Proya(603605)2024-04-19 05:31Investment Rating - The investment rating for the company is "Buy" with a target price of 154.60 CNY, maintaining the previous rating of "Buy" [1][12]. Core Views - The company has exceeded expectations in Q1 2024, driven by high growth from its multi-brand strategy. The revenue, net profit attributable to shareholders, and net profit excluding non-recurring items for Q1 2024 were 21.82 billion CNY, 3.03 billion CNY, and 2.92 billion CNY, respectively, representing year-on-year increases of 34.6%, 45.6%, and 47.5% [3][12]. - The company plans to distribute a cash dividend of 0.91 CNY per share, which is a significant increase from the previous year's payout ratio of around 30% to 45.98% in 2023 [3][12]. Summary by Sections Financial Performance - In Q1 2024, the company achieved a revenue of 21.82 billion CNY, with a net profit margin of 14.4%, an increase of 0.7 percentage points year-on-year [3][8]. - The company's gross margin improved to 69.9% in 2023, primarily due to an increase in direct online sales and the proportion of major products [8][12]. Revenue Breakdown - The company reported online and offline revenues of 82.74 billion CNY and 6.16 billion CNY in 2023, with year-on-year growth rates of 42.96% and 7.35%, respectively. Online sales accounted for over 93% of total revenue [4][12]. - The main brand, Proya, and its sub-brands achieved significant revenue growth, with Proya's revenue reaching 71.8 billion CNY, a year-on-year increase of 36% [6][12]. Future Outlook - The company has raised its EPS forecasts for 2024 and 2025 to 3.79 CNY (+0.27) and 4.68 CNY (+0.43), respectively, and introduced a new forecast for 2026 at 5.61 CNY [12][19]. - The company is expected to continue expanding its brand matrix and product offerings, with plans to launch a new hair care brand in 2024 [6][12].