Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [4]. Core Insights - The company, Shangmei Co., is a leading multi-brand beauty group in China, with its main brand, Han Shu, gaining significant traction due to high cost-performance products and the short video trend. The company is expected to maintain high growth due to its efficient organizational operations and supply chain capabilities [4][5]. Financial Performance - The company reported a significant turnaround in 2023, with revenue reaching 4.19 billion HKD, a year-on-year increase of 56.8%. The net profit for the same year was 461 million HKD, up 213.5% [21][22]. - For 2024, the projected net profits are 899 million HKD, 1.18 billion HKD, and 1.45 billion HKD for 2024, 2025, and 2026 respectively, with corresponding EPS of 2.26, 2.97, and 3.63 HKD [4][21]. Brand Strategy - The company employs a "2+2+2" brand strategy, focusing on two brands each in skincare, maternal and infant care, and hair care. The main brand, Han Shu, targets the anti-aging market, while other brands like Red Elephant and One Leaf cater to different segments [14][15][16]. Growth Drivers - Han Shu's product line, particularly the "Waist Series," is expected to drive growth, with a strong emphasis on high cost-performance and effective marketing strategies [6][30]. - The company has successfully leveraged platforms like Douyin (TikTok) for marketing, achieving a GMV of 34.44 billion HKD in 2024H1, surpassing the total for 2023 [21][30]. Supply Chain and Operational Efficiency - The company has established a robust supply chain with both domestic and overseas manufacturing capabilities, ensuring stable production and pricing control [5][19]. - The organizational structure is designed for high efficiency, with brand managers given significant autonomy, which has proven effective in responding to market trends [5][19]. Market Position - Han Shu has become a top player in the beauty market, particularly on Douyin, where it has consistently ranked first in beauty sales [30][37]. - The company is well-positioned to benefit from the growing demand for affordable skincare products, especially among younger consumers [34][36].
上美股份：港股公司首次覆盖报告：主品牌韩束势能强劲，产品+渠道+品牌多维成长