Event: Kodi releases annual revenue data:

23 Full year revenue of $138 million (+1111%); single Q4 revenue of 72.8 million (same +1051%, ring +145%), continued to increase year-on-month.

Commercialization continues to explode:

① Small white tube explosions continued, and new products such as selenium disulfide started rapidly. The GMV of the Double 11 hair pipeline was 16.7 million + (+234%). Among them, the explosive small white tube led to a continued high increase in cross-border business, with GMV reaching 12 million + (+141%); selenium disulfide detergent and the like led the rapid launch of its own brand “Blue Silk Geometry” to drive the domestic business GMV to 4.7 million, +913% over the period of 618. The second curve is about to start.

② It was officially announced that the high-end effective skincare brand Oma Shuang11 won the first battle. GMV reached 24.8 million + (+374%) in volume, and the large single olive essence ranked in the TOP1 oil control essences imported from Tmall and the TOP3 anti-oxidant essences imported by Douyin. After the team's run-in, it is expected that the volume will accelerate.

The R&D pipeline welcomed a major breakthrough: ① The marketing application for topical finasteride 2024.1 was accepted. It is the first and only topical finasteride, and the long-term space is expected to reach 1.5 billion +. ② The phase III clinical trial of the lidocaine line reached the main end in January 2024; ③ the recombinant mutant collagenase (management of fat accumulation under the chin) phase II clinical trial completed in January 2024; ④ recombinant mutant collagenase (management of abdominal fat accumulation) completed phase I clinical trials in February 2024 ⑤; Thyroid hormone receptor agonists arrived in November 2023, the main end point of the phase clinical trial.

Investment advice: The company quickly moved from a single drive of a high-explosive French white tube to multi-matrix iteration. 24-25 will be an important point for the implementation of major pipelines. ① The commercialization of acting as a French agent has continued to explode for more than a year. Considering that in the early stages of the outbreak, it is still likely to exceed expectations. ② The cooperative high-end efficacy brand Oma and the new hair product Selenium Disulfide Double 11 have already started significantly and are expected to drive the rapid iteration of the second curve; ③ 24 will usher in the gradual implementation of a major R&D pipeline. Minocycline foams, topical finasteride, and local anesthetic products are expected to be launched in 24Q4/25/25, so 25 will be an important point in the release of major new pipelines. The company's short-term commercialization explosion is compounded by high barriers on the long-term R&D side, and there is a possibility that it will exceed expectations in multiple dimensions. The company is expected to generate revenue of around 268/6 billion in 24/25, maintaining 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 progress falls short of expectations; the risk that the pipeline R&D process falls short of expectations.