Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [4][12]. Core Insights - The company achieved a revenue of 5.362 billion yuan in H1 2025, representing a year-on-year growth of 7.21%. The net profit attributable to shareholders was 799 million yuan, up 13.80% year-on-year [1]. - The skincare segment showed steady growth, with revenue of 4.199 billion yuan in H1 2025, a slight increase of 0.20% year-on-year, while the beauty makeup segment grew by 25.79% to 837 million yuan [2]. - The company plans to list in Hong Kong to further its international strategy [1]. Financial Performance - The gross margin for H1 2025 increased by 3.56 percentage points to 73.38%, while the net profit margin rose by 0.86 percentage points [3]. - The main brand, Proya, generated 3.979 billion yuan in revenue, a slight decline of 0.08% year-on-year, while the sub-brand Cai Tang saw a revenue increase of 21.11% to 705 million yuan [4]. - The company forecasts net profits of 1.8 billion yuan, 2.08 billion yuan, and 2.35 billion yuan for 2025, 2026, and 2027, respectively, with growth rates of 15.9%, 15.3%, and 13.2% [4][6]. Revenue Breakdown - In H1 2025, online sales accounted for 95.39% of total revenue, amounting to 5.109 billion yuan, while offline sales decreased by 21.49% to 247 million yuan [2]. - The revenue from the hair care segment surged by 131.25% to 320 million yuan, indicating strong performance in this category [2]. Future Projections - The company expects revenue growth rates of 10.3%, 7.8%, and 6.5% for the years 2025, 2026, and 2027, respectively [6][9]. - The projected earnings per share for 2025, 2026, and 2027 are 4.54 yuan, 5.24 yuan, and 5.93 yuan, respectively [6][9]. Brand Development - The main brand Proya continues to enhance its brand strength, while other brands are also making significant progress, with Off&Relax being the fastest-growing brand, achieving a revenue of 279 million yuan, up 102.52% year-on-year [4].

Core Viewpoint - The report highlights the financial performance and strategic initiatives of Jiama Clothing Co., Ltd. for the first half of 2025, indicating a mixed performance with revenue growth but a significant decline in net profit [2][3]. Financial Performance - Jiama Clothing achieved a revenue of 497 million yuan in the first half of 2025, representing a year-on-year increase of 3.51% [2]. - The net profit attributable to shareholders was 64.05 million yuan, showing a year-on-year decrease of 30.65% [2]. Business Development - The company has been actively expanding its multi-brand matrix and product categories, with the launch of the "Hush Puppies" brand for both men's and women's clothing in mid-2024, which generated a revenue of 114 million yuan in the first half of 2025, a substantial increase of 752.45% year-on-year [2]. - As of June 30, 2025, Jiama Clothing operated 511 offline stores, including 155 direct-operated and 356 franchised stores, with 9 new direct-operated stores opened and 69 stores (30 direct and 39 franchised) closed during the reporting period [2]. Online Sales - The company continued to collaborate with major e-commerce platforms such as Vipshop, Tmall, Douyin, and JD.com, achieving online revenue of approximately 265.89 million yuan, which constituted a significant portion of total revenue [2]. R&D and Brand Operations - Jiama Clothing emphasizes independent research and design, with its own brands "Shuihai'er" and "Hush Puppies," as well as the licensed brand "Haggis," focusing on a semi-annual cycle for product design and development [3]. - The company has increased brand promotion efforts through collaborations with celebrities and influencers, as well as various online and offline marketing activities [3]. Financial Stability - As of June 30, 2025, Jiama Clothing's total assets were 2.529 billion yuan, a decrease of 2.72% from the previous year, while the net assets attributable to shareholders were 2.080 billion yuan, down 0.65% [3]. - The company adjusted its fundraising projects, reallocating 105.01 million yuan from the "Marketing System Construction Project" to the "Marketing System Construction and Upgrade Project," and terminated the "Enterprise Management Informationization Project," reallocating 23.34 million yuan to supplement working capital [3].