Core Viewpoint - The company reported a revenue of 38.1 billion yuan in Q4 2024, an increase of 4.28%, and a net profit attributable to shareholders of 5.5 billion yuan, up 23.42%. For Q1 2025, revenue reached 23.6 billion yuan, growing by 8.13%, with a net profit of 3.9 billion yuan, up 28.9%, exceeding expectations for the quarter [1][2][3] Financial Performance - In 2024, the company achieved a total revenue of 107.8 billion yuan, representing a year-on-year growth of 21.04%, and a net profit of 15.5 billion yuan, up 30.0% [2] - The gross profit margin for Q4 2024 was 73.8%, a significant increase of 5.65 percentage points, while Q1 2025 saw a gross profit margin of 72.78%, up 2.67 percentage points [4] - The company plans to distribute a cash dividend of 11.90 yuan per 10 shares, totaling approximately 468.9 million yuan, which accounts for 40.07% of the net profit attributable to shareholders for 2024 [3] Operational Efficiency - The company has made significant adjustments to costs and promotional efficiency, leading to a recovery in gross profit margin after a decline in Q4 2023. The gross profit margin turned positive year-on-year starting from Q4 2024, indicating strong organizational transformation efficiency [1][4] - The management expense ratio for Q4 2024 was 2.44%, down 2.17 percentage points, and for Q1 2025, it was 4.22%, down 0.24 percentage points, contributing to the improvement in profit margins [4] Online and Brand Performance - In 2024, online revenue reached 102.34 billion yuan, a year-on-year increase of 23.68%, accounting for 95.06% of total revenue. Online direct sales contributed 81.22 billion yuan (+20.35%), while online distribution revenue was 21.12 billion yuan (+38.40%) [4] - The main brand, Proya, generated 85.81 billion yuan in revenue, growing by 19.55%, while the second-tier brand, OR, saw a remarkable increase of 71.14% to 3.68 billion yuan [5] Product Development and Marketing - The company has launched several new products, including advanced sunscreen and makeup products, and plans to expand into high-end anti-aging markets with upgraded product lines [6][7] - The marketing strategy has diversified, with new endorsements and promotional activities planned for Q2, which are expected to accelerate revenue growth [7] Future Outlook - The company anticipates achieving net profits of 18.36 billion yuan, 21.46 billion yuan, and 24.55 billion yuan for the years 2025 to 2027, corresponding to price-to-earnings ratios of 18, 16, and 14 times, respectively [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance in 2024 and Q1 2025 exceeded expectations, showcasing its leading position in the cosmetics industry [9] - Revenue for 2024 is projected to reach 10.778 billion yuan, representing a year-on-year growth of 21.04%, while net profit is expected to be 1.552 billion yuan, up 30% [9] - The main brand continues to grow, with online sales maintaining high growth rates [9] - The gross margin has reached new highs, driven by improved sales expense ratios and better management of sub-brands [9] - The company aims to enter the top ten global cosmetics brands within ten years, indicating a strong long-term growth strategy [9] Financial Summary - Total revenue (in million yuan) is forecasted as follows: 2023A: 8,905; 2024A: 10,778; 2025E: 12,750; 2026E: 14,484; 2027E: 16,294 [1][10] - Net profit (in million yuan) is projected as follows: 2023A: 1,194; 2024A: 1,552; 2025E: 1,858; 2026E: 2,160; 2027E: 2,480 [1][10] - The latest diluted EPS is expected to be 3.92 yuan for 2024, increasing to 6.26 yuan by 2027 [1][10] - The company’s gross margin is expected to be 71.39% in 2024, improving to 73.60% by 2027 [10] - The return on equity (ROE) is projected to decline from 28.73% in 2024 to 21.20% in 2027, reflecting a long-term growth strategy [10]

Core Insights - The company, Proya Cosmetics, has become the first domestic beauty brand in China to achieve over 10 billion yuan in revenue, reporting 10.778 billion yuan in 2024, a year-on-year increase of 21.04% [1] - The net profit attributable to shareholders reached 1.552 billion yuan, marking a significant year-on-year growth of 30% [1] - The company has announced a cash dividend plan, proposing a distribution of 11.9 yuan per 10 shares, totaling 469 million yuan, which represents 40.07% of the net profit [1] Financial Performance - In Q1 2025, the company continued its growth trajectory with revenue of 2.359 billion yuan, up 8.13% year-on-year, and a net profit of 390 million yuan, reflecting a 28.87% increase [1] - The gross margin and net margin improved to 71.39% and 14.71%, respectively, achieving record highs in core operational metrics [1] Strategic Initiatives - The company's growth is driven by three strategic pillars: technology-driven products, multi-brand synergy, and integrated channel development [2] - The main brand, Proya, contributed 8.581 billion yuan in revenue, accounting for nearly 80% of total sales, demonstrating strong growth resilience [2] Brand and Product Development - The company has implemented a "big product strategy," enhancing its Ruby and Source series while launching new products like whitening optical and oil-control solutions [2] - Proya's e-commerce performance is notable, with its Tmall flagship store ranking first in the beauty category, followed by Douyin and JD.com [2] Channel Expansion - Proya is enhancing its online and offline collaboration, leveraging live e-commerce and content marketing for growth, while also expanding into new department stores and shopping centers [4] - The multi-brand matrix strategy has led to a significant increase in sub-brand revenues, surpassing 2 billion yuan for the first time, accounting for 20.31% of total revenue [4] Research and Development - The company has increased its R&D investment by 21.21% in 2024, with a compound annual growth rate of over 20% in the past three years [7] - Proya has established a comprehensive R&D ecosystem, holding 123 national invention patents and participating in the formulation of various industry standards [7] Digital Transformation - Proya has completed a three-year digital transformation plan, enhancing its marketing, R&D, and supply chain capabilities [8] - The company aims to rank among the top ten global cosmetics companies in the next decade, focusing on technological innovation, brand development, and digital transformation [8]