Proya(603605) 东吴证券·2024-09-24 06:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - Proya has become the largest domestic cosmetics brand in terms of revenue, with expectations to exceed 10 billion yuan in 2024. The company has successfully leveraged its brand strength, product quality, and operational capabilities to lead the industry [3][12] - The company has effectively captured two major industry growth phases: the rise of online sales and the focus on ingredient-driven flagship products, establishing a strong brand presence [3][30] - Proya's multi-brand strategy is expected to contribute significantly to revenue growth, with sub-brands like Cai Tang and Yue Fu Ni showing rapid growth potential [3][60] Summary by Sections Company Overview - Proya, established in 2003, focuses on mass-market cosmetics and has developed a multi-brand matrix including Proya, Cai Tang, Off&Relax, and Yue Fu Ni. The main brand Proya contributed over 80% of revenue in 2023, with online sales accounting for 93% of total sales [2][12][15] Financial Performance - In 2023, Proya achieved a revenue of 8.91 billion yuan and a net profit of 1.19 billion yuan, making it the top domestic cosmetics company by sales. The company is projected to continue its growth trajectory with revenues expected to reach 11.35 billion yuan in 2024, 13.92 billion yuan in 2025, and 16.93 billion yuan in 2026 [1][16][77] Growth Strategy - Proya's growth strategy includes a focus on flagship products and expanding its multi-brand portfolio. The company has successfully launched several key products, including the "Early C, Late A" skincare concept, which has gained significant market traction [3][48][49] - The company is also expanding into Southeast Asia, leveraging the growing demand for cosmetics in emerging markets [70][74] Market Position - Proya's market share in the domestic cosmetics sector is expected to increase significantly, with projections indicating potential revenue growth to 130-168 billion yuan in the medium term, reflecting a doubling of revenue from 2023 levels [3][66][69] Investment Outlook - The report forecasts continued strong growth for Proya, with net profits expected to grow at a compound annual growth rate (CAGR) of 28.6% from 2024 to 2026. The company's price-to-earnings (P/E) ratio is projected to decrease from 20 in 2024 to 13 in 2026, indicating a favorable valuation compared to peers [1][79][81]