24Q1 performance maintained relatively rapid growth and strong growth resilience
24Q1 achieved revenue of 808 million yuan/yoy of 28.24%, and net profit of 527 million yuan/yoy 27.38% to mother.
Net profit after deducting non-return to mother was 528 million yuan/ 36.53%. There is significant room for improvement in the penetration rate of medical and aesthetic consumers in China compared to overseas. Non-first-tier cities have a broad market to be discovered, and there is still plenty of room for the “Hi Ti” and “Angel” series products. The 24Q1 company's revenue has improved markedly from 23Q4, and there is still plenty of room for channel penetration and improvement; starting from 24Q2, Rusheng Angel is expected to accelerate climbing and contribute new growth points; the potential release of the company's new Bonida/botulic/weight loss/collagen/photoelectric/skincare pipelines can also be expected. Maintaining the original profit forecast, the 24-26 EPS11.88/15.56/19.42 yuan is compared to the company's 24-26 EPS11.88/15.56/19.42 yuan. Considering the company's complete pipeline of medical and aesthetic products and strong channel capacity, 24Q1 continued to grow rapidly, and the target price was 415.80 yuan (maintained) for 24 years, maintaining the “buy” rating.
We expect revenue growth for the Q1 Hi-Tei series to continue to grow rapidly, and we expect the Q2 regenerative injections to accelerate the release of the HiTi series: We expect HiTi 2.5 and Hi-Bubble Activation to be the 24Q1 Hi-Tei series sales growth leaders. Along with the improvement in terminal sentiment, the revenue growth of the 24Q1 Hi-Ti series will also accelerate month-on-month. Regeneration series: The “Wet White Angel+Like a Living Angel” product portfolio creates a comprehensive anti-aging solution for the entire face with deep skeletal support+shallow layering. We expect the growth rate of the Regeneration series to be faster than the overall revenue growth rate, and Q2 Like a Living Angel is expected to accelerate climbing. The company plans to increase the company's investment in the brand, enhance the popularity and influence of the company's leading brands such as “Hi Body” and “Wet White Angel”, and continue to accumulate brand value for the company's products.
24Q1's profitability is relatively stable, and the cost rate improvement trend is significant. The 24Q1 company's gross profit margin was 94.55% /yoy-0.74pct, a slight increase of 94.45% in 23Q4; the net profit margin was 65.35% /yoy-0.19pct, +2.52 pct month-on-month. 24Q1 Company sales expense ratio 8.34% /yoy-2.07pct, month-on-month +1.44pct; management expense ratio 4.07% /yoy-3.92pct, month-on-month -0.55pct; R&D expense ratio 7.13% /yoy+0.21pct, -5.84pct month-on-month.
The next pipeline is worth looking forward to
The company has stepped up R&D efforts, improved R&D efficiency, and continued to promote R&D implementation and transformation of research projects such as injectable botulinum toxin, simeglutide injections, and energy source equipment. Among them, modified sodium hyaluronate gel with medical polyvinyl alcohol-containing gel microspheres to correct back chin contraction is in the registration declaration stage; injectable botulinum toxin type A is currently being compiled and registered.
Risk warning: New products are slow to be approved, market competition is intensifying, and spending power is weak.