SYG(SZ:300740) GF SECURITIES·2024-12-06 06:50Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 16.20 CNY per share based on a 24x PE for 2025 [6][17]. Core Views - The company has completed the acquisition of a high-end skincare brand matrix, which includes the luxury brand "Iffidan," the high-end repair brand "PA," and the innovative beauty brand "Revive" [1]. - For the first three quarters of 2024, the company reported revenues of 3.045 billion CNY, a year-over-year decrease of 9.84%, and a net profit attributable to shareholders of 94 million CNY, down 47.60% year-over-year [1]. - The company is expected to see a recovery in its high-end product lines, with a clear strategy to address historical burdens and enhance brand positioning [2][17]. Financial Summary - Revenue for 2024 is projected at 45.26 billion CNY, with a slight growth of 0.7% year-over-year, followed by significant growth of 19.5% in 2025 and 14.7% in 2026 [4][17]. - The net profit attributable to shareholders is forecasted to be 188 million CNY in 2024, a decrease of 36.0%, followed by a recovery to 262 million CNY in 2025 and 331 million CNY in 2026, with growth rates of 39.1% and 26.4% respectively [4][17]. - The gross profit margin for Q3 2024 was reported at 67.99%, an increase of 7.67 percentage points year-over-year [2]. Business Segments - The skincare segment, which includes lotions and creams, is expected to recover with projected revenue growth rates of 5%, 20%, and 15% for 2024 to 2026 [12][17]. - The mask segment has faced challenges, with a projected decline of 15% in 2024, but is expected to rebound with growth rates of 20% and 15% in 2025 and 2026 [12][17]. - The brand management service segment is anticipated to decline by 20% in 2024, with a modest recovery of 5% in the following two years [12][17].