LANCY(002612) 广发证券·2024-11-18 02:39Investment Rating - The report maintains a "Buy" rating for Langzi Co Ltd (002612 SZ) with a target price of 21 30 RMB, representing a 36X PE multiple for 2024 [4][5] Core Views - Langzi Co Ltd reported Q3 2024 revenue of 12 65 billion RMB, a 6 80% YoY decrease, with net profit attributable to shareholders of 0 42 billion RMB, down 17 21% YoY [2] - The company achieved 41 78 billion RMB in revenue for the first three quarters of 2024, a 1 45% YoY increase, with net profit attributable to shareholders of 2 09 billion RMB, down 4 87% YoY [2] - Non-GAAP net profit attributable to shareholders increased by 11 29% YoY to 1 80 billion RMB for Q1-3 2024 [2] - The company's medical aesthetics business is accelerating nationwide expansion through acquisitions and strategic investments [3] Financial Performance - Gross margin improved by 1 34 percentage points to 58 92% for Q1-3 2024, while net margin decreased by 0 17 percentage points to 5 56% [3] - Operating expenses were well controlled, with sales/management/R&D/financial expense ratios at 39 83%/8 72%/1 95%/1 71% respectively [3] - The company's apparel business remains stable, providing consistent cash flow [3] Business Development - Langzi Co Ltd has made significant acquisitions in the medical aesthetics sector, including 100% stakes in Zhengzhou Jimei and Beijing Lido, and a 70% stake in Hunan Yamei [3] - The company invested in Langxi Ziyan in September 2024, entering the upstream medical device sector to enhance supply chain stability and group purchasing power [3] Financial Projections - EPS is projected to be 0 59/0 71/0 85 RMB per share for 2024/2025/2026 respectively [4] - Revenue is expected to grow at a CAGR of 12 2% from 2024 to 2026, reaching 72 63 billion RMB by 2026 [4] - Net profit attributable to shareholders is forecasted to increase from 263 million RMB in 2024 to 376 million RMB in 2026 [4] Valuation Metrics - The company's P/E ratio is expected to decline from 31 52X in 2024 to 22 04X in 2026 [4] - ROE is projected to improve from 8 0% in 2024 to 9 5% in 2026 [4] - EV/EBITDA is forecasted to decrease from 13 35X in 2024 to 10 13X in 2026 [4]