Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported steady growth in H1 2025, achieving revenue of 3.113 billion yuan (up 22.5% year-on-year) and a net profit of 1.182 billion yuan (up 20.2% year-on-year). As a leader in the collagen protein sector, the company is expected to continue delivering strong performance [4] - The company maintains its profit forecast, expecting net profits of 2.597 billion, 3.185 billion, and 3.834 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 2.51, 3.07, and 3.70 yuan. The current stock price corresponds to PE ratios of 19.7, 16.0, and 13.3 times for the respective years [4] Financial Summary and Valuation Metrics - Revenue for 2023 was 3.524 billion yuan, with projections of 5.539 billion for 2024, 7.186 billion for 2025, 9.022 billion for 2026, and 11.024 billion for 2027, reflecting year-on-year growth rates of 49.0%, 57.2%, 29.7%, 25.5%, and 22.2% respectively [8] - Net profit for 2023 was 1.452 billion yuan, with projections of 2.062 billion for 2024, 2.597 billion for 2025, 3.185 billion for 2026, and 3.834 billion for 2027, with year-on-year growth rates of 44.9%, 42.1%, 25.9%, 22.6%, and 20.4% respectively [8] - The gross margin for 2025 is projected to be 81.6%, with net margins of 36.1% and ROE of 28.8% [8] - The diluted EPS is expected to be 2.5 yuan for 2025, with P/E ratios decreasing from 35.2 in 2023 to 19.7 in 2025 [8]

Core Insights - The company reported a total revenue of 2.79 billion yuan in the first half of 2025, representing a year-on-year decline of 4.30% [1] - The net profit attributable to shareholders increased by 64.09% to 274 million yuan, primarily due to the recognition of investment income from the disposal of part of its stake in Guangzhou Ruoyuchen Technology Co., Ltd. amounting to 161 million yuan [1] - The net profit excluding non-recurring items decreased by 2.70% to 136 million yuan, indicating challenges in the core business profitability [1] Financial Performance - Total assets at the end of the reporting period were 7.99 billion yuan, a slight decrease of 0.1% from the previous year [1] - Equity attributable to shareholders of the parent company was 2.86 billion yuan, down 1.0% from the previous year [1] Business Segment Analysis - The high-end women's clothing segment experienced a revenue decline due to fluctuations in the consumer market environment [1] - The medical beauty business maintained a high gross margin; however, the year-on-year decline in net profit excluding non-recurring items reflects ongoing challenges in the core business's profitability [1]

Core Viewpoint - The company reported strong financial performance in the first half of 2025, exceeding its earnings forecast, driven by a robust business model and increasing consumer awareness in the beauty and health sectors [1][2] Financial Performance - In H1 2025, the company achieved revenue of 1.459 billion, a year-on-year increase of 28.2%, and an adjusted net profit of 191 million, up 37.8% year-on-year, with an adjusted net profit margin of 13.1%, an increase of 0.9 percentage points year-on-year [1] - The beauty and health services segment generated revenue of 807 million, a year-on-year increase of 29.6% [1] - The medical beauty segment reported revenue of 499 million, a year-on-year increase of 13.0% [1] - The sub-health management services segment saw revenue growth of 107.8%, reaching 154 million [1] Business Model and Growth Drivers - The company's "Double Beauty + Double Health" business model is expected to continue benefiting from the rise in consumer sentiment and women's self-care awareness [1] - The number of direct and franchise stores for beauty and health services reached 238 and 276, respectively, with active membership numbers increasing significantly [1] - The company has received NMPA approvals for multiple Class III medical devices for use in the medical beauty sector since 2025, enhancing its product offerings [1] Strategic Initiatives - The company announced plans to further increase its stake in Nairui'er by 20%, showcasing its strong acquisition and integration capabilities [2] - A capital market value enhancement plan was introduced, focusing on long-term shareholder returns, attracting strategic investors, and implementing equity incentive plans [2] - The company has committed to distributing at least 50% of its annual net profit to dividends over the next three fiscal years [2] Profit Forecast and Valuation - The company maintains its profit forecast, expecting net profits of 320 million, 369 million, and 420 million for 2025-2027 [2] - The target price is set at 37.36 HKD, based on a 25x PE ratio for 2025, reflecting the company's sustainable competitive advantages and clear long-term shareholder return mechanisms [2]

