Proya(SH:603605) Changjiang Securities·2025-11-17 14:43Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company reported a revenue of 7.098 billion yuan for Q1-Q3 2025, representing a year-on-year growth of 1.9%. The net profit attributable to shareholders was 1.03 billion yuan, up 2.65% year-on-year. However, in Q3 alone, revenue decreased by 11.6% to 1.74 billion yuan, and net profit fell by 23.6% to 230 million yuan [2][4]. Revenue Analysis - In Q3 2025, the company experienced seasonal pressure on revenue, with skincare, beauty makeup, and hair care categories generating revenues of 1.32 billion, 240 million, and 180 million yuan respectively. The year-on-year growth rates were -20.4%, 0.9%, and 138% respectively. The main brand, focused on skincare, faced challenges, while the OR brand, focused on hair care, showed strong growth [10]. Profitability Analysis - The gross margin continued to improve, with a net profit margin of 13.1% in Q3, down 2.1 percentage points year-on-year. The gross margin increased by 3.96 percentage points to 74.7%, attributed to category structure optimization and cost reduction efforts. However, selling, administrative, research and development, and financial expense ratios increased by a total of 6.8 percentage points [10]. Investment Recommendations - Given the current challenges faced by the main brand and the increase in expense ratios, the company is experiencing temporary pressure on revenue and net profit. However, the main brand maintains a strong comparative advantage due to a well-rounded product matrix. The OR brand is expected to contribute additional growth in the future. The projected EPS for 2025-2027 is 3.97, 4.44, and 5.00 yuan per share respectively [10].