Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [5] Core Views - The company is focusing on high-quality growth for its main brand, with a strategic reduction in promotional activities and a streamlined product line [2] - The company has made significant investments in new projects and technologies to expand its product offerings and enhance its market channels [2] - The company has achieved a breakthrough in core product technology, enhancing the performance of its flagship products [3] Financial Performance Summary - For the first three quarters of 2025, the company reported revenue of 3.464 billion yuan, a year-on-year decrease of 13.78%, and a net profit attributable to the parent company of 272 million yuan, down 34.45% [1] - In Q3 2025, revenue was 1.092 billion yuan, a year-on-year decrease of 9.95%, while net profit attributable to the parent company increased by 136.55% to 25 million yuan [1] - The gross margin for the first three quarters of 2025 was 74.34%, slightly up by 0.62 percentage points year-on-year, while the net profit margin was 7.85%, down by 2.48 percentage points [1] Sales and Expense Ratios - The sales expense ratio for the first three quarters of 2025 was 53.06%, an increase of 3.04 percentage points year-on-year, while the management expense ratio was 9.44%, up by 0.98 percentage points [1] - In Q3 2025, the sales expense ratio decreased to 50.64%, down by 9.79 percentage points year-on-year, indicating improved cost management [1] Revenue and Profit Forecast - The revenue forecast for 2025, 2026, and 2027 is adjusted to 5.679 billion, 6.190 billion, and 6.809 billion yuan respectively, reflecting a downward revision due to increased industry competition [4] - The net profit forecast for the same years is adjusted to 465 million, 608 million, and 668 million yuan respectively, with corresponding price-to-earnings ratios of 41.49, 31.76, and 28.89 times [4]

Core Insights - Winona, a leading brand in sensitive skin care, won the annual sunscreen award and marketing brand award at the 2025 Tmall Golden Makeup Awards, reflecting its strong market presence and consumer trust [1][4] - Winona has achieved the highest sales in the sensitive skin care category in China for five consecutive years from 2020 to 2024, showcasing its deep commitment to dermatological research and clinical validation [5] - The brand's unique approach combines pharmaceutical principles with skincare, collaborating with 63 top-tier hospitals for product safety and efficacy testing, thus establishing a strong professional barrier [9] Product Development and Innovation - Winona has developed a new generation of effective skincare products based on the "NUTE principle," focusing on clinical needs, unique mechanisms, technology empowerment, and evidence-based validation [9] - The brand's flagship product, the second-generation Winona Special Care Cream, represents a significant upgrade after 14 years of development, utilizing breakthrough technology for enhanced skin sensitivity repair [10][11] - Winona has expanded its product line to include various items like special care essence, cleansers, and masks, addressing the diverse needs of sensitive skin consumers [11] Market Leadership and Strategy - Winona's "Sensitive Skin PLUS" strategy aims to deepen its focus on niche market demands, establishing a comprehensive solution that includes core products for repair, sun protection, whitening, and anti-aging [12][13] - The brand's Clear Sunscreen has been recognized for its effectiveness, with 98% of testers agreeing on its gentleness and non-irritating properties, and it has received multiple awards for sales leadership in the sensitive skin sunscreen category [14] Social Responsibility and Brand Evolution - Winona has been actively involved in the "We Smile Sunshine Plan" since 2016, providing skin health education and resources to communities affected by high-altitude sun damage, thus elevating public awareness of sun protection as a health issue [16] - The brand's commitment to long-termism and scientific innovation positions it as a trusted name in the skincare industry, capable of adapting to market changes while maintaining consumer loyalty [16][17]