Event: Net profit due to mother is expected to increase 836%-1070% in 2023
The company released a performance forecast: In 2023, it is expected to achieve net profit of 200-250 million yuan (+836.0% ~ +1070.0%), net profit of 1.90-240 million yuan (+2866.4% ~ +3647.1%); net profit due to mother of 610-56.1 million yuan in single 2023Q4, net profit of 1550-65.5 million yuan, compared to the same period in 2022. We keep our profit forecast unchanged. We expect the company's net profit to be 2.42/3.20/410 million yuan for 2023-2025, the corresponding EPS is 0.55/0.72/0.93 yuan, and the PE corresponding to the current stock price is 32.0/24.2/18.9 times, maintaining a “buy” rating.
The company's revenue is expected to grow well, and the three acquired hospitals have successfully achieved performance promises. As the overall economy improves and residents' fashion consumption tendencies recover, the company's women's clothing and medical and aesthetic revenue and profit scale are all expected to increase dramatically in 2023. Women's clothing: Actively follow up on market changes, adjust business strategies, and expand business through new retail and other methods. Infants: The income scale has increased steadily as market share stabilizes. Medicine and Aesthetics: In vitro acquisitions of hospitals Wuhan Wuzhou and Wuhan Han Chen brought in additional revenue and increased overall revenue from new institutions of the same caliber. In 2023, the three hospitals acquired by the company, Kunming Han Chen, Wuhan Han Chen, and Wuhan Wuzhou, achieved deduction of 1676/1002/17.86 million yuan in non-net profit, all successfully completing their performance promises.
The women's clothing & baby business is expected to be steady, and the “endogenous+outreach” progress of the medical and aesthetic business is expected to continue to advance women's clothing: continue to optimize the omnichannel sales network and expand new retail and online channels. Infants: Optimizing operational efficiency in the Korean market and laying out marketing and expanding channels in the domestic market, the market position is expected to be further strengthened. Medicine and aesthetics: In terms of endogenetics, 9 new institutions were added to the Skin Crystal Division in 2023, which has achieved a chain layout of 32 hospitals in 8 cities; Gaoxin Milan successfully completed the annual revenue target of 200 million yuan and achieved impressive growth; in addition, Wuhan Wuzhou and Xi'an Milan were awarded 5A medical institutions, further strengthening the company's medical strength. In terms of outreach, the company is expected to continue to actively cultivate institutions in vitro and carry out mergers and acquisitions. Overall, the company is deeply involved in the medical and aesthetic sector, business development is improving markedly, and the “endogenous+extension” progress is expected to continue to advance.
Risk warning: Store expansion falls short of expectations, loss of human resources, increased competition, medical accidents, weak consumption.