Investment Rating - The report maintains a "Buy" rating for the company [4][7] Core Insights - The company achieved a revenue of 3.113 billion yuan in H1 2025, representing a year-on-year growth of 22.5%, and a net profit attributable to the parent company of 1.182 billion yuan, up 20.2% year-on-year [1] - The gross margin for H1 2025 was 81.68%, a slight decrease of 0.72 percentage points year-on-year, while the net margin was 37.99%, down 0.61 percentage points year-on-year [1] - The sales expense ratio improved by 1 percentage point year-on-year to 34.01%, while the management expense ratio increased by 0.07 percentage points to 2.65% [1] Revenue and Profit Growth - The company's brand "可复美" generated revenue of 2.54 billion yuan in H1 2025, with a year-on-year increase of 22.7% [2] - The "可丽金" brand achieved revenue of 500 million yuan, reflecting a growth of 26.9% year-on-year [2] Channel Performance - Direct sales channels contributed 2.325 billion yuan in revenue, accounting for 74.7% of total revenue, with DTC channels generating 1.816 billion yuan [3] - The company has expanded its offline presence, covering approximately 1,700 public hospitals and 3,000 private hospitals and clinics, along with over 130,000 pharmacy stores [3] Financial Forecast - The company is projected to achieve net profits of 2.505 billion yuan, 3.102 billion yuan, and 3.732 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 21, 17, and 14 [4][6]

Core Viewpoint - The company forecasts a net profit increase of 35%-37% for 1H25, driven by higher online channel revenue and improved operational efficiency [1][2]. Revenue and Profit Forecast - The company expects 1H25 revenue to be between 2.57-2.60 billion yuan, representing a year-on-year growth of 30.4%-31.9%, with net profit projected at 0.665-0.675 billion yuan, reflecting a year-on-year increase of 35.0%-37.0% [1]. - The anticipated net profit margin for 1H25 is expected to rise by 1.0 percentage point to 25.9% [2]. Channel and Product Performance - Both online and offline channels are expected to experience rapid revenue growth, with an increasing share of online sales. The offline channel is projected to see a high single-digit growth in the number of counters, with same-store sales expected to grow by double digits [1]. - The skincare and makeup categories are anticipated to grow quickly, with classic star products leading sales. New products like skin prep primers are receiving positive market feedback [1]. Profitability and Efficiency - The company’s net profit margin is expected to improve due to a higher proportion of revenue from online channels, reduced listing costs, and enhanced operational efficiency [2]. - The online channel's return on investment (ROI) is expected to remain stable, contributing to high-quality growth through strict cost control and efficient operations [2]. Growth Potential and Market Position - The company is well-positioned as a leading high-end domestic beauty brand, with significant growth potential. The product line has been extended to include serums, eye creams, body lotions, perfumes, and eyeshadows, with new perfume launches receiving positive market responses [2]. - The company plans to continue expanding its presence in high-end department stores and is targeting young consumers online, with initial steps taken towards international markets in Hong Kong and Southeast Asia [2]. Earnings Forecast and Valuation - Based on improved profitability, the company has raised its net profit forecasts for 2025-2026 by 3% to 1.15 billion yuan and 1.46 billion yuan, respectively. The current stock price corresponds to a price-to-earnings ratio of 39x for 2025 and 30x for 2026 [2]. - The company maintains an outperform rating and a target price of 127 HKD, indicating a potential upside of 29% based on projected price-to-earnings ratios of 50x and 39x for 2025-2026 [2].

Core Viewpoint - The company, Wufeng Chicheng Biotechnology Co., Ltd., has decided to terminate its IPO application after experiencing two "suspensions of review" by the Beijing Stock Exchange, primarily due to its declining financial performance [1][4]. Company Overview - Founded in November 2004, Chicheng Biotechnology focuses on the research, production, and sales of hydrolyzed tannin products derived from plants rich in tannins [2]. - The company went public on the New Third Board in February 2024 and has attracted institutional investors since 2021 [2]. IPO Journey - The IPO process began on June 26, 2024, with the submission of application materials to the Beijing Stock Exchange [2]. - The company faced multiple suspensions of its IPO review due to the expiration of the financial report's validity period, leading to a second suspension on December 30, 2024 [3]. Financial Performance - In 2024, the company reported a revenue of approximately 351 million yuan, a 12.49% increase from the previous year, but its net profit decreased by 10.91% to 43.44 million yuan [5][6]. - The company's net profit has been on a downward trend, with a significant drop in 2022 attributed to reduced procurement from key customers [6][7]. Cosmetics Business - Chicheng Biotechnology has been exploring new growth avenues, particularly in the cosmetics sector, establishing a subsidiary focused on daily chemical products [8]. - The cosmetics subsidiary, Hubei Bencao Times Health Industry Co., Ltd., reported revenues of 555,880 yuan in 2024, marking its first profitable year, but its overall contribution remains limited [9]. Future Investments - The company plans to invest approximately 500 million yuan in the construction of a new industrial park aimed at enhancing its production capabilities for cosmetic raw materials and food additives [10]. - The industrial park project has been ongoing since August 2020, with partial completion expected by the end of 2024 [10].

Core Viewpoint - The article discusses the emerging beauty trend on TikTok known as "Morning Shed," which involves elaborate skincare routines performed overnight and revealed in the morning, gaining significant popularity and viewership [9][21]. Group 1: Trend Description - "Morning Shed" is characterized by a multi-step beauty process where users apply various products before sleeping and remove them upon waking, resulting in a refreshed appearance [9][12]. - The process includes applying eye masks, acne patches, collagen masks, and using tools like silk hair caps and chin straps to enhance beauty overnight [12][14]. Group 2: Professional Opinions - Dermatologists express skepticism about the effectiveness and safety of the "Morning Shed" routine, warning that some products should not remain on the skin longer than recommended [17][19]. - Critics argue that the trend may be more about attracting attention rather than providing genuine beauty benefits, with some professionals labeling it a "scam" [19][21]. Group 3: Market Impact - The trend has led to increased visibility and sales for various beauty products, with brands like L'Oréal leveraging the trend to promote their offerings [21]. - The popularity of "Morning Shed" has resulted in a surge in demand for specific beauty items, such as chin straps and collagen masks, which are now considered must-have products [21].