Kaiyuan Securities released a research report stating that, considering BEAUTYFARM MED (02373)'s firm "endogenous + exogenous" dual-driver strategy, its clear strategic path is expected to reshape new value space in the beauty industry. The firm raised its profit forecasts, now projecting the company's net profit attributable to parents for 2025-2027 to be 342/436/491 million yuan (previously 310/406/472 million yuan), corresponding to EPS of 1.36/1.73/1.95 yuan. The current stock price corresponds to a P/E ratio of 18.0/14.1/12.5 times, and the "Buy" rating is maintained.
The company issued a positive profit alert, forecasting its 2025 net profit to increase by no less than 34% year-on-year. It expects to achieve revenue of no less than 3 billion yuan (YoY +16% or more), with adjusted net profit no less than 380 million yuan (YoY +40% or more); net profit is projected to be no less than 340 million yuan (YoY +34% or more), demonstrating strong growth momentum and showcasing robust resilience and development potential to navigate economic cycles.
By pursuing both "endogenous and exogenous" development paths, high integration capabilities drive scale expansion. Exogenous expansion is accelerating: the company has acquired premium brands such as Belaid and Nairui'er and successfully integrated them, gradually perfecting its "dual beauty + dual wellness" business landscape. Notably, in H1 2025, Nairui'er's adjusted net profit margin surged significantly from 6.5% pre-acquisition to 10.4%, fully validating the company's resource integration and operational empowerment capabilities. Furthermore, on October 15, 2025, BEAUTYFARM MED strategically acquired Siyanli, achieving a "tri-power alliance" to consolidate its leading position, with the number of stores surpassing 734, covering 456 high-end commercial locations in first-tier and new first-tier cities.
Endogenous growth momentum is potent: the company capitalizes on the "self-indulgence consumption" demand among women in higher-tier cities, releasing internal growth potential and driving same-store revenue growth. Additionally, the company continuously upgrades its high-margin medical service capabilities, enhances refined operations, and promotes a steady rise in the overall net profit margin.
The strategy of "Super Brand, Super Chain, Super Digitalization" has been launched, aiming to reshape new space in the beauty industry. The "Super Brand" initiative involves completing the formation of a "tri-power aggregation" structure, leveraging branding for differentiated competition, which enhances brand awareness and pricing power while creating ultimate experiences for consumers. The "Super Chain" strategy aims to overcome the industry's highly fragmented nature through chaining; the company will scale "from 1 to N," establishing "100 million yuan revenue Clubs" in 20 core Chinese cities and strengthening self-controlled supply chain capabilities. "Super Digitalization" is exemplified by BEAUTYFARM MED's precise marketing campaigns, which achieve an impressive 80% new member retention rate the following year with customer acquisition costs below 2%; the company will continue to promote the integration of digital and intelligent development, incorporating AI capabilities into product innovation.
Risk warnings include potential underperformance in store integration effectiveness, slower-than-expected store expansion, and risks associated with medical incidents.
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