occurrences
The company released its 2023 annual report and 2024/1 quarterly report: 2023 revenue of 2,869 million yuan (YoY +48.0%), net profit of 1,888 million yuan (YoY +47.1%), net profit after deducting net income of 1,831 million yuan (YoY +52.9%); 2024Q1 revenue of 808 million yuan (YoY +28.2%), net profit of $527 million (YoY +27.4%), net profit of 528 million yuan (YoY +36.5%).
Steady growth and high profit growth in 2023. With a comprehensive and differentiated product matrix, clear product positioning, product portfolio advantages, and continuous innovation in marketing models, the company's product competitiveness and brand influence are increasing, and its market share and penetration rate are steadily increasing. In 2023, the company's revenue from solution products increased 29.22% year on year to 1.671 billion, and revenue from gel injection products represented by Wet White Angel increased 81.43% year on year to 1,158 billion yuan.
2023 gross profit margin of 95.1% (YoY +0.25pct), sales rate 9.1% (YoY +0.68pct), management rate 5.03% (YoY -1.44pct), net profit margin of 64.77% (YoY -0.4pct).
The product pipeline under development is rich, and endogenous and external expansion is progressing steadily
As of the end of 2023, the company's product pipeline has progressed as follows: 1) registration stage: Bonida (for posterior chin contraction); botulinum toxin (improving lines between eyebrows); 2) clinical trial stage: second-generation facial implant line; lidocaine butacaine cream (phase III); liraglutide injection (phase I completed); 3) pre-clinical research (expected to be submitted to clinical in 2024): hyaluronidase, deoxycholic acid injection, simeglutide injection; 4) Enrichment and layout of epitaxial photoelectric equipment: 2023 Korea's Jeisys signed a “Distribution Agreement” to become in mainland China The exclusive distributor will introduce two non-invasive skin anti-aging devices in Korea, such as Density and LinearZ owned by Jeisys, which are already commercialized in Korea, to the country, and will achieve a breakthrough in the company's energy source equipment pipeline.
Profit Forecasts, Valuations, and Ratings
In view of the current weak recovery in overall consumption, the rate of increase in the medical and aesthetic penetration rate is expected to slow. The company's revenue for 2024-2026 is 38.55/51.79/6.506 billion yuan, respectively, with corresponding growth rates of 34.4%/34.3%/25.6%, respectively; net profit to mother is 24.51/32.14/40.00 billion yuan, respectively, corresponding growth rates are 31.9%/31.1%/24.5%; EPS is 11.33/14.85/18.49 yuan/share, respectively. Considering that the company's products have differentiated advantages and perfect product matrices, based on comparable company valuations, the company was given 32 times PE in 2024, given a target price of 362.47 yuan, and maintained a “buy” rating.
Risk warning: drastic changes in regulatory policies; medical risk incidents; increased industry competition; product approval progress falls short of expectations