Proya(SH:603605) Wanlian Securities·2024-10-29 10:32Investment Rating - The investment rating for the company is "Add" [5][7]. Core Views - The company, Proya (珀莱雅), has shown steady performance as a leading domestic beauty brand, with Q3 2024 net profit increasing by 21% year-on-year. For the first three quarters of 2024, the company achieved revenue of 6.966 billion yuan, a year-on-year increase of 32.72%, and a net profit of 999 million yuan, up 33.95% year-on-year, indicating robust growth [2][4]. - The company maintained stable net profit margins, with a slight decrease in gross margin year-on-year. In Q3 2024, the gross margin was 70.71%, down 1.95 percentage points year-on-year, while the net margin was 15.19%, up 0.02 percentage points year-on-year. The company has improved cost efficiency in Q3, leading to a sequential increase in gross profit margin [3][4]. - The average selling price of skincare products increased year-on-year, while the average selling prices of color cosmetics and hair care products saw slight declines. Skincare products generated revenue of 1.654 billion yuan in Q3 2024, up 20.68% year-on-year, with a 24.64% increase in average selling price. Color cosmetics revenue was 233 million yuan, up 18.71% year-on-year, but with a 6.65% decrease in average selling price [3][4]. Financial Forecasts - The company is expected to maintain its growth trajectory, with revenue forecasts for 2024-2026 as follows: 2024E at 11.434 billion yuan (growth rate of 28.41%), 2025E at 14.182 billion yuan (growth rate of 24.03%), and 2026E at 17.205 billion yuan (growth rate of 21.31%). Net profit forecasts are 1.598 billion yuan for 2024E, 1.970 billion yuan for 2025E, and 2.406 billion yuan for 2026E, with corresponding growth rates of 33.91%, 23.20%, and 22.17% respectively [4][9].