Guohai Securities·2024-04-19 07:02Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expanding its product matrix by entering the sunscreen market, which is expected to drive sales and enhance its brand value [3][4] - The demand for sunscreen clothing is increasing, with the Chinese sunscreen clothing market projected to reach 95.8 billion RMB by 2026, growing at a CAGR of approximately 9.6% from 2024 to 2026 [4] - The company has launched a capsule collection of sunscreen clothing in collaboration with French designer Christelle Kocher, marking the beginning of a new era for its sunscreen products [3][4] Summary by Sections Market Performance - As of April 18, 2024, the company's stock price is 4.08 HKD, with a market capitalization of 44,557.85 million HKD [3] - The company's performance relative to the Hang Seng Index shows a decline of 2.4% over the past month, but a gain of 17.9% over the past three months [3] Financial Projections - Revenue projections for FY2024, FY2025, and FY2026 are 216.2 billion RMB, 250.4 billion RMB, and 287.9 billion RMB, respectively, with year-on-year growth rates of 28.9%, 15.8%, and 15.0% [4][7] - The projected net profit for FY2024, FY2025, and FY2026 is 28.9 billion RMB, 33.8 billion RMB, and 39.0 billion RMB, reflecting growth rates of 35.0%, 16.9%, and 15.6% [4][7] Product Development - The company has been actively developing sunscreen clothing since 2020, addressing consumer needs through innovative fabric and technology [3][4] - The introduction of the "sunscreen 2.0 era" aims to combine fashion with functionality, enhancing the appeal of its products [3][4] Market Trends - The increasing awareness of sun protection among consumers is driving the growth of the sunscreen clothing market, with lightweight outdoor activity participants rising from 67.1% in 2023 to 80.9% in March 2024 [4]