Chinese cosmetics firm Yatsen Q2 revenue rises

Overview

• Yatsen Q2 2025 rev rises 36.8% yr/yr to RMB1.09 bln

• Net loss narrows 77.2% to RMB19.5 mln, non-GAAP net income positive

• Gross margin improves to 78.3%, driven by higher-margin product sales

Outlook

• Yatsen expects Q3 2025 net revenues between RMB778.6 mln and RMB880.1 mln

• Company forecasts Q3 2025 revenue growth of 15% to 30% year-over-year

Result Drivers

• SKINCARE SALES - Skincare brands' revenue surged 78.7%, now accounting for 53.5% of total revenue

• HIGHER MARGINS - Increase in gross margin to 78.3% driven by sales of higher-margin products

• SHOPPING FESTIVAL - June 18 shopping festival contributed to revenue growth, per CFO Donghao Yang

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the personal products peer group is "buy"

• Wall Street's median 12-month price target for Yatsen Holding Ltd is $6.80, about 40.3% below its August 20 closing price of $9.54

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 44 three months ago

Press Release: ID:nPn6rsJ2Ca