The company's recent business performance has been impressive. Strong commercialization has driven high growth, continuing Q3:23Q1-3 revenue of 65 million yuan (+1185.8%), single Q3 product sales revenue of 31 million (+595.0%). The continued explosion in revenue is mainly due to the volume period after the company's hair disease and care product portfolio commercialization path was completed. The total GMV of various hair products launched by the Bailleul Minoxidil hair growth agent, Esthecin hair growth essence and “Blue Silk Geometry” brands exceeded 9.4 million yuan (+48%) during the 618 promotion period. High growth is expected to continue during the Q3 off-season.

Q4: As of the latest, monthly sales of Bailleul minoxidil hair growth agent at Kodi Tmall's official overseas flagship store have reached 9000+. It is estimated that the Double 11 promotion will continue to be released, which is expected to drive annual revenue to significantly exceed the plan at the beginning of the year.

R&D side: Deep clinical pipeline reserves are progressing steadily, and companies focus on developing comprehensive solutions in various fields to meet the needs of the pan-skin disease treatment and care market. Currently, the clinical research pipeline process is progressing steadily: ① Acne: topical minocycline (CU-10201) was marketed and accepted as a new drug in September 2023; ② Hair loss: topical finasteride (CU-40102) reached the main end point of phase III clinical trials in September 2023; Thyroid hormone receptor agonist (CU-40101) was 11 in 2023 Phase I clinical trials were completed in a month; ③ Local anesthesia: lidocaine dinocaine (CU-30101) completed the phase III clinical trial database lock in October 2023; ④ Fat accumulation management: recombinant mutant collagenase (CU-20401) completed the phase I abdominal clinical trial in October 2023, and all participants were included in the phase I abdominal clinical trial. In addition, there are still many pipelines in the development process, and deep pipeline reserves guarantee the company's future growth momentum.

Investment suggestion: The company is a pan-dermatology treatment and care platform company, with R&D advantages and strong consumer insight capabilities. Commercialization has recently exploded. The 23Q3 off-season is not weak, and strong reserves of clinical pipelines on the R&D side are ready to go. The estimated revenue for 23/24/25 is 0.88/1.94/453 million yuan, giving it a “recommended” rating.

Risk warning: the risk that a single product accounts for too much revenue; the risk of increased competition in the industry; the risk that online commercialization is progressing less than expected; the risk that the pipeline development process falls short of expectations.