Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company reported a revenue of 2.5 billion yuan for the first half of 2025, representing a year-on-year growth of 9.02%. The net profit attributable to the parent company was 123 million yuan, up 16.54% year-on-year [5] - The company continues to focus on high-end self-owned brands, with significant growth in its product lines, particularly in skincare [11] - The gross margin improved to 64.61%, an increase of 3.13 percentage points, while the net margin slightly increased to 4.94%, up 0.17 percentage points [11] Financial Performance - For the first half of 2025, the company achieved a revenue of 2.5 billion yuan, with a net profit of 123 million yuan, and a non-recurring net profit of 121 million yuan [5] - The second quarter of 2025 saw a revenue of 1.414 billion yuan, a year-on-year increase of 12.16%, and a net profit of 81 million yuan, up 23.76% year-on-year [5] - The company expects revenues of 4.69 billion yuan, 5.22 billion yuan, and 5.85 billion yuan for 2025, 2026, and 2027 respectively, with growth rates of 10.67%, 11.32%, and 12.06% [11] Brand and Product Development - The company’s self-owned brands generated 1.039 billion yuan in revenue, accounting for 41.55% of total revenue, with a gross margin of 76.83% [11] - The product categories of water emulsion cream and masks achieved revenues of 1.997 billion yuan and 423 million yuan, respectively, with year-on-year growth rates of 11.70% and 17.96% [11] - The company plans to open 50 SPA stores nationwide by 2027 to enhance its offline presence [11] Valuation and Investment Recommendations - The current market capitalization corresponds to a price-to-earnings ratio (P/E) of 31.3, 26.5, and 22.8 for the years 2025, 2026, and 2027 respectively [11] - The company is expected to see a significant increase in net profit, with projections of 275 million yuan, 325 million yuan, and 377 million yuan for 2025, 2026, and 2027, reflecting growth rates of 149.9%, 18.3%, and 16.0% [11]

Investment Rating - The report maintains a "Recommended" rating for the company [4] Core Insights - The company achieved a revenue of 2.5 billion yuan in H1 2025, representing a year-on-year increase of 9.02%, and a net profit of 123 million yuan, up 16.54% year-on-year [1] - The self-owned brand revenue accounted for over 40% of total revenue, with significant contributions from mask products and lotion/cream products [1][2] - The gross margin improved by 3.13 percentage points year-on-year to 64.61% in H1 2025, with self-owned brand gross margin reaching 76.83% [2] - The company is focusing on high-end brand development, with several brands contributing to long-term growth potential [3] Financial Performance Summary - For H1 2025, the company reported a net profit margin of 4.93%, an increase of 0.32 percentage points year-on-year [2] - The projected net profits for 2025, 2026, and 2027 are 253 million yuan, 335 million yuan, and 429 million yuan, respectively, with growth rates of 129.6%, 32.7%, and 28.0% [4][5] - The company’s PE ratios for the next three years are projected to be 33X, 25X, and 20X [4][5]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has accelerated growth in Q2, with a focus on high-end brand development and ongoing global transformation [4][5] - In H1 2025, the company achieved revenue of 2.5 billion yuan, a year-on-year increase of 9%, and a net profit attributable to the parent company of 123 million yuan, up 16.5% year-on-year [5] - The company maintains its profit forecast, expecting net profits of 260 million, 320 million, and 400 million yuan for 2025, 2026, and 2027 respectively, representing year-on-year growth of 139%, 21%, and 25.1% [5] Financial Performance - In H1 2025, the company's self-owned brand revenue reached 1.04 billion yuan, accounting for 41.55% of total revenue, with a gross margin of 76.83%, up 5.7 percentage points year-on-year [5] - The overall gross margin for H1 2025 was 64.6%, an increase of 3.1 percentage points year-on-year, and the net margin was 4.9%, up 0.2 percentage points year-on-year [5] - The company’s financial metrics indicate a P/E ratio of 30.5 for 2025, 25.2 for 2026, and 20.1 for 2027 [5][7] Brand Development - The company is focusing on high-end brand construction, with significant improvements in brand structure and performance [4][5] - The EDB subsidiary achieved revenue of 150 million yuan in H1 2025, with a net profit of 35 million yuan, maintaining a net margin of 22.7% [5] - The company has successfully launched new products in the Chinese market and is experiencing rapid growth in online sales channels [5][6]

Core Insights - The company reported a revenue of 2.5 billion yuan for 1H25, representing a year-on-year increase of 9.0%, with a net profit attributable to shareholders of 123 million yuan, up 16.5% [1] - In Q2 2025, the revenue reached 1.414 billion yuan, reflecting a growth of 12.2%, and the net profit attributable to shareholders was 81 million yuan, an increase of 23.8% [1] Revenue Breakdown - The revenue from facial masks in 1H25 was 423 million yuan, growing by 18.0%, with a gross margin of 73.0%, up 5.1 percentage points [1] - The revenue from lotions and creams was 1.997 billion yuan, an increase of 11.7%, with a gross margin of 62.0%, up 3.5 percentage points [1] - Revenue from the Taobao channel was 595 million yuan, up 3.6%, while revenue from Douyin reached 998 million yuan, growing by 16.1% [1] Profitability and Costs - The overall gross margin for 1H25 was 64.6%, an increase of 3.1 percentage points, and the net profit margin was 4.9%, up 0.3 percentage points [1] - The expense ratios for sales, management, and R&D were 48.9%, 5.2%, and 1.8%, respectively, with year-on-year increases of 2.1 percentage points, 0.5 percentage points, and 0.4 percentage points [1] Product and Channel Development - The company has successfully completed the high-end and global transformation of its proprietary brand system, with significant growth in key products such as the EDB super mask and collagen essence water [1] - EDB's online sales through self-broadcasting and flat sales are increasing, while offline, the company has opened 8 direct stores in high-end malls in Shanghai [2] - The company has established a CP system covering skincare, makeup, personal care, perfume, and health food, with notable sales achievements in various product lines [2] Future Outlook - The company is expected to stabilize its operations in 2025 and continue building its high-end brand matrix, with projected net profits of 252 million yuan, 319 million yuan, and 386 million yuan for 2025-2027 [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Insights - The company experienced accelerated growth in Q2 2025, with revenue and net profit attributable to shareholders increasing by 12% and 24% year-on-year, respectively [1] - The high-end brand transformation is showing positive results, with a focus on brand building, product line expansion, and channel development [2] - The self-owned brand and CP business segments are stabilizing, with expectations for profitability in the upcoming periods [3] Financial Performance - In the first half of 2025, the company reported revenue of 2.5 billion yuan, a year-on-year increase of 9.02%, and a net profit of 123 million yuan, up 16.54% [1] - The gross margin for Q2 2025 was 65.27%, reflecting a year-on-year increase of 3.67 percentage points [1] - The forecast for net profit attributable to shareholders is projected to grow significantly from 260 million yuan in 2025 to 414 million yuan in 2027, representing year-on-year increases of 136%, 29%, and 23% respectively [3][8] Brand and Product Development - The company is enhancing its high-end brand matrix through collaborations with celebrities and high-fashion events, which are effectively reaching high-net-worth customers [2] - New product launches in the Chinese market have been successful, contributing to the overall brand product system [2] - The performance of star products has been strong, with significant sales in key categories [2] Market Position and Strategy - The company is focusing on high-end transformation, with a target to open 50 high-end stores with SPA services over the next three years [2] - The self-owned brand and CP business are expected to stabilize, with a focus on quality and resource allocation [3]