Investment advice: Considering the temporary profit drag in the medical and aesthetic business invested by the company, the 2024 and 25 EPS forecast was lowered to 0.50 (-0.08) /0.58 (-0.07) yuan, the 2026 forecast was added at 0.63 yuan, the target price was maintained at 20.22 yuan, and the increase rating was maintained.
The results grew steadily in 23 years, and the 24Q1 results were under pressure. In 2023, the company's revenue/attribution/deducted non-net profit was RMB 8.60/0.65/70 million yuan, respectively, -3%/+11%/+360% year-on-year, respectively. Revenue was under pressure and profit was optimized. The gross margin in 2023 was +0.65pct to 47.83% year-on-year, mainly due to gross profit optimization of laundry and soap products, and the increase in e-commerce gross margin, and the sales expense ratio was sharply -7.24pct to 24.89%. It is expected to be due to changes in channel structure and e-commerce platform optimization; management and R&D expense ratios were -0.16, +0.31pct to 6.79% and 4.05, respectively. The company plans to pay a cash dividend of 2.30 yuan (tax included) for every 10 shares, adding up the 2023 cash dividend amount for the previous repurchase of shares to account for 80% of net profit attributable to mother for the year. 23Q1 revenue/attribution/deduction of non-net profit of 224/0.28/ 0.27 billion yuan, respectively +16%/-23%/-22%. Revenue resumed rapid growth, and profits were still under pressure.
Main brands are developing steadily, channel-side distribution and e-commerce are stable, and commercial sales are declining. In 2023, the company's pillar brands Lafang and Yujie had a total revenue of 702 million yuan, +4% over the same period last year, accounting for 82%. The agency brand Reboxy's revenue was 78 million yuan, the same as the previous year. On the channel side, the company's distribution, e-commerce, retail, and supermarkets achieved revenue of 597 million yuan, 250 million yuan, and 08 million yuan respectively, of +4%, and -85% respectively.
Medical and Aesthetic International reduced losses and is expected to contribute to a new growth pole in the future. In 2023, the actual controller of the company and its co-actors held 55.2% of the company's total investment income of -6.58 million yuan, a significant year-on-year reduction in losses. It is expected to bring incremental contributions in the future as the medical and aesthetic business is optimized.
Risk warning: unsuccessful mergers and acquisitions, aging brands, high online channel marketing costs.