Proya(SH:603605) Hua Yuan Zheng Quan·2025-08-28 12:41Investment Rating - The investment rating for the company is "Buy" (maintained) [3] Core Views - The company achieved a 13.8% year-on-year growth in net profit attributable to shareholders in the first half of 2025, driven by strong brand momentum [3][6] - The company continues to develop a core product matrix, focusing on skincare, makeup, and personal care, with significant growth in its sub-brands [6] - The main brand, Proya, is innovating around consumer needs and has a clear growth path, supported by strong operational capabilities and management efficiency [6] Financial Performance Summary - In the first half of 2025, the company reported total revenue of 5.362 billion yuan, a year-on-year increase of 7.21%, and a total profit of 999.8 million yuan, up 11.43% [6] - The revenue breakdown shows Proya contributing 3.979 billion yuan (74.3% of total revenue), with significant growth in sub-brands such as OR, which saw a 102.5% increase in revenue [6] - The gross margin improved by 3.6 percentage points to 73.4%, attributed to cost reduction and efficiency improvements [6] Earnings Forecast and Valuation - The company is expected to achieve net profits of 1.793 billion yuan, 1.994 billion yuan, and 2.183 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 15.54%, 11.17%, and 9% [5][6] - The current price-to-earnings (P/E) ratios for the upcoming years are projected to be 19, 17, and 15 [6][8]