Core Insights - The Chinese beauty industry is undergoing a significant transformation driven by consumer upgrades and cultural confidence, with local brands focusing on cultural empowerment and technological innovation to build core competitiveness [1][3] - The IPO of Plant Doctor represents a crucial milestone for the brand and serves as a model for the feasibility of "cultural capitalization" in the beauty sector, providing a new financial perspective and industry reference for the high-quality development of domestic beauty brands [1][4] Industry Development - The cultural empowerment of domestic beauty brands has evolved from superficial symbol integration to a systematic approach that spans research, production, and marketing [1] - According to iResearch, 72% of Generation Z consumers consider brand cultural connotation when choosing beauty products, and 68% are willing to pay a premium for "cultural recognition," pushing brands to delve deeper into local culture [1][2] Plant Doctor's Strategy - Plant Doctor has transformed cultural resources, such as traditional skincare wisdom from "Compendium of Materia Medica" and local skincare secrets from Yunnan, into core inspirations for product development [2] - The establishment of the "Chinese Academy of Sciences Kunming Plant Research Institute Plant Doctor R&D Center" has led to over 200 research projects, validating the skincare efficacy of local plant ingredients scientifically [2] - The annual sales of the Dendrobium series have exceeded 1 billion yuan, showcasing the successful integration of cultural core, modern technology transformation, and market emotional resonance [2] Capitalization Process - The strategic significance of Plant Doctor's IPO extends beyond its own development, addressing the slow capitalization process in the beauty industry, which is characterized by light assets and high margins [3] - Plant Doctor's unique highland plant culture creates a differentiated advantage in market competition, allowing it to maintain a gross margin above 60% and ensuring sustainable profitability [3] - The IPO is expected to set a benchmark for the cultural empowerment track of domestic beauty brands, with a valuation potentially exceeding 10 billion yuan [3] Market Outlook - The ongoing recovery of the national economy and increasing consumer confidence provide a favorable market environment for the capitalization of the beauty industry [4] - The Chinese beauty sector is projected to increase its global market share to over 15% by 2025, breaking the monopoly of international brands in the high-end market [4] - Plant Doctor aims to leverage its IPO as a new starting point to integrate global R&D resources and channel networks, promoting highland plant culture and Eastern skincare wisdom worldwide [4]

Investment Rating - The report maintains an "Add" rating for the industry [1] Core Insights - Lin Qingxuan, a leading domestic high-end skincare brand, has officially submitted its application to the Hong Kong Stock Exchange, marking a new chapter in its capitalization [4][9] - The company has experienced rapid growth in recent years, with revenue increasing from 691 million RMB in 2022 to 1.21 billion RMB in 2024, representing a CAGR of 32.3% [12][20] - Lin Qingxuan ranks first among domestic high-end skincare brands in China by retail sales, and is the only domestic brand in the top 15 high-end skincare brands [27] Industry Overview - The high-end domestic skincare market is characterized by strong performance from brands like Lin Qingxuan, which focuses on anti-aging and tightening products [4][9] - The company's flagship product, Camellia Oil, has seen significant growth, with a CAGR of 43% from 2022 to 2024 [20][25] - Online sales channels have doubled, with online revenue accounting for 59.1% of total revenue in 2024, compared to 40.8% from offline channels [25][26] Financial Performance - Lin Qingxuan's net profit improved from a loss in 2022 to 186 million RMB in 2024, with a net profit growth of 121% year-on-year in 2024 [12][20] - The company's gross margin has increased from 78% in 2022 to 82.5% in 2024, reflecting improved profitability [12][18] Market Dynamics - Recent promotional events, such as the 618 shopping festival, have highlighted the strong performance of domestic beauty brands, with Lin Qingxuan and others gaining significant market share [28] - The report suggests that Lin Qingxuan's successful market positioning and product innovation will continue to drive growth in the high-end skincare segment [4][29]