Investment Rating - The report maintains a "Positive" investment rating for the cosmetics industry [3] Core Insights - The cosmetics industry is experiencing stable growth with a slight improvement in growth rates, while profitability continues to show differentiation among companies [11][16] - The average revenue growth rate for the cosmetics industry in Q1 and Q2 of 2025 was -8.4% and -2.1%, respectively, indicating a slight improvement in the second quarter [16] - Online sales channels, particularly Tmall and Douyin, have shown a year-on-year growth of 13.1% in the first half of 2025, reflecting a recovery in consumer demand [11] Summary by Sections Cosmetics: Stable Growth and Business Adjustments - The cosmetics industry showed a year-on-year growth of 3.1% and 2.6% in Q1 and Q2 of 2025, respectively, with a significant improvement compared to the -1.1% growth in 2024 [11] - The industry is characterized by a slight improvement in growth rates, with the overall growth falling into a stable range [11] Revenue: Differentiation Among Brands - The average revenue growth for the brand segment was 0.4% and 6.5% in Q1 and Q2 of 2025, respectively, indicating stronger resilience compared to upstream and downstream segments [16] - Mid-sized brands like Maogeping and Shangmei have achieved good growth amidst a stable industry backdrop, while leading companies like Proya continue to grow steadily [16] Gross Margin Trends - The average gross margin for the brand segment increased by 1.6 percentage points in the first half of 2025, driven by improved business structures and effective price control by certain brands [21] - Specific brands like Water Sheep and Beitaini have seen significant improvements in gross margins due to product upgrades and price management strategies [21] Product Innovation: Focus on Core Series and Efficacy Expansion - Brands are focusing on upgrading core product lines and expanding efficacy categories, particularly in sunscreen and whitening, with increased competition expected [25] - New product launches include Proya's whitening series and Beitaini's anti-aging products, indicating a trend towards enhancing product offerings [25] Sales Expenses: Rising Industry Rates - The average sales expense ratio for brands in the first half of 2025 was 44.7%, reflecting a year-on-year increase of 1.7 percentage points, influenced by rising competition and platform costs [31] - The narrowing of gross sales margins indicates ongoing pressure on profitability across the industry [31]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% compared to the benchmark index [4]. Core Insights - The company reported a revenue of 1.769 billion yuan for H1 2025, representing a year-on-year growth of 30.83%. The net profit attributable to the parent company was 186 million yuan, up 5.21% year-on-year, while the net profit excluding non-recurring items was 177 million yuan, reflecting a 6.64% increase [1]. - The gross margin for H1 2025 was 74.6%, remaining stable year-on-year, while the net margin decreased by 2.58 percentage points to 10.52% due to increased sales expenses [1]. - The company is focusing on a big product strategy, enhancing penetration through key products and new launches, which has contributed to revenue growth [2]. Revenue and Profitability - The company's online channel revenue reached 1.571 billion yuan in H1 2025, accounting for 88.87% of total revenue, with a year-on-year growth of 37.85%. The offline channel revenue was 197 million yuan, down 7.07% [3]. - The report forecasts EPS for 2025, 2026, and 2027 to be 1.14 yuan, 1.45 yuan, and 1.77 yuan respectively, with corresponding P/E ratios of 37, 29, and 24 [4]. Brand and Market Strategy - The main brand, Marubi, is focusing on four key products and three major sets to enhance market penetration, while the PL brand, Lianhuo, is leveraging limited edition products to strengthen user engagement and expand its market [2]. - The company is actively enhancing its online presence through multi-channel operations and has seen significant growth in member transactions and live-stream sales [3].

Core Viewpoint - Mamei Bio achieved significant revenue growth in H1 2025, with a 30.8% year-on-year increase, and continues to expand its product line, maintaining a "buy" rating from Dongwu Securities [1][3]. Financial Performance - In H1 2025, Mamei Bio reported revenue of 1.77 billion yuan, up 30.8% year-on-year, and a net profit attributable to shareholders of 190 million yuan, up 5.2% year-on-year. The net profit after deducting non-recurring items was 180 million yuan, up 6.6% year-on-year [1]. - For Q2 2025, the company achieved revenue of 920 million yuan, a 33.5% increase year-on-year, but the net profit attributable to shareholders decreased by 23.1% to 50 million yuan, with a net profit after deducting non-recurring items of 40 million yuan, down 30.2% year-on-year [1]. - The company declared a dividend of 100 million yuan for H1 2025, with a payout ratio of 53% [1]. Profitability Metrics - The gross margin for H1 2025 was 74.6%, a slight decrease of 0.1 percentage points year-on-year, while Q2 2025 gross margin was 73.3%, down 1.5 percentage points year-on-year [1]. - The total expense ratio for H1 2025 was 61.0%, an increase of 2.5 percentage points year-on-year, primarily due to a 3.4 percentage point increase in sales expense ratio. For Q2 2025, the total expense ratio rose to 65.6%, up 3.9 percentage points year-on-year [1]. - The net profit margin for H1 2025 was 10.5%, down 2.6 percentage points year-on-year, while Q2 2025 net profit margin was 5.5%, down 4.1 percentage points year-on-year [1]. Brand Performance - Mamei and PL brands achieved strong growth in H1 2025, with revenues of 1.25 billion yuan and 520 million yuan, respectively, representing year-on-year increases of 34.4% and 23.9% [2]. - The company launched the "Super Mask" featuring advanced collagen as a key ingredient and appointed Yang Zi as its first global brand ambassador [2]. - PL brand focused on high-quality minimalist makeup, launching the "Unremovable Foundation Liquid 4.0" and appointing Li Hao as its first brand ambassador, achieving over 350 million yuan in online GMV during the 618 shopping festival [2]. Sales Channels - In H1 2025, online and offline revenues were 1.57 billion yuan and 197 million yuan, respectively, with year-on-year growth of 37.9% for online and a decline of 7.1% for offline, accounting for 88.9% and 11.1% of total revenue [2]. - The company utilized platforms like Tmall, JD, and Douyin, employing a "grass-planting to live conversion" strategy, leveraging celebrity endorsements and KOL/KOC collaborations [2]. Future Outlook - The company is expected to continue its transformation and brand focus, with strong performance anticipated from key products like the Super Mask and Unremovable Foundation Liquid [3]. - Profit forecasts for 2025-2027 are 440 million yuan, 550 million yuan, and 690 million yuan, respectively, with year-on-year growth rates of 28%, 26%, and 24% [3].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved a revenue of 1.77 billion yuan in H1 2025, representing a year-on-year increase of 30.8% [7] - The net profit attributable to shareholders for H1 2025 was 190 million yuan, up 5.2% year-on-year, while the net profit after deducting non-recurring items was 180 million yuan, an increase of 6.6% [7] - The company has a high gross margin of 74.6% in H1 2025, although the net profit margin was under pressure due to increased sales expenses [7] - The company is focusing on a big product strategy, with strong performance from key products like the "Super Mask" and "Foundation" [7] - Online sales channels showed significant growth, with online revenue reaching 1.57 billion yuan, up 37.9% year-on-year, while offline revenue decreased by 7.1% [7] Financial Projections - The company forecasts total revenue of 3.79 billion yuan for 2025, with a year-on-year growth of 27.56% [1] - The projected net profit attributable to shareholders for 2025 is 438.81 million yuan, reflecting a year-on-year increase of 28.45% [1] - The earnings per share (EPS) is expected to be 1.09 yuan for 2025, with a corresponding P/E ratio of 41.39 [1][8]