lolo(SZ:000848) GUOTAI HAITONG SECURITIES·2025-10-23 11:13Investment Rating - The report maintains a "Buy" rating for the company [6][13]. Core Insights - The company's revenue showed a significant recovery in the third quarter, although the increase in sales expenses offset the expansion of gross profit margin. Future performance will depend on the new product, Lululemon Plant-Based Health Water [2][13]. - The company has launched a series of plant-based drinks under the Lululemon brand, aiming to enhance brand competitiveness and attract younger consumers. The market for traditional health waters is expected to grow significantly, with a projected market size of 30 billion yuan in 2024, increasing at a rate of 566% year-on-year [13]. Financial Summary - Total revenue for 2023 is projected at 2,955 million yuan, with a year-on-year growth of 9.8%. The net profit attributable to shareholders is expected to be 638 million yuan, reflecting a 6.0% increase [4]. - The earnings per share (EPS) for 2023 is estimated at 0.61 yuan, with a projected price-to-earnings (P/E) ratio of 14.56 [4][14]. - The company’s net profit margin for the first three quarters of 2025 is 19.61%, with a gross profit margin of 45.62% [13]. Market Data - The target price for the company's stock is set at 10.26 yuan, with a current price of 8.83 yuan [6][13]. - The company's market capitalization is approximately 9,294 million yuan, with a 52-week stock price range of 7.89 to 11.05 yuan [7][13]. Future Projections - Revenue is expected to grow to 3,287 million yuan in 2024, followed by a slight decline to 2,972 million yuan in 2025, before recovering to 3,370 million yuan by 2027 [4][14]. - The net profit is projected to reach 666 million yuan in 2024 and 743 million yuan in 2027, indicating a steady growth trajectory [4][14].