Core Viewpoint - The company demonstrates resilience and brand strength with revenue and profit growth in H1 2025 despite external challenges, and is expected to accelerate growth in H2 due to upcoming promotional activities [1] Group 1: Financial Performance - In H1 2025, the company's revenue and profit increased, with revenue growth rates of 22.7% for 可复美 and 26.9% for 可丽金 [1] - The GMV for 可复美 and 可丽金 in July reached 1.72 billion and 0.19 billion respectively, showing year-on-year growth of 48% and 77% [1] - The company maintains its profit forecast with expected net profits of 26.00 billion, 32.03 billion, and 38.12 billion for 2025-2027 [3] Group 2: Product and Innovation - The company has obtained exclusive patents for new products, including a restructured IV type collagen and ginsenoside-rich fermented ginseng products, enhancing its R&D capabilities [2] - The brand is actively promoting its products through various channels, including a successful live-streaming event on September 8 that generated over 16 million in GMV [1][2] Group 3: Market Expansion - The company is expanding its market presence, having entered the Malaysian market and established a joint venture to target Southeast Asia [2] - The brand has also made inroads into the South Korean and French markets, with product launches in key retail locations [2] Group 4: Valuation and Target Price - The company maintains a target price of 85.0 HKD for 2025, reflecting a PE ratio of 31 times, adjusted from a previous target of 82.50 HKD [3] - The valuation considers the company's successful brand promotion and overseas channel development [3]

Core Insights - The performance of domestic beauty companies in China is showing significant divergence, with some achieving remarkable growth while others face declines, indicating a reshaping of the market landscape [1][4][42] Group 1: Company Performance - Proya has become the first domestic beauty company to enter the 10 billion yuan club, with a revenue of 10.778 billion yuan, growing by 21.04% [2] - Other companies like Shangmei and Juzi Biological also reported substantial revenue increases of 62.08% and 57.17% respectively, while Shanghai Jahwa experienced a revenue decline of 13.93% [2][3] - Six beauty companies have revenues exceeding 5 billion yuan, suggesting that this threshold will soon become a significant benchmark for the top 10 domestic beauty brands [1] Group 2: Profitability Trends - Juzi Biological leads in profitability with a profit of 2.062 billion yuan, up 42.06%, while Proya's profit reached 1.552 billion yuan, growing by 30% [3] - In contrast, Shanghai Jahwa reported a loss of 833 million yuan, marking a 266.60% decline, highlighting the stark differences in profitability among companies [3][11] Group 3: Market Dynamics - The current market dynamics indicate a shift towards efficacy-driven products, with companies that successfully launched standout products seeing better performance [4][5] - The competition is intensifying, with new entrants emerging and established brands needing to adapt to changing consumer preferences and market trends [7][30] Group 4: R&D and Strategic Focus - Companies are increasingly focusing on R&D, with most reporting a rise in R&D expenditures, indicating a strategic shift towards innovation and efficacy [20][21] - The trend of acquisitions and investments in technology is becoming a key strategy for companies aiming to enhance market share and scale [23][24] Group 5: Emerging Opportunities - The male skincare market is growing rapidly, presenting new opportunities for brands to capture this segment [36] - The aging population is creating demand for products targeting older consumers, which remains largely untapped [39] - As online sales plateau, brands are shifting focus to offline channels, indicating a potential new battleground for market share [40]