SYG(300740) 国金证券·2024-08-01 08:03Investment Rating - The report maintains a "Buy" rating for the company [2][8]. Core Views - The company is increasing its brand promotion investments to build long-term brand momentum, which is expected to disrupt short-term profits [2]. - In Q2 2024, the company reported revenue of 1.26 billion RMB, a year-on-year increase of 1.4%, while net profit attributable to shareholders was 65.78 million RMB, a year-on-year decrease of 27% [2]. - The increase in sales expenses, which rose to 47.27% of revenue (up 7.43 percentage points year-on-year), is attributed to higher marketing expenditures for key brands [2]. Revenue and Profit Analysis - The company's revenue from Douyin (TikTok) grew significantly, reaching 860 million RMB in the first half of 2024, a year-on-year increase of 73%, while revenue from Taobao declined by 24.2% to 570 million RMB [2]. - The product mix is improving, with the gross margin in the first half of 2024 increasing by 2 percentage points to 61.6% [2]. - The company's face mask revenue decreased by 21% to 360 million RMB, while revenue from lotions and creams increased by 4.23% to 1.79 billion RMB, with a gross margin increase of 6.98 percentage points [2]. Brand Strategy and Market Position - The brand "Yifidan" is enhancing its high-end image and expanding its premium channels, with a focus on high-end department stores and hotels [2]. - The company is leveraging celebrity endorsements to strengthen brand recognition and targeting high-end consumer segments [2]. - The report anticipates continued brand momentum as the company expands its product lines and improves market recognition [2]. Financial Forecasts - The profit forecast has been adjusted downwards, with expected net profits for 2024, 2025, and 2026 at 305 million RMB, 373 million RMB, and 434 million RMB, respectively, reflecting year-on-year growth of 4%, 22%, and 17% [2][5]. - The corresponding price-to-earnings ratios are projected to be 16, 13, and 11 times for the respective years [2].