SYG(SZ:300740) Tebon Securities·2024-08-04 05:30Investment Rating - The investment rating for the company is "Accumulate (Maintain)" [1] Core Views - The company has increased its sales expenses, leading to profit pressure in H1 2024. Revenue for H1 2024 was 2.29 billion yuan, a year-on-year increase of 0.14%, while net profit attributable to the parent company was 106 million yuan, a decrease of 25.74% year-on-year. The gross margin improved to 61.5%, up 4.6 percentage points, due to a higher proportion of high-margin product sales. The sales expense ratio increased to 46.8%, up 6.4 percentage points, as the company focused on promoting its key brands [2][4]. Summary by Sections Financial Performance - For H1 2024, the company achieved revenue of 2.29 billion yuan, with a net profit of 106 million yuan, reflecting a year-on-year decline of 25.74%. The gross margin was 61.5%, an increase of 4.6 percentage points. The sales expense ratio rose to 46.8%, while the management expense ratio was 4.7% and the R&D expense ratio was 1.4% [2][4]. Brand Performance - The high-end brand "Yifidan" continued to show strong growth despite a slightly weak macro environment. Key products like "Super Face" and "Super CP" maintained high growth rates. The brand's penetration in high-end skincare on platforms like Xiaohongshu ranked top, and new product launches are expected to enhance brand visibility [2][3]. Business Strategy - The company is building a multi-tiered brand matrix with its own brands and agency brands. The "Yunifang" brand underwent a successful upgrade, and the "PA" brand is focusing on building a product lineup. The agency business, particularly "Misty," has seen revenue double through celebrity endorsements and channel development [2][3]. Future Projections - The company has adjusted its revenue forecasts for 2024-2026 to 4.575 billion yuan, 5.046 billion yuan, and 5.480 billion yuan, respectively. The net profit forecasts are 290 million yuan, 381 million yuan, and 454 million yuan for the same period. The corresponding P/E ratios are projected to be 16.1X, 12.3X, and 10.3X [2][4].