Investment Rating - The investment rating for the company is upgraded to "Accumulate" [5] Core Insights - The company reported steady growth in its performance, with a revenue of 7.098 billion yuan for the first three quarters of 2025, reflecting a year-on-year increase of 1.89%. The net profit attributable to shareholders was 1.026 billion yuan, up 2.65% year-on-year [5][8] - The company experienced a decline in revenue and net profit in Q3 2025, with revenue of 1.736 billion yuan, down 11.63% year-on-year and 42.18% quarter-on-quarter. The net profit for the same period was 227 million yuan, down 23.64% year-on-year and 44.35% quarter-on-quarter [5][8] - The company maintained a high gross margin of 73.69% for the first three quarters of 2025, an increase of 3.62 percentage points year-on-year, and a net profit margin of 14.86%, up 0.18 percentage points year-on-year [8] Financial Performance Summary - Revenue projections for 2025-2027 are 12.002 billion yuan, 13.427 billion yuan, and 15.081 billion yuan, with year-on-year growth rates of 11.36%, 11.87%, and 12.32% respectively [7][8] - Net profit projections for the same period are 1.643 billion yuan, 1.783 billion yuan, and 1.986 billion yuan, with growth rates of 5.87%, 8.53%, and 11.38% respectively [7][8] - The company's return on equity (ROE) is projected to decline from 24.84% in 2025 to 20.78% in 2027 [11][12] Market Position and Competitive Landscape - The company has maintained strong rankings across multiple platforms during the "Double 11" sales event, with its main brand ranking first in Tmall's beauty category and other brands also performing well [8] - The company is focusing on a strategy of "new product expansion and solidifying core products," with significant growth in its high-end product lines [8] - The competitive landscape in the cosmetics industry is intensifying, with the company's color cosmetics brand becoming a key growth driver [8]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company reported a revenue of 1.736 billion RMB in Q3 2025, a year-on-year decrease of 11.6%, and a net profit of 227 million RMB, down 23.6% year-on-year. The cumulative revenue for the first three quarters of 2025 reached 7.098 billion RMB, reflecting a slight increase of 1.9% year-on-year, while net profit increased by 2.7% to 1.026 billion RMB [1][5] - The main brand's revenue growth has slowed, but new brands such as Cai Tang, OR, and Yuan Se Bo Ta continue to show strong growth, providing new growth engines for the company [2][5] - The successful issuance of H shares is expected to accelerate the company's internationalization strategy, enhance overseas financing capabilities, and improve overall competitiveness [1] Revenue and Profit Analysis - In Q3 2025, the skincare segment generated 1.316 billion RMB, down 20.4% year-on-year, while the beauty makeup segment saw a slight increase of 0.9% to 236 million RMB. The hair care segment experienced significant growth, with revenue increasing by 137.7% to 179 million RMB [3] - The average selling price for skincare products decreased by 22.2% to 62.42 RMB per unit, primarily due to an increase in the sales proportion of sunscreen products. The average selling price for beauty makeup products decreased by 11.0% to 84.16 RMB per unit, influenced by the sales proportion of Yuan Se Bo Ta [3] Margin and Cost Structure - The gross profit margin for Q3 2025 was 74.7%, an increase of 4.0 percentage points year-on-year. The selling expense ratio was 49.9%, up 4.5 percentage points year-on-year, mainly due to increased promotional expenses for new brand ambassadors and product launches [4] - For the first three quarters of 2025, the gross profit margin was 73.7%, up 3.6 percentage points year-on-year, attributed to category structure optimization and cost reduction measures [4] Earnings Forecast and Valuation - The revenue forecast for 2025-2027 has been adjusted downwards to 10.845 billion RMB, 11.884 billion RMB, and 13.096 billion RMB, respectively, reflecting decreases of 7%, 9%, and 8% from previous estimates. The net profit forecast has also been revised down to 1.551 billion RMB, 1.709 billion RMB, and 1.894 billion RMB for the same period, representing decreases of 11%, 14%, and 15% [5] - The target price has been adjusted to 107.75 RMB, corresponding to a 25 times PE ratio for 2026, down from a previous target of 122.30 RMB [5]

