Proya(SH:603605) Minsheng Securities·2025-09-01 09:24Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [4][12]. Core Insights - The company achieved a revenue of 5.362 billion yuan in H1 2025, representing a year-on-year growth of 7.21%. The net profit attributable to shareholders was 799 million yuan, up 13.80% year-on-year [1]. - The skincare segment showed steady growth, with revenue of 4.199 billion yuan in H1 2025, a slight increase of 0.20% year-on-year, while the beauty makeup segment grew by 25.79% to 837 million yuan [2]. - The company plans to list in Hong Kong to further its international strategy [1]. Financial Performance - The gross margin for H1 2025 increased by 3.56 percentage points to 73.38%, while the net profit margin rose by 0.86 percentage points [3]. - The main brand, Proya, generated 3.979 billion yuan in revenue, a slight decline of 0.08% year-on-year, while the sub-brand Cai Tang saw a revenue increase of 21.11% to 705 million yuan [4]. - The company forecasts net profits of 1.8 billion yuan, 2.08 billion yuan, and 2.35 billion yuan for 2025, 2026, and 2027, respectively, with growth rates of 15.9%, 15.3%, and 13.2% [4][6]. Revenue Breakdown - In H1 2025, online sales accounted for 95.39% of total revenue, amounting to 5.109 billion yuan, while offline sales decreased by 21.49% to 247 million yuan [2]. - The revenue from the hair care segment surged by 131.25% to 320 million yuan, indicating strong performance in this category [2]. Future Projections - The company expects revenue growth rates of 10.3%, 7.8%, and 6.5% for the years 2025, 2026, and 2027, respectively [6][9]. - The projected earnings per share for 2025, 2026, and 2027 are 4.54 yuan, 5.24 yuan, and 5.93 yuan, respectively [6][9]. Brand Development - The main brand Proya continues to enhance its brand strength, while other brands are also making significant progress, with Off&Relax being the fastest-growing brand, achieving a revenue of 279 million yuan, up 102.52% year-on-year [4].