Core Viewpoint - The company reported strong financial performance for 1H2025, with significant revenue and profit growth, driven by robust customer traffic and performance across its three main business segments [1][2][3]. Financial Performance - 1H2025 revenue reached 1.459 billion, a year-on-year increase of 28.2%, with a 3.9% growth when excluding the impact of the acquisition of Nairui [1] - Net profit attributable to the parent company was 156 million, up 34.9% year-on-year [1] - Operating cash flow for 1H2025 was 410 million, reflecting an 84.4% increase year-on-year [1] Business Segment Performance - The three main business segments showed strong growth: - Beauty and wellness services generated 810 million, up 29.6% - Medical beauty services reached 500 million, a 13.0% increase - Sub-health medical services surged to 150 million, a remarkable 107.8% growth [1][2] - Direct sales and franchise models contributed to revenue, with direct sales at 740 million (31.0% growth) and franchise at 70 million (16.2% growth) [1] Customer Engagement - Direct sales stores saw customer traffic of 850,000, a 48.6% increase, and active membership rose to 112,000, up 45.7% [1] - Medical beauty direct stores had customer traffic of 50,000, a 28.0% increase, with active members at 24,000, up 27.6% [2] - Sub-health medical services experienced a customer traffic increase of 75.5% to 19,000, with active members growing 93.4% to 7,014 [2] Store Expansion - As of the end of 1H2025, the total number of stores reached 552, an increase of 143 stores year-on-year [3] - The number of beauty and wellness service direct stores was 238, up 69 stores, while franchise stores also increased by 69 to 276 [3] Profitability - The overall gross margin improved by 2.3 percentage points to 49.3%, with net profit margin increasing by 0.5 percentage points to 10.7% [3] - Gross margins for the three business segments were 42.1% for beauty and wellness, 56.9% for medical beauty, and 63.1% for sub-health services, all showing year-on-year improvements [3] Cost Management - Sales, management, and R&D expense ratios were 17.2%, 16.2%, and 1.4%, respectively, with slight increases attributed to acquisitions and marketing efforts [4] - The company is focusing on both organic growth and acquisitions, with the integration of Nairui showing positive results [4] Future Outlook - The company has raised its net profit forecasts for 2025-2027, reflecting confidence in continued growth and integration success [5] - The business model is evolving, with expectations for significant growth potential in the beauty and medical sectors [5]

Core Viewpoint - The company reported its 1H25 performance, which met expectations despite a slight decline in overall revenue, with specific growth in non-North American markets [1][2]. Revenue Performance - Total revenue for 1H25 was $165 million, a year-on-year decrease of 1.9% [1]. - Revenue by region showed robust growth outside North America, with Asia-Pacific revenue at $65.82 million (YoY +17.6%), North America at $56.60 million (YoY -15.6%), Europe at $23.83 million (YoY -0.8%), Middle East and Africa at $13.91 million (YoY -9.7%), and Latin America at $5.32 million (YoY -15.8%) [1]. Business Segments - Medical aesthetics revenue for 1H25 was $138 million, down 7.8%, primarily due to economic challenges in North America and the Middle East and Africa [2]. - Injection filler revenue surged to $14.38 million, reflecting a 218.1% increase, driven by expanded sales regions and direct sales networks [2]. - Service and other revenue decreased to $13.40 million, down 9.9% [2]. Product Pipeline and Commercialization - The company is expanding its product pipeline, with expectations for the commercialization of DaxibotulinumtoxinA (long-acting botulinum) in mainland China in the second half of the year [2]. - The company launched Universkin by Alma, the world's first AI-assisted personalized skincare system, which has seen rapid uptake in the U.S. market [2]. Profit Forecast and Valuation - Due to revenue pressures in certain overseas markets, the company has revised its adjusted net profit forecasts for 2025 and 2026 down by 24.3% and 19.8% to $36.05 million and $41.49 million, respectively [2]. - The current stock price corresponds to adjusted P/E ratios of 9.6x and 8.3x for 2025 and 2026, with a target price maintained at HKD 6.00, implying a potential upside of 5.3% [2].

