Yatsen (YSG, Financial) saw a significant rise in its stock value, climbing by 17.8%. This increase brought the price up by $1.72, reaching $11.38. The surge reflects positive investor sentiment toward the company, marking a substantial improvement in its market standing.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Yatsen Holding Ltd (YSG, Financial) is $6.82 with a high estimate of $6.82 and a low estimate of $6.82. The average target implies an downside of 40.34% from the current price of $11.43. More detailed estimate data can be found on the Yatsen Holding Ltd (YSG) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Yatsen Holding Ltd's (YSG, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Yatsen Holding Ltd (YSG, Financial) in one year is $6.00, suggesting a downside of 47.48% from the current price of $11.425. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Yatsen Holding Ltd (YSG) Summary page.
YSG Key Business Developments
Release Date: May 16, 2025
- Total Net Revenues: Increased by 7.8% year-over-year to RMB 833.5 million.
- Skincare Brands Revenue: Rose by 47.7% year-over-year.
- Color Cosmetics Brands Revenue: Decreased by 9.9% year-over-year.
- Gross Margin: Increased to 79.1% from 77.7% in the prior year period.
- Net Loss Margin: Reduced to 0.7% from 15.1% in the prior year period.
- Non-GAAP Net Income: RMB 7.1 million, a turnaround from a non-GAAP net loss of RMB 83.8 million in the prior year period.
- Selling and Marketing Expenses: Decreased to 66.4% of total net revenues from 69.7% in the prior year period.
- General and Administrative Expenses: Decreased to 7.8% of total net revenues from 18.1% in the prior year period.
- Cash and Short-term Investments: RMB 1.28 billion as of March 30, 2025.
- Net Cash from Operating Activities: RMB 23.8 million, compared to net cash used of RMB 121.8 million in the prior year period.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Total net revenues increased by 7.8% year-over-year, driven by a significant rise in skincare brand revenues.
- Skincare brands, including Galenic, DR.WU, and Eve Lom, saw a 47.7% year-over-year revenue increase.
- Gross margin improved to 79.1% from 77.7% in the prior year, attributed to higher-margin product sales.
- Non-GAAP net income of RMB 7.1 million was achieved, marking a turnaround from a previous net loss.
- The company reduced its net loss margin significantly from 15.1% to 0.7% through strategic marketing and cost management.
Negative Points
- Net revenues from color cosmetics brands decreased by 9.9% year-over-year.
- Total operating expenses, although reduced, still accounted for 83.2% of total net revenues.
- Fulfillment expenses slightly increased to RMB 51.8 million, indicating potential inefficiencies.
- The market environment remains complex, with beauty retail sales growth trailing overall consumer goods sales.
- Cash and short-term investments decreased from RMB1.36 billion to RMB1.28 billion, indicating a reduction in liquidity.
