Proya(SH:603605) SINOLINK SECURITIES·2024-10-27 05:30Investment Rating - The report maintains a "Buy" rating for Proya (603605.SH) [1][3] Core Views - The company reported a steady growth in Q3 2024 with revenue, net profit attributable to shareholders, and net profit excluding non-recurring items reaching 1.965 billion, 298 million, and 292 million RMB respectively, representing year-on-year increases of 21.25%, 20.72%, and 18.33% [1] - The company is focusing on a multi-brand and multi-category strategy, with the main brand Proya emphasizing a "series branding" approach, indicating significant upward potential [2] - The company is expected to continue its strong growth trajectory, with projected net profits for 2024-2026 estimated at 1.527 billion, 1.895 billion, and 2.279 billion RMB, reflecting year-on-year growth rates of 28%, 24%, and 20% respectively [3] Summary by Sections Performance Analysis - Q3 2024 gross margin was 70.7%, a decrease of 1.9 percentage points year-on-year, but is expected to improve next year due to cost optimization and adjustments in influencer collaboration mechanisms [2] - The sales expense ratio increased by 2.8 percentage points year-on-year to 45.4%, attributed to a decline in the return on investment from Douyin [2] - The company’s online revenue for the first three quarters of 2024 reached 6.528 billion RMB, a year-on-year increase of 38.48%, while offline revenue was 429 million RMB, a decrease of 18.08% [6] Financial Forecasts - Revenue projections for 2024-2026 are 11.429 billion, 14.101 billion, and 16.957 billion RMB, with growth rates of 28.35%, 23.38%, and 20.25% respectively [5] - The projected net profit for 2024-2026 is 1.527 billion, 1.895 billion, and 2.279 billion RMB, with corresponding growth rates of 27.92%, 24.10%, and 20.24% [5] Strategic Initiatives - The company is advancing its "6*N" strategy and focusing on major products, with the main brand Proya aiming for a strong market position in the Asian scalp health segment [2] - The company is also adjusting its product lines and team structures to enhance growth potential in the coming year [2]