The company released its 2023 annual report, achieving revenue of 2.87 billion yuan, a year-on-year increase of 47.99%, and a net profit of 1,858 billion yuan, an increase of 47.08% over the previous year. The high increase in performance was in line with market expectations.
By category: 1) Solution injection products: Achieved revenue of 1.67 billion yuan in 2023, an increase of 29.2% over the previous year. Among solution products, mainly the Hi-Body series, it is not easy to maintain a growth rate close to 30% even at a high volume scale. We expect water light products in the Hi Ti series to grow rapidly. At the same time, with the increase in the share of water light products (unit price is relatively low), ASP will drop 13% year over year to 325 yuan. 2) Gel injection products: Revenue of 1.16 billion yuan was achieved in 2023, an increase of 81.4% over the previous year. We estimate this is mainly due to the rapid release of Wet White Angel. 3) Facial implant line products: Achieved revenue of 5.91 million in 2023, an increase of 10.1% over the previous year. 4) Other revenue increased 1265.8% year-on-year, mainly from cosmetics and Pegilon businesses. Among them, Pegilon's business achieved revenue/net profit of 0.21/11 billion yuan in 2023, respectively.
By channel, direct sales/distribution achieved revenue of 1,787 billion yuan and 1,083 billion yuan respectively in 2023, an increase of 43.09% and 56.86% year-on-year. The company has established an executive and highly professional sales team. By the end of the reporting period, the company had more than 400 sales and marketing personnel, covering 31 provinces, cities and autonomous regions, covering about 7,000 domestic medical and aesthetic institutions.
Gross profit margins continued to rise. The gross margin in 2023 was 95.09%, +0.25pct. Among them, the gross margins of solution injection products and gel injection products were 94.48% and 97.49%, respectively, and +0.25 and +0.97 pct year-on-year.
The new product pipeline is rich in reserves, providing a solid guarantee for subsequent sustainable rapid growth. According to the annual report disclosure update, the details are as follows: 1) botulinum toxin is in the registration reporting stage; 2) Bonida's chin indications have entered the registration reporting stage; 3) lidocaine butacaine cream products are in clinical trials; 4) Weight management: The company invested in 4.89% of the shares in plastidebio based on the introduction of simeglutide products in cooperation with Plastidebio. Peptide Biotech has rich experience in peptide drug development, has formed a pipeline matrix around GLP-1 analogs, and has the ability to continuously innovate and iterate. 5) Optoelectronics: A distribution agreement was signed with Jeisys in South Korea. The company introduced two non-invasive anti-skin anti-aging devices already commercialized in Korea into the country, which will achieve the company's breakthrough in the energy source equipment pipeline.
According to the annual report, we adjusted the profit forecast and introduced the 2026 profit forecast. The company's earnings per share for 2024-2026 are 11.52, 15.14, and 19.21 yuan, respectively (the original 2024-2025 was 11.76 and 15.56 yuan), and the DCF target valuation is 474.28 yuan, maintaining a “buy” rating.
Risk warning: industry competition intensifies, terminal consumer demand weakens, new product development falls short of expectations