Proya(SH:603605) Guoyuan Securities·2024-04-22 01:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% compared to the Shanghai Composite Index within the next six months [4][14]. Core Viewpoints - The company has demonstrated impressive growth in 2023, with a revenue of 8.905 billion yuan, a year-on-year increase of 39.45%, and a net profit of 1.194 billion yuan, up 46.06% year-on-year. The first quarter of 2024 continues this trend with a revenue of 2.182 billion yuan, a 34.56% increase year-on-year, and a net profit of 303 million yuan, up 45.58% year-on-year [3][4]. - The main brand's strong performance is attributed to a successful big product strategy, with significant contributions from sub-brands. The company is well-positioned to build a comprehensive domestic beauty ecosystem [4][3]. Summary by Sections Financial Performance - In 2023, the company achieved a gross margin of 69.93%, slightly up by 0.23 percentage points year-on-year, and a net margin of 13.82%, an increase of 0.8 percentage points year-on-year. The total expense ratio was 51.01%, up 0.89 percentage points year-on-year, with sales expenses rising to 44.61% [3][4]. - The company expects earnings per share (EPS) to be 3.81 yuan in 2024, 4.69 yuan in 2025, and 5.69 yuan in 2026, with corresponding price-to-earnings (PE) ratios of 27, 22, and 18 times respectively [4][9]. Brand and Product Strategy - The main brand generated sales of 7.177 billion yuan in 2023, a 36.36% increase, accounting for 80.73% of total sales. The company has focused on upgrading core products and launching new high-end product lines [3][4]. - The sub-brand 彩棠 saw a remarkable sales increase of 75.06% to 1.001 billion yuan, with a strong focus on color cosmetics and the introduction of new products in the base makeup category [3][4]. Channel Performance - Online sales channels grew by 42.96% to 8.274 billion yuan, representing 93.07% of total sales. The company has optimized its product structure on platforms like Tmall and Douyin, enhancing its big product matrix strategy [3][4]. - Offline sales increased by 7.35% to 616 million yuan, with a focus on optimizing store structures and expanding new types of mall partnerships [3][4].