ELLASSAY(SH:603808) Tianfeng Securities·2025-01-26 01:22Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 7.02 CNY [6]. Core Views - The company is expected to face significant challenges in 2024, with projected net profit losses ranging from 389 million to 289 million CNY, compared to a profit of 106 million CNY in the previous year [1]. - The domestic market shows a positive growth trend, with an estimated revenue increase of approximately 3%-7% year-on-year, driven by strong performance from brands like Ellassay, self-portrait, Laurèl, and IRO [2]. - The IRO brand's overseas operations are under pressure due to inflation and geopolitical issues, leading to a substantial decline in performance, prompting the company to implement cost-cutting measures and optimize its business model [3]. Financial Summary - The company’s revenue for 2024 is projected to be around 3,063.86 million CNY, reflecting a growth rate of 5.10% compared to 2023 [5]. - The expected EBITDA for 2024 is approximately 451.99 million CNY, with a significant drop in net profit to a range of -296.99 million to -389 million CNY [5]. - The earnings per share (EPS) for 2024 is forecasted to be -0.80 CNY, indicating a challenging financial outlook [5].