RYC(SZ:003010) GOLDEN SUN SECURITIES·2025-08-11 06:06Investment Rating - The report initiates coverage with a "Buy" rating for the company [2]. Core Viewpoints - The company is a leading global digital management firm for consumer brands, transitioning from e-commerce agency services to self-owned brand incubation, which is experiencing rapid growth [1][13]. - The dual-driven strategy of "agency services + self-owned brands" is leading to an increasing proportion of revenue from self-owned brands [1][15]. - The e-commerce agency industry has seen a compound annual growth rate (CAGR) of 64% from 2011 to 2018, but growth has slowed to a CAGR of 14% from 2018 to 2023, with the market size reaching 1.78 trillion yuan in 2023 [1][31]. - The company has successfully launched self-owned brands "LYCOCELLE" and "FineNutri," with significant sales growth expected in the coming years [2][15]. Summary by Sections Company Overview - The company started as an e-commerce agency in 2011 and has evolved into a digital management firm for consumer brands, focusing on brand positioning, store operations, integrated marketing, data mining, and supply chain management [13][14]. - The self-owned brand "LYCOCELLE" focuses on premium clothing care products, while "FineNutri" targets women's anti-aging needs with a focus on specific ingredients [2][13]. Business Analysis - The revenue distribution among agency services, brand management, and self-owned brands is shifting, with self-owned brands increasing from 13.22% in 2022 to an expected 28.37% in 2024 [15]. - The brand management market is projected to grow significantly, with the company transitioning from traditional agency services to brand management [1][31]. Financial Projections - Revenue is projected to grow from 1.37 billion yuan in 2023 to 4.50 billion yuan in 2027, with corresponding net profits increasing from 54 million yuan to 338 million yuan [2][4]. - The company expects a revenue growth rate of 52.3% in 2025, followed by 34.8% in 2026 and 24.1% in 2027 [2][4]. Market Position - The company ranks fifth among the top ten e-commerce operators in China, indicating a strong market position [1]. - The brand management market is expected to reach over 580 billion yuan by 2028, with a CAGR of 7.53% from 2023 to 2028 [1][31].