Proya(SH:603605) KAIYUAN SECURITIES·2024-10-26 15:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company, Proya (珀莱雅), is a leading player in the domestic beauty and cosmetics sector, demonstrating stable performance with a continuous improvement in its "series branding" strategy [1][4] - For Q3 2024, the company reported a year-on-year increase of 20.7% in net profit attributable to shareholders, with total revenue reaching 69.66 billion yuan for the first three quarters, reflecting a growth of 32.7% [4][5] - The main brand, Proya, is expected to perform steadily, while its second-tier brands, Caitang and OR, are showing strong growth [5][6] Financial Performance Summary - For Q3 2024, revenue from skincare, beauty makeup, and hair care segments reached 16.54 billion yuan (+20.7%), 2.33 billion yuan (+18.7%), and 0.75 billion yuan (+47.2%) respectively [5] - The average selling price for skincare increased by 24.6%, while beauty makeup and hair care saw decreases of 6.6% and 6.8% respectively due to a higher proportion of lower-priced products [5] - The gross margin and net margin for Q3 2024 were 70.7% (-1.9 percentage points) and 15.2% (unchanged) respectively [5] Earnings Forecast - The company maintains its profit forecast, expecting net profits attributable to shareholders to be 15.64 billion yuan, 19.57 billion yuan, and 23.71 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 3.95 yuan, 4.94 yuan, and 5.98 yuan [4][7] - The current stock price corresponds to P/E ratios of 24.1, 19.3, and 15.9 for the years 2024, 2025, and 2026 respectively [4][7] Brand and Product Strategy - Proya continues to enhance its "series branding" layout, with successful product upgrades such as "Source Power Essence 3.0" and "Energy Cream" [6] - The company has also received approval for new products in the sunscreen and whitening categories, which are expected to drive growth in these segments [6] - During the pre-sale period for Double Eleven, Proya ranked first in both beauty and fast-moving consumer goods categories on Tmall, solidifying its position as a leader in the beauty market [6]