Investment Rating - The report upgrades the investment rating to "Buy" based on the company's strong performance and growth potential [2]. Core Insights - The company reported Q3 2025 revenue of 1.483 billion yuan, a year-on-year increase of 28%, and a net profit attributable to shareholders of 140 million yuan, marking a return to profitability [9]. - The company has shown significant improvement in gross margin, reaching 61.5% in Q3 2025, up 7 percentage points year-on-year, attributed to product mix optimization and lower raw material costs [9]. - The report highlights the successful launch of new products and the revitalization of mature brands, contributing to a robust growth matrix [9]. - The company is focusing on online marketing strategies to enhance brand visibility and sales conversion, leveraging platforms like Douyin and Tmall [9]. - The financial forecast has been revised upwards, with expected net profits of 377 million yuan, 505 million yuan, and 606 million yuan for 2025, 2026, and 2027 respectively [9]. Financial Data and Profit Forecast - Total revenue for 2025 is projected at 6.531 billion yuan, with a year-on-year growth rate of 15% [8]. - The net profit attributable to shareholders is expected to be 377 million yuan in 2025, with a significant increase of 149% compared to the previous year [8]. - The report anticipates a gross margin of 59.2% for 2025, with a gradual increase in subsequent years [8]. - The price-to-earnings ratio (PE) for 2025 is estimated at 44 times, with a potential upside of 46% based on current market valuation [9].

Investment Rating - The report maintains an "Outperform" rating for the company [2][9]. Core Insights - The company reported Q2 earnings that exceeded expectations, with H1 revenue of 3.478 billion yuan, a year-on-year increase of 4.7%, and a net profit of 266 million yuan, up 11.7% year-on-year [9]. - In Q2 alone, revenue reached 1.77 billion yuan, representing a 25.4% year-on-year growth, while net profit surged by 367.1% to 50 million yuan [9]. - The company plans to distribute a cash dividend of 0.39 yuan per 10 shares, totaling 25.966 million yuan, with a payout ratio of 10% [9]. Financial Data and Profit Forecast - The company forecasts total revenue of 6.276 billion yuan for 2025, with a year-on-year growth rate of 10.5% [8]. - The projected net profit for 2025 is 318 million yuan, with an expected growth rate of 19.4% in 2026 and 22.4% in 2027 [8]. - The gross margin for H1 2025 was reported at 63.4%, an increase of 2.2 percentage points year-on-year [9]. Business Performance - The personal care division generated 1.57 billion yuan in H1 2025, accounting for 45% of total revenue, with significant sales from new products [9]. - The beauty division achieved 820 million yuan in revenue, a 55.7% year-on-year increase, with notable growth in online sales channels [9]. - The company has optimized its channel layout, with online sales accounting for 44.2% of total revenue in H1 2025, reflecting a 34.64% year-on-year increase [9].