In the first three quarters, the company achieved operating income of 4,221 million yuan, -2.3% year-on-year, net profit of 514 million yuan, -24.1% year-on-year, and net profit of 433 million dollars, minus net profit of 433 million yuan, -28.0% year-on-year. Looking at Q3 alone, it achieved operating income of 1,146 million (-17.3%), net profit of 90 million yuan (-56.0%), and net profit from non-return of net income of 72 million yuan (-61.5%).
Looking at the third quarter by business segment: 1) We expect the raw materials business to remain steady. The company completed the launch of restructured type III human collagen raw material products in August based on deep cultivation of hyaluronic acid. Up to now, 7-8 types of collagen are being studied, and there will be new growth points in the future. 2) The medical terminal business continued to grow rapidly: Among them, the medical and aesthetic business maintained a good trend, and the proportion of direct sales expanded, driven by profit; ophthalmology and orthopedics also performed well. 2) Cosmetics business:
The company is in the strategic adjustment stage, and all brands are expected to experience a double-digit decline or more. The company upgraded the products of the four major brands and adjusted and optimized channels this year. Revenue declined in the short term, but it was beneficial to medium- to long-term brand development.
Financial ratio: 1) Gross profit margin: 23Q3 The company's gross margin was 71.1%, a year-on-year increase of -5.7pct. 2) In 23Q3, the company's sales/management/R&D expense ratio was 45.6%/10.0%/7.9%, respectively, compared to -0.8/+2.9/+0.8 pct. 3) The company's net interest rate for the third quarter was 7.8%, -6.9pct year-on-year.
Looking forward to the future: The company's raw materials business is expected to continue to grow steadily; in terms of medical and aesthetic business, the company is currently in a period of benign development after early adjustments. Recently, the company has been newly approved for lip adaptation products, and two hydrating products are expected to be approved in the next two years, both of which will contribute incrementally; in the cosmetics business, we expect Q4 to remain in the adjustment stage but is expected to gradually stabilize. On the first day of the Double Eleven pre-sale, Quardi ranked in the top 10 in the beauty category. We expect 2024 to show a gradual upward trend as adjustments are completed.
?
According to the three-quarter report, we adjusted our profit forecast. We expect the company's earnings per share for 23-25 to be 1.47, 1.89, and 2.44 yuan (previously 2.06, 2.69, and 3.45 yuan), respectively, and the DCF target valuation is 88.93 yuan, maintaining the “increased holdings” rating.
Risk warning: industry competition intensifies, terminal consumer demand weakens, functional skincare business recovery falls short of expectations after subsequent adjustments, etc.