So-Young: Revenue Acceleration Is Overshadowed By Widening Losses (Rating Downgrade)

I lower my rating for So-Young International from 'Buy' to 'Hold' after analyzing its mixed 1Q2026 performance. 1Q2026 revenues surged 46% YoY, as the pivot towards offline aesthetic clinics paid off. But SY's net losses widened year-on-year in the first quarter due to lower contributions from high-margin online operations and costs relating to footprint expansion.