Investment Rating - The investment rating for the company is "Outperform the Market" [6][4][19] Core Views - The company achieved a revenue of 10.778 billion with a year-on-year growth of 21.04% and a net profit of 1.552 billion, reflecting a year-on-year increase of 30% in 2024. The profit growth is attributed to cost reduction and efficiency improvements, solidifying its position as a leading domestic beauty brand [1][7][4] - The company is leveraging its main brand's single product strategy and the rapid rise of emerging brands to build a strong brand matrix, gradually advancing towards becoming a beauty group [4][19] - The company is expected to increase its marketing investments due to the intensified product launches in the second quarter of this year and the continuous incubation of new brands [4][19] Revenue and Profitability - In 2024, the main brand Proya generated revenue of 8.581 billion, growing by 19.55% year-on-year, while the online channel revenue reached 10.234 billion, with a year-on-year increase of 23.68% [2][9] - The gross profit margin for 2024 was 71.39%, an increase of 1.46 percentage points year-on-year, driven by product structure optimization and reduced costs [12][3] - The company plans to distribute a cash dividend of 11.90 per 10 shares, which accounts for 40.07% of the net profit [7][1] Financial Forecasts - The company forecasts revenues of 12.428 billion, 13.993 billion, and 15.449 billion for 2025, 2026, and 2027 respectively, with corresponding net profits of 1.869 billion, 2.144 billion, and 2.388 billion [5][21] - The projected PE ratios for 2025, 2026, and 2027 are 18, 16, and 14 respectively [4][21] Brand and Channel Performance - The emerging brands OR and Original Color Pot achieved revenue growth rates of 71.14% and 138.36% respectively, enhancing the overall brand matrix competitiveness [2][8] - The online direct sales and distribution channels saw revenue increases of 20.35% and 38.40% respectively, while offline channel revenue decreased by 13.63% [9][2]

Core Insights - Proya has become the first Chinese beauty brand to achieve over 10 billion RMB in revenue, with 2024 revenue reaching 10.778 billion RMB, a year-on-year increase of 21.04% [1][4][5] - The net profit for 2024 was 1.552 billion RMB, reflecting a 30% year-on-year growth [1][4] - Proya's main brand revenue reached 8.581 billion RMB, marking a 19.55% increase, making it the first domestic beauty brand to surpass 8.5 billion RMB [5][7] Revenue Breakdown - Proya's revenue from the "Cai Tang" brand reached 1.191 billion RMB in 2024, up 19.04%, contributing to the company's second growth curve [7] - Online sales accounted for 10.234 billion RMB, a 23.68% increase, representing 95.06% of total revenue, while offline sales decreased to 532 million RMB, down 13.63% [5][8] Financial Performance - The gross margin for Proya's main business increased to 71.41%, up 1.41 percentage points year-on-year, with online gross margin at 72.01% and offline at 59.89% [8] - Sales expense ratio rose to 47.88%, an increase of 3.27 percentage points, attributed to higher promotional expenses [8] R&D and Management Changes - R&D expenses for 2024 were 210 million RMB, a 21.21% increase, accounting for 1.95% of total revenue [9] - The company underwent a management change with Hou Yamen taking over as General Manager from co-founder Fang Yuyou, who remains as a consultant [10] Shareholder Returns - Proya plans to distribute a cash dividend of 11.90 RMB per 10 shares, totaling approximately 469 million RMB, which represents 40.07% of the net profit for the year [11][12]