水羊股份20250918

Summary of Water Sheep Co. Conference Call Company Overview - Water Sheep Co. has undergone significant transformation focusing on high-end and global strategies, creating a product matrix that includes mass, premium, and high-end brands [4][5][6] Key Points and Arguments - Core Brand Performance: The mass brand YuniFang achieved single-digit sales growth in H1 2025, with losses significantly narrowing to a few million per quarter, indicating successful brand upgrade and channel adjustment strategies [2][5] - Growth of Premium Brands: The premium brand HB saw growth nearly doubling, with annual revenue expected to reach tens of millions. The VAA brand also showed significant growth, with annual revenue projected to exceed 100 million [2][5] - High-End Brand Profitability: The high-end brand Ifidan improved its profit margin to over 18% in H1 2025, achieving a 20% growth rate through channel structure adjustments, enhancing profitability [2][6][7] - Acquisition of High-End Makeup Brand: The high-end makeup brand PA, after acquisition, showed rapid growth with a profit margin exceeding 5%, indicating potential as a new growth point [2][6] - Focus on Overseas Market: RV is concentrating on optimizing overseas teams and channels, with losses expected not to impact overall group profits [2][6] Future Strategies - Product Promotion: The company plans to increase promotion of sunscreen products and new face creams, expand offline direct stores, and enhance user experience with SPA areas to boost repurchase rates [2][8] - Sales Target: The mid-term sales target for Ifidan is set to exceed 2 billion [9] - Channel Optimization: The company aims to continue optimizing channel structures and enriching the product matrix for sustained growth [8] Financial Projections - Profit Expectations: The company is expected to achieve over 250 million in profits for 2025 and at least 300 million in 2026, with current valuations being attractive within the cosmetics sector [3][15] Additional Insights - SPA Store Performance: SPA stores typically break even in the second quarter after opening in department stores, with all direct stores equipped with SPA areas, contributing to both profitability and brand promotion [9] - Global Management Advantage: Water Sheep Co. has transformed into a global luxury management group, leveraging its international platform for resource accumulation and brand operation, enhancing its reputation in the global beauty market [10] - R&D and Supply Chain Capabilities: The company possesses strong R&D and supply chain capabilities, supporting product iterations post-acquisition [11][12] - Stable Cash Flow from Operations: The company plans to retain its operational business for stable cash flow and as a window for potential acquisition targets [13] Growth Drivers - Beauty Market Trends: The growth of MeisiDike in 2025 is driven by opportunities in the oral beauty segment and resource concentration on MeisiLick, with a focus on long-term brand development [14]