Shanghai Jahwa Shares Surge 7% on 62.1% Revenue Growth, Hanskin Drives Momentum

Shares of Shanghai Jahwa United Co., Ltd. (2145.HK) surged by over 7%, reaching a new high of HKD 56.80. The company's 2024 financial performance was robust, with revenue reaching CNY 6.793 billion, a year-on-year increase of 62.1%, and net profit amounting to CNY 803 million, up 74.0% from the previous year. The flagship brand, Hanskin, contributed significantly to this growth, generating revenue of CNY 5.591 billion, an 80.9% increase year-on-year, maintaining its strong growth momentum.

According to Qingyan Intelligence data, in March 2025, the total GMV for the beauty category on the Douyin platform exceeded CNY 23.5 billion, a significant year-on-year increase of 44.7%. Hanskin continued to lead the market with a GMV of CNY 600 million, maintaining its top position in the Douyin beauty category for five consecutive months.

Analysts highlighted that the cosmetics and medical aesthetics industry is experiencing stable growth, driven by supportive policies and a recovering consumer market. Domestic beauty brands, with their high cost-performance ratio and refined operations, are gaining a competitive edge. The firm expressed optimism about the future growth prospects of the beauty care sector, citing the clear trend of domestic brand substitution.

Another securities firm noted that in the first two months of 2025, the retail sales of cosmetics increased by 4.4% year-on-year, outperforming the overall retail sales growth. The firm expects that companies in this sector will see better revenue performance compared to the industry average, primarily due to the strong trend of domestic brand substitution.