Core Insights - The company reported a revenue of 5.362 billion yuan for H1 2025, representing a year-on-year increase of 7.2%, and a net profit attributable to shareholders of 799 million yuan, up 13.8% year-on-year [1] - The sub-brands, particularly Cai Tang and OR, showed significant growth, with revenue increases of 21.11% and 102.52% respectively, while the main brand, Proya, experienced a slight decline of 0.08% [2] - The overall gross margin improved to 73.4%, an increase of 3.56 percentage points year-on-year, while the net profit margin rose to 14.89%, up 0.86 percentage points [2] Revenue and Profitability - The company’s revenue projections for 2025-2027 are 12.584 billion, 14.440 billion, and 16.302 billion yuan, with corresponding growth rates of 16.8%, 14.8%, and 12.9% [3] - The net profit attributable to shareholders is expected to be 1.821 billion, 2.120 billion, and 2.439 billion yuan for the same period, with growth rates of 17.3%, 16.4%, and 15.0% [3] - Earnings per share (EPS) are projected to be 4.60, 5.35, and 6.16 yuan per share for 2025, 2026, and 2027 respectively [3] Strategic Initiatives - The company continues to implement its "big single product strategy," focusing on innovation in skincare and addressing high-growth demands, including anti-aging and whitening products [2] - New product launches include a whitening essence and cream targeting early aging, as well as a high-protection sunscreen, indicating a strong emphasis on product matrix upgrades [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The main brand, Proya, shows stable performance despite a high base, while sub-brands Caitang and OR achieve rapid growth, with revenue changes in H1 2025 being -0.08% for Proya, +21.11% for Caitang, and +102.52% for OR [5][12] - Revenue growth is steady, and cost reduction efforts have improved efficiency, with a comprehensive gross margin of 73.4% in H1 2025 (up 3.56 percentage points year-on-year) and a net profit margin of 14.89% (up 0.86 percentage points year-on-year) [5][12] - The "big product strategy" continues to solidify, with expectations for strong performance during the Double 11 shopping festival, focusing on innovative product offerings that cater to complex consumer needs and trends in medical aesthetics [12][13] Financial Data Summary - For H1 2025, the company reported revenue of 5.362 billion yuan (up 7.2% year-on-year) and a net profit of 799 million yuan (up 13.8% year-on-year) [11] - Revenue projections for 2025-2027 are 12.584 billion yuan, 14.440 billion yuan, and 16.302 billion yuan, with corresponding growth rates of 16.8%, 14.8%, and 12.9% [14] - The expected earnings per share (EPS) for 2025, 2026, and 2027 are 4.60 yuan, 5.35 yuan, and 6.16 yuan respectively [14]