Core Viewpoint - Guojin Securities has initiated coverage on Shumei Co., Ltd. (02145), recognizing it as a leading player in China's beauty and personal care industry, with a multi-brand matrix across skincare, baby care, and hair care sectors. The company primarily utilizes online channels and is expected to achieve strong growth, particularly with its main brand, Han Shu, and new brand development, leading to a target price of HKD 109.78 based on a 2025 PE of 30 times, with a "Buy" rating assigned [1]. Group 1: Company Development and Strategy - The company's multi-brand expansion strategy shares similarities with Anta Sports, focusing on market-driven approaches, precise brand positioning, and effective marketing to quickly address consumer pain points [2]. - The trend of refined channel operations is evident as the company restructures its channel strategy around Douyin, leveraging innovative marketing and increasing self-broadcasting to achieve significant revenue and profit growth [2]. - The company ensures a steady supply of core management talent through a dual approach of internal training and external recruitment, which supports differentiated development across its brands [2]. Group 2: Growth Projections and Market Position - The company is expected to achieve substantial growth in its three main segments: skincare, baby care, and hair care, with Han Shu projected to exceed CNY 10 billion in revenue within three years [3]. - In the skincare segment, Han Shu has seen a significant market share increase through Douyin, with projected revenue growth of over 80% in 2024, despite a slowdown in H1 2025 due to channel adjustments [3]. - The baby care brand, Yiye, is experiencing rapid growth with a unique "medical research co-creation" model, expected to achieve a compound annual growth rate of over 50% in the next three years [3]. - The hair care segment is anticipated to produce major brands, with a focus on clear positioning and consumer mindset development, as well as entering faster-growing segments like anti-hair loss [3]. Group 3: Financial Forecasts - The company achieved an online sales ratio of nearly 93% in H1 2025, with Han Shu's rapid growth through Douyin contributing to projected revenues of CNY 5.591 billion in 2024, reflecting an 80.9% year-on-year increase [4]. - New brands like Yiye are also rapidly gaining traction, with projected growth rates of 498% for 2023 and 146% for H1 2025 [4]. - Earnings per share (EPS) forecasts for 2025-2027 are estimated at CNY 2.68, CNY 3.33, and CNY 4.09, respectively, with a valuation of 24 times for 2026 [4].

Core Viewpoint - Guojin Securities has initiated coverage on Shangmei Co., Ltd. (02145), recognizing it as a leading player in China's beauty and personal care industry, with a multi-brand matrix across skincare, baby care, and hair care sectors. The company is primarily focused on online channels, and given the strong growth potential of its multi-brand strategy, it has set a target price of HKD 109.78 based on a 30x PE valuation for 2025, rating it as "Buy" [1]. Group 1: Company Development and Strategy - The company's multi-brand expansion strategy shares similarities with Anta Sports, focusing on market-driven approaches that quickly identify consumer pain points and launch targeted products while leveraging impactful marketing and top-tier IP collaborations [1]. - The trend of refined channel operations is evident as the company restructures its channel strategy around Douyin, enhancing revenue and profit growth through innovative marketing and increased self-broadcasting [1]. - The company ensures a steady supply of core management talent through a dual approach of internal training and external recruitment, which supports differentiated development across its brands [1]. Group 2: Growth Projections - The company is expected to achieve significant growth in its three main segments: skincare, baby care, and hair care, with projections indicating that Han Shu could surpass CNY 10 billion in revenue within three years [2]. - In the skincare segment, Han Shu has seen a notable increase in market share through Douyin, with projected revenue growth exceeding 80% in 2024. Despite a slowdown in H1 2025 due to channel adjustments, Q3 2025 GMV is expected to grow by 50% year-on-year [2]. - The baby care brand, Yiye, is experiencing rapid growth with a projected compound annual growth rate (CAGR) exceeding 50% over the next three years, while the hair care segment is anticipated to produce major brands by leveraging clear positioning and consumer engagement strategies [2]. Group 3: Financial Forecasts - The company is projected to achieve a revenue of CNY 5.591 billion in 2024, reflecting an 80.9% year-on-year increase, with H1 2025 revenue expected to grow by 14.3% to CNY 3.344 billion [3]. - New brands like Yiye are rapidly gaining traction, with annual growth rates of 498% in 2023 and 146% in 2024, and a continued strong performance expected in H1 2025 [3]. - Earnings per share (EPS) forecasts for 2025-2027 are estimated at CNY 2.68, CNY 3.33, and CNY 4.09, respectively, with a valuation of 24x for 2026 [3].