According to the report released by Goldman Sachs, it maintains a "strong recommendation" rating on Shangmei shares (02145) and expects the net income attributable to mothers to be 910 million, 1.16 billion, and 1.41 billion yuan in 2024-2026, with corresponding growth rates of 96.5%, 27.5%, and 22%, respectively.
The report states that Shangmei Stock is a leading multi-brand domestic cosmetics company that has been deeply involved for more than 20 years. It focuses on Han Shu to vigorously promote TikTok and achieve a brand strong renewal, winning first place in the 2023 TikTok Beauty List and becoming the first 3 billion-level beauty brand on the platform, driving a year-on-year revenue growth of 56.6% in 2023 and a year-on-year net profit increase of 213.5%. Currently, Han Shu is still in the momentum buildup period, and multi-dimensional curve iterations are expected to push Han Shu towards a hundred billion brand. Other brands are currently in the cultivation and adjustment period, and in the future, they will move from mass skin care to the three major tracks of skin care, maternity and infant, and shampooing, and become a leading platform-type enterprise of six super brands.
The bank mentioned that the company's TikTok growth momentum is maintained, and the trend of large single products of Bauman waist is emerging, and the proportion is expected to continue to rise in the future. The brand effect has significant spill-over to the Taobao system, and the low base and high growth of the Tmall platform are certain. At the same time, in 2024, it announced that it will increase offline investment, and the broad space of offline channels is expected to absorb TikTok overflow traffic. In the future, with the gradual inflow of investment resources and the replication of mature experience, old brands are also expected to usher in renewed growth. In the medium and long term, the company implements the "2+2+2" strategy and the "six-six strategy", and the multi-brand matrix is expected to grow continuously, and it is expected to relay the company's continuous growth.