Core Insights - The 2025 China Spice and Fragrance Cosmetics Industry Annual Conference and Boutique Expo (CAME) was held in Nanjing, showcasing Shanghai Jahwa's commitment to innovation and technology in the cosmetics sector [1] - Shanghai Jahwa emphasized its core theme of "Technology Perceptible" through various interactive segments, highlighting its 127 years of R&D strength and innovative achievements [1][13] Group 1: Product Launch and Innovations - Shanghai Jahwa launched the AGEScan Lite, a skin glycation level quantification and imaging device, which enables real-time, non-invasive analysis of skin glycation levels, filling a gap in the cosmetics industry [5] - The AGEScan Lite has received measurement certification from the China Metrology Institute and has been validated by four authoritative institutions, gaining recognition for its accuracy and scientific basis [5] Group 2: Research and Development Highlights - The Qinghao Scientific Laboratory, established in collaboration with the Chinese Academy of Traditional Chinese Medicine, showcased its research outcomes and cultural significance during the expo [7] - The Mosquito Repellent Research Institute presented a "three-tube test" setup to demonstrate mosquito repellent efficacy, along with the upgraded Six God mosquito repellent series, which offers 8.2 hours of protection and immediate cooling effects [9] Group 3: Consumer Engagement and Brand Image - Shanghai Jahwa created interactive research scenarios to bridge the gap between scientific research and consumers, enhancing the understanding and trust in their technological advancements [7][13] - The company aims to continue leveraging technological innovation and scientific communication to elevate the value of domestic research and drive the cosmetics industry towards a new phase of technological value competition [13]

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company reported a revenue of 3.478 billion yuan for H1 2025, a year-on-year increase of 4.75%, and a net profit attributable to shareholders of 266 million yuan, up 11.66% year-on-year. In Q2 2025, revenue reached 1.775 billion yuan, a 25.39% increase year-on-year, with a net profit of 49 million yuan, soaring 367.09% year-on-year [2] - The company is focusing on core brands and enhancing its online presence, with significant growth in online sales channels, particularly a 34.64% increase in Q2 [3] - The company plans to distribute a cash dividend of 0.039 yuan per share, totaling approximately 30 million yuan, with a dividend payout ratio of 9.77% [2] Revenue Analysis - The company is implementing strategic adjustments, focusing on core brands and product innovation, which has led to impressive online performance. The revenue breakdown for Q2 2025 shows personal care, beauty, innovation, and overseas sales generating 798 million, 418 million, 203 million, and 355 million yuan respectively, with year-on-year growth rates of 42.4%, 55.7%, -1.4%, and -6.0% [4] Profitability Analysis - The gross margin for Q2 2025 was 63.34%, an increase of 5.09 percentage points year-on-year. The net profit margin reached 2.74%, up 4.03 percentage points year-on-year, driven by a decrease in expense ratios [5] Investment Recommendations - The report maintains profit forecasts for the company, projecting revenues of 6.199 billion, 6.763 billion, and 7.315 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 363 million, 458 million, and 533 million yuan. The earnings per share (EPS) are expected to be 0.54, 0.68, and 0.79 yuan for the same years [6]

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Insights - The company achieved a year-on-year revenue growth of 4.7% and a net profit growth of 11.7% in the first half of 2025, with a significant improvement in Q2 performance [5][6] - Domestic revenue increased by 6.6%, while international revenue decreased by 1.8%, primarily due to reduced sales in the U.S. caused by tariff policies [6] - The company is focusing on four key initiatives to enhance performance, including core brand focus, brand building, online channel focus, and efficiency improvements [9] Financial Performance - In the first half of 2025, the company reported a gross margin increase of 2.2 percentage points to 63.4%, while the expense ratio rose by 1 percentage point to 54.6% [7] - Inventory decreased by 20.6% year-on-year to 580 million, and accounts receivable fell by 25.7% to 820 million, indicating improved turnover [8] - Operating cash flow increased by 39.7% year-on-year to 680 million [8] Earnings Forecast - The company’s earnings forecasts for 2025 to 2027 have been adjusted, with expected EPS of 0.50, 0.82, and 0.98 yuan respectively [10] - The current stock price corresponds to a PE ratio of 46 for 2025 [10] Market Position - The company’s stock has shown a relative performance of 1.12% over the past month, but a decline of 20.65% over the past three months [4]

Core Viewpoint - Shanghai Jahwa United Co., Ltd. reported a revenue increase of 4.75% year-on-year for the first half of 2025, reaching approximately 3.48 billion yuan, with a net profit attributable to shareholders of approximately 266 million yuan, reflecting an 11.66% increase compared to the previous year [2][4]. Company Overview and Financial Indicators - The company operates in the chemical raw materials and chemical products manufacturing industry, focusing on daily chemical products with brands such as Liushen, Yuze, Baicaojie, and Meijiajing [3]. - Key financial metrics for the first half of 2025 include: - Total revenue: 3,478,337,684.58 yuan - Total profit: 298,020,579.45 yuan - Net profit attributable to shareholders: 265,757,686.65 yuan - Net cash flow from operating activities: 682,111,958.56 yuan [2][4]. Business Performance Analysis - The company achieved a net profit of 2.66 billion yuan, up 11.66% year-on-year, while the net profit excluding non-recurring gains and losses decreased by 5.89% to 2.21 billion yuan [3][4]. - The company has implemented four core tasks since the second half of 2024, focusing on strategic positioning, agile authorization mechanisms, team capability enhancement, and addressing historical burdens [3]. Marketing and Product Development - The company is focusing on high-quality sustainable development by: - Targeting niche categories to enhance market share and user value [3]. - Developing strategic new products, including the Liushen mosquito repellent series and Yuze skin barrier repair products [3]. - Innovating marketing strategies, including collaborations with celebrities and IP partnerships to enhance brand visibility [3][4]. Financial Performance and Cost Management - The company reported a significant increase in cash flow from operating activities, primarily due to higher sales receipts and lower tax payments compared to the previous year [4]. - The company has optimized its supply chain, reducing costs related to packaging and logistics, which contributed to improved financial performance [4].