Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [6][17]. Core Views - The company experienced a temporary pressure on performance in Q3 2025, with revenue of 1.865 billion yuan, down 21.49% year-on-year, and a net profit of 1.093 billion yuan, down 31.05% year-on-year. The outlook remains positive due to pipeline developments and overseas expansion opportunities [1][5]. - The company has a strong R&D capability and is entering the cosmetic raw materials sector, with several products in various stages of approval and clinical trials, which is expected to enhance growth potential [3]. - The acquisition of Korean company REGEN is a strategic move to enhance international presence, with products already gaining significant market share in various regions, indicating a strong potential for future growth [4]. Financial Performance Summary - For Q1-Q3 2025, the gross margin was 93.36%, down 1.44 percentage points year-on-year, and the net profit margin was 58.62%, down 8.12 percentage points year-on-year. The sales expense ratio increased to 12.39%, while the R&D expense ratio rose to 12.73% [2]. - The company forecasts revenues of 2.853 billion yuan for 2025, down from previous estimates, with net profits expected to be 1.604 billion yuan, reflecting a downward adjustment in profit expectations due to industry slowdown and increased competition [5][11]. Future Outlook - The company is expected to see revenue growth in the coming years, with projections of 2.853 billion yuan in 2025, 3.333 billion yuan in 2026, and 3.798 billion yuan in 2027, indicating a recovery trajectory post-2025 [5][10]. - The company maintains a leading position in the medical beauty sector, with ongoing R&D and strategic acquisitions expected to drive future growth [5][4].

Core Viewpoint - Aimeike has completed its first new cosmetic ingredient filing, "Glycyrrhizic Chalcone A," derived from the traditional Chinese plant licorice, marking a significant step in its strategic expansion into the cosmetics sector [2][3][4]. Group 1: Business Development - Aimeike is actively expanding its cosmetics business, leveraging its technological advantages accumulated in the medical aesthetics field to drive innovation [4][8]. - The company reported a revenue of 1.299 billion yuan in the first half of 2025, a year-on-year decline of 21.6%, and a net profit of 789 million yuan, down 29.6%, indicating pressure on its core products [6]. - Aimeike has initiated a multi-line transformation strategy, including product diversification and pipeline expansion, with new products like "Gakola" and ongoing clinical trials for other products [6][8]. Group 2: Market Context - The cosmetic ingredient market is experiencing intense competition, with a 77.8% year-on-year increase in new ingredient filings in the first half of the year, highlighting the growing interest in this sector [11]. - Major players like Proya and Beautylife have also completed new ingredient filings, indicating a trend among domestic beauty giants to secure upstream raw material capabilities [11]. Group 3: Strategic Challenges - Aimeike faces significant challenges, including a lack of experience in managing cosmetic raw material supply chains and the need for time to transition from filing to commercialization [12]. - The company is also contending with established competitors who have first-mover advantages and the potential for regulatory hurdles during the three-year monitoring period following the new ingredient filing [12].