On 25 December 2025,Jahen announced that it was planning achange in corporate control.On 31 December 2025,it disclosed that Mr.ZENG Bensheng,the controlling shareholder,intended to transfer his 29.70%stake to Hangzhou Pinpianyi and its concert parties(Wenzhou Cangxiao and Hangzhou Runyi)and waive voting rights on his remaining 25.79%stake.Upon this transfer,Hangzhou Pinpianyi would become the new controlling shareholder.Hangzhou Pinpianyi intends to launch atender offer to all other shareholders of Jahen at RMB33.21 per share for 21.10%of the shares.The listed company's existing businesses would continue to be managed and operated by the transferor or its designated personnel.The transferor commits to apositive attributable net profit(the lower of attributable net profit and recurring attributable net profit,the same hereafter)from existing businesses in each year of 2026-2028(according to the announcement dated 31 December 2025).According to the company’s 1April 2026 announcement,the tender offer plan remains unchanged;however,the tender offer report has not yet been published,signaling persistent uncertainties.If this acquisition is successfully completed,the acquirer could leverage its industrial and channel resources in the consumer goods sector to enhance the company’s sustainable operation capabilities and profitability,in our view.Maintain OVERWEIGHT.
Pinpianyi to become the new controlling shareholder
Regarding the share transfer,on 31 December 2025,Mr.ZENG Bensheng signed share transfer agreements with Hangzhou Pinpianyi,Wenzhou Cangxiao,and Hangzhou Runyi to transfer 29.70%of the shares at RMB33.21 per share,for atotal consideration of RMB994mn.Following the transfer,Mr.ZENG would waive voting rights on his remaining 25.79%stake.Hangzhou Pinpianyi and its concert parties would hold 29.70%of the shares and voting rights.The new controlling shareholder would be Hangzhou Pinpianyi and the actual controller would be Mr.XU Yi.Regarding the tender offer,conditional upon completion of the share transfer,Hangzhou Pinpianyi intends to make an irrevocable partial tender offer to all shareholders other than itself and its concert parties for 21.10%of shares at RMB33.21 per share,requiring up to RMB706mn in funding,of which RMB141mn has already been deposited as performance guarantee.
Earnings forecasts and valuation
Considering the fierce competition in the upstream cosmetics sector and ongoing capacity ramp-ups at Huzhou Jahen,we estimate 2025/2026 attributable net profit at RMB-38.0/+13.6mn and add our 2027 estimate of RMB117.2mn,with 2026/2027/2028 EPS of RMB-0.38/0.13/1.16.Jahen needs more time to acquire new clients and its earnings are undergoing arecovery.However,considering that:1)the potential new controlling shareholder Hangzhou Pinpianyi could empower existing businesses;2)downstream beauty demand has shown signs of recovery;3)the company is accelerating its efforts to reach full capacity,boding well for ramping up profit;4)Jahen’s leading position in upstream one-stop beauty services commands avaluation premium,we value the stock at 34x 2027E PE,above its peers’average of 27x on iFinD consensus,for our target price of RMB39.54.
Risks:order expansion missing our expectations;slower capacity commissioning;equity transfer or tender offer failure.