Core Viewpoint - The company reported strong financial performance for the first half of 2025, with revenue and net profit growth exceeding initial forecasts, indicating robust operational strength and market positioning [1]. Financial Performance - Revenue for 25H1 reached 4.108 billion yuan, representing a year-on-year increase of 17.3% [1]. - Net profit for 25H1 was 555.6 million yuan, reflecting a year-on-year growth of 34.7% [1]. - The board has proposed an interim dividend of 0.5 yuan per share [1]. Brand and Product Development - The brand 韩束 maintained its leading position in online beauty sales, achieving a 15.5% year-on-year increase in GMV on Douyin [2]. - New product launches, such as 韩束净颜清透洁面膏 and 韩束控油蓬松洗发水, ranked first in their respective categories on Douyin [2]. - The high-end maternal and infant brand newpage saw significant growth, with revenue of 397 million yuan, a year-on-year increase of 146.5% [2]. Multi-Brand Strategy - The company is expanding its multi-brand strategy to meet diverse consumer demands, with strong growth in sensitive skin care brand 安敏优 and the recent launch of the high-end anti-aging brand TAZU [3]. - The 防脱 brand 极方 achieved GMV of 10-25 million yuan since its launch in May [3]. - The company is also preparing to launch a new maternal and infant brand based on well-known IPs, such as 面包超人 and 奥特曼 [3]. Cost Management and R&D Investment - The company optimized its sales expense ratio, achieving a gross margin of 75.5%, a decrease of 1.0 percentage point year-on-year [3]. - The sales and distribution expense ratio was 56.9%, down 0.7 percentage points year-on-year, indicating improved efficiency in brand promotion and channel construction [3]. - R&D expenses accounted for 2.5% of revenue, reflecting a 0.3 percentage point increase year-on-year, with ongoing investments in innovation and patent applications [3]. Profit Forecast and Valuation - The company maintains its profit forecast, expecting net profits of 1.02 billion, 1.28 billion, and 1.56 billion yuan for 2025-2027, with corresponding EPS of 2.56, 3.22, and 3.92 yuan [3]. - The target price is set at 111.30 HKD, based on a 40x PE for 2025, reflecting confidence in the brand's performance and market strategy [3].

Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company reported impressive revenue and profit growth for 25H1, with revenue reaching 4.108 billion yuan, a year-on-year increase of 17.3%, and net profit of 556 million yuan, up 34.7%, both nearing the upper limit of previous forecasts [1] - The board has proposed an interim dividend of 0.5 yuan per share [1] - The company is expanding its product categories, with strong growth in mid-to-high-end brands and a well-structured business model across six major segments, indicating a high growth ceiling [1] Summary by Sections Revenue and Profit Performance - For 25H1, the company achieved revenue of 4.108 billion yuan, a year-on-year increase of 17.3%, and net profit of 556 million yuan, up 34.7% [1] - The revenue and net profit growth rates are close to the upper limits of the company's prior forecasts [1] Brand and Product Development - The brand "韩束" maintained its leading position in online beauty sales, with a 15.5% year-on-year increase in GMV on Douyin [2] - The new high-end mother and baby brand "newpage" saw revenue of 397 million yuan, a remarkable year-on-year growth of 146.5% [3] - The company is actively launching new products across various categories, including skincare and makeup, to meet diverse consumer demands [4] Financial Metrics and Forecasts - The company achieved a gross margin of 75.5%, with a slight year-on-year decrease of 1.0 percentage points [5] - The report maintains profit forecasts for 2025-2027, expecting net profits of 1.02 billion, 1.28 billion, and 1.56 billion yuan respectively, with corresponding EPS of 2.56, 3.22, and 3.92 yuan [6] - The target price is set at 111.30 HKD, based on a 40x PE for 2025 [6]