LANCY(SZ:002612) GF SECURITIES·2024-02-29 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 25.84 CNY per share, indicating an expected performance that exceeds the market by more than 10% over the next 12 months [11][17][19]. Core Views - The acquisition of Zhengzhou Jimei is expected to enhance the company's medical beauty business and improve its financial condition. Zhengzhou Jimei, established in October 2020, has shown strong profitability potential, with projected net profits of 769.28 million CNY in 2023, recovering from a loss in 2022 [1][16]. - The company is on track for significant growth, with a forecasted net profit of 200-250 million CNY in 2023, representing a year-on-year increase of 835.99%-1069.99%. This growth is attributed to the recovery of both women's clothing and medical beauty businesses [1][2]. - The company has been actively acquiring medical beauty institutions, which is expected to enhance its scale and competitiveness in the industry. Recent acquisitions include stakes in Kunming Hancheng and Wuhan Wuzhou, all meeting their 2023 performance commitments [1][2]. Financial Summary - Revenue is projected to grow from 4,931 million CNY in 2023 to 6,374 million CNY by 2025, with growth rates of 27.1% and 13.9% respectively [2]. - The company's EBITDA is expected to increase from 595 million CNY in 2023 to 746 million CNY in 2025, reflecting a recovery in profitability [2]. - The forecasted earnings per share (EPS) for 2023-2025 are 0.53 CNY, 0.70 CNY, and 0.87 CNY respectively, indicating a positive trend in earnings [2][18].