Proya(SH:603605) CSC SECURITIES (HK) LTD·2024-08-28 03:26Investment Rating - The report assigns a "BUY" rating for the company Perlay (603605.SH) with a target price of 100 CNY [1]. Core Insights - The company achieved impressive operating results in H1 2024, with revenue of 5 billion CNY, a year-on-year increase of 38%, and a net profit of 700 million CNY, reflecting a year-on-year growth of 40.5% [1]. - The report highlights strong growth across various brands, with the main brand Perlay generating revenue of 3.98 billion CNY, up 37.8% year-on-year, and the makeup brand Caitang achieving revenue of 580 million CNY, up 40.6% year-on-year [1]. - The company is expected to maintain high-quality growth throughout the year, supported by its "6*N" strategy and enhanced brand influence [1]. Financial Summary - For H1 2024, the company reported a gross margin of 69.82%, a slight decrease of 0.69 percentage points year-on-year, primarily due to the impact of promotional activities [1]. - The report projects net profits for 2024, 2025, and 2026 to be 1.55 billion CNY, 1.93 billion CNY, and 2.37 billion CNY, respectively, with year-on-year growth rates of 29.6%, 24.7%, and 22.7% [2]. - The earnings per share (EPS) are forecasted to be 3.90 CNY, 4.86 CNY, and 5.97 CNY for the same years, with corresponding price-to-earnings (P/E) ratios of 22x, 17x, and 14x [2].