万联证券万联晨会

Core Insights - The report highlights the overall recovery of the domestic economy and the continuous release of consumer demand, with the domestic stock market indices and valuations currently at low points after a comprehensive adjustment [36][34][19] - The report emphasizes the importance of rational consumption and the structural coexistence of consumption upgrades and downgrades in the current market environment [36][34] Market Review - The A-share market experienced a volume contraction with the Shanghai Composite Index down by 0.29% to 3,065.26 points, and the Shenzhen Component Index down by 1.04% to 9,279.46 points [15][18] - The total trading volume in the A-share market was approximately 860 billion RMB, with northbound funds net selling 6.49 billion RMB [15][18] - The report notes that over 3,000 stocks in the A-share market declined, with the oil and petrochemical, and defense industries leading gains, while electronics and power equipment sectors lagged [15][18] Industry Insights - Gold and Jewelry: The dual attributes of gold as an investment and consumption product are resonating, with leading companies like Chow Tai Fook and Lao Feng Xiang expanding their market share through category diversification [21][36] - Cosmetics: The demand for cosmetics is gradually recovering, with domestic brands outperforming international ones. The report suggests focusing on companies with strong R&D capabilities and product quality [21][36] - Liquor: The report anticipates a recovery in business demand in 2024, with high-end liquor companies expected to see valuation recovery as inventory clears and consumer confidence improves [21][36] - Beer: The decline in raw material prices is expected to enhance profitability, with a continued trend towards premiumization in the beer industry [21][36] - Dairy Products: The report indicates that the decline in raw milk prices will relieve cost pressures, and the diversification of consumption scenarios presents growth opportunities [21][36] - Condiments: The profitability of soy sauce companies is expected to improve due to lower soybean prices, with a growing consumer demand for healthy condiments [21][36] - Tourism: The report highlights a recovery in tourism demand supported by policy changes, with new opportunities arising for emerging tourist cities [21][36] - Hotels: The hotel industry is seeing significant improvements in operating performance, with a focus on mid-range expansion and high-end brand development [21][36] Company-Specific Insights - Proya: The company reported a revenue of 8.905 billion RMB in 2023, a year-on-year increase of 39.45%, with a net profit of 1.194 billion RMB, reflecting a growth of 46.06% [39][23] - The main brand Proya has upgraded its core products significantly, with a focus on anti-aging lines and a new high-end product line [39][23] - The online sales channel has shown robust growth, accounting for 93.07% of total revenue, with significant performance during major sales events [39][23] - The report projects net profits for Proya to reach 1.599 billion RMB, 1.970 billion RMB, and 2.407 billion RMB for 2024, 2025, and 2026 respectively, maintaining a "buy" rating [23][39]