Investment Rating - The report maintains a "Buy" investment rating for the company [1] Core Insights - The company is experiencing a continuous optimization of its product structure, preparing for recovery [1] - In Q3 2025, the company reported total operating revenue of 2.306 billion yuan, a decrease of 1% year-on-year, and a net profit attributable to shareholders of 324 million yuan, down 3% year-on-year [4][5] - The company is focusing on enhancing its high-end product recognition and strengthening user engagement [6] Summary by Sections Market Performance - The company's stock price is currently at 19.8 yuan, with a total market capitalization of 10 billion yuan [1] Financial Performance - In Q3 2025, the company's gross margin increased by 0.3 percentage points to 61.44%, while the net profit margin decreased by 2 percentage points to 4.07% due to income tax impacts [5] - Contract liabilities reached 632 million yuan, an increase of 33% year-on-year, indicating strong future growth potential [5] Product and Sales Analysis - Revenue from high-end products (over 300 yuan) was 157 million yuan, a decrease of 2%, while revenue from products priced between 100-300 yuan was 258 million yuan, down 17% [6] - The company is focusing on the Northwest market, with provincial revenue of 355 million yuan, down 5%, and out-of-province revenue of 151 million yuan, down 12% [6] Earnings Forecast - The company’s earnings per share (EPS) for 2025-2027 are adjusted to 0.74, 0.81, and 0.92 yuan respectively, with corresponding price-to-earnings (PE) ratios of 27, 24, and 22 times [7][10]

Core Viewpoint - The company reported a slight decline in revenue and net profit for the first three quarters of 2025, indicating challenges in the market while maintaining a focus on high-end products and regional growth strategies [1][2][3] Financial Performance - Revenue for the first three quarters of 2025 reached 2.306 billion yuan, a year-on-year decrease of 0.97% - Net profit attributable to shareholders was 324 million yuan, down 2.78% year-on-year, with a non-recurring net profit of 318 million yuan, a decline of 5.61% [1] - In Q3 2025, revenue was 546 million yuan, a decrease of 4.89% year-on-year, and net profit attributable to shareholders was 25 million yuan, down 33.02% year-on-year [1] Product Performance - Revenue from products priced above 300 yuan increased by 13.75% year-on-year, while products priced between 100-300 yuan grew by 2.36%, and those below 100 yuan saw a decline of 23.60% - The proportion of products priced above 300 yuan increased by 3.37 percentage points to 24.18% [1] - In Q3 2025, revenue from products priced above 300 yuan decreased by 1.61%, while those priced between 100-300 yuan fell by 16.55%, and products below 100 yuan increased by 18.41% [1] Regional Performance - Revenue from the domestic market decreased by 2.00%, while revenue from outside the province fell by 2.46% - The company is focusing on the northwest market, with better growth observed in Shaanxi and Xinjiang, while concentrating on core areas in the northern and eastern markets [1] Profitability and Cost Structure - The sales net profit margin in Q3 2025 decreased by 2.30 percentage points to 4.07% - The sales gross margin improved by 0.31 percentage points to 61.44%, attributed to an upgrade in product structure resilience - The sales expense ratio decreased by 1.45 percentage points to 22.63%, reflecting more precise marketing expenditure [2] Strategic Outlook - The company is maintaining a resilient sales rhythm despite the current deep adjustment in the liquor industry - The long-term strategy focuses on national layout, deepening the northwest market, and integrating new markets in Gansu and Qinghai, as well as the Shaanxi-Ningxia market [3] - The company aims to cultivate the eastern and northern markets as new growth engines [3] Profit Forecast - The company maintains profit forecasts for 2025-2027 at 377 million, 417 million, and 465 million yuan, corresponding to current price-to-earnings ratios of 26.6, 24.1, and 21.6 times, respectively [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights that the gross sales margin continues to improve, and the company is strategically deepening its presence in the Northwest region of China [7] - The company has shown resilience in its sales rhythm despite the overall adjustment in the liquor industry, with a focus on national layout and breakthroughs in key markets [7] - The report maintains profit forecasts for 2025-2027, with net profits projected at 3.77 billion, 4.17 billion, and 4.65 billion RMB respectively, corresponding to current P/E ratios of 26.6, 24.1, and 21.6 [7] Financial Performance Summary - For the first three quarters of 2025, the company reported total revenue of 2.306 billion RMB, a year-on-year decrease of 0.97%, and a net profit attributable to shareholders of 324 million RMB, down 2.78% year-on-year [7] - The sales revenue for Q3 2025 was 546 million RMB, reflecting a year-on-year decline of 4.89%, with net profit attributable to shareholders at 25 million RMB, down 33.02% year-on-year [7] - The proportion of products priced above 300 RMB has increased by 3.37 percentage points to 24.18%, indicating a shift towards higher-end products [7] - The sales gross margin for Q3 2025 improved by 0.31 percentage points to 61.44%, driven by an upgrade in product structure [7] - The company’s cash flow from operating activities for 2024 is projected at 558 million RMB, with a net increase in cash of -177 million RMB [8]

