Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3] Core Views - The company reported a revenue of 2.372 billion yuan in H1 2025, a year-on-year decrease of 15.4%, with a net profit of 247 million yuan, down 49.0%. The Q2 2025 revenue was 1.423 billion yuan, down 16.7%, and net profit was 218 million yuan, down 28.9%. The company is a leader in sensitive skin care and expects growth after adjustments to its brand matrix [3][4] - The company maintains its profit forecast, expecting net profits of 672 million yuan, 803 million yuan, and 927 million yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.59, 1.90, and 2.19 yuan. The current stock price corresponds to P/E ratios of 29.8, 24.9, and 21.6 for the same years [3][4] Financial Performance Summary - In H1 2025, the company's revenue from various brands was as follows: Winona 1.950 billion yuan (-18.4%), Winona Baby 110 million yuan (+8.6%), Aikeman 51 million yuan (+93.9%), Jirei 212 million yuan (-11.5%), and Pomei 24 million yuan (-4.7%). Online, offline, and OMO channels generated revenues of 1.743 billion yuan (-5.9%), 424 million yuan (-41.7%), and 191 million yuan (-10.0%) respectively [4] - The overall gross margin for H1 2025 was 76.0%, an increase of 3.4 percentage points. The sales, management, and R&D expense ratios were 54.2%, 8.1%, and 4.9%, respectively, with sales expenses increasing due to enhanced marketing personnel, channel expansion, and advertising investments [4][6] Financial Forecasts - The company forecasts revenue growth from 5.522 billion yuan in 2023 to 7.962 billion yuan in 2027, with a CAGR of 13.4%. The net profit is expected to recover from 757 million yuan in 2023 to 927 million yuan in 2027, reflecting a significant turnaround [6][8] - The projected P/E ratios are expected to decline from 26.5 in 2023 to 21.6 in 2027, indicating an improving valuation as earnings recover [6][8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Insights - The company's H1 2025 financial results met market expectations, with revenue of 2.372 billion yuan, a year-on-year decline of 15.43%, and a net profit attributable to the parent company of 247 million yuan, down 49.01% [6] - The company is focusing on product upgrades and brand image enhancement through new product launches and celebrity endorsements [6] - The financial forecast for 2025-2027 predicts net profits of 667 million yuan, 769 million yuan, and 899 million yuan respectively, with corresponding PE ratios of 30, 26, and 22 [6] Financial Data and Profit Forecast - Total revenue (million yuan): - 2024: 5,736 - 2025E: 6,281 - 2026E: 7,114 - 2027E: 8,243 - Year-on-year growth rates (%): - 2025E: 9.5 - 2026E: 13.3 - 2027E: 15.9 - Net profit attributable to the parent company (million yuan): - 2025E: 667 - 2026E: 769 - 2027E: 899 - Gross margin (%): - 2025E: 74.9 - 2026E: 75.3 - 2027E: 75.6 [2][8] Company Overview - As of June 30, 2025, the company has a total share capital of 424 million shares and a net asset per share of 14.28 yuan [3] - The company has a debt-to-asset ratio of 22.42% [3] Sales Performance - In H1 2025, skincare revenue was 2.0 billion yuan, down 12.0% year-on-year, while makeup revenue was 229 million yuan, down 7.1% [6] - Online channel revenue was 1.74 billion yuan, down 5.9% year-on-year, with Douyin platform revenue growing by 7.4% to 410 million yuan [6]

Core Insights - The core viewpoint of the articles highlights the rapid growth of the Chinese dermatological skincare market, with Winona emerging as a leading brand due to its focus on efficacy and safety in sensitive skin care products [1][3][12]. Market Overview - In 2024, the Chinese dermatological skincare market is projected to reach 33.96 billion yuan, showcasing significant expansion over the past fifteen years [1]. - Winona has established itself as the market leader in this segment, emphasizing its unique approach to product development and clinical validation [1][3]. Brand Development - Winona entered the market in 2010 with a focus on sensitive skin, leveraging its background in the OTC industry to develop effective skincare products based on pharmaceutical standards [3][4]. - The brand has maintained a strong commitment to research and development, with a reported investment of 337 million yuan in 2024, consistently achieving over 5% annual R&D investment [7]. Product Innovation - Winona's product development is guided by the NUTE principle, which stands for Need, Unique, Technology, and Evidence, ensuring that products address clinical needs and are backed by scientific validation [4][5]. - The brand has successfully launched new products targeting advanced needs such as anti-aging for sensitive skin, expanding its product line beyond basic care [8]. Strategic Positioning - Winona aims to become the world's leading efficacy skincare brand, integrating international research resources and establishing laboratories in France and Japan, with plans for a research center in Israel [8][9]. - The company is focused on transforming Yunnan's unique plant resources into competitive advantages, enhancing its value chain from low-end to high-end [8][9]. Consumer Engagement - Winona has developed a robust membership program with approximately 40 million members, emphasizing value-added services and solutions for sensitive skin issues [11]. - The brand's marketing strategy centers on embedding the message "for sensitive skin, use Winona" into consumer consciousness [11]. Industry Contribution - Winona is committed to promoting high-quality development standards in the skincare industry, addressing challenges such as product homogeneity and safety concerns [12]. - The brand has published significant research contributions, including a comprehensive guide on efficacy skincare, which consolidates expert guidelines and clinical studies [12].