Events:
The company released the third quarter report of 2023.
Comments:
Q3 revenue growth returned to positive, profit decline narrowed month-on-month
23Q1-3 achieved operating income of 447 million yuan, down 14.91% from the same period last year, mainly due to the significant reduction in sales of disinfection wipes. On the profit side, the company realized 93.5759 million yuan in net profit belonging to shareholders of listed companies, down 27.42% from the same period last year, while the net profit belonging to shareholders of listed companies after deducting non-recurring gains and losses was 74.8813 million yuan, down 40.37% from the same period last year. The sales / management / R & D expense rates of 23Q1-3 were 1.86%, 8.20% and 3.98%, respectively, up 1.09% / 3.82% / 0.35% over the same period last year. The gross profit margin of 23Q1-3 was 31.57%, down 1.65% from the same period last year, and the net profit rate was 20.78%, down 3.74% from the same period last year. The single Q3 company realized operating income of 168 million yuan, an increase of 1% over the same period last year, with a growth rate of 28.4752 million yuan of net profit attributed to the parent company, down 28.41% from the same period last year, and 22.087 million yuan of non-home net profit, down 43.38% from the same period last year. The gross profit margin of 23Q3 was 29.10%, down 5.65% from the same period last year, and the net profit rate was 16.67%, down 7.27% from the same period last year.
The second class certificate of Jiechuang Medical, a subsidiary, has been approved, and the layout reorganization collagen company focuses on wet wipes and the continuous layout of cosmetics business. in 2023, it has successively developed many customers, such as Jialan Group, Oriental Optimum, Asia-Pacific Daily Chemicals and so on. develop the front-end folding film business of facial mask in addition to facial mask and care products. In 2022, the company set up a joint venture with Chuangjian Medical to lay out collagen, and the cosmetics business was covered by "makeup" products to higher value-added "mechanical" products. The joint venture Jiechuang Medical has obtained two type II medical device registration certificates of recombinant collagen dressing and recombinant collagen liquid dressing on August 22, 2023, which is expected to continue to enrich the company's makeup layout and create the second pole of growth.
Investment advice and profit Forecast
The company is a leading manufacturer of wet wipes in China, cutting into the cosmetic track layout to recombine collagen. From 2023 to 2025, we expect to achieve an income of 649, 762, 871 million, a net profit of 1.23, 1.47 / 170 million, and an EPS of 1.52, 1.81, 2.09, respectively, corresponding to PE25/21/18x, maintaining a "buy" rating.
Risk hint
The risk of intensified competition in the industry, the risk that the cosmetics business expansion is not as expected, the risk that the project production schedule is not as expected, and the risk of industry policy supervision.