SYG(SZ:300740) Shenwan Hongyuan Securities·2025-09-11 12:57Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][7]. Core Insights - The company is transitioning into a high-end global beauty group driven by its own brands and CP (Contract Production) brands, with a focus on high-end market penetration and digital transformation [6][18]. - The financial forecast indicates a significant recovery in net profit, with expected growth rates of 134.9%, 28.1%, and 20.2% for the years 2025 to 2027 [7][39]. Financial Data and Profit Forecast - Total revenue (in million yuan) is projected to be 4,630 in 2025, with a year-on-year growth rate of 9.3% [2]. - Net profit attributable to the parent company is expected to reach 258 million yuan in 2025, reflecting a substantial increase of 134.9% compared to the previous year [2]. - Earnings per share are forecasted to be 0.66 yuan in 2025, with a PE ratio of 33 [2]. Business Model and Strategy - The company operates a dual business model comprising self-owned brands and CP brands, with a strong emphasis on high-end product offerings [18][24]. - The self-owned brand matrix includes high-end brands like EDB, PA, and RV, alongside popular mass-market brands such as YU NI BANG and DA SHUI DI [24][51]. - The CP brand strategy involves partnerships with over 50 international brands, enhancing the company's market presence and product diversity [24][25]. Competitive Advantages - The company has established a comprehensive brand matrix and a robust digital marketing strategy, leveraging platforms like Douyin for sales [6][10]. - Strong R&D capabilities support the development of unique raw materials and technologies, enhancing product differentiation [6][39]. - The management team possesses extensive industry experience, contributing to strategic decision-making and operational efficiency [28][32]. Growth Catalysts - Anticipated growth in high-end brand sales, optimization of the agency business structure, and effective channel collaboration are expected to drive revenue growth [10][39]. - The successful integration of acquired brands and the expansion of digital channels are key factors for future performance [6][10].