Core Viewpoint - The company has implemented a second phase of its restricted stock incentive plan to enhance its long-term incentive mechanism and motivate its core team, with a target price adjustment to 113.0 yuan and a rating of "Accumulate" [1][2]. Group 1: Incentive Plan Details - The second phase of the restricted stock incentive plan involves granting up to 556,000 shares at a price of 47.55 yuan per share, representing 0.139% of the total share capital, with 522,500 shares granted initially and 33,500 shares reserved [2]. - The total expense for the stock incentive plan is estimated at 25.84 million yuan, to be amortized over the years 2025 to 2028 [2]. Group 2: Management and Performance Targets - The initial grant recipients include senior management, with the president receiving 175,100 shares, accounting for 31.5% of the total shares granted [3]. - The performance targets for the second phase include revenue growth of 25%, 53%, and 84% for the years 2025 to 2027 compared to the same period in 2024, and net profit growth of 16%, 32%, and 45% respectively [3]. Group 3: Market Position and Product Strategy - During the 618 shopping festival, the company's brands ranked highly in various e-commerce platforms, indicating strong market presence [4]. - The company is expected to continue its high-end strategy, with an increase in the proportion of high-end products and the introduction of new brands emphasizing natural ingredients [4]. Group 4: Profit Forecast Adjustments - The profit forecasts for 2025, 2026, and 2027 are adjusted to 780 million, 930 million, and 1.16 billion yuan respectively, reflecting year-on-year growth rates of 24.3%, 20%, and 24.2% [4]. - The earnings per share (EPS) estimates for the same years are projected to be 1.94 yuan, 2.33 yuan, and 2.90 yuan, with corresponding price-to-earnings (PE) ratios of 48x, 40x, and 32x [4].

Investment Rating - The investment rating for the company is "Buy" with a target price of 113 CNY per share [1][9]. Core Insights - The company has implemented a second phase of its restricted stock incentive plan to enhance its long-term incentive mechanism and motivate its core team, granting up to 556,000 shares at a price of 47.55 CNY per share [8][11]. - The revenue growth targets for the second phase of the incentive plan are set at 25%, 53%, and 84% for the years 2025 to 2027 compared to 2024, while net profit growth targets are 16%, 32%, and 45% respectively [11]. - The company is expected to increase market investment to enhance brand awareness and accelerate revenue growth, which may lead to higher expenses [11]. - The company has shown strong performance during promotional events, ranking high in various e-commerce platforms, indicating a solid market position [11]. Financial Summary - The company’s projected net profits for 2025, 2026, and 2027 are 776 million, 932 million, and 1.158 billion CNY respectively, reflecting year-on-year growth rates of 24.3%, 20%, and 24.2% [11][13]. - Earnings per share (EPS) are expected to be 1.94 CNY, 2.33 CNY, and 2.90 CNY for the same years, with corresponding price-to-earnings (P/E) ratios of 48, 40, and 32 [11][13]. - The company’s revenue is projected to grow from 6.591 billion CNY in 2025 to 9.713 billion CNY by 2027, with a significant increase in operating profit as well [16].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][8] Core Insights - The company's high-end strategy has shown significant results, with continuous improvement in profitability [1] - The company reported a revenue of 5.245 billion yuan in 2024, representing a year-on-year growth of 21.22%, and a net profit of 624.72 million yuan, up 45.68% year-on-year [6] - The first quarter of 2025 saw a revenue of 1.48 billion yuan, a year-on-year increase of 34.82%, with a net profit of 2.04 million yuan, up 37.68% year-on-year [6] Revenue and Profit Forecast - The forecast for main revenue (in million yuan) is as follows: - 2024: 5,244.96 - 2025: 6,377.13 - 2026: 7,781.69 - 2027: 9,414.97 - Year-on-year growth rates are projected at 21.22% for 2024, 21.59% for 2025, 22.03% for 2026, and 20.99% for 2027 [3][7] - The forecast for net profit (in million yuan) is: - 2024: 624.72 - 2025: 806.48 - 2026: 1,013.32 - 2027: 1,232.31 - Year-on-year growth rates for net profit are expected to be 45.68% for 2024, 29.09% for 2025, 25.65% for 2026, and 21.61% for 2027 [3][7] Product and Channel Performance - The company has seen a continuous increase in the proportion of its main products, with self-owned brand revenue reaching 3.545 billion yuan in 2024, a year-on-year increase of 29.1% [6] - The direct sales revenue grew by 59.3% year-on-year, accounting for 37.5% of total revenue [6] - The company is focusing on high-end product development, with significant sales growth during major shopping events [6] Profitability and Financial Metrics - The company's gross margin improved to 42.27% in 2024, up 5.43 percentage points year-on-year [6] - The projected earnings per share (EPS) are: - 2024: 1.56 - 2025: 2.02 - 2026: 2.53 - 2027: 3.08 - The price-to-earnings (P/E) ratios are projected to be 72.80 for 2024, 56.39 for 2025, 44.88 for 2026, and 36.91 for 2027 [3][7]