Investment Rating - The report assigns an "Accumulate" rating to the company [6][11]. Core Viewpoints - The company has established itself in the high-end skincare market, pioneering the oil-based skincare segment. It is expected to experience rapid growth driven by its flagship products and ongoing expansion in both online and offline channels [2][11]. Financial Summary - The company is projected to achieve total revenue of RMB 805 million in 2023, increasing to RMB 4.274 billion by 2027, reflecting a compound annual growth rate (CAGR) of 27.3% [4]. - Net profit is expected to grow from RMB 85 million in 2023 to RMB 767 million by 2027, with a significant increase of 121.1% in 2024 [4]. - The company’s price-to-earnings (PE) ratio is projected to decrease from 27.93 in 2025 to 13.98 in 2027, indicating improving valuation metrics [4]. Company Overview - The company has been deeply involved in the oil-based skincare segment for many years, showcasing strong growth and profitability. It was founded in 2003 and has evolved its product offerings to focus on high-end anti-aging solutions [23][11]. - The flagship product, Camellia Oil, has been a market leader in the facial oil category for 11 consecutive years, demonstrating its effectiveness and market acceptance [11][23]. Industry Insights - The oil-based skincare segment is experiencing high demand, with the market for facial oils expected to reach RMB 5.3 billion in 2024, growing at a rate of 43% year-on-year [45][48]. - The overall anti-aging skincare market is projected to reach RMB 119.9 billion in 2024, with a growth rate of 11% [45][46]. Growth Drivers - The company is leveraging social media platforms like Douyin to drive sales of its flagship products, with online revenue expected to grow significantly [11][35]. - The expansion of offline retail channels is also anticipated to contribute to revenue growth, with over 554 stores established by mid-2025 [11][35].

Core Viewpoint - Lin Qingxuan is establishing a high-end skincare brand centered around "Camellia" and the concept of "oil-based skincare," creating a brand symbol with distinctive Chinese cultural characteristics. The company aims for growth through core flagship products and a closed-loop OMO ecosystem, accumulating localized online traffic while enhancing customer loyalty and repurchase rates through offline experiences, achieving "high conversion + high repurchase" [1]. Group 1: Brand and Product Strategy - The company focuses on the "oil-based skincare" segment, using Camellia as a unique brand symbol to shape the image of domestic high-end skincare. It targets the niche category of "essence oil" for precise market entry, establishing a differentiated position and unique recognition in consumers' minds [2]. - The core product, Camellia oil, is positioned as a benchmark in the "oil-based skincare" segment, accumulating high repurchase rates due to its strong efficacy. The product matrix has expanded to include other mainstream skincare products, such as Camellia Brightening Essence Cream and High SPF Sunscreen, which have become bestsellers [2]. - The company integrates the entire value chain of its core ingredients, leveraging high-quality raw materials and exclusive patented technology to enhance product strength [2]. Group 2: Marketing and Channel Strategy - The marketing strategy includes building a "real person IP matrix" and a local life matrix, maintaining active interactions on platforms like Douyin and WeChat to improve conversion rates through genuine human engagement [2]. - A closed-loop OMO ecosystem is established, where online platforms serve as traffic entry points and offline stores provide high-touch services, creating a dual-driven growth model [2]. Group 3: Future Growth Path - The essence oil flagship product is expected to remain the core driver of growth, with projected revenues reaching 1 billion in 2025 and 2 billion in 2027 [3]. - Online channels are anticipated to experience rapid growth, particularly through Douyin, while offline channels are expected to grow by over 40% in 2025, with offline store growth projected at over 25% [3]. - The company is expected to see steady growth in the number of direct-operated stores and rapid expansion of franchise and joint venture stores, contributing to overall growth [3]. Group 4: Investment Outlook - Short-term growth is highly certain, while long-term success will depend on cross-category expansion. The company is well-positioned to benefit from the "oil-based skincare" segment, with short-term growth showing high certainty [3]. - Revenue projections for 2025, 2026, and 2027 are 2.2 billion, 3.21 billion, and 4.14 billion respectively, with net profits of 380 million, 580 million, and 770 million, corresponding to PE ratios of 27, 18, and 14 times [3].

