Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Views - The retail industry index decreased by 4.32% in the week of September 22-26, 2025, underperforming the Shanghai Composite Index, which increased by 0.21% [6][13] - The report highlights the strong performance of certain companies, such as Jihong Co., which is expected to achieve a net profit of 209-222 million yuan for Q3 2025, representing a year-on-year increase of 55-65% [4][26] - The report emphasizes the importance of emotional consumption themes and recommends focusing on high-quality companies in high-growth sectors [7][31] Summary by Sections Retail Market Review - The retail industry index closed at 2281.69 points, ranking 29th among 31 primary industries [6][13] - The brand cosmetics sector experienced the smallest decline of 1.31% during the week, while the watch and jewelry sector led with a year-to-date increase of 26.87% [18][20] Company Performance Highlights - Jihong Co. is expected to achieve a net profit of 209-222 million yuan for Q3 2025, driven by its dual business model of cross-border e-commerce and packaging [4][26] - Old Puhuang reported a revenue of 12.354 billion yuan for H1 2025, a year-on-year increase of 250.9%, with a net profit of 2.268 billion yuan, up 285.8% [36][37] - Chao Hong Ji achieved a revenue of 4.102 billion yuan in H1 2025, with a net profit increase of 44.3% [39] Investment Recommendations - Focus on high-quality companies in the gold and jewelry sector, such as Old Puhuang and Chao Hong Ji, which are expected to benefit from emotional consumption trends [7][31] - Emphasize the importance of offline retail companies that adapt to consumer trends, recommending companies like Yonghui Supermarket and Aiying Room [31][32] - Highlight the potential of domestic beauty brands, recommending companies like Mao Ge Ping and Po Lai Ya, which are positioned well in the high-end market [32][33]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 5.36 billion yuan for H1 2025, representing a year-on-year growth of 7.2%, while the net profit attributable to shareholders was 800 million yuan, up 13.8% year-on-year. In Q2 alone, revenue was 3 billion yuan, with a year-on-year increase of 6.5%, and net profit of 410 million yuan, growing 2.4% year-on-year [2][4]. - The company plans to issue H shares and list on the Hong Kong Stock Exchange to accelerate its international strategy and overseas business development, as well as enhance its overseas financing capabilities [2][4]. Financial Performance - In H1 2025, online direct sales, online distribution, and offline sales generated revenues of 3.91 billion, 1.2 billion, and 250 million yuan respectively, with year-on-year changes of 4.9%, 25.9%, and -21.5% [9]. - The main brand and sub-brands showed varied performance, with the main brand's revenue slightly declining by 0.1%, while sub-brands like OR and 原色波塔 saw significant growth of 103% and 80% respectively [9]. - The gross profit margin improved by 3.6 percentage points in H1 2025, attributed to cost reduction and efficiency improvements [9]. - The overall net profit margin increased by 0.9 percentage points to 14.9%, although Q2 saw a slight decline of 0.5 percentage points to 13.6% due to increased sales expenses during promotional periods [9]. Future Outlook - The company is expected to benefit from the ongoing expansion of its main brand and the continued strong performance of its sub-brands, which could contribute to incremental growth [9]. - EPS forecasts for 2025, 2026, and 2027 are projected to be 4.28, 5.05, and 5.77 yuan per share respectively [9].

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [4][12]. Core Insights - The company achieved a revenue of 5.362 billion yuan in H1 2025, representing a year-on-year growth of 7.21%. The net profit attributable to shareholders was 799 million yuan, up 13.80% year-on-year [1]. - The skincare segment showed steady growth, with revenue of 4.199 billion yuan in H1 2025, a slight increase of 0.20% year-on-year, while the beauty makeup segment grew by 25.79% to 837 million yuan [2]. - The company plans to list in Hong Kong to further its international strategy [1]. Financial Performance - The gross margin for H1 2025 increased by 3.56 percentage points to 73.38%, while the net profit margin rose by 0.86 percentage points [3]. - The main brand, Proya, generated 3.979 billion yuan in revenue, a slight decline of 0.08% year-on-year, while the sub-brand Cai Tang saw a revenue increase of 21.11% to 705 million yuan [4]. - The company forecasts net profits of 1.8 billion yuan, 2.08 billion yuan, and 2.35 billion yuan for 2025, 2026, and 2027, respectively, with growth rates of 15.9%, 15.3%, and 13.2% [4][6]. Revenue Breakdown - In H1 2025, online sales accounted for 95.39% of total revenue, amounting to 5.109 billion yuan, while offline sales decreased by 21.49% to 247 million yuan [2]. - The revenue from the hair care segment surged by 131.25% to 320 million yuan, indicating strong performance in this category [2]. Future Projections - The company expects revenue growth rates of 10.3%, 7.8%, and 6.5% for the years 2025, 2026, and 2027, respectively [6][9]. - The projected earnings per share for 2025, 2026, and 2027 are 4.54 yuan, 5.24 yuan, and 5.93 yuan, respectively [6][9]. Brand Development - The main brand Proya continues to enhance its brand strength, while other brands are also making significant progress, with Off&Relax being the fastest-growing brand, achieving a revenue of 279 million yuan, up 102.52% year-on-year [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][11] Core Insights - The company reported a revenue of 5.362 billion yuan for H1 2025, representing a year-on-year growth of 7.2%, and a net profit of 799 million yuan, which is an increase of 13.8% year-on-year [3][4] - The company is a leading domestic beauty brand, with strong growth from its second-tier brands and a robust pipeline of new products [4][5] - The company plans to accelerate its international expansion by considering a listing on the Hong Kong Stock Exchange [5] Financial Performance - For H1 2025, the company achieved a revenue of 5.362 billion yuan, with Q2 revenue at 3.003 billion yuan, showing a growth of 6.5% [3][4] - The gross profit margin for H1 2025 was 73.4%, an increase of 3.6 percentage points, attributed to cost reduction and efficiency improvements [4] - The company forecasts net profits of 1.863 billion yuan, 2.168 billion yuan, and 2.454 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 4.70, 5.47, and 6.20 yuan [3][6] Brand and Product Development - The company launched several new products in Q2 2025, including a long-lasting cushion foundation and a dual-color powder, enhancing its product matrix [5] - The second-tier brands showed significant growth, with revenue increases of 21.1% for 彩棠, 102.5% for OR, and 80.2% for 悦芙媞 [4] Market Position and Strategy - The company is positioned as a leading player in the domestic beauty market, with a focus on multi-brand strategies and continuous product innovation [4][5] - The online sales channel grew by 9.2%, while offline sales faced challenges with a decline of 21.5% [4]