LANCY(SZ:002612) Minsheng Securities·2024-04-23 11:30Investment Rating - The report maintains a "Recommended" rating for the company [5][8]. Core Viewpoints - In 2023, the company achieved a revenue of 5.145 billion, representing a year-on-year increase of 24.41%, with significant contributions from women's fashion and medical beauty sectors [3][4]. - The company's net profit attributable to shareholders reached 225 million, a remarkable year-on-year growth of 953.37%, while the net profit after deducting non-recurring items was 196 million, up 16845.56% [3][4]. - The company has a strong focus on three main business segments: women's fashion, medical beauty, and green baby products, with ongoing efforts in both organic growth and acquisitions [5]. Revenue and Profitability - The revenue breakdown for 2023 shows women's fashion generating 1.984 billion (up 29.27%), green baby products at 975 million (up 11.13%), and medical beauty at 2.127 billion (up 27.75%) [3][4]. - The gross margin for 2023 was 57.44%, with a slight decrease of 0.07 percentage points year-on-year, while the net profit margin improved to 4.90%, an increase of 4.01 percentage points [4]. Business Expansion and Strategy - The company has expanded its medical beauty business, acquiring control of Zhengzhou Jimei and increasing the number of medical beauty institutions to 39 [5]. - The women's fashion segment has 599 stores, with online sales reaching 739 million, a year-on-year increase of 45.3%, indicating a successful integration of online and offline channels [5]. Financial Forecast - The company is projected to achieve revenues of 5.993 billion, 6.833 billion, and 7.586 billion in 2024, 2025, and 2026, respectively, with corresponding net profits of 309 million, 380 million, and 443 million [7][12]. - The expected price-to-earnings (PE) ratios for the next three years are 23, 19, and 16, respectively [5][7].