Investment Rating - The investment rating for the company is "Add" [4] Core Views - The company has maintained impressive growth in net profit, achieving a revenue of 10.778 billion yuan in 2024, a year-on-year increase of 21.04%, and a net profit of 1.552 billion yuan, up 30.00% year-on-year [1][12] - The main brand, Proya, has launched new product lines targeting oily skin and whitening, while multiple sub-brands have also seen growth [2] - Online sales channels have continued to grow rapidly, with online revenue reaching 10.234 billion yuan in 2024, a year-on-year increase of 23.68%, accounting for 95.06% of total revenue [10] Summary by Sections Financial Performance - In 2024, the company reported a net profit of 1.552 billion yuan, with a net profit margin of 14.71%, an increase of 0.89 percentage points year-on-year [11] - The company’s gross margin improved to 71.39%, up 1.46 percentage points year-on-year, driven by lower freight rates and higher average transaction values [11] - The company expects net profits of 1.853 billion yuan, 2.171 billion yuan, and 2.516 billion yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 18, 15, and 13 times [12] Product Development - Proya has focused on upgrading its core products, introducing unique ingredients such as "XVII type recombinant collagen" in its new product lines [2] - The new product lines include the "净源系列" for oily skin and the "光学系列" for whitening, contributing to the brand's revenue growth [2] Market Position - Proya's main brand generated 8.581 billion yuan in revenue in 2024, accounting for 79.69% of total revenue, with strong performance on platforms like Tmall [2] - The sub-brand 彩棠 achieved revenue of 1.191 billion yuan, while OR and 悦芙媞 also reported significant growth in their respective markets [2] Sales Channels - Online sales accounted for a significant portion of revenue, with direct and distribution channels contributing 8.122 billion yuan and 2.112 billion yuan respectively [10] - The company is optimizing its offline store structure, although offline revenue decreased by 13.63% to 532 million yuan in 2024 [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]