Proya(603605) 东吴证券·2024-10-25 03:30Investment Rating - Buy (Maintained) [1] Core Views - The company reported stable growth in Q3 2024, with revenue of 6.97 billion yuan (+32.7% YoY) and net profit attributable to the parent company of 1.0 billion yuan (+34.0% YoY) [2] - The main brand continued to grow, with online sales maintaining high growth [2] - The company's profitability remained stable, with a gross margin of 70.1% in Q1-Q3 2024, and a net profit margin of 14.3% (+0.1 pct YoY) [2] - The company ranked first in the 2024 Double 11 shopping festival on Tmall and Douyin, solidifying its position as a leading domestic beauty brand [2] Financial Performance - Revenue for 2024 is expected to reach 11.35 billion yuan (+27.45% YoY), with net profit attributable to the parent company of 1.54 billion yuan (+28.61% YoY) [1] - EPS for 2024 is forecasted at 3.88 yuan per share, with a P/E ratio of 25.55 [1] - The company's gross margin is expected to remain stable at around 70% from 2024 to 2026 [8] - Net profit attributable to the parent company is projected to grow at a CAGR of 23% from 2024 to 2026, reaching 2.36 billion yuan by 2026 [3] Brand and Product Strategy - The main brand, Proya, continued to grow, with the launch of upgraded products such as the Yuanli Essence 3.0 and the Optical Bottle, which received a whitening certification in October 2024 [2] - The brand Caitang is focusing on the foundation makeup segment, with the Small Round Tube series performing well [2] - The company's multi-brand strategy is progressing smoothly, with a well-established product matrix [3] Market Position - The company maintained its leading position in the domestic beauty market, ranking first in the 2024 Double 11 shopping festival on Tmall and Douyin [2] - The company's market share and brand strength are expected to continue to grow, supported by its strong product portfolio and efficient operations [3] Financial Projections - Revenue is expected to grow from 11.35 billion yuan in 2024 to 16.93 billion yuan in 2026, with a CAGR of 22% [1] - Net profit attributable to the parent company is projected to increase from 1.54 billion yuan in 2024 to 2.36 billion yuan in 2026, with a CAGR of 23% [3] - The company's P/E ratio is expected to decline from 25.55 in 2024 to 16.65 in 2026, reflecting strong earnings growth [1]