The 618 full-cycle Kevimei Liqui Gold brand experienced high growth in all channels. We expect 24H1 revenue yoy +40%-45%, net profit yoy +35%-40%, and raise the annual adjusted net profit forecast to about 1.95 billion yuan.

(1) The full cycle of 618 can recover US online channel sales yoy 60% +, and the 24H1 increase is highly deterministic, focusing on underestimation opportunities under the influence of market sentiment. 618 full-cycle online omni-channel GMV was 60% + (including Tmall 50% +, Douyin 65% +, Vipshop 200% +), and Krijin Online omni-channel GMV compared 100% + (of which Tmall 70% +, Douyin 300+%; JD 200% +, Vipshop 170% +).

Today, there was a correction in the stock price of Juzi Biotech. There is a difference between the growth rate of Tmall's third-party data and the third-party tracking caliber: ① Tmall's third-party data core tracks the growth rate of the skincare category, while the expected growth rate of the dressing category is lower than that of the skincare category, so the overall growth rate of the official flag is biased; ② there is a difference in the statistical time scale (the statistical time of the war report is 5.15-6.20); ③ the impact of factors such as disturbances in some shopping money and return data in GMV.

The potential of large single products continues, and iterations of new products occupy the TOP1/2 of the popularity of facial creams/eye creams, consolidating the strongest skincare mentality with recombinant collagen

The results of the collaboration between Kefumei Collagen Stick and Li Jiaqi exceeded expectations, ranking in Tmall's TOP1 skincare sales in May. The new product focus cream ranked TOP1 on Tmall's new face cream list without the cooperation of major experts, and TOP1 on the Douyin collagen cream popularity list;

With 100% GMV and 60% + of GMV over the same period, the two major products continued to gain strength; in addition, the film cream ranked in Tmall's Top 4 Firming Cream New Product List, Douyin Brand Collagen Cream Popularity Top 2, and Film Eye Cream ranked in the TOP1 of Douyin's Collagen Eye Cream Popularity List. The two major brands firmly occupy Douyin's TOP1/2 collagen cream and TOP1 collagen eye cream, and continue to strengthen the mentality of reorganizing collagen in the skincare field.

Investment advice: The high growth of the 618 brand highlights the company's continued strength as a leader in restructured collagen skincare.

Looking at it in disassembly: ① Kefumei Collagen Stick's potential continued to exceed expectations, making Tmall Skincare's top 1 single product in May; ② Clarikin's adjusted large mask king and second sales volume exceeded expectations, driving brand growth exceeding expectations; ③ New product focus creams and film creams ranked in TOP1/2 of Douyin collagen creams, and film eye cream ranked in TOP1 of collagen eye creams. The volume of the new product exceeded expectations and firmly occupied the strongest collagen skincare mentality. In the long term, we are still optimistic about Juzi Biotech as a pioneer and volume leader in restructured collagen. We expect beta+α resonance to continue to grow rapidly during the dividend period. Considering the brand's performance exceeding expectations, we expect 24H1 revenue growth of about 40%-45%, adjusted net profit growth of about 35%-40%, and raised the adjusted net profit target of about 1.95 billion yuan for the whole year. The net profit to mother is about 1.86 billion yuan, corresponding to PE22x, which is in the significantly underestimated range and maintains a “highly recommended” rating.

Risk warning: Increased industry competition; new channel expansion falling short of expectations; risk of new brand incubation; risk of new product sales falling short of expectations, and third party data storage errors and delays.