Proya(SH:603605) CSC SECURITIES (HK) LTD·2024-06-24 02:00Investment Rating - The report maintains a "Trading Buy" investment rating, indicating a potential upside of 5% to 15% from the current price [3][4]. Core Insights - The company has shown strong performance during the 618 shopping festival, with its main brand, Proya, and its makeup brand, Caitang, achieving significant sales growth. Proya ranked first in sales on multiple platforms, with GMV growth of over 70% on Tmall and over 110% on Douyin [3]. - The company is expected to continue its successful large product strategy and new product development, enhancing brand competitiveness and revenue contributions [3][4]. - The financial forecasts predict net profits of RMB 1.55 billion, RMB 1.93 billion, and RMB 2.37 billion for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 29.6%, 24.7%, and 22.7% [4][6]. Financial Summary - The company reported a net profit of RMB 1.19 billion in 2023, with a year-on-year increase of 46.06%. The EPS for 2023 was RMB 3.01, with a projected EPS of RMB 3.90 for 2024 [6][8]. - Revenue is expected to grow from RMB 8.90 billion in 2023 to RMB 11.31 billion in 2024, reflecting a strong upward trend in sales [8]. - The current P/E ratio is projected to decrease from 27 in 2024 to 18 in 2026, indicating a potentially attractive valuation [4][6].