Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported a total revenue of 5.362 billion yuan for the first half of 2025, representing a year-on-year growth of 7.21%, and a net profit attributable to shareholders of 799 million yuan, up 13.80% year-on-year, which aligns with expectations [1] - The company's profitability continues to improve, with a gross margin increase of 3.56 percentage points to 73.38% and a net profit margin increase of 0.94 percentage points to 15.41% [4] - The company is positioned as a leading domestic cosmetics brand, leveraging a multi-brand strategy and full-channel operations to enhance its market presence [4] Summary by Relevant Sections Financial Performance - In Q2 2025, the company achieved revenue of 3.003 billion yuan and a net profit of 408 million yuan, with year-on-year growth rates of 6.49% and 2.36%, respectively [4] - The skincare category saw a slight decline in sales volume and price, while the beauty makeup category experienced a significant increase in sales volume but a decrease in price [4] Revenue Breakdown - For the first half of 2025, revenue by category was as follows: skincare at 4.199 billion yuan (up 0.20%), beauty makeup at 837 million yuan (up 25.79%), and hair care at 320 million yuan (up 131.25%) [4] - Online sales generated 5.109 billion yuan, reflecting a year-on-year increase of 9.17%, while offline sales decreased by 21.49% to 247 million yuan [4] Earnings Forecast - The projected earnings per share for 2025 and 2026 are 4.63 yuan and 5.39 yuan, respectively, with corresponding price-to-earnings ratios of 20 times and 17 times [5]