Core Viewpoint - The 2025 CAME (China Aroma and Cosmetic Industry Annual Conference and Expo) held in Nanjing focused on "Technology, Brand, and Co-prosperity," showcasing over 500 brands and more than 1,000 new products, emphasizing the integration of government, industry, academia, research, and investment [2][5][38]. Group 1: Event Overview - The event featured high-quality, high-standard, and professional exhibitions, attracting leading beauty companies such as L'Oréal, Procter & Gamble, and Unilever, along with top raw material suppliers like BASF and DSM, creating an "all-star" lineup [5][10]. - CAME has evolved into a "core technology release conference" for domestic and international beauty brands and raw material companies, highlighting its significance in the industry [8][10]. Group 2: Technological Innovations - Numerous innovative technological achievements were showcased, with a strong emphasis on "Chinese-style innovation," including Proya's mitochondrial anti-aging technology and Shiseido's research on the hidden skincare benefits of fermented natto bacteria [10][11][17]. - Shanghai Jahwa introduced the industry's first non-invasive skin glycation quantification and imaging device, filling a gap in the cosmetic field [12]. Group 3: Industry Trends - The event highlighted a shift in the cosmetics industry from "scale expansion" to "value enhancement," with raw material innovation becoming a strategic pivot for this transformation [23][38]. - The demand for diverse consumer needs is pushing upstream supply chain companies to continuously innovate in technology research and scientific communication [23][26]. Group 4: Collaboration and Future Outlook - CAME serves as a bridge for collaboration among raw material suppliers, brands, distributors, and technology companies, accelerating technology transfer and commercial cooperation [34][37]. - The conference is viewed as a crucial opportunity for enhancing the global competitiveness of domestic brands, with a focus on high-quality innovation and development [38].

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [4][12]. Core Insights - The company achieved a revenue of 5.362 billion yuan in H1 2025, representing a year-on-year growth of 7.21%. The net profit attributable to shareholders was 799 million yuan, up 13.80% year-on-year [1]. - The skincare segment showed steady growth, with revenue of 4.199 billion yuan in H1 2025, a slight increase of 0.20% year-on-year, while the beauty makeup segment grew by 25.79% to 837 million yuan [2]. - The company plans to list in Hong Kong to further its international strategy [1]. Financial Performance - The gross margin for H1 2025 increased by 3.56 percentage points to 73.38%, while the net profit margin rose by 0.86 percentage points [3]. - The main brand, Proya, generated 3.979 billion yuan in revenue, a slight decline of 0.08% year-on-year, while the sub-brand Cai Tang saw a revenue increase of 21.11% to 705 million yuan [4]. - The company forecasts net profits of 1.8 billion yuan, 2.08 billion yuan, and 2.35 billion yuan for 2025, 2026, and 2027, respectively, with growth rates of 15.9%, 15.3%, and 13.2% [4][6]. Revenue Breakdown - In H1 2025, online sales accounted for 95.39% of total revenue, amounting to 5.109 billion yuan, while offline sales decreased by 21.49% to 247 million yuan [2]. - The revenue from the hair care segment surged by 131.25% to 320 million yuan, indicating strong performance in this category [2]. Future Projections - The company expects revenue growth rates of 10.3%, 7.8%, and 6.5% for the years 2025, 2026, and 2027, respectively [6][9]. - The projected earnings per share for 2025, 2026, and 2027 are 4.54 yuan, 5.24 yuan, and 5.93 yuan, respectively [6][9]. Brand Development - The main brand Proya continues to enhance its brand strength, while other brands are also making significant progress, with Off&Relax being the fastest-growing brand, achieving a revenue of 279 million yuan, up 102.52% year-on-year [4].

Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Views - The mid-year report demonstrates the resilience of the company's multi-brand strategy, achieving a revenue and net profit growth of 7% and 14% respectively in a competitive beauty industry [11]. - The company has shown a good upward trend in profitability, with a gross margin increase of 3.56 percentage points, attributed to improved bargaining power over raw material procurement and reduced shipping costs [11]. - The company plans to issue H shares to enhance its international presence, which is expected to boost brand recognition and global influence [11]. Financial Performance Summary - Revenue (in million CNY) is projected to grow from 8,905 in 2023 to 14,156 in 2027, with a compound annual growth rate (CAGR) of 9.5% [4]. - Net profit attributable to the parent company is expected to rise from 1,194 million CNY in 2023 to 2,330 million CNY in 2027, reflecting a CAGR of 14.6% [4]. - Earnings per share (EPS) are forecasted to increase from 3.01 CNY in 2023 to 5.88 CNY in 2027 [4]. - The company’s gross margin is expected to improve from 69.9% in 2023 to 73.6% in 2027, indicating enhanced operational efficiency [4]. - The net profit margin is projected to rise from 13.4% in 2023 to 16.5% in 2027, showcasing improved profitability [4]. Earnings Forecast and Valuation - The earnings forecast for 2025-2027 has been slightly adjusted, with EPS estimates of 4.44, 5.13, and 5.88 CNY respectively [3][12]. - The discounted cash flow (DCF) target valuation is set at 112.65 CNY [3][12].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights that the company's revenue and profit growth are expected to remain resilient, with a steady cash collection rhythm [7] - The company is focusing on strengthening its market presence in Northwest China while also expanding into Eastern and Northern markets for future growth [7] - The financial forecasts for the company indicate a slight decrease in net profit for 2025, but a positive outlook for subsequent years [7] Financial Summary - Total revenue for 2023 is projected at 2,548 million yuan, with a year-on-year growth of 26.64% [1] - The net profit attributable to the parent company for 2023 is estimated at 328.86 million yuan, reflecting a year-on-year increase of 17.35% [1] - The earnings per share (EPS) for 2023 is expected to be 0.65 yuan, with a price-to-earnings (P/E) ratio of 32.24 [1] - The company anticipates total revenue of 3,027 million yuan for 2025, with a marginal year-on-year growth of 0.19% [1] - The net profit for 2025 is forecasted to be 377.15 million yuan, representing a decrease of 2.83% compared to 2024 [1] - The projected EPS for 2025 is 0.74 yuan, with a P/E ratio of 28.11 [1]

Investment Rating - The report maintains a "Buy" investment rating for the company [7] Core Views - The company is experiencing steady operational progress with product structure upgrades [5][6] - The revenue for H1 2025 is reported at 1.759 billion yuan, showing a year-on-year increase of 0.3%, while the net profit attributable to shareholders is 298 million yuan, up by 1% [4] - The company is focusing on optimizing its cost structure and increasing promotional investments, which has led to a slight decrease in gross margin [5] Summary by Sections Financial Performance - In Q2 2025, the company's revenue was 651 million yuan, a decrease of 4% year-on-year, with a net profit of 64 million yuan, down 13% [4] - The gross margin in Q2 2025 decreased by 1 percentage point to 63.67% due to increased promotional activities [5] Product Structure and Market Strategy - The revenue from high-end liquor (above 300 yuan) increased by 11% to 136 million yuan in Q2 2025, driven by user engagement and terminal marketing [6] - The company is focusing on refining its operations in the provincial market and enhancing resource allocation efficiency in the northwest region [7] Earnings Forecast - The company forecasts EPS for 2025-2027 to be 0.77, 0.83, and 0.92 yuan respectively, with corresponding PE ratios of 26, 24, and 22 times [7] - The projected revenue growth rates for 2025-2027 are 0.0%, 6.9%, and 9.3% respectively [9]