Core Insights - Lin Qingxuan has officially listed on the Hong Kong Stock Exchange, becoming the first domestic high-end skincare brand to do so, with stock code 2657.HK [3] - The company has established a carbon-neutral research and manufacturing base in Shanghai, marking it as the first cosmetics factory designed strictly according to carbon-neutral standards [1] Company Performance - Lin Qingxuan's revenue has shown significant growth, increasing from 691 million yuan in 2022 to an expected 1.21 billion yuan in 2024, with a compound annual growth rate (CAGR) of 32.3% [6] - In the first half of 2025, the company reported a revenue of 1.052 billion yuan, a year-on-year increase of 98.3%, with a corresponding net profit of 182 million yuan, reflecting a growth of 109.8% [6] - The gross margin for the first half of 2025 reached 82.4%, up from 78% in 2022 [6] Product Highlights - The core product, Camellia Oil, has contributed significantly to revenue, accounting for 45.5% of total income in the first half of 2025 [4] - New product launches, such as the Camellia Anti-Wrinkle Peptide Essence Water, achieved sales of over 100 million yuan within three months of launch [4] - The company has a complete product matrix including essence oils, creams, toners, lotions, serums, masks, and sunscreens [3] Market Potential - The Chinese cosmetics market is projected to reach 688.6 billion yuan in 2024, with skincare products making up 461.9 billion yuan, and anti-wrinkle products expected to grow at a CAGR of 15% from 2019 to 2024 [7] - The anti-wrinkle skincare segment is anticipated to reach a market size of 119.8 billion yuan in 2024, representing 25.9% of the skincare market [7] Competitive Position - Lin Qingxuan ranks as the 10th high-end skincare brand in China, with a market share of 2.2%, amidst a competitive landscape dominated by foreign brands [12] - The company has established a strong research and development foundation, holding over 600 formula patents and 87 patents, including 46 invention patents [11] Strategic Investments - The company has attracted strategic investments from major players, including L'Oréal, which acquired a 2.75% stake through its fund [13] - Lin Qingxuan's IPO raised over 1 billion HKD, with plans to use the funds for research innovation, channel expansion, and brand development [14] Industry Support - Recent policies in Shanghai aim to promote high-quality development in the cosmetics industry, providing financial support for new raw materials and brand promotion initiatives [14] - The goal is to cultivate companies with market values of 50 billion yuan and 10 billion yuan within three years, indicating a supportive environment for growth [14]

Core Viewpoint - The Hong Kong IPO market remains vibrant as Lin Qingxuan, known as the "first domestic high-end skincare stock," successfully listed on December 30, 2025, with its stock price surging over 16% on the first day, closing at 85 HKD, indicating strong market confidence in its growth potential [1]. Group 1: Company Overview - Lin Qingxuan was founded in 2003, initially offering affordable skincare products, and transitioned to high-end skincare by focusing on camellia oil products starting in 2012 [2]. - The company has established a strong technological barrier through its unique "cell-level anti-wrinkle" technology, which has positioned it as the leading domestic high-end skincare brand in China by retail sales as of 2024 [2][4]. Group 2: Product Innovation and Technology - Lin Qingxuan has developed patented ingredients such as Camellia Super Peptide and Camellia Super Collagen, which provide skin repair benefits, including enhancing elasticity and reducing fine lines [3]. - The company collaborates with academic institutions to establish a "Cell-Level Anti-Wrinkle Joint Research Laboratory," ensuring continuous innovation and application of cutting-edge research [3]. Group 3: Financial Performance - From 2022 to 2024, Lin Qingxuan's revenue grew significantly, reaching 6.91 billion CNY in 2022, 8.05 billion CNY in 2023, and projected at 12 billion CNY in 2024, with a compound annual growth rate of 32.3% [5]. - The net profit transitioned from a loss of 5.93 million CNY in 2022 to a profit of 8.45 million CNY in 2023, and further increased by 121.1% to 187 million CNY in 2024, indicating a strong upward trend in profitability [6]. Group 4: Market Reception and Product Success - The star product, Camellia Essence Oil, has sold over 45 million bottles since its launch in 2014, contributing 45.5% of the revenue in the first half of 2025, with a remarkable growth rate of 176% [6]. - New product launches have also performed exceptionally well, with the Camellia Anti-Wrinkle Peptide Microbead Essence Water achieving over 700 million CNY in sales during its first live broadcast [7]. Group 5: Long-term Investment Value - Lin Qingxuan has evolved from a successful brand story to a commercially viable entity with strong self-sustaining capabilities and long-term investment value, supported by its robust financial performance and technological barriers [8].