Group 1 - The medical beauty sector increased by 0.6% on August 28, with Huaxi Biological leading the gains [1] - The Shanghai Composite Index closed at 3843.6, up 1.14%, while the Shenzhen Component Index closed at 12571.37, up 2.25% [1] - The closing prices and performance of key stocks in the medical beauty sector include: - Huaxi Biological: 57.78, up 1.60%, with a trading volume of 82,100 shares and a turnover of 471 million yuan - Aimeike: 190.36, up 0.17%, with a trading volume of 49,700 shares and a turnover of 940.1 million yuan - Jinbo Biological: 299.27, down 1.81%, with a trading volume of 9,644 shares and a turnover of 289 million yuan - *ST Meigu: 3.21, down 3.60%, with a trading volume of 195,800 shares and a turnover of 62.64 million yuan [1] Group 2 - The medical beauty sector experienced a net outflow of 122 million yuan from main funds, while retail funds saw a net inflow of 66.68 million yuan [1] - The fund flow for key stocks shows: - *ST Meigu: net outflow of 5.87 million yuan, down 9.37% - Huaxi Biological: net outflow of 27.85 million yuan, down 5.92% - Aimeike: net outflow of 88.21 million yuan, down 9.39% [2]

Core Viewpoint - The company maintains its profit forecast for 2025-2026, with a target price increase of 8% to HKD 40, indicating a 21% upside potential based on its strong business model and growth opportunities [1] Financial Performance - The company reported 1H25 revenue of RMB 1.46 billion, a year-on-year increase of 28.2%, and a net profit attributable to shareholders of RMB 160 million, up 34.9% [2] - Adjusted net profit reached RMB 190 million, reflecting a 37.8% year-on-year growth, exceeding previous forecasts due to scale effects and operational efficiency improvements [2] Business Segments - Beauty and wellness services generated RMB 810 million in revenue, a 29.6% increase, with direct store traffic rising 48.6% to 850,000 visits [3] - Medical beauty services achieved RMB 500 million in revenue, up 13.0%, with active membership increasing 27.6% to 24,000 [3] - Sub-health medical services saw a remarkable revenue growth of 107.8% to RMB 150 million, with active members increasing 93.4% to 7,014 [3] Margin and Efficiency - The company's gross margin improved by 2.4 percentage points to 49.3% in 1H25, driven by scale effects and the inclusion of higher-margin businesses [4] - The adjusted net profit margin reached a historical high of 13.1%, with a year-on-year increase of 0.9 percentage points [4] Growth Strategy - The company is focused on enhancing operational efficiency and increasing service penetration through digital marketing [4] - It is also exploring acquisition opportunities to boost market share, with recent shareholder structure optimization expected to support long-term growth [4]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved significant revenue and profit growth in the first half of 2025, with revenue reaching 1.459 billion yuan, a year-on-year increase of 28.2%, and net profit of 156 million yuan, up 34.9% [5] - Operating cash flow for the first half of 2025 was 410 million yuan, reflecting an 84.4% year-on-year increase [5] - The company continues to expand its business model through both organic growth and acquisitions, with the integration of the acquired brand NaiRuiEr showing positive results [10] Revenue Performance - The company’s three main business segments showed strong performance: Beauty and Health Services, Medical Aesthetic Services, and Sub-health Medical Services, with respective revenues of 810 million, 500 million, and 150 million yuan, representing year-on-year growth of 29.6%, 13.0%, and 107.8% [6] - Direct sales and franchise models contributed to revenue growth, with direct sales revenue reaching 740 million yuan, up 31.0% year-on-year, and franchise revenue at 70 million yuan, up 16.2% [6] Customer Engagement - Direct sales stores saw a customer footfall of 850,000, a 48.6% increase year-on-year, and active membership grew to 112,000, up 45.7% [6] - The medical aesthetic segment also showed resilience, with foot traffic of 50,000 and active members of 24,000, reflecting year-on-year growth of 28.0% and 27.6% respectively [6] Business Expansion - The company expanded its sub-health medical services, with foot traffic reaching 19,000, a 75.5% increase, and active members growing by 93.4% [7] - The revenue from the functional medicine segment increased by 122.0% year-on-year, driven by new product lines [7] Profitability - The overall gross margin improved by 2.3 percentage points to 49.3%, and the net profit margin increased by 0.5 percentage points to 10.7% [8] - The gross margins for the three business segments were 42.1%, 56.9%, and 63.1%, with respective year-on-year increases of 1.8, 1.8, and 8.7 percentage points [9] Future Outlook - The company plans to continue its dual strategy of organic growth and acquisitions, with a focus on expanding its beauty and health brand matrix and enhancing its medical services [10] - The forecast for net profit for 2025-2027 has been adjusted upwards to 310 million, 350 million, and 410 million yuan, with corresponding EPS estimates of 1.30, 1.48, and 1.72 yuan [10]

