Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company reported a revenue of 7.098 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 1.89%. The net profit attributable to shareholders was 1.026 billion yuan, up 2.65% year-on-year [2] - In Q3 2025, the company experienced a revenue decline of 11.63% year-on-year, with a net profit of 227 million yuan, down 23.64% year-on-year. The decline was attributed to fewer promotional activities and an early focus on the Double Eleven sales event [2][3] - The company's gross margin improved significantly to 74.68%, an increase of 3.96 percentage points year-on-year, although the net profit margin decreased due to increased brand-building expenses [4] - The company continues to effectively implement its big product strategy, upgrading star products and steadily launching new products. Revenue forecasts for 2025-2027 have been adjusted to 11.231 billion, 12.624 billion, and 14.075 billion yuan, respectively [5] Revenue Analysis - The revenue decline in Q3 2025 was influenced by fewer promotional activities and a shift in focus to the October Double Eleven event. Skincare products saw a revenue drop of 20.41%, while beauty makeup and personal care products experienced growth of 0.89% and 137.70%, respectively [3] - The average selling price (ASP) for skincare products decreased by 22.19% year-on-year, while beauty makeup and personal care products saw declines of 10.99% and 0.60%, respectively [3] Profitability Analysis - The company's gross margin for Q3 2025 was 74.68%, reflecting a year-on-year increase. However, the net profit margin fell to 13.19%, down 2.01 percentage points year-on-year due to increased operating expenses [4] Financial Forecasts - The adjusted earnings per share (EPS) for 2025-2027 are projected to be 4.13, 4.73, and 5.40 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 18, 15, and 14 times [5][7]