Investment Rating - The investment rating for the industry is "Outperform the Market" [2][3] Core Insights - The beauty industry has entered a stable growth phase, with increasing consumer demand differentiation and intensified competition, necessitating higher operational standards for brand management [4][65] - Domestic brands, including Lin Qingxuan, have made significant progress in the high-end market, leveraging unique Chinese ingredients to create differentiated products and enhancing brand value through effective channel strategies [4][65] - Lin Qingxuan is positioned as a leading domestic high-end skincare brand, ranking 13th among all high-end skincare brands in China with a market share of 1.4% [5][26] Company Overview - Lin Qingxuan plans to officially list on the Hong Kong Stock Exchange on December 30, issuing approximately 13.97 million H shares at an offering price of HKD 77.77 per share, aiming to raise around HKD 1.086 billion [4] - The company has established a full industry chain from raw material planting to R&D, production, and sales, focusing on its core product, the Camellia Oil, which has been a market leader for 11 consecutive years [5][6] Financial Performance - In 2024, Lin Qingxuan is projected to achieve revenue of CNY 1.21 billion, a year-on-year increase of 50.27%, and a net profit of CNY 187 million, up 121.06% [15] - The company has maintained rapid revenue growth over the past three years, with a significant increase in profit margins, indicating strong operational efficiency [15][20] Product and Channel Strategy - The core product, Camellia Oil, has seen substantial revenue growth, contributing 46% of total revenue in the first half of 2025, with a remarkable growth rate of 176% [39] - The company has a balanced online and offline channel strategy, with online sales accounting for 65% of total revenue in the first half of 2025, reflecting a 137% growth [18][47] Brand Positioning and Customer Base - Lin Qingxuan has over 5.6 million active customers, with an average annual repurchase rate of 33.5%, indicating strong brand loyalty [30] - The brand is actively expanding its customer base, targeting younger consumers aged 18 to 24 through affordable yet effective skincare solutions [34] Future Growth Plans - The company plans to use the funds raised from the IPO to enhance brand marketing, upgrade supply chain capabilities, and explore overseas markets, aiming for sustainable growth and brand diversification [62][64]

Core Viewpoint - Lin Qingxuan, a high-end skincare brand in China, has officially launched its IPO process, aiming to become the first domestic high-end skincare stock on the Hong Kong Stock Exchange, with a global offering of approximately 13.97 million shares [1] Group 1: Company Development and Technology - Lin Qingxuan has transitioned from following technology to leading it, particularly in the field of cell-level anti-wrinkle technology, marking a significant leap in the domestic skincare industry [2] - The brand's flagship product, the fifth-generation Camellia Oil Anti-Wrinkle Repair Essence, utilizes a core ingredient that activates cellular autophagy mechanisms, representing a new paradigm in anti-wrinkle skincare [3] - The company has established a robust R&D ecosystem by integrating industry, academia, and medical research, enhancing its technological foundation for sustainable growth [4] Group 2: Market Position and Performance - Lin Qingxuan ranks first among domestic high-end skincare brands in China, with a market share of 1.4%, and is the only domestic brand among the top 15 high-end skincare brands [8] - The brand's sales performance is strong, with its star product achieving cumulative sales of over 45 million bottles and maintaining the top position in retail sales for 11 consecutive years [6] - Financially, Lin Qingxuan has shown impressive growth, with revenue increasing from 690 million yuan in 2022 to 1.21 billion yuan in 2024, reflecting a compound annual growth rate of 32.3% [7] Group 3: Future Plans and Strategic Goals - The funds raised from the IPO will be used to deepen R&D innovation, expand channel networks, and strengthen brand building, with a goal to increase the number of stores to 1,500 within three years [10] - Lin Qingxuan aims to further leverage its cell-level anti-wrinkle technology to enhance its product matrix and accelerate offline store expansion [10] - The company is positioned to contribute significantly to the global skincare technology landscape, showcasing the rise of domestic technological capabilities in the high-end beauty market [11]

