HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Eternal Beauty Holdings Limited / Equity Capital Markets

<ul>
<li>The essence of Eternal Beauty’s business model is to earn a “price difference” of the brand and product portfolios, but this business model is difficult to generate high profit margins.</li>
<li>The situation and prospects of China's perfume market are facing major changes. It‘s uncertain whether the perfume sales in the China market can maintain double-digit growth in the long term.</li>
<li>Eternal Beauty’s financial performance would face challenges due to changes in consumer preferences, shifts in China's domestic policies, international trade disputes, geopolitical conflicts, etc. Valuation could be lower than peers.</li>
</ul>


The essence of Eternal Beauty’s business model is to earn a “price difference” of the brand and product portfolios, but this business model is difficult to generate high profit margins.
The situation and prospects of China's perfume market are facing major changes. It‘s uncertain whether the perfume sales in the China market can maintain double-digit growth in the long term.
Eternal Beauty’s financial performance would face challenges due to changes in consumer preferences, shifts in China's domestic policies, international trade disputes, geopolitical conflicts, etc. Valuation could be lower than peers.


Pre-IPO Eternal Beauty Holdings - The Perfume Business in China May Not Be as Good as Expected

Founder, BWS Financial Inc

Hamed Khorsand

Founder

Independent Stock Specific Research

BWS Financial Inc

BWS provides independent stock specific research focused on companies with distinct value that are going through a special situation where there is a tangible catalyst not priced in. The catalyst can be anything from new product, restructuring, M&A, management change, change in business strategy, etc. BWS’s focus is to understand the change and evaluate the potential return for investors.

BWS utilizes a self formed proprietary approach in discovering stocks by putting great emphasis on deep research. BWS does generate short recommendations following a similar criteria.

Equity Bottom-Up

<ul>
<li>IPAR issued its initial 2024 sales and EPS guidance proving clarity as investors value the stock for the year ahead.</li>
<li>IPAR is forecasting sales and EPS in line with our current estimates suggesting there could be ample upside to the numbers if the current demand for fragrances were to continue.</li>
<li>IPAR expects 2024 sales of $1.45 billion and EPS of $5.15. Both of which are in line with our estimates of $1.42 billion and $5.16, respectively.</li>
</ul>


IPAR issued its initial 2024 sales and EPS guidance proving clarity as investors value the stock for the year ahead.
IPAR is forecasting sales and EPS in line with our current estimates suggesting there could be ample upside to the numbers if the current demand for fragrances were to continue.
IPAR expects 2024 sales of $1.45 billion and EPS of $5.15. Both of which are in line with our estimates of $1.42 billion and $5.16, respectively.


<ul>
<li>IPAR benefited from consumers continuing to purchase fragrances in the third quarter and retailers beginning to stock inventory for the holiday shopping season</li>
<li>IPAR reported third quarter sales of $368.0 million in line with what the Company had previously disclosed in October</li>
<li>IPAR has several new product introductions in 2024 and begins to generate sales from Roberto Cavalli and Lacoste brands as well, which should result in IPAR growing sales in 2024</li>
</ul>


IPAR benefited from consumers continuing to purchase fragrances in the third quarter and retailers beginning to stock inventory for the holiday shopping season
IPAR reported third quarter sales of $368.0 million in line with what the Company had previously disclosed in October
IPAR has several new product introductions in 2024 and begins to generate sales from Roberto Cavalli and Lacoste brands as well, which should result in IPAR growing sales in 2024


IPAR: Sales Trajectory Ahead of Estimates

<ul>
<li>IPAR continued to experience momentum in demand in the second quarter with preliminary sales ending up at $309 million compared to our Street high estimate of $283.7 million</li>
<li>IPAR’s management is taking a conservative approach with sales forecast given the supply chain and sales volatility in certain regions. </li>
<li>The strength in second quarter sales was across multiple brands and in both segments</li>
</ul>


IPAR continued to experience momentum in demand in the second quarter with preliminary sales ending up at $309 million compared to our Street high estimate of $283.7 million
IPAR’s management is taking a conservative approach with sales forecast given the supply chain and sales volatility in certain regions. 
The strength in second quarter sales was across multiple brands and in both segments


<ul>
<li>Inter Parfums (IPAR) continuing to experience demand for its fragrances has not been enough to overcome investor concerns related to the slow demand environment in China and the duty-free segment</li>
<li>IPAR’s top three brands each grew by more than 20 percent compared to last year with Jimmy Choo sales up 63 percent</li>
<li>IPAR managing through its inventory balance could result in cash conversion that should improve investor sentiment</li>
</ul>


Inter Parfums (IPAR) continuing to experience demand for its fragrances has not been enough to overcome investor concerns related to the slow demand environment in China and the duty-free segment
IPAR’s top three brands each grew by more than 20 percent compared to last year with Jimmy Choo sales up 63 percent
IPAR managing through its inventory balance could result in cash conversion that should improve investor sentiment


United States

Inter Parfums, Inc. manufactures, markets, and distributes a wide array of fragrances and fragrance related products. The Company's European-based operations produce and distribute prestige fragrance products primarily under license with brand owners. It's U.S.-based operations primarily produce and sell fragrance and personal care products under several specialty retail brands.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Inter Parfums (IPAR US)

Pre-IPO Eternal Beauty Holdings - The Perfume Business in China May Not Be as Good as Expected

Eternal Beauty's business model struggles to generate high profits in a changing China perfume market, facing challenges from the shifts of...

Xinyao (Criss) Wang

IPAR: Clarity on Growth

The sales and EPS forecast are in line with our estimates but provide clarity as to what investors should expect from IPAR next year.

BWS Financial Inc

IPAR: Sales Trajectory Ahead of Estimates

IPAR is set to release a fragrance for its top five brands in 2024 along with taking over the Roberto Cavalli and Lacoste licenses. The stock...

BWS Financial Inc

IPAR: Adding and Growing

IPAR reported preliminary second quarter sales exceeding our expectations. We are anticipating IPAR to issue an increase in their full year EPS...

BWS Financial Inc

IPAR: Ready for Cash Conversion

IPAR converting its inventory into cash and showing continued strength in sales should support a higher price point later this year.

BWS Financial Inc

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Eternal Beauty Holdings - The Perfume Business in China May Not Be as Good as Expected

​Eternal Beauty's business model struggles to generate high profits in a changing China perfume market, facing challenges from the shifts of...

Xinyao (Criss) Wang

IPAR: Clarity on Growth

The sales and EPS forecast are in line with our estimates but provide clarity as to what investors should expect from IPAR next year.

BWS Financial Inc

IPAR: Sales Trajectory Ahead of Estimates

IPAR is set to release a fragrance for its top five brands in 2024 along with taking over the Roberto Cavalli and Lacoste licenses. The stock...

BWS Financial Inc

IPAR: Adding and Growing

IPAR reported preliminary second quarter sales exceeding our expectations. We are anticipating IPAR to issue an increase in their full year EPS...

BWS Financial Inc

IPAR: Ready for Cash Conversion

IPAR converting its inventory into cash and showing continued strength in sales should support a higher price point later this year.

BWS Financial Inc

Eternal Beauty's business model struggles to generate high profits in a changing China perfume market, facing challenges from the shifts of...