Market Overview - The medical beauty sector experienced a decline of 3.11% on August 27, with Aimeike leading the drop [1] - The Shanghai Composite Index closed at 3800.35, down 1.76%, while the Shenzhen Component Index closed at 12295.07, down 1.43% [1] Individual Stock Performance - Aimeike (300896) closed at 190.03, down 3.88%, with a trading volume of 62,200 shares and a transaction value of 1.207 billion yuan [1] - Huaxi Biological (688363) closed at 56.87, down 2.25%, with a trading volume of 99,400 shares and a transaction value of 580 million yuan [1] - Jinbo Biological (832982) closed at 304.80, down 3.24%, with a trading volume of 10,300 shares and a transaction value of 319 million yuan [1] - ST Meigu (000615) remained unchanged at 3.33, with a trading volume of 142,300 shares and a transaction value of 47.7013 million yuan [1] Capital Flow Analysis - The medical beauty sector saw a net outflow of 199 million yuan from main funds, while retail investors contributed a net inflow of 153 million yuan [1] - Aimeike experienced a net outflow of 143 million yuan from main funds, with retail investors contributing a net inflow of 98.8281 million yuan [2] - Huaxi Biological had a net outflow of 57.973 million yuan from main funds, but a net inflow of 53.4443 million yuan from retail investors [2]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 37.36 [1][10]. Core Insights - The company reported strong growth in its sub-health management business, with a revenue of HKD 1.459 billion for the first half of 2025, representing a year-on-year increase of 28.2%. The adjusted net profit reached HKD 191 million, up 37.8% year-on-year, with an adjusted net profit margin of 13.1% [6][10]. - The company's "Double Beauty + Double Health" business model is expected to continue benefiting from the rising consumer awareness among women and the emotional value associated with beauty and health [6][10]. - The company has received NMPA approval for several Class III medical devices for use in the medical beauty sector, and ongoing innovations in upstream research and development are expected to enhance the product offerings for downstream leading institutions [6][10]. Financial Performance - For the first half of 2025, the beauty and health services segment generated revenue of HKD 807 million, a year-on-year increase of 29.6%. The number of direct and franchise stores reached 238 and 276, respectively, with active membership in direct stores increasing by 45.7% year-on-year [7]. - The medical beauty segment reported revenue of HKD 499 million, a year-on-year increase of 13.0%, with 27 medical beauty stores and a 27.6% increase in active membership [7]. - The sub-health medical services segment saw revenue growth of 107.8% year-on-year, reaching HKD 154 million, with 11 stores and a 93.4% increase in active membership [7]. Strategic Initiatives - The company has increased its stake in Nairui'er by 20%, which is expected to enhance its market share through effective integration capabilities [8]. - A capital market value enhancement plan was initiated, focusing on long-term shareholder return mechanisms, attracting strategic investors, and implementing equity incentive plans to align management and shareholder interests [9]. Earnings Forecast and Valuation - The company maintains its earnings forecast, expecting net profits of HKD 320 million, HKD 369 million, and HKD 420 million for 2025, 2026, and 2027, respectively. The target price is set at 25x PE for 2025, reflecting the company's sustainable competitive advantages and clear long-term shareholder return mechanisms [10][19].