Proya(SH:603605) Tianfeng Securities·2024-10-30 09:50Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong outlook for the stock with expected returns exceeding 20% over the next six months [3][11]. Core Insights - The company has demonstrated consistent strong performance, successfully transitioning from product-focused to brand and multi-brand group strategies. It has significantly increased its market share amidst industry differentiation, positioning itself as a leading domestic brand [2]. - The main brand has undergone multiple iterations of classic products, with high-quality new launches on a monthly basis. Sub-brands are effectively targeting high-quality segments in color cosmetics and premium scalp care [2]. - The company is expected to achieve net profits of 1.55 billion, 1.92 billion, and 2.32 billion yuan for the years 2024 to 2026, respectively. The current stock price corresponds to a price-to-earnings ratio (PE) of 25, 20, and 16 for the years 2024 to 2026 [2]. Financial Performance Summary - For the first three quarters of 2024, the company reported 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 [1]. - In Q3 2024, the company achieved revenue of 1.965 billion yuan, reflecting a year-on-year growth of 21.15%, with a net profit of 298 million yuan, up 20.72% year-on-year [1]. - The gross profit margin for Q3 2024 was 70.71%, a decrease of 1.95 percentage points year-on-year, while the cumulative gross profit margin for the first three quarters was 70.07%, down 1.1 percentage points [1]. Revenue Breakdown - In Q3 2024, the skincare segment generated revenue of 1.654 billion yuan, up 20.7% year-on-year; the color cosmetics segment brought in 233 million yuan, up 18.7%; and the hair care segment achieved 75 million yuan, a significant increase of 47.2% [1]. Cost and Expense Analysis - The sales expense ratio for Q3 2024 was 45.40%, an increase of 2.8 percentage points year-on-year, while the management expense ratio was 4.87%, down 1 percentage point. The R&D expense ratio stood at 2.43%, up 0.1 percentage points year-on-year [1].