LANCY(SZ:002612) Tianfeng Securities·2024-09-05 10:00Investment Rating - The investment rating for the company is "Buy" with a target price indicating a potential upside of over 20% within the next six months [4][11]. Core Views - The company has reported a revenue of 2.689 billion yuan for the first half of 2024, representing a year-on-year growth of 6.21%, and a net profit attributable to the parent company of 152 million yuan, up 1.14% year-on-year [1]. - The company is expanding its medical beauty segment through cash acquisitions of Beijing Lido and Hunan Yamei, aiming for nationwide growth in the medical beauty sector [1][3]. - The company has established a mature management and operational system in the high-growth medical beauty sector, combining both organic growth and external expansion strategies [1]. Financial Performance Summary - For the first half of 2024, the breakdown of revenue by business segment is as follows: Women's wear revenue of 1.01 billion yuan (up 11.41% YoY), Medical beauty revenue of 1.19 billion yuan (up 6.02% YoY), and Baby and children’s products revenue of 450 million yuan (down 4.13% YoY) [1]. - The projected net profits for the years 2024 to 2026 are 330 million yuan, 390 million yuan, and 450 million yuan, respectively, with corresponding P/E ratios of 17x, 15x, and 13x [1][2]. - The company’s revenue is expected to grow from 5.83 billion yuan in 2024 to 7.46 billion yuan in 2026, with a compound annual growth rate of approximately 12.70% [2][7]. Acquisition Details - The acquisition of Beijing Lido involves purchasing 80% and 20% stakes from two entities for a total of 330 million yuan, while the 70% stake in Hunan Yamei is acquired for 252 million yuan [3]. - Performance commitments for Beijing Lido include net profits of no less than 19.99 million yuan, 21.46 million yuan, and 24.75 million yuan for the years 2024 to 2026, totaling at least 66.20 million yuan [3]. - Hunan Yamei has performance commitments of no less than 17.23 million yuan, 24.47 million yuan, and 31.09 million yuan for the same period, totaling at least 72.79 million yuan [3].