Proya(603605) 光大证券·2024-08-28 09:12Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has demonstrated strong revenue growth, with a 37.9% year-on-year increase in revenue and a 40.5% increase in net profit attributable to shareholders for the first half of 2024 [1][2] - The main brand, Proya, continues to implement a big product strategy, with over 57% of its revenue coming from core products [2] - The company is expected to maintain its growth trajectory, with a slight upward adjustment in profit forecasts for 2024-2026 [2] Summary by Sections Financial Performance - In the first half of 2024, the company achieved revenue of 5.0 billion yuan, a year-on-year increase of 37.9%, and a net profit of 700 million yuan, up 40.5% [1] - The net profit margin increased by 0.3 percentage points to 14.0% despite a decline in gross margin and an increase in expense ratio [1] - Quarterly performance showed revenue growth of 34.6% in Q1 and 40.6% in Q2, with net profit growth of 45.6% and 36.8% respectively [1] Revenue Breakdown - Online and offline revenue grew by 40.5% and 8.9% respectively, with online sales accounting for 93.7% of total revenue [1] - The main brand Proya generated 3.98 billion yuan in revenue, representing 79.7% of total revenue, while the makeup brand Caitang achieved 580 million yuan, accounting for 11.7% [1][2] Brand and Product Strategy - Proya is focusing on upgrading its core products and expanding its product lines, including new series targeting specific skin types [2] - The sub-brand Caitang is enhancing its product matrix in the face makeup category, while the hair care brand OR is increasing its market share with new products [2] Future Outlook - The company is expected to continue its multi-brand strategy and improve its market share while controlling costs [2] - Earnings per share (EPS) forecasts for 2024, 2025, and 2026 are adjusted to 3.89 yuan, 4.78 yuan, and 5.66 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 22, 18, and 15 [2][3]