SYG(300740) 上海证券·2024-08-02 02:00Investment Rating - Buy (Maintained) [2] Core Views - The company reported H1 2024 revenue of RMB 2.293 billion (yoy +0.14%) and net profit attributable to shareholders of RMB 106 million (yoy -25.74%) [2] - In Q2 2024, revenue was RMB 1.261 billion (yoy +1.41%) and net profit attributable to shareholders was RMB 66 million (yoy -27.17%) [2] - The company is expected to achieve revenue of RMB 4.638 billion, RMB 5.441 billion, and RMB 5.692 billion in 2024-2026, with year-on-year growth rates of +3.23%, +17.30%, and +4.61% respectively [4] - Net profit attributable to shareholders is forecasted to be RMB 300 million, RMB 360 million, and RMB 411 million in 2024-2026, with year-on-year growth rates of +1.94%, +20.13%, and +14.06% respectively [4] Marketing and Branding - The company focuses on brand asset construction, increasing brand awareness and market penetration through collaborations with celebrities like Liu Jialing and Tony Leung for EDB [3] - EDB's super CP combination (super mask and collagen essence water) has strengthened market recognition, with high growth in products like essence sunscreen and rich cream [3] - Yuni Fang launched the anti-aging essence "Black Ginseng Collagen Bottle," and the "Big Water Drop 3-Point Acne Essence" has sold over 7.7 million bottles in three years [3] Channel Performance - In H1 2024, online self-operated platform revenue was RMB 88 million (yoy -52.47%), while third-party platform revenue was RMB 1.964 billion (yoy +7.39%) [3] - Taobao platform revenue was RMB 574 million (yoy -24.22%), while Douyin revenue was RMB 859 million (yoy +73.01%) [3] - EDB expanded into high-end department stores, luxury hotels, and SPA channels, with offline channel growth exceeding 100% [3] Financial Performance - H1 2024 gross margin was 61.48% (yoy +4.56 ppts), while net margin was 4.77% (yoy -1.63 ppts) [3] - Sales expense ratio was 46.84% (yoy +6.36 ppts), management expense ratio was 4.69% (yoy -0.33 ppts), R&D expense ratio was 1.39% (yoy -0.62 ppts), and financial expense ratio was 1.38% (yoy +0.57 ppts) [3] - Q2 2024 gross margin was 61.60% (yoy +1.99 ppts), and net margin was 5.29% (yoy -2.11 ppts) [3] Valuation and Forecast - EPS for 2024-2026 is expected to be RMB 0.77, RMB 0.93, and RMB 1.06 per share, with corresponding P/E ratios of 16x, 14x, and 12x [4] - The company's P/B ratio is forecasted to be 2.08x, 1.83x, and 1.60x for 2024-2026 [6] - ROE is expected to be 12.8%, 13.5%, and 13.5% for 2024-2026, with asset turnover ratios of 1.09x, 1.16x, and 1.13x respectively [7]