Investment Rating - The report maintains a "Buy" rating for the company with a target price of 112.78 CNY [3][4] Core Views - The company is positioned as a leading multi-brand beauty group in the new development stage, with strong competitive advantages in its main brands [2][8] - The company has a well-established multi-brand portfolio, including seven differentiated brands covering skincare, makeup, and hair care, and is the first domestic beauty company to exceed 10 billion CNY in revenue [8] - Concerns regarding the transition to the second generation of leadership are noted, but the report emphasizes the positive long-term impact of this change on the company's development [8] - The company is actively enhancing its product innovation, R&D investment, and digital transformation, indicating a strong commitment to future growth [8] - The report highlights the potential for international expansion and acquisitions as part of the company's growth strategy, particularly in new sectors such as children's products, perfumes, and men's skincare [8] Financial Forecasts - The company is projected to achieve earnings per share of 4.56 CNY, 5.36 CNY, and 6.06 CNY for the years 2025, 2026, and 2027 respectively [3][9] - Revenue is expected to grow from 8,905 million CNY in 2023 to 15,577 million CNY in 2027, with a compound annual growth rate (CAGR) of approximately 10.7% [3][11] - Operating profit is forecasted to increase from 1,503 million CNY in 2023 to 2,923 million CNY in 2027, reflecting a strong growth trajectory [3][11] - The company's gross margin is expected to improve from 69.9% in 2023 to 73.0% in 2027, indicating enhanced operational efficiency [3][11]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 112.78 CNY [3][4] Core Views - The company is positioned as a leading multi-brand beauty group in the new development stage, with strong competitive advantages in its main brands [2][8] - The company has a well-established multi-brand portfolio, including seven differentiated brands covering skincare, makeup, and hair care, and is the first domestic beauty company to exceed 10 billion CNY in revenue [8] - Concerns regarding the transition to the second generation of leadership are noted, but the report emphasizes the positive long-term impact of this change on the company's development [8] - The company is actively increasing its product innovation pace and R&D investments, with strategic partnerships aimed at enhancing digital capabilities and consumer experience [8] - Future growth opportunities include international expansion and acquisitions, particularly in new sectors such as children's products, perfumes, and men's skincare [8] Financial Forecasts - The company is projected to achieve earnings per share of 4.56 CNY, 5.36 CNY, and 6.06 CNY for the years 2025, 2026, and 2027 respectively [3][9] - Revenue forecasts indicate growth from 8,905 million CNY in 2023 to 15,577 million CNY by 2027, with a compound annual growth rate (CAGR) of approximately 10.7% [3][11] - Operating profit is expected to increase from 1,503 million CNY in 2023 to 2,923 million CNY in 2027, reflecting a strong growth trajectory [3][11] - The company's gross margin is projected to improve from 69.9% in 2023 to 73.0% in 2027, indicating enhanced profitability [3][11]