分业务，2024Q3 公司化妆品和原料业务收入阶段性承压，产品结构优化下毛利率改善，医药业务销售止跌回升。2024Q3，公司化妆品业务营收同比下降4.7%，增速环比Q2 有所放缓，分品牌看颐莲/瑷尔博士/其他品牌变动-4%/-11%/42%，毛利率同比提升4.3 个百分点，主因产品结构升级；药品业务方面，医药业务营收同比增长20%，主因调整销售价格，管控销售渠道，毛利率同比下降2.0 个百分点，预计仍处于调整阶段，以博士伦为主的投资净收益实现943 万元，同比提升45 万元；原料业务营收同比下降6.9%，毛利率同比提升2.7 个百分点。Description of the event
With 2024Q3, the company achieved revenue of 0.877 billion yuan, a year-on-year decrease of 4.8%, and realized net profit to mother of 0.044 billion yuan, a year-on-year decrease of 7.8%.
Incident comments
By business, 2024Q3's cosmetics and ingredients business revenue was under phased pressure, gross margin improved under product structure optimization, and pharmaceutical business sales stopped falling and rebounded. 2024Q3, the company's cosmetics business revenue fell 4.7% year on year, and the growth rate slowed down compared to Q2. By brand, Yilian/Dr. Aire/ other brands changed -4%/-11%/42%, and gross margin increased 4.3 percentage points year over year, mainly due to product structure upgrades; in the pharmaceutical business, revenue from the pharmaceutical business increased 20% year on year, mainly due to adjusting sales prices and controlling sales channels. The gross margin decreased 2.0 percentage points year on year. It is expected that the net income from investment led by Baekron increased by 9.43 million yuan year on year. 0.45 million yuan; revenue from the raw materials business decreased 6.9% year on year, and gross margin increased 2.7 percentage points year on year.
Looking at profit as a whole, the company's gross sales margin was well controlled in the third quarter. Due to the large surplus in the financial expenses category in the same period last year, the net interest rate to mother declined slightly. In the third quarter of a single quarter, the company's gross profit fell 3.1 percentage points year on year, sales expenses fell 3.3 percentage points year on year, management expenses decreased 0.7 percentage points year on year, and financial expenses increased 1.8 percentage points year on year. Combined, the net interest rate to mother fell 0.2 percentage points year on year.
In terms of operation, the product structure of the company's cosmetics business has been upgraded, and the operation is steady and improving. In the cosmetics business, in the first three quarters, the company's Yilian brand spray product line innovated cultural and creative IP joint sales, 2.0 spray sales increased 21% year on year; the moisturizer product line implemented the “100 million yuan moisturizer” project to drive sales of the same series of moisturizer, and moisturizer sales increased 54% year on year; new neck mask products online boosted the increase in this product line, and soft film sales increased 22% year on year. Dr. Eyre brand flash lotion was upgraded, sales increased 12% year over year, and sales of probiotic masks increased 5% year over year. Continuing to expand the collagen and care circuit, the Kemi brand broadcast channel mainly promotes gum sticks and collagen stickers. That is, the Mu brand Douyin platform has launched a new oil control and fluffy shampoo, that is, the shampoo product has won the “China Good Formula” shampoo product of the year.
Investment suggestions: Q3. The company's cosmetics business focuses on the main brands. The product matrices of the two main brands have been improved, the channel structure has been optimized, the pharmaceutical sector has achieved rapid growth, and the gross margin of raw materials has been optimized. Overall, the profit quality has improved. Considering the company's cost-effective price positioning and the iterative product upgrades of the main brands Dr. Aier and Yilian brands, we expect the company's EPS in 2024-2026 to be 0.25, 0.31, and 0.34 yuan/share, respectively, maintaining a “buy” rating.
Risk warning
1. The new product development and launch process fell short of expectations; 2. The level of competition in the industry exceeded expectations; 3. Increased channel traffic costs; 4. Risk of weakening excess traffic.
