Investment Rating - The investment rating for the company is "Outperform the Market" [5][19]. Core Views - The company has shown stable growth in Q2, with revenue reaching 842 million, a year-on-year increase of 19.72%, and a net profit of 85 million, up 17.59% year-on-year. The growth is driven by the expansion of e-commerce channels and the successful development of high-margin products [1][7]. - The adult toothpaste category remains the core driver of revenue, achieving 677 million in sales, a 23% increase year-on-year, accounting for 80.43% of total revenue. Emerging categories like electric toothbrushes and oral medical care have also shown strong growth [2][7]. - The company has successfully leveraged e-commerce platforms, with revenue from e-commerce and other channels reaching 325 million, a significant increase of 81.13% year-on-year, enhancing its market position [2][8]. - The gross margin improved to 49.57%, driven by a higher proportion of high-margin products. The sales expense ratio increased due to the rising online sales proportion [3][9]. Financial Performance Summary - For the first half of 2025, the company reported revenue of 842 million and a net profit of 85 million, with Q2 alone contributing 411 million in revenue and 42 million in net profit [1][7]. - The company forecasts revenue growth to 2.01 billion in 2025, with a net profit of 224 million, reflecting a growth rate of 39.1% [4][17]. - The company maintains a stable operating capability, with inventory turnover days at 98 days and accounts receivable turnover days at 7 days [13]. Profitability and Valuation Metrics - The company is projected to have a PE ratio of 34 for 2025, decreasing to 22.2 by 2027, indicating an attractive valuation as earnings grow [4][17]. - The return on equity (ROE) is expected to rise from 10.1% in 2023 to 21.1% in 2027, reflecting improved profitability [4][17].