BEAUTY FARM MEDICAL AND HEALTH INDUSTRY INC.(02373.HK):CONTINUOUS BUSINESS EXPANSIONS WITH ACTIVE M&A
BEAUTY FARM MEDICAL AND HEALTH INDUSTRY INC.(02373.HK):CONTINUOUS BUSINESS EXPANSIONS WITH ACTIVE M&A
Steady growth of client visits and active members of direct stores. In 1H24, the number of client visits of direct stores increased 11.6% YoY to 684,659, which served 81,531 active members (+10.3% YoY). In addition, the average spending per active member of direct stores slightly declined 2.1% YoY to Rmb12,608 in 1H24. In terms of the ASP by business segment, the ASP of beauty and wellness services remained relatively stable at Rmb6,771 (1.2% YoY) while that of aesthetic medical services declined 10.6% YoY to Rmb22,993 and subhealth medical services grew 23.0% YoY to Rmb15,180.Beauty Farm Medical and Health reported 1H24 revenue of Rmb1.14bn (+9.7% YoY) and net profit of Rmb115m (+3.2% YoY). Its adjusted net profit reached Rmb132m (+0.5% YoY), in line with our expectation. Its blended gross margin increased 0.84ppts YoY to 47.0% in 1H24. Its selling expense-to-revenue ratio increased 0.58ppts YoY to 16.7% in 1H24.
美麗農場醫療健康報告了2024年上半年的營業收入爲11.4億元（同比增長9.7%），淨利潤爲1.15億人民幣（同比增長3.2%）。其調整後淨利潤達到1.32億人民幣（同比增長0.5%），符合我們的預期。其綜合毛利率在上半年24年達到47.0%，同比增長0.84個百分點。其銷售費用佔營業收入比率在上半年24年增長0.58個百分點，達到16.7%。
Considering the consolidation of Naturade, we lower our adjusted EPS forecasts from Rmb1.38 to Rmb1.10 in 24E, from Rmb1.70 to Rmb1.34 in 25E, and forecast Rmb1.55 in 26E. Given its leading position in the market, we raise our target price from HK$17.95 to HK$19.84. With 23% upside, we maintain our BUY rating.
考慮到對Naturade的整合，我們將24年調整後的每股收益預測從1.38人民幣下調至1.10人民幣，將25年預測從1.70人民幣下調至1.34人民幣，並預測26年的每股收益爲1.55人民幣。鑑於其在市場上的領先地位，我們將目標價從17.95港元上調至19.84港元。根據23%的上漲空間，我們保持我們的買入評級。
Beauty and wellness services remain stable. In terms of revenue breakdown by business type, revenue from beauty and wellness services reached Rmb622m (+13.6% YoY) in 1H24, with revenue from direct stores reaching Rmb564m (+11.2% YoY) and revenue from franchised and others reaching Rmb58m (+43.8% YoY), together accounting for 54.7% of its total revenue. In addition, revenue from aesthetic medical services remain flat at Rmb441m (+0.3% YoY), representing 38.8% of its total revenue. Meanwhile, revenue of subhealth medical services grew rapidly with 50.0% YoY growth to Rmb74m in 1H24.
美麗和健康服務保持穩定。在按業務類型劃分的營業收入中，美麗和健康服務的營業額在2024年上半年達到6.22億元（同比增長13.6%），其中直營店的營業額達到5.64億元（同比增長11.2%），特許加盟和其他的營業額達到5800萬元（同比增長43.8%），佔其總營業額的54.7%。此外，整形醫療服務的營業收入保持平穩，達到4410萬元（同比增長0.3%），佔其總營業額的38.8%。與此同時，亞健康醫療服務的營業額以50.0%的同比增長迅速增長，達到7400萬元。
Steady growth of client visits and active members of direct stores. In 1H24, the number of client visits of direct stores increased 11.6% YoY to 684,659, which served 81,531 active members (+10.3% YoY). In addition, the average spending per active member of direct stores slightly declined 2.1% YoY to Rmb12,608 in 1H24. In terms of the ASP by business segment, the ASP of beauty and wellness services remained relatively stable at Rmb6,771 (1.2% YoY) while that of aesthetic medical services declined 10.6% YoY to Rmb22,993 and subhealth medical services grew 23.0% YoY to Rmb15,180.
直營店客戶訪問量和活躍會員穩步增長。在2024年上半年，直營店的客戶訪問量同比增長11.6%至684,659人次，服務於81,531名活躍會員（同比增長10.3%）。此外，直營店每名活躍會員的平均消費額在2024年上半年同比略微下降2.1%，達到12,608人民幣。按業務領域劃分的平均消費額方面，美麗和健康服務的平均消費額保持相對穩定，爲6,771人民幣（同比增長1.2%），而整形醫療服務的平均消費額下降10.6%至22,993人民幣，亞健康醫療服務的平均消費額增長23.0%至15,180人民幣。
Continuous store expansions with the acquisition of Naturade. By the end-June 2024, the company's total number of stores reached 409 (vs 395 in 1H23), with the number of stores of beauty and wellness services, aesthetic medical services and subhealth medical services, reaching 376 (169 direct stores and 207 franchised stores), 24 and 9, respectively. In March 2024, the company announced the acquisition of 70% stake purchasing of Naturade, with a total consideration of Rmb350m. With major business network in Guangzhou and Shenzhen, Naturade is the second-largest brand of traditional beauty services in China in terms of the revenue. In addition, the company recently announced to absorb the remaining 75 Naturade stores under the franchise model, adding a total of 150 stores to the company's business network. Going forward, the company plans to further explore potential M&A opportunities to expand business operations.
連續擴張店鋪，收購Naturade。截至2024年6月底，公司總店鋪數量達到409家（與2023年上半年的395家相比），其中美麗和健康服務、整形醫療服務和亞健康醫療服務的店鋪數量分別達到376家（169家直營店和207家加盟店）、24家和9家。2024年3月，公司宣佈以3,500萬元收購Naturade的70%股權，總金額爲3,500萬元。擁有廣州和深圳的主要業務網絡，Naturade是中國傳統美容服務領域按營業額計算的第二大品牌。此外，公司最近宣佈以特許經營模式吸收其餘75家Naturade門店，爲公司業務網絡增加了150家店鋪。未來，公司計劃進一步探索潛在的併購機會，以擴大業務運營。
Maintain BUY. Considering the consolidation of Naturade, we lower our adjusted EPS forecasts from Rmb1.38 to Rmb1.10 in 24E, from Rmb1.70 to Rmb1.34 in 25E, and forecast Rmb1.55 in 26E. Given its leading position in the market, we raise our target price from HK$17.95 to HK$19.84. With 23% upside, we maintain our BUY rating.
維持買入評級。考慮到Naturade的整合，我們將24年調整後的每股收益預測從1.38元下調至1.10元，將25年調整後的每股收益預測從1.70元下調至1.34元，並預測26年的每股收益爲1.55元。鑑於其在市場上的領先地位，我們將目標價從17.95港元上調至19.84港元。有23%的上漲空間，我們維持買入評級。
Risks. Slower-than-expected consumption recovery, rising competition from other beauty and health management services providers, lower-than-expected consolidation of acquired stores.
風險。消費恢復速度低於預期，來自其他美容和健康管理服務提供商的競爭加劇，收購門店整合速度低於預期。
譯文內容由第三人軟體翻譯。
