occurrences
The company released its 2025 quarterly report: 2025Q1 achieved operating income of 1.078 billion yuan, a year-on-year decrease of 20.77%; realized net profit to mother of 0.102 billion yuan, a year-on-year decrease of 58.13%.
2025Q1 improved month-on-month, and we expect the results of the changes to be implemented gradually
2025Q1 achieved net profit of 0.102 billion yuan to mother, an increase of about 0.29 billion yuan over 2024Q4, and net profit to mother increased by about 0.18 billion yuan month-on-month after excluding impairment losses. By business structure, the bioactive substance business and medical terminal business were steady in the first quarter, and the progress of R&D, registration and marketization of new bioactive ingredients and new medical terminal pipelines accelerated; however, the dermatology innovation transformation business, which accounts for relatively high revenue, was still in an adjustment cycle. The company's chairman and general manager began to manage this sector's business, and deeply thought about the reasons for the decline in the company's dermatology innovation transformation business and proposed targeted solutions. We look forward to the gradual implementation of the results of subsequent changes.
The first Class III water light product was launched in China, and technical leadership in the medical and aesthetic field continued to be consolidated. On April 25, the company's self-developed “Runbaiyan Glass” was officially approved as a Class III medical device certificate. This product is the first domestic compliant water glow product with clear “facial skin quality improvement indications”. With accurate skin quality improvement indications, strict Class III medical device certification, and superior safety and efficacy compared to similar competitors, “Runbaiyan” is expected to contribute more to the company's medical terminal business.
Profit prediction and investment advice
Considering the continuation of the company's management changes and strategic upgrades in 2025, we expect that the company's revenue for 2025-2027 will be 5.774/6.362/7.221 billion yuan, respectively, with corresponding growth rates of 7.5%/10.2%/13.5%; net profit to mother will be 0.455/0.53/0.628 billion yuan, respectively, corresponding growth rates will be 161.2%/16.3%/18.7%; EPS will be 0.94/1.10/1.30 yuan/share, respectively, to maintain the “increase in holdings” evaluation grade.
Risk warning: drastic changes in regulatory policies; medical risk incidents; increased industry competition; product approval progress falls short of expectations.
