23 years of impressive results, increased profit margins
In '23, the company achieved revenue of 2,226 million yuan/yoy of 28.52%, with net profit of 259 million yuan/yoy 48.93%, of which 23Q4 revenue was 689 million yuan/yoy 17.2%, a net profit margin of 14.96%, which was significantly optimized compared to 23Q3; 24Q1 revenue yoy 38.7%, net profit margin was 16.73%. While Yoy's revenue increased by 21.5 pcts month-on-month compared to 23Q4, profit margin continued to increase by 1.77pct. The company actively promotes the transformation of online channels, resolves channel division and large single product strategies, continuously optimizes the product structure, reduces costs and increases efficiency, and drives an increase in revenue and profit margins. Considering that the company is expected to maintain rapid growth in the future, while introducing a 26-year forecast, the 24-26 EPS is expected to be 1.13/1.50/1.71 yuan (the previous 24-25 EPS is expected to be 1.13/1.50 yuan), which is comparable to the company's 24-25 consistent profit forecast PE 26 times. As the company's online channel transformation results continue to show, the company was given 30 times PE in 24 years, with a target price of 33.90 yuan (previous value of 33.90 yuan), maintaining the “gain” rating.
Main brands continue to promote the big single product strategy
By brand, the main brand Marumi had revenue of 1.56 billion yuan/yoy 11.63%, accounting for 70.14% of the company's performance growth; the second brand, Love Fire, had 23 million yuan/yoy 125.14% revenue, accounting for 28.92% of revenue, creating a second growth curve. Among them, the main brand, Marumi, has firmly divided the product line and implemented a big single product strategy to consolidate the brand mentality of eye care expert+anti-aging master. Marumi Little Red Pen Eye Cream/Subtreatment Essence all had a GMV of over 200 million throughout the year, and the asset pool of the Douyin A3 population grew exponentially. Five single products, including Love Fire PL Invisible Foundation, Powder Cream, and Air Cushion, have all achieved over 100 million GMV, of which PL can't see foundation sold more than 1.5 million units.
Online channels maintain rapid growth
By channel, Marumi achieved a breakthrough in online transformation in '23, with online revenue of 1,871 billion yuan/yoy accounting for 84.11%, mainly due to the rapid development of Douyin, Kuaishou Auto, and Love Fire brands. Among them, Tmall achieved 35.62% revenue growth throughout the year, Douyin achieved revenue growth of 106.29% throughout the year, and the 5A people's asset pool was 167 million. Offline revenue in '23 was 354 million yuan/yoy -27.17%, accounting for 15.89%. Under the impact of the environment, there is still pressure. Among them, department store channels are clearly affected by the decline in passenger traffic.
Gross margin has increased, and some cost ratios have been optimized
The gross margin for 23 years was 70.7% /yoy2.3pct, and the gross margin increased further, mainly due to the company's continuous cost control while continuously optimizing the product structure. In terms of expenses, the 23-year sales expense ratio was 53.86% /yoy4.99pct, mainly due to the company's vigorous promotion of online transformation and the increase in online traffic costs. R&D cost rate 2.80% /yoy-0.26pct, management fee rate 4.89% /yoy-1.53pct, financial cost ratio -0.65% /yoy0.08pct.
Risk warning: Online sales expenses are rising rapidly; key personnel are being lost; market competition is intensifying.