Core Viewpoint - The article discusses the challenges and growth potential of Ruoyuchen, an e-commerce operation company, particularly focusing on its self-owned brand, Zhanjia, which has seen significant sales growth but struggles with brand recognition among the general public [5][8][25]. Group 1: Company Overview - Ruoyuchen has submitted an H-share prospectus to the Hong Kong Stock Exchange, marking it as the first e-commerce operation company to go public [5]. - The company has diversified its business model to include e-commerce operation, self-owned brands, and brand management, with Zhanjia contributing significantly to its revenue [8][9]. Group 2: Financial Performance - In the first half of 2025, Ruoyuchen reported a revenue of 1.319 billion yuan, a 67.55% increase year-on-year, with net profit reaching 72.26 million yuan, up 85.60% [10]. - The revenue breakdown shows that self-owned brand revenue was 603 million yuan, accounting for 45.75% of total revenue, while brand management contributed 335 million yuan, or 25.42% [9]. Group 3: Brand Development and Market Position - Zhanjia has successfully penetrated the high-end market, leveraging online platforms like Douyin and Tmall, but faces challenges in brand awareness among a broader consumer base [8][25]. - The brand's product line is highly segmented, focusing on specific fabric types and usage scenarios, which aligns with its high-end positioning [12][17]. Group 4: Marketing Strategy - Zhanjia emphasizes fragrance as a core selling point, offering a variety of complex scents that rival high-end perfumes, thus appealing to consumers seeking quality at a competitive price [14][17]. - The brand collaborates with key opinion leaders (KOLs) and influencers to enhance its market presence, focusing on aligning with personalities that resonate with its target demographic [21][24]. Group 5: Sales Growth and Challenges - During the 2025 618 shopping festival, Zhanjia's total GMV grew over 160%, with significant increases across multiple online platforms, positioning it as a top brand in the household cleaning sector [23]. - Despite strong online sales, Zhanjia's brand recognition remains low among the general public, which poses a risk to its long-term growth potential [25][28]. Group 6: Industry Context - The e-commerce operation industry is facing challenges, with many companies struggling to transition from traditional operations to brand management, highlighting the need for effective brand-building strategies [11][36]. - Ruoyuchen's market valuation of approximately 138 billion yuan is notable, but concerns about whether this valuation is justified given the competitive landscape and the company's reliance on online sales persist [11][36].

Group 1: Product and Channel Strategy - The company will continue to invest in strategic single products like scented laundry detergent and launch diverse scented products to expand its audience [7] - Online sales are experiencing rapid growth, with an expected penetration rate of 35.9% in China's home cleaning market by 2024, indicating significant potential for further development [7][8] - The company is exploring innovative offline channels, primarily focusing on partnerships with retailers like Sam's Club and Hema [8] Group 2: Brand Positioning and Target Audience - The brand "斐萃" targets women aged 31-40 in first and second-tier cities, focusing on scientific anti-aging products [8] - "NuiBay" aims at a younger demographic, with 27.62% of its audience being Generation Z, emphasizing affordable yet high-quality products [8] - "VitaOcean" is still in its early stages, and the three brands currently do not engage in marketing interactions due to significant audience differences [9] Group 3: Market Expansion and IPO Strategy - The company plans to focus on the Southeast Asian market for its "绽家" brand, which is projected to reach a market size of $10 billion in laundry products by 2024 [10] - The decision to list on the Hong Kong Stock Exchange is driven by a favorable policy environment, increased liquidity, and the need for capital to support rapid business growth [9] - The IPO funds will be allocated for product development, brand building, and digital transformation to enhance the company's market influence [9] Group 4: Financial Performance and Future Outlook - The company has seen a reduction in operating cash flow due to increased inventory for brand management during promotional events [10] - The overall revenue structure is being optimized through a combination of self-owned brands and brand management, reducing reliance on agency operations [10]

Investment Rating - The report assigns an "Accumulate" investment rating to the company, indicating an expectation that the stock will outperform the market index by 5%-15% over the next six months [2][9]. Core Insights - The company is experiencing significant growth driven by its self-owned brand "Zhenjia," which has seen strong sales momentum, and the health brand "Feicui," which has gained substantial platform exposure in its first six months [2][7]. - The projected earnings per share for 2025 and 2026 are estimated at 0.79 and 1.07 yuan respectively, with corresponding price-to-earnings ratios of 66.38 and 48.51 times [2][8]. Financial Performance - For the first half of 2025, the company anticipates a net profit of approximately 63 million to 78 million yuan, representing a year-on-year growth of 61.81%-100.33%. The net profit after excluding non-recurring gains is expected to be between 60 million and 75 million yuan, reflecting a growth of 57.85%-97.23% [1][2]. - The company's revenue forecast for 2025 is projected at 2,415 million yuan, with a net profit of 172 million yuan, and an estimated earnings per share of 0.79 yuan [8]. Brand Development - The self-owned home cleaning brand "Zhenjia" has shown strong sales growth, particularly in its flagship product, the scented laundry detergent, which has deepened brand recognition in the market [7]. - The health brand "Feicui" has effectively targeted high-end female consumers, achieving significant visibility across multiple online sales platforms, ranking second in the Tmall oral beauty nutrition category and maintaining a strong presence in the overseas health product market [7].