Jinwu Financial News | According to Orient Securities Research Report, Shangmei Shares (02145) issued the 2023 annual results announcement, achieving operating income of 4.19 billion yuan, up 56.6% year on year, and net profit to mother of 460 million, up 213.5% year on year. Among them, 23H2 revenue and net profit to mother grew by 84.3% and 340% respectively.
According to the bank, in the future, the company will drive business growth through six competitive areas and six major sector plans. The six major competitive aspects include organization, R&D, artificial intelligence, marketing, intelligent production leadership, and common development. It will build six major segments of popular skin care, personal care, maternal and child products, skin care and beauty, makeup, high-end skin care and equipment, and expand its business boundaries in the cosmetics industry. We believe that the company has a forward-looking layout in the field of laundry, rich brand reserves, and great future opportunities. The company is preparing to launch the high-end care brand 632. In addition, TAZU, a high-end anti-aging brand developed in collaboration with scientist Yamada Kosaku, is also being prepared to further improve the company's multi-brand and multi-category layout. The bank believes that the company's solid international R&D foundation and flexible and efficient organizational and incentive mechanisms are conducive to its long-term sustainable development.
The bank further stated that according to the results announcement, the profit forecast is estimated to be 1.16, 2.06, and 2.62 yuan per share for 2023-2025 (the original 2023-2025 was 0.86, 1.11 and 1.39 yuan), respectively. Referring to comparable companies, the 2024 PE valuation was given 23 times. The target price was HK$51.15 (1 RMB = HK$1.0819), maintaining the “incremental” rating.