LANCY(002612) Great Wall Securities·2024-05-08 23:32Investment Rating - The report maintains a "Hold" rating for the company, with an expected stock price increase of 5% to 15% relative to the industry index over the next six months [17]. Core Insights - The company achieved a revenue of 5.145 billion yuan in 2023, representing a year-on-year growth of 24.41%, and a net profit attributable to shareholders of 225 million yuan, a significant increase of 953.37% [2][19]. - The company's medical beauty segment is expanding rapidly, with an increase of 8 new stores, bringing the total to 38, and aims to become a leading player in the industry through both organic growth and acquisitions [8][23]. - The women's clothing segment saw a revenue increase of 29.27% in 2023, while the medical beauty and children's wear segments grew by 27.75% and 11.13%, respectively [20][23]. Financial Performance - The gross profit margin for 2023 was 57.44%, with a net profit margin of 4.90%, reflecting a significant improvement of 4.01 percentage points year-on-year [4]. - The company reported a basic earnings per share (EPS) of 0.51 yuan for 2023, up from 0.05 yuan in the previous year [2][19]. - The report forecasts EPS for 2024, 2025, and 2026 to be 0.72 yuan, 0.85 yuan, and 0.94 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 22.7X, 19.0X, and 17.3X [23]. Business Segments - The women's clothing business is expected to accelerate growth due to enhanced brand image and channel optimization, while the medical beauty segment is identified as a key growth driver [23]. - The company has established a multi-layered fashion brand ecosystem that includes women's fashion, medical beauty, and children's wear, aiming for collaborative development across these sectors [23].