Investment Rating - The report does not explicitly state an investment rating for the industry or the company Core Insights - Himalaya Natural Technology has established itself as a leading domestic beauty brand in China, with its flagship brand "Naturally" recognized for its high consumer acceptance and brand value [4] - The company's revenue has shown steady growth, with a notable increase in online sales channels, contributing significantly to overall revenue [4][26] - The skincare segment remains the largest category in the beauty market, with a projected market size of 3,826 billion yuan in 2024, representing 40.9% of the total cosmetics market [4][65] Summary by Sections Company Overview - Himalaya Natural Technology, founded in 2001, has launched multiple brands including "Naturally" and "MAYSU," focusing on natural technology and anti-aging products [4][7] - The company has undergone significant growth phases, expanding its brand portfolio and market presence [7][8] Financial Analysis - The company's overall revenue increased from 4.292 billion yuan in 2022 to approximately 4.601 billion yuan in 2024, with skincare business dominating revenue contributions [4][26] - Net profit has fluctuated, with figures of 147 million yuan in 2022 and 191 million yuan in the first half of 2025, reflecting a net profit margin increase [4][57] Industry Analysis - The cosmetics market in China is projected to reach 9,346 billion yuan by 2024, with a compound annual growth rate (CAGR) of 3.7% from 2019 to 2024 [4][61] - Domestic brands are gaining market share, with the domestic cosmetics market expected to grow at a CAGR of 5.9% from 2019 to 2024 [4][62] - Skincare products are the largest segment, with a market size expected to reach 3,826 billion yuan in 2024, growing at a CAGR of 4.7% [4][65] Competitive Landscape - The company has established a multi-brand strategy centered around "Naturally," which contributes over 94% of total revenue [4][81] - The competitive landscape shows that domestic brands are successfully capturing market share from international brands, with "Naturally" being one of the top domestic brands [4][71][78]

Core Viewpoint - CHANDO has submitted its IPO application to the Hong Kong Stock Exchange, facing multiple challenges including high reliance on its main brand and fluctuating net profits [2][5]. Group 1: Company Overview - CHANDO is the third largest domestic cosmetics group in China based on retail sales projected for 2024, with a valuation exceeding 7.1 billion RMB after a recent investment from L'Oréal [5]. - The company has five major brands covering skincare, makeup, and personal care, with the main brand CHANDO contributing over 94% of total revenue [11][12]. Group 2: Financial Performance - CHANDO's revenue growth has been stable but slow, with a compound annual growth rate of only 3.5% from 2022 to 2024, lagging behind industry leaders [8][9]. - In 2023, the company's net profit peaked at 302 million RMB but dropped by 37.1% to 190 million RMB in 2024, with a slight recovery to 191 million RMB in the first half of 2025 [9]. Group 3: Market Position and Competition - In the first half of 2025, CHANDO's revenue was 2.448 billion RMB, significantly lower than competitors like Pechoin, which achieved 5.362 billion RMB [8][9]. - The company's reliance on a single brand and product category may weaken its ability to adapt to market fluctuations, especially in a diversifying beauty market [13]. Group 4: Marketing and R&D Expenditure - CHANDO's sales and marketing expenses reached 2.717 billion RMB in 2024, accounting for 59% of total revenue, which is 14.3 times its net profit for the year [14]. - The company's R&D investment has been relatively low, totaling only 348 million RMB from 2022 to the first half of 2025, with a decreasing R&D expense ratio compared to industry peers [14]. Group 5: Online Sales Strategy - The company has a high dependency on online sales, with online revenue accounting for 68.8% of total income in the first half of 2025, primarily from direct online sales [14][15]. - The increasing competition in e-commerce and rising customer acquisition costs may further pressure the company's profit margins [15].

Core Viewpoint - The article discusses the upcoming IPO of the Chinese cosmetics brand, Chando Global Holdings, following the successful listing of another domestic brand, Mao Geping, which saw a significant increase in stock price. The market is optimistic about the potential of domestic cosmetics brands in the Hong Kong stock market [1][2]. Industry Overview - China is the second-largest cosmetics market globally, with a market share of approximately 11.4% of the global cosmetics industry retail sales in 2024. The market size of China's cosmetics industry is projected to grow from RMB 779.4 billion in 2019 to RMB 934.6 billion in 2024, representing a compound annual growth rate (CAGR) of 3.7% [5]. - The domestic cosmetics industry is expected to maintain a stable growth trajectory, with an anticipated CAGR of 6.6% from 2024 to 2029, which is about twice the growth rate of the global cosmetics market during the same period [5]. Company Profile - Chando Global Holdings, established in 2001, is one of the few domestic cosmetics companies with over 20 years of history. Its flagship brand, Chando, has ranked among the top two domestic cosmetics brands in retail sales for 12 consecutive years from 2013 to 2024, demonstrating strong resilience throughout industry cycles [2][8]. - The company has received over RMB 700 million in investments from global cosmetics giant L'Oréal and well-known institution, Cahua Capital, prior to its IPO [3]. Financial Performance - Chando's revenue has shown consistent growth, with figures of RMB 4.292 billion, RMB 4.442 billion, RMB 4.601 billion, and RMB 2.448 billion for the years 2022, 2023, 2024, and the first half of 2025, respectively. The net profits for the same periods were RMB 1.39 billion, RMB 3.02 billion, RMB 1.9 billion, and RMB 1.91 billion [13][14]. Product and R&D Strategy - Chando has developed a diversified brand portfolio that includes five main brands, offering a comprehensive range of products across skincare, makeup, personal care, and children's care. The company emphasizes a multi-brand strategy to cater to different consumer needs [10]. - The company is the first domestic cosmetics firm in China to possess proprietary rights to yeast ingredients and has initiated space skincare research projects. It has established three major research systems and four technical platforms to enhance its innovation and product development capabilities [12]. Sales Channels - Online sales have been a core channel for Chando, accounting for 68.8% of revenue in the first half of 2025. However, the company is increasingly focusing on offline channels as online traffic reaches saturation [15][16]. - Chando plans to strengthen its offline presence by opening flagship stores in major shopping centers, with the first store launched in Shenzhen in July 2025, followed by additional stores in Shanghai, Wuhan, and Chongqing [18]. Investment and Future Plans - The funds raised from the IPO will primarily be used to enhance the company's direct-to-consumer (DTC) capabilities, improve online and offline sales network synergy, invest in R&D and product development, and strengthen digital capabilities in membership management and supply chain management [20].

