Investment Rating - The investment rating for the company is "Buy-A" with a target price of 75.20 CNY for the next six months [5]. Core Views - The company experienced a temporary pressure on performance in 2023 but is expected to drive growth through a long-term multi-brand matrix strategy [4][9]. - The revenue growth rates for 2024 to 2026 are projected at 40.0%, 30.1%, and 21.5% respectively, with net profit growth rates of 40.3%, 42.3%, and 29.1% [9][10]. Financial Performance Summary - In 2023, the company achieved a total revenue of 55.22 billion CNY, representing a 10.14% increase year-on-year. However, the net profit decreased by 28.01% to 7.57 billion CNY [1]. - For Q4 2023, the revenue was 20.91 billion CNY, down 1.31% from the previous year, and net profit fell significantly by 66.74% to 1.78 billion CNY [1]. - In Q1 2024, the company reported a revenue of 10.97 billion CNY, an increase of 27.06%, and a net profit of 1.77 billion CNY, up 11.74% [1]. Margin and Expense Analysis - The net profit margin for 2023 was 13.70%, down 7.26 percentage points, while the gross margin was 73.90%, down 1.31 percentage points [2]. - The sales expense ratio increased to 47.26%, up 6.41 percentage points for the year [2]. - In Q1 2024, the net profit margin improved to 15.72%, although the gross margin decreased to 72.09% [2]. Product and Channel Performance - The color cosmetics category saw rapid growth, with a revenue increase of 217.28% to 1.69 billion CNY in 2023. Skincare products generated 48.70 billion CNY, up 6.86% [3]. - Offline channel revenue increased by 48.87% to 14.27 billion CNY, while online channel revenue slightly decreased by 0.37% [3]. Strategic Outlook - The company is focusing on building a multi-brand matrix, leveraging its expertise in functional cosmetics, with brands targeting specific market segments such as sensitive skin and children's skincare [4].
2023业绩短暂承压，长期多品牌矩阵驱动增长