Zhitong Financial APP learned that CICC released a research report that maintained Oshudan's 00973 "outperform industry" rating, with FY24 and FY25 revenue and net profit forecasts unchanged, with a target price of HK $28. The company's 2QFY24 revenue rose 17.1 per cent year-on-year to 570 million euros (25.3 per cent at the fixed exchange rate CER), slightly below the bank's expectations.

According to the report, Oshudan management said at the results meeting: 1) October sales trend: LeP revenue fell slightly year-on-year, ELEMIS growth was positive (UK + 10%, US + 20%, China + 20% (strong double digits), 2QFY24 revenue not included due to shipping delays will be recorded in October). The growth rate of SDJ slows down due to the high base of 3QFY23. Year-on-year income growth in China and Japan was positive, but slightly negative in the US, UK and France. 2) Chinese market: an additional marketing budget of 56 million euros drives the growth of online channel traffic and hedges against the conservative performance of offline channels. Singles Day will focus on star products in the body care and hand care categories, mainly promoting large gram weight items (more affordable per milliliter). The company will continue to cooperate with KOL in live streaming. 3) Tourism retail: 1HFY24 revenue increased by 10-15% year-on-year, accounting for 10-15% of the company's revenue. While the Asian travel retail business faces challenges, EMEA and the Americas benefit from SDJ's entry into the channel, showing a positive trend, so the company expects FY24's overall tourism retail revenue to increase.

In addition, 4) LeP maintains a growth trend in China, Southeast Asia and the United States, but fluctuates in Europe. The company plans to increase additional marketing investment in Europe. 5) ELEMIS will continue its high-end strategy. 6) SDJ: growth comes from market expansion outside the United States (e.g., China, Japan), channel expansion (e.g. travel retail) and category expansion (e.g. sunscreen, hair care). Before the acquisition, half of SDJ's revenue came from Bum Bum Cream, but now fragrance spray is the number one category. 7) after observing the 3QFY24 holiday sales performance, the management will update the FY24 financial guidelines (the current guidance is 17% year-on-year growth at the fixed exchange rate).