrics - Shangmei Co., Ltd. reports a profit margin exceeding 10%, a gross margin above 70%, and a return on equity (ROE) of over 30% [4][16]. Market Dynamics - The beauty and personal care market is valued at 700 billion RMB, with diverse consumer demands across various price segments [4][11]. - Despite intense competition, the industry continues to innovate, creating new demand and structural opportunities for domestic brands [12][40]. Brand Positioning - The Han Shu brand is positioned as a mass-market beauty brand with a broad product range, not reliant on specific channels or consumer perceptions, allowing for significant growth potential [17][18]. Product Development - The company has successfully launched several new products, including men's skincare and various beauty items, which have shown strong market acceptance [3][6][29]. Talent and Organizational Structure - Shangmei Co., Ltd. emphasizes talent acquisition and organizational efficiency to support its multi-brand strategy and enhance its competitive edge in the market [32][35]. Additional Important Insights - The company is expanding its presence on various e-commerce platforms, achieving significant growth rates on platforms like Taobao and JD.com [26]. - The competitive landscape shows that while foreign brands dominate certain segments, domestic brands like Han Shu are gaining market share due to their flexibility and value propositions [25][40]. - The anticipated launch of new brands in the second half of 2025, including a children's care brand and a makeup artist brand, is expected to further enhance market penetration [37][38]. This comprehensive overview highlights Shangmei Co., Ltd.'s strategic initiatives, market positioning, and growth prospects within the beauty and personal care industry.