Marubi(603983) 东吴证券·2024-09-03 11:30Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage of the stock [1][3][23]. Core Insights - The company has shown significant improvement in its brand transformation and multi-brand growth potential, particularly with its main brand Marubi and the emerging brand PL Lover [1][3][21]. - The company has successfully adjusted its strategy, leading to a recovery in performance, with revenue and net profit showing strong growth in recent years [2][3][21]. - The online channel transformation has significantly increased the company's online revenue share, reflecting a successful shift in sales strategy [2][3][18]. Summary by Sections Company Overview - Marubi Co., Ltd. was established in 2002 and focuses on eye care and anti-aging products, with brands including Marubi and PL Lover [1][9][10]. - The company has adapted to market changes by simplifying its product range and enhancing brand positioning, leading to notable sales growth [9][10]. Financial Performance - The company experienced a compound annual growth rate (CAGR) of 15% in revenue and 28% in net profit from 2017 to 2019, but faced challenges during 2020-2022 due to the pandemic and strategic adjustments [2][12]. - In 2023, the company achieved revenue of 2.226 billion yuan (up 29% year-on-year) and a net profit of 259 million yuan (up 49%) [2][12][21]. - The first half of 2024 saw revenue of 1.352 billion yuan (up 27.65%) and a net profit of 177 million yuan (up 35.09%) [2][12][21]. Brand Performance - The main brand Marubi has returned to growth after a period of decline, with a revenue of 940 million yuan in the first half of 2024 (up 25.87%) [2][12][21]. - PL Lover has rapidly grown since its transformation in 2021, achieving a CAGR of 312.13% from 2021 to 2023, with first-half 2024 revenue of 417 million yuan (up 35.83%) [2][12][21]. Channel Strategy - The company has significantly increased its online sales, with a CAGR of 125.35% for online revenue from 2020 to 2023, leading to an online revenue share of 84.3% in the first half of 2024 [2][18][21]. Profitability - The company's gross margin has improved, reaching 70.69% in 2023 and 74.68% in the first half of 2024 [3][21]. - The net profit margin has also shown recovery, with a net profit margin of 13.09% in the first half of 2024, up 6.08 percentage points year-on-year [3][21]. Future Projections - The report forecasts net profits of 350 million yuan, 450 million yuan, and 560 million yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 24, 19, and 15 [3][21][25].