Group 1 - The company has successfully transitioned from a brand operation model to a brand owner model, achieving significant growth in its proprietary brand business since 2024 [1] - The proprietary brand revenue reached 501 million yuan in 2024, a year-on-year increase of 90.28%, and 603 million yuan in the first half of 2025, a year-on-year increase of 242.42%, accounting for 45.75% of total revenue [1] - The company has established a proprietary brand matrix centered around home cleaning brand "Zhanjia" and health brand "Feicui & VitaOcean" [1] Group 2 - The home cleaning market in China is experiencing steady growth, with new channels and demands creating opportunities, particularly in the mid-to-high-end segment [2] - The "Zhanjia" brand, launched in September 2020, focuses on "emotional fragrance" and has seen significant sales growth, with revenue of 484 million yuan in 2024, a year-on-year increase of 90.09% [2] - The gross margin for "Zhanjia" was 66.92% in 2024, and 66.50% in the first half of 2025 [2] Group 3 - The health supplement industry in China has considerable growth potential, driven by trends such as cross-border opportunities and the rise of e-commerce as a primary purchasing channel [3] - The "Feicui" brand, launched in September 2024, targets high-end female anti-aging products and achieved revenue of 12 million yuan in 2024 and 160 million yuan in the first half of 2025, with a gross margin of 86.81% [3] - The company has also launched a new brand "VitaOcean" focusing on high-purity ruby oil capsules and became the general agent for ruby oil raw materials in Greater China [3] Group 4 - Revenue projections for the company are estimated at 3 billion yuan in 2025, 4.2 billion yuan in 2026, and 5.4 billion yuan in 2027, with year-on-year growth rates of 70%, 40%, and 30% respectively [4] - The net profit attributable to the parent company is projected to be 177 million yuan in 2025, 250 million yuan in 2026, and 328 million yuan in 2027, with growth rates of 67%, 42%, and 31% respectively [4] - The company is expected to have a compound annual growth rate (CAGR) of 36% for net profit from 2025 to 2027, outperforming comparable companies in the A-share personal care and beauty sector [4]

Investment Rating - The investment rating for the company is "Buy" [2][12]. Core Insights - The company has successfully transitioned from a brand operation model to a brand owner model, achieving significant growth in performance since 2024. The self-owned brand business has shown rapid growth, with revenues reaching 5.01 billion yuan in 2024, a year-on-year increase of 90.28%, and 6.03 billion yuan in the first half of 2025, a year-on-year increase of 242.42% [4][11][19]. Summary by Sections Company Overview - Founded in 2011, the company initially focused on brand operation. In late 2020, it launched its own home cleaning brand, Zhanjia, marking its transition to a brand owner. By July 2025, it had established a brand matrix centered around Zhanjia for home cleaning and Feicui & VitaOcean for health products [11][12]. Business Performance - The self-owned brand revenue accounted for 45.75% of total revenue in the first half of 2025, with Zhanjia generating 4.44 billion yuan (up 157.11% year-on-year) and Feicui generating 1.60 billion yuan [4][11][19]. The company expects revenues of 30 billion yuan, 42 billion yuan, and 54 billion yuan for 2025, 2026, and 2027, respectively, with corresponding growth rates of 70%, 40%, and 30% [12]. Zhanjia Brand - Zhanjia focuses on the home cleaning market, emphasizing "emotional fragrance" to create a mid-to-high-end brand. The brand launched its strategic flagship product, the Four Seasons Fragrance Laundry Liquid, in March 2024, which significantly boosted sales [11][44]. In 2024, Zhanjia's revenue reached 4.84 billion yuan, with a gross margin of 66.92% [4][11]. Feicui Brand - Feicui targets high-end female anti-aging products and has seen rapid growth since its launch in September 2024. The brand achieved 1.20 million yuan in revenue in 2024 and 1.6 billion yuan in the first half of 2025, with a gross margin of 86.81% [4][11][19]. The company has also launched VitaOcean, focusing on ruby oil, and aims to maximize the value of this ingredient through its brand matrix [11][12]. Market Trends - The home cleaning market in China is steadily growing, with e-commerce platforms being the primary source of information for consumers. The demand for home cleaning products is shifting from basic cleaning capabilities to longer-lasting fragrances and emotional value [29][36]. The health supplement industry also shows significant growth potential, particularly in areas like gut health and beauty [11][19]. Financial Projections - The company forecasts a compound annual growth rate (CAGR) of 36% for net profit from 2025 to 2027, which is higher than comparable companies in the A-share personal care sector. The target market capitalization is set at 154 billion yuan [12][19].