Investment Rating - The report initiates coverage with a "Buy" rating for the company [6][7]. Core Views - The company is transitioning into a high-end global beauty group driven by its own brands and CP (Contract Production) brands, with a focus on high-end and global expansion [6][7]. - The financial forecast indicates a recovery trend in performance, with expected net profits of 258 million, 331 million, and 398 million yuan for 2025, 2026, and 2027 respectively, reflecting significant growth rates [6][7]. Financial Data and Profit Forecast - Total revenue (in million yuan) is projected to be 4,237 in 2024, 2,500 in H1 2025, 4,630 in 2025E, 4,996 in 2026E, and 5,382 in 2027E, with year-on-year growth rates of -5.7%, 9.0%, 9.3%, 7.9%, and 7.7% respectively [2]. - Net profit attributable to the parent company (in million yuan) is expected to be 110 in 2024, 123 in H1 2025, 258 in 2025E, 331 in 2026E, and 398 in 2027E, with year-on-year growth rates of -62.6%, 16.5%, 134.9%, 28.1%, and 20.2% respectively [2]. - Earnings per share (in yuan/share) are forecasted to be 0.28 in 2024, 0.32 in H1 2025, 0.66 in 2025E, 0.85 in 2026E, and 1.02 in 2027E [2]. Business Model and Strategy - The company operates a dual business model of self-owned brands and CP brands, with a strong focus on high-end brand development and global market penetration [6][21]. - The self-owned brand matrix includes high-end brands like EDB, PA, and RV, alongside popular brands like YUNIFANG and DSD, which cater to diverse consumer needs [6][21]. - The company has established a robust digital platform for international beauty brands, collaborating with over 50 international brands across various categories [6][21]. Competitive Advantages - The company has a concentrated and stable shareholding structure, with the founder holding approximately 43.1% of the shares, ensuring strong governance [24]. - The management team possesses extensive experience in the beauty industry, enhancing the company's strategic and operational capabilities [27]. - The company has demonstrated a significant improvement in profitability, with gross margins increasing from 52.07% in 2021 to 64.61% in 2025H1, driven by the high-end brand strategy [32].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][7]. Core Insights - The company is transitioning into a high-end global beauty group driven by its own brands and CP (Contract Production) brands, with a focus on high-end market penetration and digital transformation [6][18]. - The financial forecast indicates a significant recovery in net profit, with expected growth rates of 134.9%, 28.1%, and 20.2% for the years 2025 to 2027 [7][39]. Financial Data and Profit Forecast - Total revenue (in million yuan) is projected to be 4,630 in 2025, with a year-on-year growth rate of 9.3% [2]. - Net profit attributable to the parent company is expected to reach 258 million yuan in 2025, reflecting a substantial increase of 134.9% compared to the previous year [2]. - Earnings per share are forecasted to be 0.66 yuan in 2025, with a PE ratio of 33 [2]. Business Model and Strategy - The company operates a dual business model comprising self-owned brands and CP brands, with a strong emphasis on high-end product offerings [18][24]. - The self-owned brand matrix includes high-end brands like EDB, PA, and RV, alongside popular mass-market brands such as YU NI BANG and DA SHUI DI [24][51]. - The CP brand strategy involves partnerships with over 50 international brands, enhancing the company's market presence and product diversity [24][25]. Competitive Advantages - The company has established a comprehensive brand matrix and a robust digital marketing strategy, leveraging platforms like Douyin for sales [6][10]. - Strong R&D capabilities support the development of unique raw materials and technologies, enhancing product differentiation [6][39]. - The management team possesses extensive industry experience, contributing to strategic decision-making and operational efficiency [28][32]. Growth Catalysts - Anticipated growth in high-end brand sales, optimization of the agency business structure, and effective channel collaboration are expected to drive revenue growth [10][39]. - The successful integration of acquired brands and the expansion of digital channels are key factors for future performance [6][10].