Proya(SH:603605) Huachuang Securities·2025-11-05 04:43Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation of outperforming the benchmark index by 10%-20% over the next six months [6][16]. Core Insights - The company experienced a revenue decline of 12% year-on-year in Q3 2025, with a net profit decrease of 24%. However, for the first three quarters of 2025, revenue increased by 2% year-on-year to 7.1 billion yuan, and net profit rose by 3% to 1.03 billion yuan [2][3]. - The company is accelerating its globalization strategy, having submitted a prospectus for a Hong Kong IPO to support international expansion and potential mergers and acquisitions [2][3]. - The multi-brand strategy is showing growth, with significant performance from new product lines and brands, including a strong sales increase of 170% for the sunscreen category [2][3]. Financial Performance Summary - For Q3 2025, the company reported revenue of 1.74 billion yuan, down 12% year-on-year, and a net profit of 230 million yuan, down 24% year-on-year. The gross margin improved to 74.7%, up 4.0 percentage points year-on-year [2][3]. - The company forecasts total revenue of 10.86 billion yuan for 2025, with a slight growth of 0.7% year-on-year, and a net profit of 1.56 billion yuan, also reflecting a 0.7% increase [5][10]. - The projected earnings per share (EPS) for 2025 is 3.95 yuan, with a price-to-earnings (P/E) ratio of 18 times [5][10]. Business Strategy and Growth Drivers - The company is focusing on product innovation and brand development, with a clear roadmap for new product launches and upgrades, particularly in its core series [2][3]. - The investment in the emerging makeup brand "Hua Zhi Xiao" aims to attract a younger consumer demographic, enhancing the company's brand portfolio [2][3]. - The report highlights the importance of R&D in maintaining market leadership and driving future growth, with ongoing investments in product development [2][3].