Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][7]. Core Insights - The company is transitioning into a high-end global beauty group driven by its own brands and CP (Contract Production) brands, with a focus on high-end market penetration and digital transformation [6][18]. - The financial forecast indicates a significant recovery in net profit, with expected growth rates of 134.9%, 28.1%, and 20.2% for the years 2025 to 2027 [7][39]. Financial Data and Profit Forecast - Total revenue (in million yuan) is projected to be 4,630 in 2025, with a year-on-year growth rate of 9.3% [2]. - Net profit attributable to the parent company is expected to reach 258 million yuan in 2025, reflecting a substantial increase of 134.9% compared to the previous year [2]. - Earnings per share are forecasted to be 0.66 yuan in 2025, with a PE ratio of 33 [2]. Business Model and Strategy - The company operates a dual business model comprising self-owned brands and CP brands, with a strong emphasis on high-end product offerings [18][24]. - The self-owned brand matrix includes high-end brands like EDB, PA, and RV, alongside popular mass-market brands such as YU NI BANG and DA SHUI DI [24][51]. - The CP brand strategy involves partnerships with over 50 international brands, enhancing the company's market presence and product diversity [24][25]. Competitive Advantages - The company has established a comprehensive brand matrix and a robust digital marketing strategy, leveraging platforms like Douyin for sales [6][10]. - Strong R&D capabilities support the development of unique raw materials and technologies, enhancing product differentiation [6][39]. - The management team possesses extensive industry experience, contributing to strategic decision-making and operational efficiency [28][32]. Growth Catalysts - Anticipated growth in high-end brand sales, optimization of the agency business structure, and effective channel collaboration are expected to drive revenue growth [10][39]. - The successful integration of acquired brands and the expansion of digital channels are key factors for future performance [6][10].

Group 1: Shuiyang Co., Ltd. - The company emphasizes brand value and aims for sustainable, long-term high-quality growth, relying on user management and loyalty rather than large traffic and price promotions [1] - The PA brand achieves rapid growth through brand asset enhancement, product system improvement, precise market communication, and channel development [1] - The company plans to launch multiple new product categories in the next five years and has initiated a three-year plan to open 50 stores in key luxury markets in China [1] Group 2: Pylon Technologies - In Q2, the company shipped approximately 0.927 GWh, with 60% of sales going to overseas markets and 40% to domestic markets [2] - The company aims to become a top three player in the two-wheeler battery swap market within three years and the global leader within five years [2] - The gross margin is expected to improve due to increased operating rates, with a target gross margin of 15%-20% for the light-duty power business [2] Group 3: Huayang Group - The company is expanding its international brand client base in the automotive electronics sector, securing multiple projects with international car manufacturers [3] - The HUD products are technologically advanced and have achieved mass production, with expectations for continued high growth [3] - The company is exploring opportunities in the robotics sector, leveraging existing technological expertise [3] Group 4: Company Overview - Shenzhen Kaifeng Investment Management Co., Ltd. is a macro-hedge fund management company investing in global commodities, bonds, and equity assets [4] - The company has received multiple awards for its performance and is recognized as a leading private fund management company in China [4] - Kaifeng Investment focuses on macro and industry fundamental research, covering major trading varieties in domestic and international futures markets [4]