Proya Cosmetics (603605) Q3 2024 earnings summary

Executive summary

• Operating revenue for Q3 2024 reached RMB 1.96 billion, up 21.15% year-over-year; year-to-date revenue was RMB 6.97 billion, up 32.72% year-over-year.

• Net profit attributable to shareholders for Q3 was RMB 297.54 million, up 20.72% year-over-year; year-to-date net profit was RMB 999.21 million, up 33.95% year-over-year.

• Growth driven by increased online channel revenue and steady performance of smaller brands.

Financial highlights

• Gross margin improved as gross profit rose 30.66% year-over-year for the nine-month period.

• Basic EPS for the first three quarters was RMB 2.53, up from RMB 1.87 year-over-year; diluted EPS was RMB 2.50.

• Weighted average ROE increased by 2.22 percentage points to 21.74% year-over-year.

• Net cash flow from operating activities for the nine months was RMB 404 million, down 49.44% year-over-year due to higher selling expenses and payment for goods.

Outlook and guidance

• Management attributes growth to robust online sales and expects continued momentum from both core and small brands.