Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [6][17]. Core Views - The company is experiencing a temporary pressure on performance in H1 2025, with a revenue of 1.299 billion yuan, down 21.59% year-on-year, and a net profit of 789 million yuan, down 29.57% year-on-year. The second quarter of 2025 also shows a decline in revenue and net profit [1][2]. - Despite the current challenges, the company has a rich pipeline of products and strong R&D capabilities, with several products in various stages of development, including the injection of botulinum toxin type A and minoxidil lotion [4]. - The acquisition of Korean company REGEN is a key strategic move for the company's international expansion, enhancing its position in the aesthetic injection market and facilitating the entry of its products into international markets [5]. Financial Performance - In H1 2025, the gross margin was 93.44%, a decrease of 1.48 percentage points year-on-year, while the net profit margin was 60.77%, down 6.88 percentage points year-on-year. The R&D expense ratio increased to 12.05%, up 4.46 percentage points year-on-year [2]. - The revenue from solution-type injection products was 744 million yuan, down 23.79% year-on-year, while gel-type injection products generated 493 million yuan, also down 23.99% year-on-year [3]. - The company expects revenues for 2025-2027 to be 2.724 billion yuan, 3.190 billion yuan, and 3.715 billion yuan respectively, with net profits of 1.630 billion yuan, 1.942 billion yuan, and 2.343 billion yuan respectively [5]. Market Position - The company is facing a slowdown in industry growth and intensified competition, which is impacting the growth of its core products [3]. - The company maintains a leading position in the aesthetic medical market, supported by its strong product pipeline and recent acquisitions [5].

Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation of stock performance that exceeds market performance by 10% to 20% over the next six months [11]. Core Views - The company experienced a revenue decline in the first half of 2025, achieving 1.299 billion yuan, a year-over-year decrease of 21.59%. The net profit attributable to shareholders fell by 29.57% to 789 million yuan [4]. - The report highlights that the company is entering a low base period in the second half of the year, which may facilitate a return to growth [7]. - The company has a diverse product matrix, with several products in the registration phase, which could contribute to future revenue growth [8]. Summary by Sections Company Overview - The company operates in the retail industry with a total market capitalization of 55.6 billion yuan and a total share capital of 303 million shares [1]. Financial Performance - The company reported a gross margin of 93.44% and a net margin of 60.9% in the first half of 2025, with a basic EPS of 2.62 yuan [4][7]. - Revenue for 2023 is projected at 2.869 billion yuan, with a year-over-year growth of 48%, followed by a slight increase to 3.026 billion yuan in 2024 [6]. Future Projections - The report projects revenues of 1.781 billion yuan, 2.142 billion yuan, and 2.503 billion yuan for 2025, 2026, and 2027 respectively, reflecting a downward adjustment from previous estimates [8]. - The company is expected to maintain a robust product offering, which may enhance consumer solutions and drive growth in the upcoming periods [8].