Core Viewpoint - The company is implementing a restricted stock incentive plan to enhance its long-term incentive mechanism, aiming to align the interests of shareholders, the company, and management for sustainable development [1] Group 1: Sales Performance - During the 2025 Double Eleven shopping festival, the company entered the sales Top 20 list for the first time, indicating strong performance [1] - The company’s product categories, particularly in cosmetics, showed good growth momentum, with popular items like caviar cushion foundation and air lip glaze performing well [1] - The skincare segment, especially the caviar series, has significant growth potential, and the launch of 13 new perfumes in May has resulted in several best-selling products [1] Group 2: Customer Loyalty and Repurchase Rate - As of the first half of 2025, the company has 405 self-operated counters and 32 distributor counters, employing over 3,100 beauty consultants to enhance brand visibility [2] - The total number of registered members in the online and offline loyalty programs reached approximately 13.4 million and 5.6 million, respectively, with an overall repurchase rate of 26.8%, up by 2 percentage points year-on-year [2] - The main brand, MAOGEPING, ranked first in repurchase rate in the beauty and cosmetics category on the Douyin platform, reflecting increasing consumer loyalty [2] Group 3: Profit Forecast and Rating - Based on strong sales performance across online and offline channels, the company forecasts net profits of 1.21 billion, 1.58 billion, and 2.03 billion yuan for 2025-2027, representing year-on-year growth of 38%, 30%, and 28% respectively [2] - The company is recognized as a high-end cosmetics brand with a unique founder IP that enhances brand value, and it is expected to continue growing steadily in both skincare and cosmetics categories [2] - The company maintains a "buy" rating due to its brand value, channel advantages, and potential for future growth [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company is implementing a restricted stock incentive plan to enhance its long-term incentive mechanism, aiming to align the interests of shareholders, the company, and management for sustainable growth [8] - The company has shown strong sales performance during the Double Eleven shopping festival, entering the sales Top 20 list for the first time, with significant growth in popular products [8] - The company is expanding its product range and increasing its SKU speed, which opens up growth opportunities in various market segments [8] - The company has seen a steady increase in repurchase rates, with a total of approximately 13.4 million online and 5.6 million offline registered members, leading to a comprehensive repurchase rate of 26.8%, up 2 percentage points year-on-year [8] - The company is expected to achieve net profits of 1.21 billion, 1.58 billion, and 2.03 billion RMB for the years 2025 to 2027, representing year-on-year growth rates of 38%, 30%, and 28% respectively [8] Financial Summary - The company's revenue is projected to grow from 2,885.96 million RMB in 2023 to 5,153.06 million RMB in 2025, with a compound annual growth rate (CAGR) of 32.65% [7] - The net profit attributable to the parent company is expected to increase from 661.9 million RMB in 2023 to 1,212.7 million RMB in 2025, with a CAGR of 37.7% [7] - The company's return on equity (ROE) is projected to remain strong, with values of 42.8% in 2023 and around 25% in the following years [7]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report emphasizes the ongoing impact of tariff shocks and suggests focusing on high-quality retail channels and differentiated consumer brands that cater to domestic demand [4][22] - The report highlights the transformation of traditional retail, with Yonghui Supermarket leading the way in adapting to a consumer-centric retail era [4][22] - The rise of domestic brands and the recovery of consumer demand are seen as inevitable trends, with recommendations to focus on quality retail channels and differentiated brands [4][22] Summary by Sections Retail Market Review - The retail industry index rose by 2.88% during the week of April 7 to April 11, outperforming the Shanghai Composite Index, which fell by 3.11% [6][13] - The supermarket sector showed the largest increase, with a weekly rise of 13.54% [14][17] - Notable individual stock performances included Guofang Group (+61.1%), Eurasia Group (+26.3%), and Nanning Department Store (+22.4%) [19][20] Industry Dynamics - Yonghui Supermarket has opened a "green channel" for domestic manufacturers affected by export restrictions, receiving over 100 cooperation requests from various sectors [4][22] - The report discusses the approval of a new collagen product by Jinbo Bio, which is expected to strengthen its leading position in the medical beauty sector [4][23] Investment Recommendations - Investment focus areas include: - Traditional retail: Highlighting companies like Yonghui Supermarket and Aiyingshi that are adapting to consumer trends [7][27] - Gold and jewelry: Recommendations for brands like Laopu Gold and Chaohongji that possess differentiated product capabilities [7][28] - Cosmetics: Emphasizing domestic brands such as Maogeping and Shangmei that are expanding into high-potential segments [7][28] - Medical aesthetics: Focusing on companies like Aimeike and Kedi that are positioned to benefit from the recovery in medical beauty consumption [7][28] Company-Specific Insights - Laopu Gold reported a revenue of 8.506 billion yuan (+167.5%) and a net profit of 1.473 billion yuan (+253.9%) for FY2024, indicating strong growth potential [29] - Yonghui Supermarket's revenue for the first three quarters of 2024 was 54.549 billion yuan (-12.1%), with a net loss of 78 million yuan, but it is undergoing significant transformation [32] - Jinbo Bio's new collagen product is expected to provide both immediate filling effects and stimulate collagen regeneration, enhancing its competitive edge in the market [23][24]