SYG(300740) 长江证券·2024-07-29 06:01Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for future performance [79]. Core Insights - The company has established a strong operational foundation through its e-commerce brands and agency business, and recent acquisitions have filled gaps in the high-end price segment. The growth of the niche high-end brand EviDenS and the revitalization of the main brand Yufei will drive company growth. In the long term, the dual business model of proprietary and agency brands is expected to continue promoting brand matrix and group development [71][84]. Summary by Sections Company Overview - The company, established in 2012, began with the Yufei brand and has developed a robust brand operation capability, achieving parallel development of its proprietary and agency brand systems [74]. Brand Development - The acquisition of EviDenS in 2022 has filled the gap in the high-end price segment, improving the profit structure through higher value-added business [82]. The brand emphasizes its unique story and product differentiation, targeting high-end exclusive offline channels [82]. Market Positioning - EviDenS targets a customer base of refined mothers and middle-class professionals in new first-tier and second- and third-tier cities, with a strong purchasing power. The brand's online sales have significantly increased, with over 95% of sales coming from live-streaming on Douyin [45][47]. Financial Performance - The company has seen a compound annual revenue growth rate of -5% from 2022 to 2023, but its profitability has improved significantly, with a 4.1 percentage point increase in net profit margin in 2023 [74]. Brand Matrix - The proprietary brand matrix is gradually being perfected, with EviDenS and Yufei leading the way. Other proprietary brands like Dazhuidi and Xiaomihu are also showing steady growth, while the agency business is expanding with brands like Meisidike and Nishangxi [75][58]. Future Outlook - The company is expected to continue expanding its high-end product lines and enhancing its brand matrix. The projected earnings per share (EPS) for 2024-2026 are estimated to be 1.01, 1.16, and 1.38 yuan, respectively [84].