Proya(SH:603605) Zhao Yin Guo Ji·2024-06-27 02:22Investment Rating - The report maintains a "Buy" rating for Proya Cosmetics with a target price of RMB 135.57, reflecting a 35x P/E for 2024E [1][12]. Core Insights - Proya achieved impressive results during the 618 shopping festival, ranking first in GMV on Tmall and second on Douyin in the cosmetics sector, with year-on-year GMV growth of +70% on Tmall and +110% on Douyin, significantly outperforming industry averages [1][6]. - The success is attributed to an effective hero product strategy and potential for increased discounts, with Proya offering a 7% discount during the event [1][5]. - The company has seen its makeup brand Timage reach the top position in Tmall's rankings for the first time, while its hair care brand Off & Relax entered the top ten, indicating successful brand development [1][6]. Financial Summary - Revenue for FY24E is projected at RMB 11,689 million, with a year-on-year growth of 31.3%, and net profit is expected to reach RMB 1,537.5 million, reflecting a growth of 28.8% [2][13]. - The report revises revenue estimates upward by approximately 20% for FY24E and FY25E, reflecting the success of the 618 event and stable earnings in Q4 2023 and Q1 2024 [1][9]. - The company’s gross profit margin is expected to remain stable, with a slight increase in net profit estimates for FY24E and FY25E [9][10]. Market Position - Proya's market capitalization is approximately RMB 31.85 billion, with a current price of RMB 113.99, indicating a strong market presence [2][12]. - The company has shown a significant increase in its market share, with its GMV ranking improving across various platforms, highlighting its competitive edge in the cosmetics industry [1][5]. Shareholder Structure - The major shareholder is Hou Jun Cheng, holding 34.7% of the shares, followed by HKSCC with 23.6% [3].