Core Viewpoint - The employee stock ownership plan (ESOP) announced by Shuiyang Co. aims to enhance employee motivation and reflects the company's confidence in its development [4][5]. Group 1: Employee Stock Ownership Plan - The ESOP will involve up to 938 participants, categorized into professional and management roles, with a funding source capped at 51.04 million yuan [4]. - The company plans to repurchase shares at a price of 20.46 yuan per share, with a maximum of 2.49 million shares being repurchased, representing 0.64% of the total share capital [4]. Group 2: Financial Performance - For the first three quarters of 2025, the company reported a revenue of 3.41 billion yuan, marking a 12% year-on-year increase, and a net profit attributable to shareholders of 140 million yuan, which is a 44% increase year-on-year [6]. - The company has seen significant growth across multiple brands, with notable increases in sales on various platforms: 11% on Taobao, 19% on Douyin, and 314% on JD.com for the brand Ifidan [6].

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Insights - The employee stock ownership plan demonstrates the company's confidence in long-term development and aims to enhance employee motivation while aligning the interests of shareholders, the company, and employees [2][3] - The company achieved high-quality growth in the first three quarters of 2025, with revenue reaching 3.41 billion yuan, a year-on-year increase of 12%, and net profit attributable to shareholders of 140 million yuan, up 44% year-on-year [3] - The company continues to advance as a high-end beauty group, with a dual business strategy of proprietary and CP brands, focusing on high-end and global expansion [4] Financial Performance Summary - Revenue for 2025 is projected at 4.98 billion yuan, with a growth rate of 17.53% [5] - Net profit for 2025 is estimated at 241 million yuan, reflecting a growth rate of 118.75% [5] - Earnings per share (EPS) for 2025 is expected to be 0.62 yuan, with corresponding price-to-earnings (P/E) ratios of 33, 25, and 19 for 2025, 2026, and 2027 respectively [4][5] Business Strategy and Market Position - The company is leveraging multi-brand and multi-channel strategies to drive growth, with significant performance improvements noted across various platforms [3] - The report highlights the successful product upgrades and strong sales momentum for key brands, indicating a robust market presence [3][4] Valuation Metrics - The report provides a detailed forecast of financial metrics, including revenue, net profit, and EPS for the years 2025 to 2027, indicating a positive outlook for the company's financial health [5][10][12]