Schierjia released its 2024 Annual Report and 2025 Quarterly Report:
24 Annual revenue 2.017 billion yuan/YoY +4.32%; net profit to mother 0.661 billion yuan/YoY -11.77%; net profit not attributable to mother 0.604 billion yuan/YoY -17.00%. 25Q1 revenue 0.301 billion yuan/YoY -26.39%; net attributable to mother 0.091 billion yuan/YoY -39.77%; net net of 0.053 billion yuan/YoY after deduction of -62.82%.
Gross margin is basically stable, and sales expenses increase due to marketing and promotion
24A gross profit margin of 81.73% /-0.50pp, net profit margin of 32.78% /y-5.98pp; sales expenses increased to 37.1% /+9.56pp due to increased online revenue and marketing expenses; management expense ratio 4.27% /-0.40pp; R&D expense ratio 1.73% /+0.03pp. 25Q1 gross profit margin 83.03% /year over year +1.62 pp, net profit margin to mother 30.35%/year over year -6.74pp; sales expense ratio 52.89%/year over year +20.27pp; management expense ratio 7.39%/year over year +2.03 pp; R&D expense ratio 3.25%/year over year +1.77pp.
Cosmetics revenue performance is impressive, and online channel growth falls short of expectations
By product, cosmetics revenue in 2024 was 1.164 billion yuan/year on year +7.49%, accounting for 57.72%, gross profit margin 79.22%/-1.04pp year on year. Various effective products such as whitening have been launched one after another to meet the diverse needs of consumers. Medical device revenue was 0.853 billion yuan/year over year +0.27%, accounting for 42.28%, gross profit margin 85.16% /year over year +0.42pp. By channel, online channel revenue was 1.108 billion yuan/year on year +20.03%, accounting for 54.96%, gross profit margin 82.32%/-1.73pp year over year. Offline channel revenue was 0.908 billion yuan/yoy -10.05% yoy, gross profit margin 81.02% /year over year +0.46pp.
The large single product matrix is stable, and a breakthrough has been achieved in medical and aesthetic layout
The company has a total of 6 products with sales of over 100 million products throughout the year, including medical sodium hyaluronate repair patch (white film, black film), acne cleansing patch, Centella asiatica soothing repair patch, niacinamide whitening and blemish repair mask, and sodium hyaluronate repair solution. The product under development, “Recombinant Type III Humanized Collagen Lyophilized Fiber”, has begun clinical trials. This product is the company's first superficial injectable filler product, and is of great significance in developing the medical and aesthetic clinic market and enriching the product line.
R&D investment continues to increase, brand marketing upgrade
The company invested 34.82 million yuan in R&D throughout the year, +6.04% YoY. The Shanghai R&D Center was officially put into operation, forming a North-South partnership with the Harbin R&D Center. Two invention patents were granted throughout the year, 13 new cosmetics were registered, and 3 new cosmetic ingredients were registered. Cheng Yi, the brand ambassador of the year who signed the contract, increased investment in brand promotion and enhanced brand influence through diversified online and offline marketing activities.
Investment suggestion: Looking forward to the future, the company will continue the parallel R&D strategy of medical devices and cosmetics, and continue to enrich its product matrix to achieve growth. The company's revenue for 2025-2027 is 2.35/2.62/2.94 billion yuan, and net profit to mother is 0.83/0.88/0.99 billion yuan, corresponding to PE16/15/13x, maintaining a “buy” rating.
Risk warning: Market competition increases risk, risk of new products falling short of expectations, risk of macroeconomic fluctuations, etc.
