Investment Rating - The report maintains a "Buy" rating for the company [3] - The target price is adjusted to 62.00 CNY, up from the previous 57.27 CNY [3] Core Insights - The company increased marketing investments in Q3 to enhance brand visibility, leading to short-term pressure on profitability but potential long-term sales growth [2] - The EPS forecasts for 2024-2026 have been revised down to 1.79 CNY (-0.7), 2.48 CNY (-0.51), and 2.97 CNY (-0.53) respectively [2] - The company reported Q1-3 2024 revenues of 40.18 billion CNY, with a year-on-year growth of 17%, but a decline in net profit attributable to shareholders by 28% [2] Financial Performance Summary - For Q3 2024, the company achieved revenues of 12.13 billion CNY, a 14% year-on-year increase, but reported a net loss of 0.69 billion CNY [2] - The gross margin for Q1-3 2024 was 73.73%, down 2.69 percentage points year-on-year, while the net profit margin was 10.07%, an increase of 6.4 percentage points year-on-year [2] - The company’s marketing expenses increased significantly, impacting profitability, with sales expense ratio rising due to heightened brand marketing efforts [2] Brand and Market Strategy - The main brand, Winona, showed resilience with a revenue increase of 6% year-on-year, while the newly consolidated brands contributed to a decline in overall gross margin [2] - The company is focusing on enhancing its presence on Douyin (TikTok) with increased marketing efforts, including sponsorships and collaborations with influencers [2] - The brand matrix is gradually forming, with sub-brands like AOXMED gaining traction through live-stream promotions [2] Financial Forecasts - The company’s revenue is projected to grow from 6.56 billion CNY in 2024 to 8.32 billion CNY in 2026, reflecting a compound annual growth rate (CAGR) of 18.8% [9] - The net profit attributable to shareholders is expected to stabilize at around 760 million CNY in 2024, with a recovery to 1.26 billion CNY by 2026 [9] - The projected EPS for 2024 is 1.79 CNY, with an increase to 2.97 CNY by 2026 [9]
贝泰妮2024年三季报点评：业绩低于预期，加大投放推动品牌破圈