Guojin Securities released a research report initiating coverage on CHICMAX (02145), a leading player in China's beauty and personal care industry with a diversified brand portfolio spanning skincare, infant care, and cleansing products. The firm primarily operates through online channels. Given the strong growth momentum across its brands—including the established Han Shu and promising new brands—Guojin assigned a 30x PE valuation for 2025, setting a target price of HK$109.78 and a "Buy" rating.

Key insights from Guojin Securities: 1. **Market-Driven Brand Expansion**: CHICMAX adopts a consumer-centric approach, swiftly identifying pain points and launching targeted products backed by bold marketing strategies, including collaborations with top-tier IPs. This methodology, proven successful with Han Shu, is now being replicated across other brands. 2. **Precision in Channel Operations**: With content e-commerce becoming central to cosmetics sales, CHICMAX has restructured its strategy around Douyin (TikTok China), driving revenue and profit growth through innovative campaigns and increased self-streaming. 3. **Talent Strategy**: The company balances internal talent development with strategic external hires to ensure stable management and support differentiated brand growth.

**Sector-Specific Growth Outlook**: - **Skincare**: Han Shu’s Douyin-driven surge lifted its market share, with 2024 revenue up over 80%. Despite a slowdown in H1 2025 due to reduced third-party livestreaming, Q3 GMV rose 50% YoY (per Jiuqian data). Guojin projects Han Shu’s revenue to exceed RMB 10 billion in three years, while Yi Ye Zi stabilizes and accelerates. - **Infant Care**: Yi Ye, leveraging a "medical-research co-creation" model and premium positioning, is growing rapidly (>50% CAGR expected). Red Elephant, transitioning to older children in 2023, is undergoing adjustments. - **Cleansing**: Emerging brands like Ji Fang and 2032 could replicate Han Shu’s success in niche, high-growth segments like anti-hair loss, benefiting from industry consolidation.

**Financials & Valuation**: Online sales accounted for 93% of H1 2025 revenue. Han Shu’s 2024 revenue hit RMB 5.591 billion (+80.9% YoY), representing 82% of total sales, while H1 2025 revenue grew 14.3% to RMB 3.344 billion. New brands like Yi Ye expanded explosively (498%/146%/147% growth in 2023/2024/H1 2025). Guojin forecasts 2025–2027 EPS at RMB 2.68/3.33/4.09, implying a 2026 PE of 24x.

**Risks**: Potential slower brand expansion, high marketing costs versus peers, and unsustainable earnings growth.