LANCY(002612) 天风证券·2024-08-22 08:42Investment Rating - The report assigns a "Buy" rating for the company with a target price of 23.8 CNY, based on a current price of 12.6 CNY [2][4]. Core Insights - The company is positioned as a regional leader in the fashion and medical aesthetics sectors, leveraging a synergistic business model that includes high-end women's clothing, medical aesthetics, and green children's wear [2][11]. - The medical aesthetics market is expected to continue its growth trajectory, with the company focusing on both organic growth and acquisitions to expand its national footprint [3][4]. - The company has established a robust management and operational framework that supports its growth across all three business segments, with significant revenue contributions from medical aesthetics, which has surpassed women's clothing as the largest revenue source [4][20]. Summary by Sections Company Overview - The company operates in high-end women's fashion, medical aesthetics, and children's wear, with a multi-brand strategy that includes several well-known brands [11][12]. - The company has a stable shareholding structure, with significant ownership by the founders, ensuring long-term incentives for employees through multiple employee stock ownership plans [15][17]. Industry Overview - The medical aesthetics industry is experiencing significant growth, driven by increasing consumer awareness and demand, with the market size expanding from 99.3 billion CNY in 2017 to 189.1 billion CNY in 2021, reflecting a CAGR of 17.5% [29][30]. - The women's clothing market is also evolving, with a clear trend towards high-end and localized products, supported by a recovery in consumer foot traffic post-pandemic [2][20]. Medical Aesthetics Business - The company has adopted a dual approach of internal development and external acquisitions to enhance its medical aesthetics business, with a focus on expanding its brand presence across regions [3][4]. - The medical aesthetics segment has shown a remarkable growth rate of 51.27% year-on-year, indicating its increasing importance within the company's overall revenue structure [20][21]. Financial Performance - The company has demonstrated strong revenue growth across all business segments, with projected revenues of 5,827.78 million CNY in 2024, reflecting a growth rate of 13.26% [5][20]. - The gross profit margins for the three main business segments in 2023 were 60.17% for women's clothing, 53.15% for medical aesthetics, and 60.66% for children's wear, indicating a healthy profitability profile [25][26].