SYG(300740) KAIYUAN SECURITIES·2024-10-31 09:43Investment Rating - The investment rating for the company is "Buy" (maintained) [2]. Core Views - The company is undergoing strategic adjustments that have temporarily impacted its performance, but there is optimism regarding its high-end beauty strategy leading to healthy growth [2][3]. - The company has seen a significant increase in the proportion of high-margin brands, resulting in a record high gross margin of 68% in Q3 2024, up 7.67 percentage points year-over-year [1][3]. - The high-end brand matrix is taking shape with the recent acquisition of the luxury skincare brand RéVive, which is expected to enhance growth potential [1][3]. Financial Performance Summary - In Q3 2024, the company achieved revenue of 750 million yuan, a year-over-year decrease of 30.9%, and a net profit of -10 million yuan, down 130.4% year-over-year [2]. - For the first three quarters of 2024, the company reported revenue of 3.05 billion yuan, a decrease of 9.8% year-over-year, and a net profit of 9 million yuan, down 47.6% year-over-year [2]. - The company's gross margin for the first three quarters of 2024 was 63.1%, an increase of 5.08 percentage points year-over-year, while the net margin was 3.2%, down 2.29 percentage points year-over-year [1][3]. Future Projections - The company expects earnings per share (EPS) to be 0.50 yuan in 2024, 0.75 yuan in 2025, and 0.95 yuan in 2026, with corresponding price-to-earnings (P/E) ratios of 25.6, 17.0, and 13.3 respectively [3]. - The projected revenue for 2024 is 4.061 billion yuan, with a year-over-year decline of 9.6%, followed by a recovery in 2025 with an expected increase of 11.0% [3].