Investment Rating - The investment rating for the company is upgraded to "Accumulate" [5] Core Insights - The company reported steady growth in its performance, with a revenue of 7.098 billion yuan for the first three quarters of 2025, reflecting a year-on-year increase of 1.89%. The net profit attributable to shareholders was 1.026 billion yuan, up 2.65% year-on-year [5][8] - The company experienced a decline in revenue and net profit in Q3 2025, with revenue of 1.736 billion yuan, down 11.63% year-on-year and 42.18% quarter-on-quarter. The net profit for the same period was 227 million yuan, down 23.64% year-on-year and 44.35% quarter-on-quarter [5][8] - The company maintained a high gross margin of 73.69% for the first three quarters of 2025, an increase of 3.62 percentage points year-on-year, and a net profit margin of 14.86%, up 0.18 percentage points year-on-year [8] Financial Performance Summary - Revenue projections for 2025-2027 are 12.002 billion yuan, 13.427 billion yuan, and 15.081 billion yuan, with year-on-year growth rates of 11.36%, 11.87%, and 12.32% respectively [7][8] - Net profit projections for the same period are 1.643 billion yuan, 1.783 billion yuan, and 1.986 billion yuan, with growth rates of 5.87%, 8.53%, and 11.38% respectively [7][8] - The company's return on equity (ROE) is projected to decline from 24.84% in 2025 to 20.78% in 2027 [11][12] Market Position and Competitive Landscape - The company has maintained strong rankings across multiple platforms during the "Double 11" sales event, with its main brand ranking first in Tmall's beauty category and other brands also performing well [8] - The company is focusing on a strategy of "new product expansion and solidifying core products," with significant growth in its high-end product lines [8] - The competitive landscape in the cosmetics industry is intensifying, with the company's color cosmetics brand becoming a key growth driver [8]