Proya(SH:603605) Ping An Securities·2024-10-29 07:14Investment Rating - The investment rating for the company is "Recommended (Maintain)" [2][9]. Core Views - The company achieved high-quality and steady growth in Q3 2024, with revenue reaching 6.966 billion yuan, a year-on-year increase of 32.72%, and net profit attributable to shareholders growing by 33.95% to 999 million yuan [5][6]. - Despite a challenging environment for the beauty industry, the company reported a revenue growth of over 20% in Q3, outperforming the overall market trend [5][6]. - The company maintains a strong market position, ranking first in beauty sales on major e-commerce platforms during the Double Eleven shopping festival [6][9]. Financial Performance Summary - For the first three quarters of 2024, the company reported: - Revenue: 69.66 billion yuan (+32.72%) - Net profit attributable to shareholders: 9.99 billion yuan (+33.95%) - Basic EPS: 2.53 yuan - Gross margin: 70.07% (-1.11 percentage points) - Net margin: 14.68% (-0.09 percentage points) [5][6]. - Q3 performance: - Revenue: 19.65 billion yuan (+21.15%) - Net profit: 2.98 billion yuan (+20.72%) [5][6]. Future Projections - The company is projected to achieve net profits of 15.52 billion yuan, 19.03 billion yuan, and 23.08 billion yuan for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of approximately 24.7, 20.1, and 16.6 [6][7]. - Revenue projections for 2024 to 2026 are expected to grow at rates of 39.5%, 29.1%, and 20.9% respectively [7][13]. Market Position - The company is positioned as a leading domestic brand in the beauty sector, with a systematic and standardized operational framework that enhances its competitiveness against international beauty groups [9].