Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 48.84, indicating a potential upside of 25.1% from the current price of HKD 39.05 [1]. Core Insights - The company has shown strong online sales performance, particularly during promotional events, with significant growth in its key brands, especially 可复美 and 可丽金 [1][2]. - The report highlights that the online sales growth is expected to continue, driven by the company's strong product offerings and market positioning [1]. - The financial projections indicate a steady increase in revenue and net profit over the next few years, with sales expected to reach RMB 4,358 million in FY24E and RMB 5,590 million in FY25E [15][16]. Sales Performance - In February 2024, the online sales of 可复美 reached RMB 2,143.6 million, showing a year-on-year growth of 51.9% [1]. - The brand ranked seventh in terms of GMV among beauty brands during a recent promotional event, achieving sales of RMB 2,385.69 million [2]. - The report notes that the sales growth for 可丽金 was robust, with a year-on-year increase of 463.9% in February 2024 [1]. Financial Projections - The company is projected to achieve a net profit of RMB 1,607 million in FY24E, with a growth rate of 23.1% [15][16]. - The gross margin is expected to remain stable around 83.8% for FY24E [15]. - The report anticipates a steady increase in free cash flow, reaching RMB 1,364 million in FY24E [13]. Market Positioning - The company is well-positioned in the beauty and skincare market, with its products performing strongly on major e-commerce platforms like Tmall and Douyin [1][3]. - The report emphasizes the importance of the company's innovative product launches and marketing strategies in maintaining its competitive edge [1]. Valuation Metrics - The DCF model values the company's equity at RMB 43,735 million, translating to a per-share value of HKD 48.84 [13][14]. - The report indicates a favorable valuation with a P/E ratio projected to decrease from 41.4 in FY23E to 21.8 in FY26E, suggesting potential for growth [19].
线上销售数据跟踪：春节基数影响2月线上销售增速，3.8大促表现亮眼