Core Viewpoint - The Chinese massage and foot therapy industry is experiencing significant growth and structural upgrades, driven by the "Healthy China 2030" strategy and increasing health awareness among the public, with the market expected to exceed 730 billion by 2026 and online user penetration surpassing 45% [1][2]. Market Size and Trends - By 2026, the user base in the massage and foot therapy industry is projected to reach nearly 250 million, with order volume approaching 30 billion and transaction value exceeding 730 billion [2]. - The industry has entered a stable and mature development phase, with online platforms becoming a crucial part of its growth [2]. Industry Development and Growth - The therapeutic wellness segment is becoming the growth engine of the industry, fueled by aging population demands, chronic disease management, and a shift in consumer focus from relaxation to proactive health maintenance [6][10]. Market Concentration - The therapeutic wellness market remains fragmented, but leading brands in high-tier cities are expanding rapidly, resulting in an increase in market concentration, with the top 10 brands' order share rising from 9.8% in 2020 to 13.5% in 2025 [10][13]. Store Growth Distribution - The number of therapeutic wellness stores is growing rapidly, with first-tier and new first-tier cities averaging a growth rate of around 20%, while second-tier and lower-tier cities are experiencing even higher growth rates of 26.9% and 44.1%, respectively [15]. User Characteristics - The user base is increasingly female and younger, with diverse needs driving sustained growth in the industry. Women are particularly focused on health maintenance and are more likely to engage in therapeutic services [38][57]. Female-Friendly Services - The upgrade of environments and services to be more female-friendly is creating a therapeutic and social experience that meets women's needs for safety, comfort, and privacy [41]. Consumption Trends - There is a noticeable trend of increased user frequency, with users making three or more transactions contributing significantly to the industry's gross transaction value (GTV) [47]. Project Preferences - Women primarily prefer therapeutic projects such as massage and foot therapy, with a notable inclination towards combinations like massage plus moxibustion for enhanced effects [66]. Purchase Experience - Female users often make their first therapeutic experience by directly visiting stores, while younger women (90s and 00s) are more inclined to use online group purchases and visit in groups [80]. Consumer Spending - Female users' single transaction spending is concentrated in the range of 100-299 yuan, with an average spending of 254 yuan on therapeutic projects, slightly higher than the overall average [85]. Repurchase Behavior - Nearly half of female users choose to repurchase from the same store due to the ability to negotiate service combinations and discounts, while around 40% opt for online repurchases due to price advantages [87]. Satisfaction Factors - Key factors influencing female user satisfaction include the skill of the therapists, the effectiveness of the service, and the comfort of the store environment [95].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 3.82 CNY and an expected relative return of 10%-20% over the next six months [5][16]. Core Views - The company reported a revenue of 1.3 billion CNY in Q1 2025, a decrease of 4% year-on-year, and a net profit attributable to shareholders of 170 million CNY, down 32% year-on-year [1]. - The increase in management expenses by 26% is attributed to the acquisition of the Woolrich brand, brand consulting services, and rising labor costs, along with depreciation from new industrial parks [1]. - Financial expenses surged by 82.24% due to reduced bank deposits and lower interest income [1]. - The report adjusts profit forecasts for 2025-2027, expecting net profits of 460.57 million CNY, 543.46 million CNY, and 629.44 million CNY respectively, with corresponding EPS of 0.32 CNY, 0.37 CNY, and 0.43 CNY [4][9]. Summary by Sections Financial Performance - Q1 2025 revenue was 1.3 billion CNY, a 4% decrease year-on-year, with a net profit of 170 million CNY, down 32% [1]. - Management expenses increased by 26% due to various factors including brand acquisition and rising costs [1]. - Financial expenses rose by 82.24% due to decreased interest income [1]. Profit Forecasts - The report revises profit forecasts, projecting net profits of 460.57 million CNY for 2025, 543.46 million CNY for 2026, and 629.44 million CNY for 2027 [4][9]. - EPS is expected to be 0.32 CNY in 2025, 0.37 CNY in 2026, and 0.43 CNY in 2027 [4][9]. Market Positioning - The company focuses on maintaining its brand strength and market position through systematic improvements and targeted strategies across its various brands [2][3].