Company Overview - Ying Tong Holdings is positioned as the "first stock in perfume" in the Hong Kong IPO market, with a current P/E ratio of 11, significantly lower than Sa Sa International's 22, indicating potential for valuation convergence due to the rapid growth of the Chinese perfume market and Ying Tong's leading position [1] - The company has established itself as the preferred partner for international brands entering the Greater China market, supported by a comprehensive distribution network covering over 8,000 sales points in more than 400 cities [1][2] - Ying Tong holds licenses for 72 internationally renowned perfume and beauty brands, including top luxury names like Hermès Beauty and Versace, with many brands entering into long-term agreements, including recent 10-year contracts [1] Financial Performance - For 2024, Ying Tong is projected to achieve a shareholder profit of HKD 227 million, maintaining a compound annual growth rate (CAGR) of over 14.5% over the past two years, outperforming international peers [2] - The company's gross margin has remained above 50% for the past three years, with net profit margins consistently leading the industry due to effective cost control [2] - The company is focusing on diversifying its sales strategy, with the revenue share from perfume business expected to decrease from 88.5% in 2023 to 80.9% by 2025, while skincare and cosmetics segments are growing rapidly, achieving a CAGR of 56.1% [2] Cash Flow and Dividend Policy - Ying Tong's cash flow is robust, with a net cash flow from operating activities reaching HKD 237 million by March 2025 and a cash balance of HKD 256 million at the end of the period [2] - The management has committed to a dividend payout ratio of no less than 50% in the future, with upcoming interim results expected to support dividend distribution [2] Industry Context - The Chinese perfume market is experiencing rapid growth, with Ying Tong offering over a thousand perfume SKUs that cater to various consumer segments, from budget to high-end [3] - The diverse fragrance designs and application scenarios enhance the company's competitive edge in the market, minimizing the impact of any brand exits on overall business performance [3]

Group 1: Company Overview - Estee Lauder's recent Q3 2025 financial results show a 10% year-over-year revenue decline, marking a larger drop compared to the first two quarters of the fiscal year [2] - The new CEO, Stéphane de La Faverie, is the first to lead the company without direct involvement from the founding family, following the departure of third-generation family members [2] - The importance of the fragrance segment is emphasized, with predictions of a global fragrance market size reaching $59.87 billion in 2024, maintaining a compound annual growth rate of 3.01% from 2024 to 2028 [2] Group 2: Industry Trends - The "fragrance effect" is emerging as a new trend, similar to the previously recognized "lipstick effect," indicating a potential growth phase for the fragrance market [2] - The Chinese fragrance market is rapidly expanding, with projections suggesting it could reach 51.5 billion yuan by 2029, driven by the Z generation's preference for self-indulgent consumption [6][7] - The rise of traditional Chinese incense products is notable, with a 280% increase in orders for related items on platforms like Taobao since February, indicating a shift in consumer preferences [7] Group 3: Competitive Landscape - Unilever is investing £80 million (approximately 7.73 billion yuan) to build a fragrance research facility in the UK, expected to be fully operational by 2027, highlighting the competitive push in fragrance innovation [3] - Estee Lauder has partnered with Dresden University of Technology and scent expert Thomas Hummel to explore the neurological connections between fragrance and emotions, aiming to support product innovation [5] - Ying Tong Holdings, a brand management company, is preparing for an IPO, with over 80% of its revenue derived from fragrances, showcasing the growing importance of this segment in the market [6]

Core Viewpoint - Ying Tong Holdings Limited is set to become the "first Chinese fragrance stock" as it has passed the listing hearing at the Hong Kong Stock Exchange, with expectations to go public by September 2023 at the latest [1][7]. Company Overview - Ying Tong Holdings originated as a Hong Kong-based company specializing in fragrance brand management, founded by Liu Ju Rong, a former chief cabin crew of Cathay Pacific [2]. - The company has evolved into a comprehensive brand management firm in the beauty, fragrance, and eyewear sectors, providing services such as brand consulting, marketing, and logistics [2]. Business Performance - As of March 31, 2023, 2024, and 2025, Ying Tong Holdings reported annual revenues of RMB 1.699 billion, RMB 1.864 billion, and RMB 2.083 billion, respectively, with net profits of RMB 173 million, RMB 206 million, and RMB 227 million, indicating stable growth [8][10]. - The company has a diverse portfolio, managing 72 external brands, including renowned names like Hermès and Chopard, with a significant focus on fragrances [4][14]. Revenue Breakdown - Fragrance sales accounted for over 80% of the company's revenue, with annual revenues of RMB 1.504 billion, RMB 1.524 billion, and RMB 1.688 billion for the years ending March 31, 2023, 2024, and 2025, respectively [14][15]. - The company has also seen growth in skincare and makeup segments, with skincare sales increasing from 5.1% to 7.3% of total revenue over the same period [14][16]. Market Position - Ying Tong Holdings is recognized as the largest fragrance brand management company in China, with a leading position in the market, particularly in the high-end segment [16]. - The global fragrance market has shown significant growth, with a compound annual growth rate (CAGR) of 12.3% from 2018 to 2023, and the Chinese market is expected to grow at a CAGR of 14% by 2028 [17]. Future Plans - The company plans to use the funds raised from its IPO to develop its own brands, expand retail channels, accelerate digital transformation, and enhance brand awareness [7][10]. - Ying Tong Holdings aims to open approximately 100 new stores for its self-owned brand "拾氛气盒" in major Chinese cities over the next four years [13].

