Proya(SH:603605) Haitong Securities·2024-10-29 00:44Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1]. Core Views - The report highlights that the company achieved a revenue of 6.966 billion yuan in the first three quarters of 2024, representing a year-on-year growth of 32.72%, and a net profit attributable to the parent company of 999 million yuan, up 33.95% year-on-year [5][6]. - The company is recognized for its effective organizational structure and multi-brand strategy, which enhances its competitive position in a challenging market environment [9]. - The report projects revenue growth for 2024-2026, estimating revenues of 11.602 billion yuan, 14.166 billion yuan, and 16.705 billion yuan, with corresponding net profits of 1.559 billion yuan, 1.896 billion yuan, and 2.230 billion yuan [9][14]. Summary by Sections Financial Performance - In Q3 2024, the company reported a revenue of 1.965 billion yuan, a year-on-year increase of 21.15%, and a net profit of 298 million yuan, up 20.72% year-on-year [6][11]. - The gross profit margin for Q3 2024 was 70.71%, a decrease of 1.95 percentage points compared to the previous quarter [6]. - The overall operating profit for the first three quarters of 2024 grew by 27.47% year-on-year [8]. Revenue Breakdown - Skincare products generated 1.654 billion yuan in revenue, accounting for 84.30% of total revenue, with an average selling price of 80.22 yuan per unit, up 24.64% year-on-year [6]. - Beauty makeup products contributed 233 million yuan, representing 11.88% of total revenue, with an average selling price of 94.55 yuan per unit, down 6.65% year-on-year [6]. - Hair care products generated 75 million yuan, making up 3.82% of total revenue, with an average selling price of 96.57 yuan per unit, down 6.84% year-on-year [6]. Expense Analysis - The selling expense ratio increased by 3.12 percentage points to 46.39% in the first three quarters of 2024, attributed to increased promotional activities [7]. - The overall expense ratio for the first three quarters of 2024 rose by 1.43 percentage points to 51.78% [7]. Future Projections - The report anticipates a continued upward trend in revenue and net profit, with a projected net profit margin of 13.4% for 2024 [14]. - The company is expected to maintain a strong return on equity, projected at 28.8% for 2025 [14].