Core Viewpoint - Shanghai Lin Qingxuan Cosmetics Group Co., Ltd. is set to become the first domestic high-end skincare stock listed on the Hong Kong Stock Exchange, with an IPO planned to raise over HKD 1 billion and a market valuation of HKD 10.862 billion [2] Group 1: IPO Details - Lin Qingxuan will issue 13,966,450 H shares, with 1,396,650 shares available for public sale in Hong Kong and 12,569,800 shares for international sale [2] - The IPO price is set at HKD 77.77 per share, aiming to raise over HKD 1 billion [2] - The company has attracted seven cornerstone investors, collectively subscribing USD 62 million, including Fidelity Fund and GBA Investment [2] Group 2: Product and Market Position - Lin Qingxuan has been a pioneer in the "oil-based skincare" sector for over a decade, offering a comprehensive product range including essence oils, creams, and masks [3] - The flagship product, "Camellia Oil," has sold over 45 million bottles and has been the top-selling facial essence oil in China for 11 consecutive years [5] - The company ranks first among domestic high-end skincare brands in China and is the only domestic brand in the top 15 high-end skincare brands [6] Group 3: Financial Performance - In the first half of 2025, Lin Qingxuan's revenue surged by 98.3% year-on-year to HKD 1.052 billion, with adjusted net profit increasing by 117.4% to HKD 200 million [6] - The company's revenue growth rate significantly outpaces the industry average from 2022 to 2024 [6] Group 4: Sales Network and Strategy - Lin Qingxuan operates 554 stores nationwide, ranking first among domestic and international high-end skincare brands in terms of store count [8] - The company employs an OMO (Online-Merge-Offline) sales model, achieving a 51.2% compound annual growth rate in online revenue from 2022 to 2024, with a 137.2% year-on-year increase in the first half of 2025 [8] - The brand has a strong online presence with approximately 7.9 million followers on Tmall and over 2.7 million on Douyin, achieving top sales rankings during major shopping events [8] Group 5: Future Outlook - Lin Qingxuan is positioned to benefit from the growing demand for anti-aging and tightening skincare products, supported by its strong R&D capabilities and leading products [9]

Core Viewpoint - Lin Qingxuan, a leading Chinese skincare brand, is launching an IPO with a global offering of 13.9665 million shares at a price of HKD 77.77 per share, aiming to list on the Hong Kong Stock Exchange on December 30, 2023 [1] Group 1: Company Performance - In the first half of 2025, Lin Qingxuan achieved a revenue of CNY 1.052 billion, representing a year-on-year growth of 98.3%, with a net profit of CNY 182 million and a gross margin of 82.4% [2] - The gross margin for the essence oil category reached 86.2%, showcasing the brand's strong profitability [2] - The star product, Camellia Oil Anti-Wrinkle Repair Essence, has sold over 45 million bottles since its launch in 2014, maintaining the top position in the facial essence oil category for 11 consecutive years [1][2] Group 2: Product and Market Strategy - Lin Qingxuan has developed a comprehensive product matrix including essence oils, creams, toners, lotions, serums, masks, and sunscreens, positioning itself as a pioneer in the "oil-based skincare" segment [1] - The company has successfully launched new products such as the Camellia Black Gold Time Peptide Anti-Wrinkle Brightening Essence Cream, generating CNY 61.5 million in revenue in its launch year, and the high SPF sunscreen, which achieved CNY 3.63 million in its first year [2] - Lin Qingxuan's OMO (Online-Merge-Offline) sales model integrates diverse online channels with a robust offline presence, enhancing brand influence and consumer recognition [2][3] Group 3: Retail Network and Customer Engagement - As of June 30, 2025, Lin Qingxuan operated 554 stores nationwide, with over 95% located in key shopping malls, ranking first among domestic and international high-end skincare brands by store count [3] - The brand has over 560,000 active customers with an average annual repurchase rate of approximately 33.5%, outperforming the average for local skincare brands [3] - Lin Qingxuan's strategic focus on high-quality ingredients and advanced anti-wrinkle technology is expected to benefit from the growing trend of refined skincare among consumers [3]

