RYC(003010) China Post Securities·2025-02-28 02:24Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [1]. Core Views - The company is positioned as one of the first domestic operators in the代运营 (agency operation) sector, with a business model that integrates brand management, proprietary brands, and代运营 services, leading to accelerated revenue growth [3]. - The company has shown significant growth in its proprietary brand "绽家" and is making strides in the high-end home cleaning market, while its new brand "斐萃" is expected to create a second growth curve in the female oral beauty segment [3][4]. - The company’s revenue and net profit for 2023 were reported at 1.366 billion yuan and 54 million yuan, respectively, with year-on-year growth of 12.3% and 60.8% [3]. Summary by Sections Company Overview - The company was established in 2011 and is one of the first代运营 service providers in China, ranking fifth in the industry. It has diversified into proprietary brands and brand management, with a revenue structure comprising 50%代运营, 28% brand management, and 22% proprietary brands as of the first half of 2024 [3][6][24]. Financial Analysis - The company has seen a return to high growth in revenue and profitability since 2023, with a projected net profit for 2024 expected to be between 90 million and 120 million yuan, representing a year-on-year increase of 66% to 121% [3][18]. - The gross margin and net profit margin have improved, with the gross margin at 46.5% and net profit margin at 5.0% for the first three quarters of 2024 [18]. Business Analysis - The company’s revenue from代运营, brand management, and proprietary brands for the first half of 2024 was 3.9 billion yuan, 2.2 billion yuan, and 1.8 billion yuan, respectively, indicating a growing contribution from proprietary brands [24]. - The proprietary brand "绽家" has rapidly gained market share, with a revenue increase of over 60% in 2023 and maintaining a growth rate of 67% in the first half of 2024 [40][41]. Industry Insights - The high-end home cleaning market is experiencing significant growth, with the overall market size projected to reach approximately 1.3 trillion yuan in 2024, driven by a trend towards premiumization and refinement in consumer preferences [32][35]. - The company is well-positioned to capitalize on the high-end market, which currently lacks strong competitors, allowing it to leverage its first-mover advantage and unique product offerings [39].