Investment Rating - The report maintains a "Recommended" rating for the company [3]. Core Views - The company experienced a revenue decline of 8.15% year-on-year in H1 2025, with total revenue reaching 863 million yuan. The net profit attributable to shareholders decreased by 32.54% to 230 million yuan [1]. - The decline in revenue is attributed to the optimization of offline channels, while the decrease in net profit is mainly due to increased promotional expenses [1]. - The company has a strong focus on new raw material development and deepening its presence in the medical device sector, with a significant increase in R&D personnel [3]. Financial Performance Summary - In H1 2025, the company reported a gross margin of 81.47%, with a net profit margin of 26.61%, reflecting a year-on-year decrease of 9.62 percentage points [2]. - The revenue from medical devices was 238 million yuan, accounting for 27.61% of total revenue, down 48.07% year-on-year, while cosmetics revenue was 625 million yuan, up 29.95% year-on-year [1]. - The company plans to distribute a cash dividend of 10 yuan per 10 shares, totaling 400 million yuan, which is 174.21% of the net profit for the first half of the year [1]. Earnings Forecast and Financial Indicators - The projected net profit for the company is expected to be 609 million yuan in 2025, with a year-on-year decrease of 7.9%, followed by increases of 13.4% and 14.2% in 2026 and 2027, respectively [4]. - The estimated price-to-earnings (PE) ratios for 2025, 2026, and 2027 are 21x, 18x, and 16x, respectively [3][4].