In the first quarter of '24, revenue increased 28.24% year over year, and net profit to mother increased 27.38%. The company achieved operating income of 808 million yuan in the first quarter of 2024, +28.24% year on year; realized net profit after deduction of 527 million yuan, +27.38% year on year; realized net profit after deduction of 528 million yuan, +36.53% year over year; basic earnings per share was 2.45 yuan, compared with 1.91 yuan in the same period last year; and net cash flow from operating activities was 537 million yuan, up 25.73% year on year.
Gross margin declined slightly, and the cost control effect was remarkable. The company's gross margin for the first quarter of 2024 was 94.55%, -0.75pct year over year. On the cost side, the cost rate for the first quarter of 2024 was 17.84%, -4.98pct year on year. Among them, sales expense rate/management cost rate/R&D cost rate/financial cost ratio were 8.34%/4.07%/7.13%/-1.69%, respectively, -2.08pct/-3.91 pct/+0.21pct/+0.80pct, respectively. The company's net profit margin for the first quarter of 2024 was 65.35%, -0.19pct year on year. Among them, the reason for the sharp decline in the management fee ratio was due to the large amount of listing fees, which included Hong Kong stock listing fees in the same period last year.
The actual controller, Jian Jun, increased his shareholding in the company, increasing his holdings by a total of 62.54 million yuan. Prior to this increase in holdings, Jian Jun, the actual controller of the company, directly held 66.99 million shares of the company's shares, accounting for 31.03% of the total share capital after deducting the number of shares repurchased on the day the increase plan was announced. Jian Jun held 15.31 million shares of the company's shares indirectly, accounting for 7.09% of the total share capital after deducting the number of shares repurchased on the disclosure date of the shareholding increase plan announcement. Jian Jun directly and indirectly held a total of 38.12% of the shares. According to the “Notice of Aimeike Technology Development Co., Ltd.” disclosed by the company on the Shenzhen Stock Exchange website on October 25, 2023, based on recognition of the company's long-term investment value and confidence in the company's future development prospects, and in order to enhance investor confidence, effectively safeguard the interests of small and medium shareholders, combined with reasonable and independent judgment on the company's stock value, the shareholder plan uses its own funds for 6 months from the date of disclosure (October 26, 2023 to 2024) (April 25, 2018). The company's shares were increased through methods including but not limited to centralized bidding or bulk transactions. The amount of the increase was not less than RMB 50 million and not more than RMB 100 million, and the increase price was no more than RMB 450 per share. Through the Shenzhen Stock Exchange system, Jian Jun has accumulated a total increase of 199,100 shares of the company's shares through centralized bidding transactions, accounting for 0.0925% of the company's total share capital after deducting the number of shares repurchased. The cumulative increase in holdings is 62.537,800 yuan (excluding transaction fees).
Investment advice: The company is a leading domestic light medicine and beauty leader, with clear product positioning and differentiated competition. With leading core technology, safety and effectiveness, the brand influence of products such as Hi Body, Panda Acupuncture, Avray, Bonita, Yimei One Plus One, and Wet White Angel continues to grow. The domestic medical and aesthetic industry is still in the early stages of development. There is still plenty of room for improvement in the company's product penetration rate and channel coverage in the future. With the continuous release of core products such as Hi Body and Panda Acupuncture, and the rapid promotion of new products such as Wet White Angel, and continuous improvement in operating efficiency, the company is expected to maintain a rapid growth trend. The company's 2024-2026 EPS is predicted to be 11.75 yuan, 15.33 yuan, and 19.01 yuan respectively, and the corresponding PE will be 27.5X, 21.1X, and 17.0X, respectively, maintaining an “increase in holdings” investment rating.
Risk warning: risk of industry policy changes, risk of product development and registration, risk of increased market competition, risk of product quality, risk of exchange rate, risk of interest rate, price risk