Yunnan Botanee Bio-Tech (300957 CH): Hold: 2Q26 – a mixed bag expected

Research evidence excerpt

Yunnan Botanee Bio-Tech (300957 CH): Hold: 2Q26 – a mixed bag expected

mix adjustments for ZA&Pure

52-WEEK PRICE (CNY)& Mild. We currently see no clear sign of offline sales improvement and maintain a

cautious outlook. On margin, while we still see 2026e NPM improving y-o-y, we now 54.00

see some downside pressure on: (1) fierce online competition, especially from 40.50

international brands, which may weigh on Botanee’s pricing and selling expense.

27.00

During this year’s “618”, we note several high-end international brands outperformed 07/25 01/26 07/26

through enhanced e-commerce operation, more KOL livestreams and attractive Target price: 36.00 High: 50.85 Low: 30.17 Current: 31.40

pricing. Their GMV ranking during 618 saw big improvement (see exhibit 1&2); and Source: LSEG IBES, HSBC Qianhai Securities estimates

(2) higher discount/subsidies during e-commerce shopping festival. For this year's

“618”, cosmetics were eligible for “national subsidies” for the first time (funded jointly Kathy Song* (Reg. No. S1700517120001)

Head of A-share Consumer Research

by government, platforms and brands); we expect this scheme to continue into the HSBC Qianhai Securities Limited

"Double 11" shopping festival. As such, we lower GPM by 0.1-0.2ppt for 2026-28e kathy.l.h.song@hsbcqh.com.cn

+86 21 5066 2007

and raise selling expense ratio 0.2ppt for 2026e. We now expect 2025-28e net profit

Doris Luo* (Reg. No. S1700524120003)

CAGR of 16.8%. Our earnings estimates are broadly in line with market consensus. Analyst, A-share Consumer Research

HSBC Qianhai Securities Limited

Maintain Hold, cut TP from RMB44.00 to RMB36.00. We continue to use a DCF doris.y.s.luo@hsbcqh.com.cn

model to value the stock. Our lower TP of RMB36.00 (from RMB44.00) is the result of +86 755 8898 3161