Core Viewpoint - Eternal Beauty Holdings Limited (颖通控股有限公司) is positioned as the largest fragrance group in China, excluding brand owners, and the third largest overall in the Chinese fragrance market, with a focus on managing a diverse portfolio of global fragrance and beauty brands [2][4]. Group 1: Company Overview - Eternal Beauty Holdings Limited specializes in managing a wide range of products including perfumes, skincare, cosmetics, personal care items, eyewear, and home fragrances, with a history dating back to 1987 [2]. - The company manages 72 brands, including high-end names like Hermès and Van Cleef & Arpels, with exclusive or sub-licensed rights for 61 of these brands in mainland China, Hong Kong, and Macau [2]. Group 2: Revenue and Financial Performance - The primary revenue source for Eternal Beauty is perfume sales, which accounted for 88.5% of total revenue in FY2022, projected to decrease to 80.9% by FY2024 [3]. - Revenue figures for FY2022 to FY2024 are projected at 1.699 billion, 1.864 billion, and 2.083 billion respectively, with net profits of 173 million, 206 million, and 227 million, reflecting net profit margins of 10.2%, 11.1%, and 10.9% [5]. Group 3: Market Position and Distribution Channels - According to Frost & Sullivan, Eternal Beauty is the only non-brand owner fragrance group among the top five in the Chinese mainland fragrance market as of 2023, with seven of its brands ranking in the top 30 for retail sales [4]. - The company has a comprehensive sales and distribution network across China, including over 100 self-operated offline points of sale (POS) and more than 8,000 POS operated by retail clients, along with five self-operated retail stores in major cities [4]. Group 4: Future Plans and Use of IPO Proceeds - The company plans to use the net proceeds from its IPO to further develop its own brands, acquire or invest in external brands, expand self-operated retail channels, accelerate digital transformation, enhance brand awareness, and cover working capital needs [5].

Industry Trends - The personal luxury goods market in mainland China has shown fluctuations over the past decade but is overall on a growth trajectory, with expectations to become the largest luxury market globally by 2030, capturing 25% of the market share, surpassing the US and Europe [3][8] - Consumer preferences are shifting from "symbolic consumption" to "lifestyle and cultural resonance," emphasizing sustainable consumption and technology-driven experiential innovations as key trends [1][3] Advertising Investment Trends - In January-February 2025, the luxury goods industry's online advertising investment index experienced a mild year-on-year growth of 1.2%, reaching a near four-year peak during this period [8][11] - Advertising investments are closely linked to peak consumption periods, with significant increases noted in January, May, and September, aligning with holiday shopping spikes [8][11] Advertising Strategies - The advertising landscape is evolving, with a notable shift towards OTT platforms, while mobile remains the primary advertising terminal; video platforms account for 67.7% of the advertising investment [18][21] - Full-screen and video pre-roll ads are favored, making up over 80% of the advertising formats during the observed period [18][21] Creative Trends - Local celebrity endorsements are crucial for brands' audience expansion, with an increasing trend of collaboration with sports stars [21][24] - Seasonal marketing strategies focus on limited edition packaging and cultural symbols to enhance product appeal during peak sales periods like New Year and Valentine's Day [24][27] Market Dynamics - The luxury goods market is experiencing a shift in consumer demographics, with younger and more rational consumers prioritizing quality, culture, and personalized experiences over ostentatious consumption [2][33] - Brands must adopt differentiated marketing strategies based on user segmentation to effectively meet diverse consumer needs and maintain competitive advantages [2][33] Marketing Observations - The luxury goods industry faces the dual challenge of balancing short-term customer acquisition with long-term brand value, necessitating a focus on integrated online and offline marketing strategies [36][39] - Brands are encouraged to enhance consumer interaction through immersive experiences and technology-driven marketing solutions to foster deeper connections and drive sales [39][42]