Proya(603605) 东兴证券·2025-02-21 00:17Investment Rating - The report maintains a "Recommended" rating for the company, highlighting its strong growth potential as a leading domestic beauty brand [4]. Core Insights - The rise of domestic brands in the fashion consumer goods sector is a significant trend, with expectations for continued market share growth for quality domestic products. The government is promoting the "Chinese manufacturing" image and supporting the innovation of time-honored brands [2][3]. - Proya has solidified its position as the top player in the industry, achieving significant sales during major promotional events and maintaining its market leadership despite increased competition from international brands [3][4]. - The company is expected to benefit from the ongoing trend of domestic cultural integration and policy support, particularly through its sub-brand, Caitang, which aligns with the national trend of promoting Chinese aesthetics [3][4]. Summary by Sections Market Position and Performance - Proya's GMV reached 308 million yuan on the Taobao platform in January 2025, ranking first, while its sales on Douyin were between 200-250 million yuan, placing it second [3]. - The company has shown resilience in maintaining its top market position despite competitive pressures from international brands during promotional events [3]. Growth Strategy - The company is focusing on short-term product development and multi-brand operations to strengthen its market position. Key products are expected to see increased sales, particularly in the energy and sunscreen categories [4]. - Proya is also exploring international markets, particularly in Southeast Asia, and is actively seeking quality international brand acquisitions to enhance growth potential [4]. Financial Projections - The company is projected to achieve net profits of 1.52 billion, 1.88 billion, and 2.27 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding EPS of 3.85, 4.76, and 5.74 yuan [4]. - The current stock price corresponds to PE ratios of 22, 18, and 15 for the years 2024, 2025, and 2026, indicating a favorable valuation for long-term growth [4].