永恒之美（6883HK）：由buy发起的奢华香水管理先驱

Pioneer ofluxuryfragrancemanagement,initiatewithBuy Founded in 1980s, Eternal is the first company in China to introduce internationalpremium perfumesin a systematic and large-scale manner. Distinct from puredistributors, the company adopts a brand licensing and agency model, providingend-to-end services for European perfumes,covering market access, channeldevelopment,and consumer education.As a pioneer in China’s importedperfumesector, it has played a pivotal role in formulating and optimizing thecurrent industry standards. We believe its core investment rationale is as follows: Target PriceHK$3.49Up/Downside72.8%Current PriceHK$2.02 China Consumer StaplesMiao ZHANG(852) 3761 8910zhangmiao@cmbi.com.hk Corebeneficiary ofahigh-growthindustry.Consensus positions China’sperfume marketasthe fastest-expanding segment in cosmetics, with multipleinstitutions projecting9-14% CAGR over the next 4-5 years.This trend isunderpinnedbythe cross-sector expansion ofdomestic/international beautyand global fashion conglomerates into perfume in recent years.Thegrowth ismainlydriven by rising penetration, supported by:1)Macro: China’s per capitaperfume spending lags far behind the US/UK/Japan/South Korea;2)Meso:strongerlower-tier city consumption willingness and surging spending onmen’s perfume,as well as growing online perfume penetration.3)Micro:fragrance use scenariosextendto daily life.Eternal ranksthe3rdin China(incl.HK & Macau)in terms ofretail salesin 2023. With 81% of FY25 revenuefrom perfume, it stands as a core beneficiary of market expansion. Stock Data Multi-brand operation secures bargaining power in down/upstreammarkets.1)Downstream:witha portfolio of 70+internationalbrands, 2,000+SKUs, and a broad price range (RMB30-RMB60,000),Eternaldelivers one-stop beautybrand onboarding solutions for shopping malls,significantlyreducingcommunication costs. It also strengthens partnership stickiness byflexibly replacing slow-moving brands to help channels mitigate operationalrisks.2)Upstream:40 years of market-entry expertise accelerates regulatoryclearance (like hygiene inspections).Its 2mnmember CRM data supportslocalizationsolution which covers product formulations,packaging andpricing.Omnichannel network (400 cities, 7,800 POS) enables precise saleschannel matching. Investors’concerns: riskslikelyoverblown:1)withdrawal riskof brandlicensing:More optimistic in reality. The company’s suppliers hold permanentcontractswith most brands(contributing 70%of sales),and key brandVersace renewed contract for 30 years last year. European brands tend tomaintainlong-termchannel partnerships given high R&D burden.Withdrawalof licensing usually follows withsubstantial compensation.Brandswithlarge-scalesales rely more on channels (harder to withdraw),while small scalebrand withdrawalshave limited impact on performance. 2)Competition fromdomesticbrands: Limitedshort-term threats. The perfume markethas beenexpandingincrementally.Domestic brands show a big difference frominternational premium ones in price range and customer base,mostlycultivating potential customers for the latter.Besides,domestic brands lag farbehindinternationalpeersinperfumertraining/R&D/rawmaterialaccess/production technology—posing no materialshort-termthreats. Source: FactSet InitiatewithBuy.OurTPofHK$3.49represents 14.2x FY26E P/E,whichisderivedfrom a 30% discount to the 1.07x 1-yrforward PEG of comparablepeers. (SeeValuation Sectionfor details) Contents Focus Charts.......................................................................................................4Investment Thesis.............................................................................................51. Corebeneficiary of high-growth segment.............................................................52, Multi-brand strategy: establishing bargaining power across the value chain...........93. Are investors over concerned.............................................................................12Company Overview.........................................................................................15Developmenthistory: 40 years in perfume industry, growth fueled by brand & categoryexpansion............................................................................................................15Integrated business model secured its position on the supply chain.........................16Supply chain: stable part nerships with leading suppliers..........................................17Distributorship management and sales channels optimized at scale.........................18Industry Overview............................................................................................23Strong moment um in perfume remains in high visibility............................................23The new "lipstick effect" in the post-pandemic era: the emotional value of fragrance.24Gen Z and male consumers bring new momentum to the industry............................25Entry barriers...