Core Viewpoint - CHANDO Global Holdings Limited is preparing for an IPO on the Hong Kong Stock Exchange, with a pre-IPO valuation exceeding 7.1 billion RMB, aiming to enhance its market presence and operational capabilities [3][7]. Company Overview - Founded in 2001, CHANDO has become the third-largest domestic cosmetics group in China, offering a comprehensive range of products across five main brands, including its flagship brand CHANDO [3][4]. - As of June 30, 2025, CHANDO's main brands provide a total of 522 SKUs, with the flagship brand accounting for a significant portion of the group's revenue [4][5]. Financial Performance - Revenue figures for CHANDO from 2022 to 2024 are 4.292 billion RMB, 4.442 billion RMB, and 4.601 billion RMB, respectively. In the first half of 2025, revenue increased from 2.301 billion RMB in 2024 to 2.448 billion RMB [7]. - Adjusted net profits for the same period were 139 million RMB, 313 million RMB, and 203 million RMB, with the first half of 2025 showing an increase from 186 million RMB in 2024 to 219 million RMB [7]. Market Position and Brand Recognition - CHANDO is recognized as the second-largest domestic cosmetics brand in China based on retail sales for 2024 and has maintained a top-two position for 12 consecutive years [4][5]. - The brand leads in consumer recognition, purchase frequency, and repurchase intention among surveyed domestic cosmetics brands [4]. Digital and Operational Strategy - CHANDO has established a comprehensive digital operation model, leveraging a unique inventory system to enhance supply chain, inventory, production, sales, and consumer data analysis [5]. - As of June 30, 2025, CHANDO has over 3.77 million registered members, with a repurchase rate of approximately 32.4%, surpassing the industry average [5]. Sales Channels and Expansion - The company has a robust presence across major e-commerce platforms in China and has established over 62,700 retail points nationwide, including various retail formats [6]. - CHANDO is also expanding its international market presence, with products now available in North America and Southeast Asia [6][7]. IPO Fund Utilization - The net proceeds from the IPO will be primarily used to enhance direct-to-consumer (DTC) capabilities, improve online and offline sales network synergy, invest in R&D, and expand overseas market operations [8].

Core Viewpoint - Natural堂 Global Holdings Limited has submitted a listing application to the Hong Kong Stock Exchange, with Huatai International and UBS Group as joint sponsors [1] Group 1: Company Overview - The company is a multi-brand enterprise in China's cosmetics industry, driven by strategic leadership, digitalization, and product technology [2] - According to Frost & Sullivan, the company is the third-largest domestic cosmetics group in China by retail sales in 2024 [2] - Natural堂, the flagship brand, has ranked among the top two domestic cosmetics brands by retail sales for 12 consecutive years from 2013 to 2024, demonstrating strong resilience throughout industry cycles [2] Group 2: Brand Performance - Natural堂 is recognized as the second-largest domestic cosmetics brand in China by retail sales in 2024 [2] - The brand ranks first among surveyed domestic cosmetics brands in terms of consumer recognition, purchase frequency, and repurchase intention, indicating a strong resonance with Chinese consumers [2] - Natural堂 topped the Ipsos "2024 Domestic Skincare Brand Competitiveness List" and was included in the "Top 100 Chinese Brands I Like" and "Top 100 Foreigners' Favorite Chinese Brands" lists for 2025 [2] Group 3: Financial Performance - The company's revenue for the years 2022, 2023, 2024, and the first half of 2025 was RMB 4.292 billion, RMB 4.442 billion, RMB 4.601 billion, and RMB 2.348 billion respectively [7] - The profit for the same periods was RMB 139 million, RMB 302 million, RMB 190 million, and RMB 179 million respectively [7] - Natural堂 contributed 94.6%, 95.9%, 95.4%, 95.6%, and 94.9% to the company's total revenue for the years 2022, 2023, 2024, and the first half of 2025 [3] Group 4: Use of Proceeds - The proceeds from the financing will be used to enhance the company's DTC capabilities, improve online and offline sales network synergy, and increase direct consumer engagement [7] - Funds will also be allocated to enrich the multi-brand matrix, invest in R&D and product development, and strengthen digital capabilities in membership, supply chain, and sales management [7] - Additional investments will focus on upgrading production facilities to enhance self-production capabilities and product quality consistency, as well as expanding overseas market operations [7]