The company publishes three quarterly reports for 2023. 23Q1-3 achieved an income of 4.221 billion yuan (- 2.3%), a net profit of 514 million yuan (- 24.1%) and a non-return net profit of 433 million yuan (- 28.0%).
In a single quarter, the 23Q3 income is 1.146 billion yuan (- 17.3%), the net profit returned to the mother is 90 million yuan (- 56.0%), and the non-return net profit is 72 million yuan (- 61.5%).
The profitability is under pressure in stages, and the sales rate is continuously optimized. 23Q1-3 gross profit margin is 73.07% (- 4.16pct), single Q3 is 71.13% (- 5.67pct). The net interest rate of 23Q1-3 is 12.01% (- 3.43pct) and the single Q3 is 7.46% (- 7.00pct). 23Q1-3 sales / management / R & D rates are 46.02%, 7.57% and 6.56%, respectively, compared with the same period last year. In the long run, there is more room for optimization of the sales expense rate, so as to keep the cosmetics Douyin channel fee control reasonable.
Adjust the strategy of functional skin care business and improve the layout of Douyin matrix. Run Baiyan upgrade white gauze in July, throw 2.0 white gauze mask in August, upgrade white gauze mask in October, extend the series of products to help improve user stickiness and repurchase rate. Quadi upgraded the new blue recharge version in October and launched deep defrost for cleaning products. Muscle live brown rice water was selected into Douyin's list of hot products in 2023, and the new energized water was added in August. Mabel put on the new blue bandage cream in October. Douyin channels in addition to the four major brands of studio, company-level live studio account, such as Huaxi store flagship store, Huaxi biological happy GO! And other cooperation to build a fine operation matrix.
Section 8 hyaluronic acid injection has been approved to be put on the market, and the medical pipeline has been continuously expanded. Raw materials: at present, the company has 7-8 kinds of collagen under research, and has achieved the preparation of macromolecular recombinant collagen, and the recombinant Ⅲ human collagen raw material was put on the market in August. Medical terminal: the Medical and Beauty Division adjusts its organizational structure, moistens the proportion of brands and focuses on micro-cross-linking and filling areas. On October 12, the company's eighth hyaluronic acid injection for injection was approved by the State Drug Administration to be used to inject the subcutaneous (or submucous) of the red lip margin and body to the orbicularis oris muscle layer to increase the volume of lip tissue and effectively expand the pipeline of medical and beauty products.
[investment advice]
The functional skincare segment of the company has experienced rapid growth in the past 3-4 years, and has created two 1 billion revenue brands and formed brand recognition. In 2023, the company will focus on optimization and adjustment at the product, channel and brand level to high-quality development. Combined with the company's performance in the first three quarters and the adjustment of operating strategy, we downgrade the company's forecast for 2023-2025, with estimated revenue of 67.95 billion yuan each; net profit of 8.9 billion pounds per parent; 1.18 billion yuan per EPS; and 2.44 yuan per PE on 43-37-31, maintaining the "overweight" rating.
[risk Tip]
New product promotion and new brand incubation are not as expected.
Strategic adjustment enters a period of labor pains.
Competition in sensitive muscle track intensifies
The cost of getting customers is increasing rapidly.