SYG(300740) Minsheng Securities·2024-10-14 23:00Investment Rating - The report maintains a "Recommended" rating for the company [3]. Core Views - The company has signed a contract to acquire a high-end American beauty brand, enhancing its global luxury cosmetics management group [1]. - The acquisition is expected to be completed within two weeks, with the founder and existing management team retaining minority stakes and continuing to operate the brand independently in the U.S. while focusing on its business in China and e-commerce [1]. - The acquisition fills a gap in the company's high-end channel portfolio, complementing its existing brand EDB and expanding its global presence [1]. - The company has also obtained full ownership of the PA brand, further solidifying its high-end brand management capabilities [1]. - The company aims to establish a differentiated R&D team and localized production capabilities across major markets, positioning itself as a new global luxury beauty brand management group [1]. Financial Forecasts - The company's projected revenue for 2024 is 4,493 million yuan, with a growth rate of -4.9% [2]. - The net profit attributable to shareholders is expected to be 301 million yuan in 2024, reflecting a growth rate of 2.4% [2]. - The earnings per share (EPS) is forecasted to be 0.78 yuan in 2024, with a price-to-earnings (PE) ratio of 17 [2]. - The company anticipates net profits of 356 million yuan and 413 million yuan for 2025 and 2026, respectively, with corresponding growth rates of 18.0% and 16.0% [2][4]. Financial Metrics - The gross margin is projected to improve gradually, reaching 59.44% by 2026 [4]. - The return on equity (ROE) is expected to be 12.92% in 2024 and increase to 13.69% by 2026 [4]. - The company's total assets are forecasted to grow from 4,115 million yuan in 2024 to 5,122 million yuan in 2026 [5]. Cash Flow Analysis - The operating cash flow is expected to increase significantly to 618 million yuan in 2024 [6]. - The net cash flow is projected to be 437 million yuan in 2024, indicating strong cash generation capabilities [6].