2023 年公司整体业绩符合预期，收入端和利润端同比均出现下降与整体经济增速放缓，公司产品市场需求减弱有关。进入2024Q1，公司业绩迎来复苏，归母净利润增速远快于收入增速，与公司主力产品恢复增长，期间费用率同比下降以及获得土地出让收益有关。2023 年销售费用率为40.39%（+1.87pct），管理费用率为11.09%（+0.74pct），研发费用率为6.33%（+0.57pct），财务费用率为-2.94%（-1.48pct）。2024Q1 销售费用率为41.14%（-1.91pct），管理费用率为9.53%（-0.19pct），研发费用率为5.17%（-0.37pct），财务费用率为-4.82%（-2.65pct）。Incidents:
The company released its 2023 annual report, achieving operating income of 784 million yuan, a year-on-year decrease of 5.39%; net profit to mother of 255 million yuan, a year-on-year decrease of 8.39%; net profit after deduction of 227 million yuan, a year-on-year decrease of 10.45%, and EPS of 1.30 yuan. The company released its 2024 quarterly report, achieving operating income of 221 million yuan, up 7.15% year on year; net profit to mother of 77 million yuan, up 23.19% year on year; net profit after deducting 68 million yuan, up 22.30% year on year, and EPS of 0.39 yuan.
Results slowed in 2023, 2024Q1 ushered in a recovery
The company's overall performance in 2023 is in line with expectations. The year-on-year decline in revenue and profit is related to the slowdown in overall economic growth and weakening market demand for the company's products. Entering 2024Q1, the company's performance ushered in a recovery. The growth rate of net profit to mother was far faster than the revenue growth rate. It is related to the resumption of growth in the company's main products, the year-on-year decline in cost rates during the period, and the receipt of revenue from land concessions. In 2023, the sales expense ratio was 40.39% (+1.87pct), the management expense ratio was 11.09% (+0.74pct), the R&D expense ratio was 6.33% (+0.57pct), and the financial expense ratio was -2.94% (-1.48pct). The 2024Q1 sales expense ratio is 41.14% (-1.91pct), the management expense ratio is 9.53% (-0.19pct), the R&D expenses rate is 5.17% (-0.37pct), and the financial expenses ratio is -4.82% (-2.65pct).
The profitability of the main products remains stable, and it is worth expecting the Ganoderma lucidum spore powder series to achieve revenue of 534 million yuan in 2023, a year-on-year decrease of 7.92%, gross profit margin of 87.81%, a year-on-year decrease of 0.87pct; the dendrobium officinale series achieved revenue of 127 million yuan, a year-on-year decrease of 2.03%, gross profit margin of 78.64%, and a year-on-year decrease of 0.08 pct. Overall, the profitability of the company's main products remains stable. In the future, as the economy gradually recovers and consumption capacity increases, revenue is expected to stop falling and pick up.
Sales channels are gradually diversified, and there is balanced development within and outside the province
In 2023, the company achieved revenue of 478 million yuan in Zhejiang Province, a year-on-year decrease of 8.49% and a gross profit margin of 83.99%; outside Zhejiang Province, it achieved revenue of 80.2679 million yuan, a year-on-year decrease of 17.89%, and a gross profit margin of 85.19%; through the Internet, the company achieved revenue of 212 million yuan, a year-on-year increase of 7.35% and a gross profit margin of 85.19%. Overall, the company's internal and external channels are developing in a balanced manner, and online channels are growing rapidly, accounting for 24.40%, 24.14%, and 27.50% of the company's main business revenue in 2021, 2022, and 2023, respectively. In the future, the company is expected to achieve nationwide sales of core products by increasing community promotion efforts on the basis of continuing to adhere to the “famous doctors, famous drugs, famous stores” marketing model and the “old brands, hospitals, and supermarkets” trinity marketing strategy.
Investment advice and profit forecasting
The company is a leading company in Ganoderma lucidum spore powder. It works simultaneously through multiple channels, and its performance is expected to grow steadily over the long term.
It is estimated that in 2024-2026, net profit attributable to the company's parent company shareholders will be 292 million yuan, 326 million yuan and 360 million yuan respectively, with corresponding earnings per share of 1.44 yuan/share, 1.61 yuan/share and 1.78 yuan/share, respectively. The corresponding PE is 19 times, 17 times, and 15 times, respectively, maintaining a “buy” investment rating.
Risk warning
The risk of the company's product price reduction, the risk that the product volume falls short of expectations, and industry competition increases the risk.
