Investment Rating - The report maintains a "Recommendation" rating for the company with a target price of 33.8 CNY per share [2][8]. Core Insights - The company reported a revenue of 1.764 billion CNY for H1 2025, representing a year-on-year increase of 15.1%, while the net profit attributable to shareholders was 188 million CNY, up 4.6% year-on-year. However, Q2 2025 saw a revenue of 768 million CNY, a slight increase of 0.2% year-on-year, but the net profit dropped by 25.5% to 57 million CNY [2][8]. - The company's product line, particularly in the health sector, continues to show strong growth, with the "Free Point" product line achieving a revenue of 1.687 billion CNY, up 20.5% year-on-year. The health product series is gaining traction, with positive sales feedback for probiotics and organic cotton products [8]. - The e-commerce channel faced challenges, with a 9.4% decline in revenue to 592 million CNY in H1 2025 due to intensified competition and negative public sentiment. However, the company expects a recovery in the fourth quarter as the situation improves [8]. - The offline channel performed well, generating 1.133 billion CNY in revenue, a significant increase of 39.8% year-on-year, with the outer market growing by 124.2% [8]. - The company's gross margin slightly decreased to 53.2%, down 1.2 percentage points year-on-year, while the net profit margin also fell by 1.1 percentage points to 10.7% [8]. - Future projections estimate net profits of 360 million CNY, 480 million CNY, and 620 million CNY for 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 36, 26, and 21 [8]. Financial Summary - Total revenue is projected to grow from 3.254 billion CNY in 2024 to 5.912 billion CNY by 2027, with year-on-year growth rates of 51.8%, 23.2%, 23.7%, and 19.2% respectively [4]. - The net profit attributable to shareholders is expected to increase from 288 million CNY in 2024 to 617 million CNY in 2027, with growth rates of 20.7%, 24.0%, 34.9%, and 28.1% [4]. - The company’s total assets are projected to rise from 2.151 billion CNY in 2024 to 3.049 billion CNY in 2027, indicating a healthy growth trajectory [9].

Investment Rating - The report maintains a "Buy" rating for the company with an expected relative return of over 20% within the next six months [4]. Core Views - The company is focusing on brand building and channel expansion, increasing marketing and promotional efforts to enhance brand influence and market share [1][3]. - The company is optimizing its product structure, particularly in the health and hygiene segment, with significant growth in sanitary napkin sales and the introduction of new health-oriented products [2][3]. - The company is experiencing a mixed performance in online and offline sales channels, with offline sales showing strong growth while online sales faced temporary challenges due to public sentiment [3]. Financial Performance Summary - In Q2 2025, the company reported revenue of 770 million, a year-on-year increase of 0.2%, and a net profit attributable to shareholders of 57 million, a decrease of 25.5% [1]. - For the first half of 2025, the company achieved revenue of 1.76 billion, up 15.1%, and a net profit of 188 million, an increase of 4.6% [1]. - The gross margin for Q2 2025 was 53.1%, down 1.3 percentage points year-on-year, while the net profit margin was 7.5%, down 2.6 percentage points [1]. Product and Market Strategy - The company is focusing on the sanitary napkin category, with revenue of 1.688 billion in the first half of 2025, a year-on-year increase of 19.93% [2]. - The company is prioritizing the development of new products in the health sector, particularly those addressing consumer needs and pain points, with plans to leverage e-commerce for consumer feedback and product testing [2]. Sales Channel Performance - Offline sales in the first half of 2025 reached 1.133 billion, a year-on-year increase of 39.8%, while online sales were 592 million, a decrease of 9.44% [3]. - The company is adapting its strategies based on regional market conditions, with significant growth in areas outside its core provinces [3]. Financial Forecast - The report adjusts profit forecasts for the company, projecting net profits of 370 million, 480 million, and 620 million for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 35X, 27X, and 21X [4][8].

Core Insights - The company reported a revenue of 3.25 billion yuan and a net profit attributable to shareholders of 290 million yuan for 2024, reflecting year-on-year increases of 51.8% and 20.7% respectively [1] - The company continues to focus on health products, particularly sanitary napkins, which saw a revenue increase of 59.9% in 2024 [2] - The company plans to promote its probiotic product line in 2025, aiming to meet consumer demand and expand its market presence [3] Financial Performance - In Q4 2024, the company achieved a revenue of 930 million yuan, but the net profit attributable to shareholders decreased by 12.0% to 50 million yuan [1] - The gross margin for 2024 was 53.2%, an increase of 2.9 percentage points year-on-year, driven by a higher proportion of mid-to-high-end products [3] - The company’s online channel revenue reached 1.52 billion yuan in 2024, marking a significant year-on-year growth of 103.8% [3] Product and Market Strategy - The company is optimizing its product structure, focusing on the health product series, with a notable revenue increase in the probiotic product line [2][3] - The company is enhancing its marketing efforts, particularly in core provinces, while also expanding into peripheral markets [3] - The company has established a special task force to address public relations issues related to sanitary napkins, which may reshape industry dynamics in the long term [4] Future Outlook - The company expects to see continued growth in net profit, projecting 360 million yuan for 2025, with a corresponding PE ratio of 28 [4] - The company aims to maintain its competitive advantage in core provinces while increasing market penetration in regions like Guangdong, Hunan, and Hebei [4]