Company announcement: 1) Revenue for 23 years was 1,969 million yuan, net profit attributable to mother - 68 million yuan, net profit not attributable to mother - 54 million yuan. Among them, Northbell's revenue for 23 years was 1,961 billion yuan/ -5.63%, and net profit was -50 million yuan, a year-on-year reduction in losses. Specifically, in 23Q4, Northbell's revenue was 527 million yuan/ -15.54%, and net profit was a basic break-even balance of 101 million yuan. 2) 24Q1 revenue of 380 million yuan/ -4.26%, net profit attributable to mother - RMB 06 billion, net profit deducted from non-return to mother - RMB 0.07 billion.
The cosmetics OEM business resumed twists and turns. 1) On the revenue side, 23Q1-24Q1 Northbell's revenue growth rate was -10%/1%/4%/-14%/-4%, respectively. Overall, it still fluctuates and recovers with fluctuations in the growth rate of the domestic cosmetics industry. By category, mask revenue in '23 was 800 million yuan/ -9.22%, with a corresponding capacity utilization rate of 28.74%; revenue from skincare products was 700 million yuan/ +6.21%, a slight increase, with a corresponding capacity utilization rate of 29.70%; and wet wipe revenue of 310 million yuan/ -20.8%, a sharp decline due to a sharp decline in demand for disinfectant wipes after the epidemic, and the corresponding capacity utilization rate was only 12.15%.
As a result, the company also terminated the new production capacity construction project for Northbell's 148-acre large-scale industrial park in April of this year and discussed with the government to take back the land. We believe that the company's top priority is to increase the utilization rate of existing production capacity as soon as possible; 2) On the profit side, 23Q1-24Q1 Northbell's net profit was -0.44/ -0.09/0.03/0.00/ -0.07 billion yuan, respectively, and has basically been in break-even for the past four quarters. We believe that if the utilization rate of existing production capacity can be raised to a reasonable level in the future, Northbell's net profit will also be released quickly. By category, the gross profit margin of mask in 23 years was 10.94% /+7.30pct, the gross profit margin of skincare products was 10.87% /+8.87pct, and the gross profit margin of wet wipes was 14.18% /+7.24pct. It has not yet returned to a reasonable gross margin range of 20-25%.
The company has previously divested itself from the chemical business, and the focus of development is on Northbell's main cosmetics foundry business. In the future, as the company develops more cosmetics customers and downstream demand recovers, the company's revenue is expected to pick up, and profit margins are expected to recover faster.
Profit forecast: According to Wind's agreed expectations, the company's net profit to mother for 2024-2025 was 0.49/142 million yuan, respectively, and the closing price on April 30 was 41/14 times PE, respectively.
Risk factors: Upstream costs of cosmetics have risen sharply; domestic consumption continues to weaken, etc.