Proya(SH:603605)2024-04-22 07:00Investment Rating - The report maintains a "Buy" rating for the company and raises the target price to RMB 129.1, indicating a potential upside of 24.6% from the current price of RMB 103.6 [2][3]. Core Insights - The company achieved record-high revenue and net profit growth in 2023, with revenue and net profit increasing by 39.5% and 46.1% year-on-year, respectively. This growth was driven by an increase in online sales, which accounted for 93.1% of total sales, and strong performance from both the main brand and second-tier brands [1][2]. - The brand matrix is becoming more comprehensive, supporting sustained high growth. The main brand accounted for 80.7% of revenue, with significant growth in key product lines. The second-tier brands are expected to see rapid revenue growth in 2024 [1][2]. - The company anticipates that online sales will continue to grow by 25%-30% in 2024, although the potential for further increases in online sales proportion is limited due to already high levels [1][2]. Financial Performance - In 2023, the company reported revenue of RMB 8,905 million and a net profit of RMB 1,194 million, with year-on-year growth rates of 39.5% and 46.1%, respectively [2][5]. - The company expects revenue to reach RMB 11,151 million in 2024, representing a year-on-year growth of 25.2% [2][7]. - The projected net profit for 2024 is RMB 1,516 million, with a year-on-year growth of 27.0% [2][7]. Brand Strategy - The company plans to enhance its main brand by introducing more key products while focusing on the development of second-tier brands. Specific strategies include targeting younger consumers and expanding product lines in the second-tier brands [1][2]. - The second-tier brands, including 彩棠 and 悦芙媞, are expected to grow faster than the main brand in terms of revenue contribution in 2024 [1][2]. Market Position - The company is positioned favorably within the cosmetics industry, with a strong online presence and a diversified brand portfolio that is expected to drive future growth [1][2].