The two major brands, Kefumei and Clejin, showed outstanding performance. The company raised its annual profit forecast. During the 618 period, the two major brands, Kefumei and Clejin, achieved impressive records. The omni-channel full-cycle GMV increased by more than 60%/100% year-on-year, respectively. The revenue of the Kefumei/Clejin brands in '23 was 2.8/6 billion yuan respectively. Compared with leading domestic skincare brands, there is still a lot of room for growth (in '23, the TOP1 skincare brand, Lancôme terminal retail sales of 16 billion yuan, Euro Rui). Kefumei's collagen stick products have yet to reach the ceiling. 618 is still growing rapidly this time, and the Focus Series/Order Series is expected to contribute to new growth potential in the future; the potential can be expected, along with single products such as film cream/film eye cream/retouch/collagen king.
618 had impressive sales, increasing net profit from 24-26 to 18.59/22.73/2,743 billion yuan (previous value: 18.15/22.73/2,672 billion yuan). Comparable to the company Wind's consistent profit forecast of 24PE 30 times, 24H2, the company's recombinant collagen liquid/solid formulation is expected to be approved. Considering the scarcity of compliant and high-quality supply of differentiated materials in the medical and aesthetic terminal market, the medical and aesthetic business showed great performance and released elasticity. It was given 31 times PE in 24 years, with a target price of HKD60.36 yuan (RMB exchange rate) The HKD exchange rate is 1.0758), maintaining the purchase.
We expect the Collagen series to grow rapidly during the 618 period. We expect the Collagen series to be the main growth force. As of June 20, '24, the omni-channel full-cycle GMV increased by more than 60% year-on-year during the Kefumei campaign. Among them, Tmall, Douyin, JD, and Vipshop GMV increased 50% +/ 65% +/ 100% +/ 200% +, respectively. By product line: 1) Dressing: Product strength is outstanding and steady growth is maintained. We estimate GMVYoY to exceed double digits. 2) Collagen repair series:
As the star product with the highest revenue share, collagen sticks are ranked in the top 1 domestic product in various categories such as Tmall facial essence/repair essence, and the growth rate is impressive; products such as collagen patches/collagen emulsion/collagen freeze are also gaining momentum. 3) Order Series: Restorative Order Acne Stick is in the TOP1 of Tmall's New Repair Essence Product List. 4) Focus series: Focus cream ranks top 1 in the Tmall new product list/Douyin brand collagen cream popularity list.
GMV grew strongly during the Crekin 618 period
According to data from business advisors, e-commerce compass, etc., as of June 20, 24, the full-cycle GMV of all channels increased by more than 100% year-on-year during the Kleejin campaign. Among them, GMV on the Tmall, Douyin, JD, and Vipshop platforms increased 70% +/ 300% +/ 200% +/ 170% +, respectively. Kalijin Film Cream is ranked in Tmall's TOP4 list of new firming creams, and the Douyin brand's collagen cream popularity list is TOP2. Klein Film Eye Cream is ranked in the top 1 of Douyin's collagen eye cream popularity list. Cleijin Collagen Mask King GMV increased by more than 100% year over year, ranking in the top 4 best-selling mask on Tmall. The GMV sell-off in Clarion increased by more than 60% year over year. According to the company's official website, the brand has been exposed more than 320 million times, and the film series has been tested by 100 people. The two products have received 99% praise, and the user reviews are good.
Risk warning: The approval process for medical and aesthetic products is slow; sales expenses increase; market competition intensifies.