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].