Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Insights - The company reported a revenue of 7.1 billion yuan for the first three quarters of 2025, a year-on-year increase of 1.9%, with a net profit attributable to shareholders of 1.03 billion yuan, also up 2.7% year-on-year [1]. - In Q3 2025, the skincare segment saw a significant decline in revenue by 20.4%, while the hair care segment experienced remarkable growth of 137.7% [2]. - The gross margin for the first three quarters improved by 3.6 percentage points to 73.7%, while the expense ratio increased by 3.6 percentage points to 55.3% [3]. Summary by Sections Financial Performance - Q3 2025 revenue was 1.74 billion yuan, down 11.6% year-on-year, with net profit at 0.23 billion yuan, down 23.6% year-on-year [1][2]. - The gross margin for Q3 2025 was 74.7%, reflecting a year-on-year increase of 4.0 percentage points [3]. Profitability Forecast - The net profit forecasts for 2025, 2026, and 2027 have been revised downwards by 15%, 14%, and 13% respectively, with projected net profits of 1.53 billion, 1.79 billion, and 2.07 billion yuan [4]. - The earnings per share (EPS) estimates for the same years are 3.86, 4.52, and 5.22 yuan, with corresponding price-to-earnings (P/E) ratios of 20, 17, and 15 [4]. Cash Flow and Inventory Management - Operating cash flow for the first three quarters of 2025 was 1.2 billion yuan, an increase of 196.7% year-on-year [3]. - Inventory as of September 2025 increased by 47.6% from the beginning of the year to 0.98 billion yuan, while accounts receivable decreased by 38.5% to 0.32 billion yuan [3].