LANCY(002612) Xinda Securities·2024-02-28 16:00Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The report highlights that the company is making further progress in its nationwide layout in the medical beauty sector, with the acquisition of Zhengzhou Jimei expected to enhance profitability and expand its market presence [9] - The medical beauty business is anticipated to continue its growth trajectory, supported by both external acquisitions and internal expansions, with projected net profits for 2023-2025 being CNY 2.37 billion, CNY 3.09 billion, and CNY 3.53 billion respectively [9] Financial Summary - Total revenue for the company is projected to grow from CNY 3,833 million in 2021 to CNY 6,416 million by 2025, with a compound annual growth rate (CAGR) of 12.3% [2] - The net profit attributable to the parent company is expected to rebound significantly from CNY 16 million in 2022 to CNY 353 million in 2025, reflecting a substantial growth rate of 14.3% [2] - The gross profit margin is forecasted to improve slightly from 56.7% in 2021 to 59.1% by 2025 [2] - The return on equity (ROE) is projected to increase from 0.6% in 2022 to 10.0% in 2025, indicating improved profitability [2] - The earnings per share (EPS) is expected to rise from CNY 0.04 in 2022 to CNY 0.80 in 2025, demonstrating strong earnings growth [2] Balance Sheet Overview - Total assets are expected to grow from CNY 7,110 million in 2022 to CNY 8,084 million by 2025, indicating a healthy asset base [3] - Current assets are projected to increase from CNY 2,032 million in 2022 to CNY 2,973 million in 2025, reflecting improved liquidity [3] - Total liabilities are anticipated to rise from CNY 3,492 million in 2022 to CNY 3,745 million by 2025, suggesting a manageable level of debt [3]