Investment Rating - The report assigns a "Stronger than Market" rating to the company, indicating an expected outperformance relative to the benchmark index by more than 10% over the next 12 months [1][9] Core Views - The company's 2023 revenue reached RMB 5.52 billion, a 10.1% YoY increase, while net profit attributable to the parent company declined by 28% to RMB 757 million due to underperforming online brand promotions [3] - In Q1 2024, the company achieved RMB 1.1 billion in revenue, a 27.1% YoY growth, with net profit attributable to the parent company increasing by 11.7% to RMB 180 million, signaling a recovery trend [3] - The company is expanding its ecosystem through acquisitions, such as the recent purchase of Yuejiang Investment, which added the "Za" and "PURE&MILD" brands to its portfolio, enhancing its mass-market skincare and cosmetics offerings [3] - The company is actively pursuing international expansion, establishing a Southeast Asia headquarters in Bangkok, Thailand, and planning to open KA beauty chain stores and local medical aesthetic clinics, while also leveraging mainstream e-commerce platforms and social media for localized marketing [3] Financial Projections - Revenue is projected to grow from RMB 6.9 billion in 2024 to RMB 10.4 billion in 2026, with a CAGR of 22.7% [2][4] - Net profit attributable to the parent company is expected to increase from RMB 995 million in 2024 to RMB 1.45 billion in 2026, with a CAGR of 20.2% [2][4] - EPS is forecasted to rise from RMB 2.35 in 2024 to RMB 3.43 in 2026, with a CAGR of 20.2% [2] - The company's ROAE is expected to improve from 15.9% in 2024 to 18.4% in 2026, reflecting enhanced profitability [2] Valuation Metrics - The current stock price implies a 2024 PE ratio of 25x, which is considered reasonable given the company's growth prospects [4] - EV/EBITDA is projected to decline from 16.9x in 2024 to 11.2x in 2026, indicating improving valuation attractiveness [2] - The net dividend yield is expected to increase from 1.4% in 2024 to 2.0% in 2026, reflecting a commitment to shareholder returns [2] Strategic Initiatives - The company is focusing on regional leadership, complementary positioning, channel penetration, and technological innovation to achieve comprehensive coverage across geographies, product categories, and consumer segments [3] - The international expansion strategy includes building local operational teams, establishing offline channels, and leveraging digital platforms for marketing, aiming to create a strong presence in the Southeast Asian market [3]
业绩小幅承压，出海业务值得期待