Investment Rating - The report maintains a "Recommended" rating for the company [4] Core Insights - The company achieved a revenue of 2.5 billion yuan in H1 2025, representing a year-on-year increase of 9.02%, and a net profit of 123 million yuan, up 16.54% year-on-year [1] - The self-owned brand revenue accounted for over 40% of total revenue, with significant contributions from mask products and lotion/cream products [1][2] - The gross margin improved by 3.13 percentage points year-on-year to 64.61% in H1 2025, with self-owned brand gross margin reaching 76.83% [2] - The company is focusing on high-end brand development, with several brands contributing to long-term growth potential [3] Financial Performance Summary - For H1 2025, the company reported a net profit margin of 4.93%, an increase of 0.32 percentage points year-on-year [2] - The projected net profits for 2025, 2026, and 2027 are 253 million yuan, 335 million yuan, and 429 million yuan, respectively, with growth rates of 129.6%, 32.7%, and 28.0% [4][5] - The company’s PE ratios for the next three years are projected to be 33X, 25X, and 20X [4][5]

Summary of Marubi Biotech Conference Call Company Overview - **Company**: Marubi Biotech - **Industry**: Beauty and Health Key Points and Arguments Financial Performance and Strategy - Marubi Biotech has improved its gross margin significantly by streamlining SKUs and implementing a big product strategy, particularly with the Xiaohongbi and Xiaojin series. The supply chain turnover period has been reduced from 90 days to approximately 40 days, enhancing operational efficiency. The additional profits will be reinvested into market sales expenses [2][5][6]. - In 2024, the online GMV for Xiaohongbi reached 530 million yuan, nearly doubling year-on-year, accounting for about 25% of the main brand. The Xiaojin series also saw a growth rate of approximately 90%. The company aims for at least a 50% growth in these two major products by 2025, with expectations for Xiaojin cream and Super Mask to achieve sales in the hundreds of millions [2][7][12]. Sales Channels and Marketing - Marubi's sales on content e-commerce platforms like Douyin and Kuaishou account for over 40%, with Tmall around 30% and Vipshop about 20%. The remaining sales are distributed across platforms like JD and Pinduoduo, with net profit levels across channels being relatively similar [2][15]. - The company has shifted its marketing strategy to focus on long-term growth rather than short-term sales spikes, with a series of marketing activities planned leading up to major sales events like 618 [3][12]. Product Development and Innovation - Marubi is actively expanding its product lines in the beauty and health sectors, including functional skincare brands and oral care products. The company has also invested in medical beauty projects, such as Shuangmei Biotech [2][20][21]. - The company has established a dual beauty strategy combining lifestyle beauty and medical beauty, with expectations for significant results in the medical beauty sector within three years [5][22]. Supply Chain and Operational Efficiency - The company has implemented measures to enhance supply chain efficiency, particularly in transitioning from a B2B to a B2C model, requiring faster delivery times and improved product variety [6][7]. - The integration of front, middle, and back-end management has led to significant improvements in operational speed and gross margin [6][7]. Market Trends and Consumer Behavior - The beauty market is experiencing structural changes, with a trend towards younger consumers and a shift in purchasing habits. The company aims to attract younger demographics to build brand loyalty [14][26]. - The competition in the beauty industry is intense, with a focus on product quality, content, and operational capabilities being crucial for success [29]. Future Outlook - 2025 is considered a pivotal year for Marubi, as the company aims to maintain its growth trajectory amidst increasing market competition. The company has set a three-year goal to validate its online transformation success [25][33]. - The company is also exploring opportunities for external investments and brand acquisitions, although current growth from existing brands is deemed sufficient for the near future [23][24]. Additional Important Insights - The company has a robust technical research system, particularly in collagen technology, which supports its product development and market competitiveness [22][30]. - Marubi's non-main business income primarily comes from investment subsidies and returns, indicating a diversified revenue stream [18]. This summary encapsulates the key insights from the conference call, highlighting Marubi Biotech's strategic initiatives, market positioning, and future growth plans.