Core Viewpoint - The report from Huaxin Securities indicates that Proya's net profit attributable to shareholders for Q1-Q3 2025 is 1.026 billion yuan, representing a 3% year-on-year increase, while Q3 net profit is 227 million yuan, reflecting a 24% year-on-year decrease [1] Financial Performance - Proya's Q1-Q3 2025 net profit is 1.026 billion yuan, with a 3% increase compared to the previous year [1] - The Q3 net profit is 227 million yuan, showing a 24% decrease year-on-year [1] Strategic Developments - The company is accelerating its internationalization strategy and has been continuously introducing experienced management talent since last year [1] - The core team has been largely established, and the company submitted its H-share listing application to the Hong Kong Stock Exchange on October 30, 2025 [1] Brand Performance - During the Double 11 shopping festival, Proya's main brand maintained its leading position in the industry, ranking first in Tmall's beauty category for the first four hours of sales [1] - The emerging brand OR has positioned itself as "Asia's scalp holistic care expert," ranking fifth in Tmall's personal care category for the same period [1] - The brand Cai Tang is focusing on Chinese aesthetic concepts and is expanding its product categories in base makeup, eye, and lip products [1] - The brand Yuan Se Bo Ta achieved a GMV that doubled year-on-year on its first day on Tmall, surpassing last year's total revenue within five days [1] Future Outlook - Overall, the company's strategy of deepening its focus on major products and expanding its product matrix has led to a performance during Double 11 that exceeded expectations, indicating a positive outlook for future earnings [1] - Proya is recognized as a leading multi-brand beauty group in China, with a core business focused on the research, production, and sales of cosmetics, showcasing significant brand advantages [1] - With the iteration of old products and the expansion of new products, the brand's potential continues to be released [1]

Core Insights - The company has surpassed the 10 billion sales threshold and continues to expand its multi-brand matrix, with strong growth potential in its second and third-tier brands, achieving 103% and 80% growth for OR and Original Color Pot respectively [1] Financial Performance - In the first half of 2025, the company achieved operating revenue of 5.362 billion yuan, a year-on-year increase of 7.21%, with the second quarter revenue reaching 3.003 billion yuan, up 6.49% year-on-year [3] - The net profit attributable to shareholders for the first half of 2025 was 799 million yuan, a year-on-year increase of 13.80%, while the non-recurring net profit was 771 million yuan, up 13.49% [3] - In the second quarter of 2025, the net profit attributable to shareholders was 408 million yuan, a year-on-year increase of 2.36%, with the non-recurring net profit at 392 million yuan, up 1.21% [3] Brand Performance - Major brands such as Proya, Caitang, OR, and Original Color Pot showed varied growth rates, with Proya at -0.08%, Caitang at 21.11%, OR at 102.52%, and Original Color Pot at 80.18% [4] - Proya continues to focus on youthfulness and technological strength, achieving first place in Tmall beauty during the 618 shopping festival, while OR has successfully developed anti-hair loss products and is expected to maintain high growth [4] Cost Efficiency - The company's gross profit margin for the first half of 2025 was 73.38%, an increase of 3.56 percentage points, primarily due to cost savings in packaging, reduced shipping costs, and improved bargaining power in raw material procurement [5] - The sales expense ratio for the first half of 2025 was 49.59%, up 2.81 percentage points, while the second quarter sales expense ratio was 52.70%, up 5.97 percentage points [5] Shareholder Returns and Future Plans - The company announced its first interim dividend plan, proposing a dividend of 0.8 yuan per share, corresponding to a 40% payout ratio, reflecting its commitment to shareholder returns [5] - The company is also planning an H-share listing to support its international expansion and enhance its supply chain capabilities [5]

Investment Rating - The investment rating for the company is "Recommended" [1][10] Core Views - The company achieved revenue of 5.362 billion yuan in the first half of 2025, representing a year-on-year increase of 7.21%, with net profit attributable to shareholders increasing by 13.8% to 799 million yuan [4] - The company is focusing on brand enhancement and market responsiveness, leveraging its R&D capabilities to optimize its core product matrix and explore overseas market opportunities [8] - The company plans to issue H shares and list on the Hong Kong Stock Exchange, aiming for a broader market presence after reaching a revenue milestone of 10 billion yuan in 2024 [8] Financial Summary - Revenue projections for 2025-2027 are 18.05 billion yuan, 21.09 billion yuan, and 24.29 billion yuan respectively, with corresponding P/E ratios of 20, 17, and 15 times [8] - The company reported a gross margin of 73.38% in the first half of 2025, an increase of 3.56 percentage points year-on-year, and a net profit margin of 15.41% [7] - The company’s total assets are projected to grow from 75.30 billion yuan in 2024 to 125.87 billion yuan by 2027 [9]