Proya(SH:603605) Yuan Da Xin Xi·2024-07-22 10:30Investment Rating - The report gives a "Buy" rating for the company, with a target price of 119.14 CNY per share based on a 30x PE valuation for 2024 [5][7][49]. Core Insights - The company has shown continuous outperformance with double-digit growth in both revenue and net profit, driven by significant expansion in online sales channels [3][17]. - The brand matrix is diverse, catering to various consumer needs, and includes multiple brands such as "Polaire," "Caitang," and "Off&Relax" [2][13]. - The company has successfully implemented a big product strategy, with notable sales growth from its major products [4][25]. Summary by Sections Company Overview - Established in 2003 and listed in 2017, the company has become a leading domestic beauty brand in China, with a wide range of products across skincare, makeup, and hair care [2][13]. Business Diversification - The company has a rich product matrix that meets different consumer demands, with significant growth in its major brands, particularly "Caitang," which achieved over 1 billion CNY in revenue in 2023 [4][30]. - The "Polaire" brand focuses on technology-driven skincare, while "Caitang" emphasizes makeup tailored for Chinese consumers [25][30]. Sales Model - The company primarily operates through online sales, with a significant portion of revenue coming from platforms like Tmall and Douyin, accounting for 93.07% of total revenue in 2023 [39][41]. Profitability Forecast - Revenue projections for 2024-2026 are 112.61 billion CNY, 137.45 billion CNY, and 161.91 billion CNY, with growth rates of 26.47%, 22.06%, and 17.79% respectively [5][49]. - Net profit forecasts for the same period are 15.79 billion CNY, 18.22 billion CNY, and 20.79 billion CNY, with growth rates of 32.30%, 19.13%, and 14.53% respectively [5][49].