Guosen: We give CHICMAX (02145) a "outperform" rating with a target price of 104.5-120.9 Hong Kong dollars.

Guosen released a research report stating that it gives CHICMAX (02145) an "outperform" rating, with an expected net profit attributable to the parent company of 11.07/13.88/17.02 billion yuan for the years 2025-2027, and earnings per share of 2.78/3.49/4.27 yuan/share. Taking into account both absolute and relative valuations, the target price for the company is set at 104.5-120.9 Hong Kong dollars per share. Overall, as a leading Chinese cosmetics brand, the company relies on the underlying capabilities of inclusiveness in mechanism, depth in research and development, and diversity in channels. On one hand, through its main brand Han Shu, it breaks through the circle with gift boxes and expands its product categories to strengthen the performance foundation. On the other hand, by accurately entering the mid-to-high-end market in categories such as mother and baby, and anti-hair loss care, the company contributes to the incremental growth in performance. The report mentions that the cosmetics industry has entered a period of steady growth since the pandemic, while the channel dividend has shrunk, new brands continue to emerge, leading to sustained intense competition in the industry, and the continuous shortening of the growth lifecycle of individual products. In this context, the platform operation capability has become the key for cosmetics companies to break through the growth bottleneck. By building an organization structure that closely revolves around consumer demand as its core, and flexibly responding to market changes, companies are gradually building a business matrix of multiple brands/categories for continuous iterations. Former companies like Shanghai Jahwa United, Proya Cosmetics, and current companies like Usmile have all achieved sustainable growth by establishing such a platform system to navigate through industry fluctuations. The company has already achieved reusable basic capabilities in channels, research and development, and marketing, forming a platform development trend of multiple categories and multiple brands. The main brand Han Shu entered the market with the Hongbao waist gift box (remaining at the top of the Douyin beauty list for 8 months in 2023), and achieved a breakthrough with the X-peptide facial cream launched last year. It also expanded into hair care (oil control shampoo ranked TOP1 on Douyin), men's care (core essence ranked TOP1 in Douyin sales in the first half of 2025), and cosmetics (Red Luck series). Simultaneously, the multiple brands focus on specific segments: Yiyema (mid-to-high-end mother and baby, with a revenue of 376 million yuan in 2024 and a platform growth rate exceeding 100% on 618), Jifang (anti-hair loss care, with GMV exceeding 10 million yuan in July 2025), Juguangbai (PDRN ingredient at the level of professional dermatology, with GMV exceeding 50 million yuan in August 2025), Anminyou (sensitive skin, with GMV of 17 million yuan in August 2025), collectively building a multi-brand growth curve for the company.