Marubi(603983) Orient Securities·2024-10-28 03:42Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 34.18 CNY based on DCF valuation [2][4]. Core Insights - The company reported Q3 2024 results with revenue of 1.95 billion CNY, a year-on-year increase of 27%, and a net profit attributable to shareholders of 239 million CNY, up 37.38% year-on-year. For Q3 alone, revenue and net profit grew by 25.8% and 44.3% respectively, exceeding market expectations [1][2]. - Revenue growth by product category in Q3 2024 showed eye care, skincare, cleansing, and beauty products increasing by 22.3%, 15.1%, 12.2%, and 54.1% respectively. Notably, the average price of skincare products rose by 43.1% due to a higher proportion of premium products and changes in product mix [1][2]. - The company's profitability remains strong, with a gross margin increase of 2.1 percentage points to 74.5% in Q3 2024, attributed to a higher share of high-margin products. Selling and administrative expense ratios decreased by 0.2 and 1.3 percentage points respectively, indicating effective cost control amid intensified market competition. The net profit margin improved by 1.3 percentage points to 10.4% [1][2]. Financial Forecast and Investment Recommendations - Based on the Q3 report, earnings per share forecasts for 2024-2026 have been adjusted to 0.91, 1.16, and 1.40 CNY respectively. The previous estimates were 0.90, 1.15, and 1.40 CNY [2][4]. - The company is expected to achieve revenue of 2.89 billion CNY in 2024, with a year-on-year growth of 29.9%, and further growth projected at 22.5% and 17.5% for 2025 and 2026 respectively [3][4].