FOREST CABIN (02657) received a high target price from the brokerage firm and was recommended for purchase. The firm is optimistic about the growth potential of the core assets of domestic cosmetics.

On March 25th, "China's high-end skincare leader" FOREST CABIN (02657) held its first annual performance briefing after going public, achieving high-quality growth in multiple core operating indicators. Subsequently, many institutions, such as Huatai, China Securities Co., Ltd., Guotai Haitong, GF SEC, Shenwan Hongyuan Group Securities, Guolian Minsheng Securities, Soochow, and China Great Wall, released research reports one after another, expressing continued optimism about FOREST CABIN's long-term development and giving the company "buy" or "recommendation" ratings, reflecting the full recognition of the capital market towards FOREST CABIN. Huatai: Strong momentum in flagship products expected to continue, target price of HK$130.88 Huatai stated that it is optimistic about the rapid increase in penetration rate of the oil-based skincare track, and FOREST CABIN is currently in a high-speed growth phase with upward momentum. They maintained a buy rating with a target price of HK$130.88. The research report pointed out that FOREST CABIN is in a race track with structural growth opportunities. The company has built a product matrix centered around the core flagship product, camellia oil essence, and a comprehensive sales network deeply integrated with Wuxi Online Offline Communication Information Technology Co., Ltd., driving sustainable brand growth. Huatai predicts that many FOREST CABIN products will perform well in 2026: since its launch in July 2025, revenue from the small golden pearls essence water has exceeded 200 million yuan by the end of the year, and it is expected to continue its strong performance in 2026; oil-based products are expected to expand towards whitening direction, with the essence oil likely to continue to iterate in the second half of 2026; the light white umbrella, positioned as an essence-level whitening sun protection product, was launched in March with the "1+4+N" category strategy and the full-channel sales network to support the company's rapid development. China Securities Co., Ltd. Securities: Douyin channel boost, flagship products volume up, new products emerging China Securities Co., Ltd. Securities stated that FOREST CABIN has deeply cultivated the Douyin channel, using a combination of brand IP matrix and dual-category drive, while strictly controlling live broadcast efficiency, increasing the number of live broadcast rooms to enhance the original value of IP; continuously optimizing the operation efficiency of traditional online channels such as Tmall; and will continue to promote store expansion through offline channels, using OMO linkage to drive traffic from Douyin Local Life, Meituan, and other channels to improve store efficiency. In the medium to long term, with the unique advantage of high mountain red camellia raw materials, mature full-channel operation capabilities, and continuously improved product matrices, the company is expected to continue to seize market share in the high-end skincare market. Guotai Haitong: Continuous expansion of product line, 1+4+N category matrix empowering long-term growth Guotai Haitong stated that in 2025, the company's revenue from essence oil, cream, lotion and toner, essence liquid, mask, and sunscreen increased by 129%, 89%, 207%, 86%, 34%, and 47% respectively compared to the same period last year, with the essence oil benefiting from the continued increase in Douyin channel volume and the new product, small golden pearls essence water, driving the growth of the toner category. The company is expected to focus on developing creams, essence water, sunscreen, and masks around the essence oil as the core, building a "1+4+N" category matrix, formulating a systematized skincare regimen using the essence oil, and continuously creating a sustainable growth category matrix system. GF SEC: High performance growth realized, optimistic about the full-scale launch of new products GF SEC stated that FOREST CABIN has enhanced its brand value through high-end promotion, with excellent performance in high-frequency data at present. The company continues to follow the full-channel development strategy of strengthening offline and enlarging online, with Douyin continuing its trend of volume growth, Tmall gradually recovering growth, and the potential for multi-category and multi-brand expansion in the future, breaking growth boundaries and maintaining a "buy" rating for the company. Shenwan Hongyuan Group Securities: High performance growth, optimistic about the momentum of flagship products and expansion of multiple categories Shenwan Hongyuan Group Securities stated that FOREST CABIN focuses on the high-end skincare track, using high mountain red camellia raw materials to create a product matrix of "oil-based skincare," with strong growth in online platforms such as Douyin and Tmall, and outstanding performance in high-end offline store experience. The company has built a business model of "core product matrix + comprehensive channel depth layout + full-chain collaborative operation," driving steady improvement in brand awareness and user stickiness, forming significant competitive advantages. Based on the performance in 2025, we have raised our forecasts for 2026-2027 and added forecasts for 2028, expecting the company's net profit attributable to shareholders for 2026-2028 to be 5.82/8.35/9.37 billion yuan (previously forecasted as 5.79/8.34 billion yuan), maintaining a "buy" rating. Guolian Minsheng Securities: High performance growth momentum, continuous improvement in product matrix layout Guolian Minsheng Securities stated that FOREST CABIN, as a leader in the oil essence segment, is expected to fully enjoy the industry's high growth dividend due to its precise positioning of customer groups and product pricing, as well as its full-channel layout. The company has built a "1+4+N" product portfolio and created a sustainable growth category matrix. In March 2026, the company released a new sunscreen product, "Light White Umbrella," which integrates sun protection, whitening, and anti-aging effects, and is expected to open up new growth space with its differentiated competitive advantages. Soochow: Explosive growth driven by online channels, continuous optimization of full-channel structure Soochow stated that FOREST CABIN, with high mountain red camellia as its core raw material and a differentiated positioning in the high-end skincare track, has achieved rapid growth in performance since 2023, with high growth in revenue and adjusted profit doubling in 2025. The company maintained high gross profit margins, stable expense ratios, and a robust profit structure. They initiated coverage for the first time and gave a "buy" rating. China Great Wall: High growth in online channel revenue, further consolidation of offline channel foundation China Great Wall stated that benefiting from the "enlarging online" strategy, FOREST CABIN has built a full-scale growth engine. In 2025, revenue from online direct sales/to online retailers was 1.57/0.154 billion yuan, respectively, with year-on-year increases of +147.3%/+93.9%, achieving scale and brand synergy; On the offline side, following the "strengthening offline" strategy, the company has consolidated its channel foundation, improved the quality of individual stores and user experience, with sales from offline stores/to offline retailers and corporate clients/distributors in 2025 reaching 0.576/0.20/1.28 billion yuan, with year-on-year increases of +29.8%/+19.3%/+285.1%. At the same time, the company's successful flagship product case confirms the core competitiveness in product, marketing, and channel aspects, and they are optimistic about its long-term development, maintaining a "buy" rating.