LANCY(002612)2024-10-30 06:44Investment Rating - The report maintains a "Buy" rating for the company, with a target price reflecting a potential upside of 15% or more compared to the benchmark index [4][9]. Core Views - The company is focusing on synergistic development through both organic growth and external expansion, particularly in the medical aesthetics sector [2][4]. - The third quarter of 2024 showed slight pressure on revenue, but adjusted net profit after excluding non-recurring items demonstrated double-digit growth [2][3]. - The company has made strategic acquisitions to enhance its presence in the upstream medical aesthetics market, which is expected to improve product quality and profitability [3][4]. Financial Performance Summary - For the first three quarters of 2024, the company achieved operating revenue of 4.178 billion yuan, a year-on-year increase of 1.45%. The net profit attributable to the parent company was 209 million yuan, a decrease of 4.87% year-on-year, while the adjusted net profit was 180 million yuan, reflecting an increase of 11.29% year-on-year [2][3]. - The gross margin for the first three quarters of 2024 was 58.92%, an increase of 1.34 percentage points year-on-year, while the net margin was 5.56%, a decrease of 0.17 percentage points year-on-year [3]. - The company has projected earnings per share (EPS) of 0.68, 0.82, and 0.95 yuan for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings ratios (PE) of 24, 20, and 17 times [4][5]. Strategic Acquisitions - In Q3 2024, the company consolidated its financials with the acquisitions of Beijing Lido and Hunan Yamei, which are expected to enhance its medical aesthetics capabilities [3]. - The acquisitions included a 100% stake in Beijing Lido for 330 million yuan and a 70% stake in Hunan Yamei for 252 million yuan, with performance commitments for the next three years [3]. Market Positioning - The company is expanding its business model to encompass three major sectors: medical aesthetics, women's apparel, and children's products, aiming to create a comprehensive beauty industry ecosystem [4].