Core Viewpoint - Lin Qingxuan, a leading Chinese skincare brand, has launched an IPO to issue 13.9665 million shares at a price of HKD 77.77 per share, with plans to list on the Hong Kong Stock Exchange on December 30, 2023 [1] Group 1: Company Overview - Lin Qingxuan has been a pioneer in the "oil-based skincare" sector for over a decade, focusing on anti-wrinkle and firming skincare products, and has developed a comprehensive product matrix including serums, creams, toners, lotions, masks, and sunscreens [1] - The company ranks first in retail sales among high-end domestic skincare brands in China and is the only domestic brand among the top 15 high-end skincare brands, including international brands [1] Group 2: Product Performance - The star product, Camellia Oil Anti-Wrinkle Repair Serum, has sold over 45 million bottles since its launch in 2014, maintaining the top position in retail sales for facial oils for 11 consecutive years, and is the only product in its category to exceed sales of 100 million yuan for eight consecutive years [1] - New products like the Camellia Black Gold Time Peptide Anti-Wrinkle Brightening Cream generated revenue of 61.5 million yuan in 2024 and 50 million yuan in the first half of 2025, while the high SPF sunscreen achieved sales of 36.3 million yuan in its first year and saw a significant increase to 42.1 million yuan in the first half of 2025 [2] Group 3: Financial Performance - In the first half of 2025, the company reported revenue of 1.052 billion yuan, a year-on-year increase of 98.3%, with a net profit of 182 million yuan and an overall gross margin of 82.4%, while the gross margin for the oil category reached 86.2% [2] - The company's robust sales network, combining diverse online channels with strong offline presence, has been a key factor in its financial success, leveraging brand influence and consumer recognition into strong sales [2] Group 4: Market Position and Strategy - Lin Qingxuan has established a total of 554 stores nationwide, with over 95% located in core shopping malls, ranking first among domestic and international high-end skincare brands by store count [3] - The company has successfully captured multiple sales championships on platforms like Tmall during major shopping events, boasting over 5.6 million active customers and an average annual repurchase rate of approximately 33.5%, outperforming the industry average for domestic skincare brands [3] - The brand is redefining high-end domestic skincare through its advanced research and development capabilities and existing leading products, positioning itself to benefit from the growing demand for anti-wrinkle, firming, and repair skincare products as consumer preferences evolve [3]

Core Viewpoint - Shanghai Lin Qingxuan Cosmetics Group Co., Ltd. is set to become the "first domestic high-end skincare stock" in Hong Kong with its IPO, aiming to raise over HKD 1 billion and achieve a market capitalization of HKD 10.862 billion [4][3]. Group 1: IPO Details - Lin Qingxuan plans to issue 13,966,450 H shares, with 1,396,650 shares for public sale in Hong Kong and 12,569,800 shares for international sale, priced at HKD 77.77 per share [4]. - The company has attracted seven cornerstone investors, collectively subscribing for USD 62 million, including Fidelity Fund and GBA [4]. Group 2: Product and Market Position - Lin Qingxuan has established itself as a leader in the anti-wrinkle skincare segment, with a complete product matrix including essence oils, creams, and masks [5]. - The flagship product, "Camellia Oil," has sold over 45 million bottles and has been the top-selling facial essence oil in China for 11 consecutive years [7]. - The brand ranks first among domestic high-end skincare brands and is the only domestic brand in the top 15 high-end skincare brands in China [8]. Group 3: Financial Performance - In the first half of this year, Lin Qingxuan's revenue surged by 98.3% to HKD 1.052 billion, with adjusted net profit increasing by 117.4% to HKD 200 million [9]. - The company's revenue growth rate significantly outpaces the industry average, supported by a robust sales network [9]. Group 4: Sales Network and Strategy - Lin Qingxuan operates 554 stores nationwide, with over 95% located in shopping malls, ranking first among domestic and international high-end skincare brands [11]. - The company employs an OMO (Online-Merge-Offline) sales model, integrating online and offline channels, which has led to a 51.2% compound annual growth rate in online revenue from 2022 to 2024 [12]. Group 5: Future Outlook - Lin Qingxuan plans to expand into Southeast Asian markets, leveraging its advanced anti-wrinkle technology and comprehensive sales model to redefine domestic high-end skincare [13].