ELLASSAY(603808) 东方证券·2024-05-07 10:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 8.85 yuan based on a 15x PE valuation for 2024 [22][26]. Core Insights - The company achieved a revenue of 2.92 billion yuan in 2023, representing a year-on-year growth of 21.7%, and a net profit attributable to shareholders of 106 million yuan, a significant increase of 417% [1]. - The company plans to distribute dividends of 87 million yuan, with a dividend payout ratio of approximately 82.6%, which is an increase compared to the previous year [1]. - Domestic business performance has exceeded pre-pandemic levels, while overseas operations face challenges due to macroeconomic factors such as high inflation and geopolitical issues [1][10]. Financial Performance Summary - Revenue and net profit for Q1 2024 showed a year-on-year increase of 12.5% and a decline of 38.3%, respectively, primarily due to pressures on the IRO brand's overseas business [1]. - The company's gross margin improved to 67.8% in 2023, up 4 percentage points from the previous year, indicating enhanced profitability [1][4]. - The company’s online and offline sales channels grew by 12% and 23.5%, respectively, in 2023, with direct sales and distribution channels increasing by 23.9% and 12.2% [1]. Brand Performance - ELLASSAY brand revenue grew by 20.7% in 2023, with online sales surpassing 700 million yuan [1]. - IRO brand revenue increased by 10.5% in 2023, with a notable 58% growth in the Chinese market despite challenges abroad [1]. - LAUREL brand saw a revenue increase of 47.2%, with online sales growing by 63% [1]. - SP brand revenue surged by 49.9%, continuing its high growth trajectory [1]. Earnings Forecast - The report projects earnings per share (EPS) of 0.59, 0.78, and 0.99 yuan for 2024, 2025, and 2026, respectively [22][26].