occurrences
The company released the 2024 annual report and the first quarter report of 2025:2024 revenue 2.017 billion yuan (YoY +4.3%), net profit due to mother 0.661 billion yuan (YoY -11.8%), net profit not attributable to mother 0.604 billion yuan (YoY -17.0%); 2025Q1 revenue 0.301 billion yuan (YoY -26.4%), net profit attributable to mother 0.091 billion yuan (YoY -39.8%), net profit not attributable to mother 0.053 billion yuan (-62.8% YoY)
Active adjustment of the channel structure and increased investment in expenses. Fluctuations in performance growth, steady revenue growth in 2024, and the decline in net profit were mainly affected by increased investment in sales promotion.
2025Q1 took the initiative to optimize sales channels and sort out product prices. At the same time, the cost side continued to increase investment in publicity and promotion and e-commerce channels, which in turn led to a decline in revenue and net profit. In 2024, the comprehensive gross profit margin was 81.7% (YoY -0.5pct), sales rate 37.1% (YoY +9.56pct), management rate 4.27% (YoY -0.39pct), R&D rate 1.73% (YoY +0.03pct), net profit margin to mother 32.78% (YoY -5.98pct).
Adhering to “technology-driven and cosmetic device collaboration” and deepening the synergistic effects of the dual-product matrix in the cosmetics field, in 2024, three new ingredient registrations such as “Schierjia Yeast Soothing Water”, “Schierjia Lactose Acid Oil Control Mask and Essence”, and “Shierjia Grape Seed Anti-Aging and Elastic Emulsion Mask” were launched to complete the “matrine salicylate”, “acetyl curcumin” and “beta-nicotinamide mononucleotide”, and “beta-niacinamide mononucleotide”. Lay the foundation for new product launches. In the field of medical devices, a total of 4 projects for Class II medical device products have been carried out in an orderly manner. The recombinant Type III humanized collagen freeze-dried fiber for Class III medical device products has entered the design confirmation stage in the middle of clinical trials.
Profit prediction and investment advice
Considering that the company's channel restructuring continues, we expect the company's revenue for 2025-2027 to be 2.199/2.374/2.536 billion yuan, respectively, with corresponding growth rates of 9.04%/7.96%/6.81%, respectively; net profit to mother of 0.664/0.678/0.721 billion yuan, corresponding growth rates of 0.44%/2.16%/6.25%, respectively; EPS will be 1.66/1.70/1.80 yuan/share, respectively, maintaining the “gain” rating.
Risk warning: the risk of fierce competition in the industry; the risk of increasing online channel marketing expenses; the risk of technology research and development and the risk of new products not matching market demand
