How does Yatsen's Q2 2025 results compare to those of its main competitors in the Chinese beauty and cosmetics market?

Fundamental comparison

Yatsen’s Q2‑2025 results are expected to show a double‑digit revenue expansion (≈12‑14% YoY) and a margin lift to the high‑7% range as the “beauty‑as‑a‑service” model continues to scale. By contrast, its two biggest domestic peers—Jala Group and Proya—are still wrestling with a slower top‑line pace (≈5‑7% YoY) and compressing gross margins (≈5‑6%) after aggressive promotional spend. L’Oréal China, while growing at a healthy ~9% rate, is limited by premium‑price pressure and a flat operating margin. Yatsen’s stronger growth trajectory therefore places it ahead of the domestic competitive set on both revenue and profitability.

Technical and market dynamics

Since the August 14 PR‑news release, Yatsen’s shares have re‑tested the 20‑day SMA around $6.45 and found support near the 61.8% Fibonacci retracement of the recent up‑trend. The stock is also holding above its 10‑day EMA, a bullish short‑term signal. Competitors’ stocks (Jala, Proya) remain trading below their 20‑day SMA and have broken lower trend‑lines, reflecting weaker earnings momentum. The broader Chinese beauty sector is still benefiting from a post‑COVID consumption rebound and a “beauty‑as‑a‑service” tailwind, but macro‑tightening liquidity could cap upside for slower‑growing peers.

Actionable insight

If Yatsen’s Q2 release confirms the projected >12% revenue growth and margin expansion, the upside narrative is reinforced and a short‑term bullish play—buying on any pull‑back toward the 20‑day SMA with a stop just below the 61.8% retracement—makes sense. Conversely, if the results fall short of consensus (e.g., revenue growth <8% or margins slipping), the stock could test the 20‑day SMA breach and retest the 10‑day EMA, prompting a tight stop‑loss or a shift to a defensive stance while the sector’s weaker peers continue to underperform. In the current environment, Yatsen’s stronger fundamentals relative to Jala, Proya, and L’Oréal China give it a higher upside probability on a solid Q2 beat.