Investment Rating - The report maintains a "Buy" rating for the company, expecting a significant increase in stock price relative to the benchmark index over the next six months [7][11]. Core Insights - The company achieved a revenue of 3.52 billion yuan in 2023, representing a 49% year-on-year increase, with a net profit of 1.45 billion yuan, up 44.9% [4][7]. - The growth was primarily driven by the "可复美" brand, which saw a revenue increase of 72.9% to 2.79 billion yuan, supported by the expansion of online and offline sales channels [4][5]. - The company's gross margin decreased by 0.8 percentage points to 83.6%, while the net profit margin remained high at 41.2% despite a 1.9 percentage point decline [6][7]. Revenue Breakdown - In 2023, the revenue from "可复美" was 2.79 billion yuan, "可丽金" remained stable at 620 million yuan, and other brands contributed 100 million yuan, marking a 14.2% increase [4]. - The effectiveness of skincare products saw a 69.52% increase to 2.65 billion yuan, accounting for 66% of total revenue, while medical dressings grew by 13.25% to 860 million yuan [4][6]. Channel Performance - Online direct sales revenue reached 2.15 billion yuan, up 77.5%, accounting for 61.2% of total sales, driven by platforms like Tmall and Douyin [5]. - Offline direct sales increased by 39.6% to 90 million yuan, supported by the growth of chain pharmacies and cosmetic stores [5]. Profitability Forecast - The company forecasts net profits of 1.76 billion yuan, 2.11 billion yuan, and 2.54 billion yuan for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 22x, 19x, and 15x [7][8].

Investment Rating - Buy | Maintain [2] Core Views - The company's full-year performance exceeded expectations, with significant optimization in H2 sales expense ratio [3] - The product matrix continues to enrich, with strong growth in key brands and new product launches [4] - The company maintains a leading position in the recombinant collagen protein market, supported by strong R&D capabilities and industry standards [3][4] Financial Performance - 2023 revenue reached 3,524 million RMB, a year-on-year increase of 49.05% [3] - Net profit attributable to the parent company was 1,452 million RMB, up 44.88% year-on-year [3] - Gross margin was 83.63%, a slight decrease of 0.76 percentage points, while net margin was 41.19%, down 0.98 percentage points [3] - Sales expense ratio was 33.04%, up 3.17 percentage points, but showed significant optimization compared to H1 [3] - Management expense ratio decreased by 1.95 percentage points to 2.74%, while R&D expense ratio increased by 0.26 percentage points to 2.13% [3] Product and Brand Performance - Key brand "Kefumei" achieved revenue of 2,788 million RMB, a year-on-year increase of 72.86% [4] - "Kefumei" collagen repair series saw strong growth, with GMV during Double 11 increasing by over 200% [4] - New products such as "Collagen Milk" and "Collagen Soothing Patch" frequently appeared on Tmall and Douyin bestseller lists [4] - "Keling" brand revenue remained stable at 617 million RMB, with star products continuing to perform well [4] Channel and Operational Strategy - Direct sales channels accounted for 68.7% of total revenue, with online direct sales contributing 61.2%, up 77.5% year-on-year [4] - Distribution channels accounted for 31.3% of revenue, up 14.6% year-on-year [4] - The company expanded its offline presence, opening its first "Kefumei" standard store in Xi'an and three "Keling" specialty stores [4] - Production capacity increased with the completion of new recombinant collagen protein fermentation workshops and additional production lines [4] Future Outlook and Profit Forecast - The company is expected to achieve net profit attributable to the parent company of 1,721 million RMB in 2024, 2,196 million RMB in 2025, and 2,743 million RMB in 2026 [5] - Corresponding P/E ratios are projected at 23x, 18x, and 14x for 2024-2026 [5] - The company is positioned as a leader in the professional skincare market, with a strong focus on R&D and brand expansion [5]

申万宏源研究 上海市南京东路99号 | +86 21 2329 7818 www.swsresearch.com 简单金融 成就梦想 美容护理 | 公司研究 业绩高增印证核心技术优越性，24 胶原大年巨子乘风起 2024年3月26日 巨子生物 (02367.HK) 公司发布 23 年年报，营收净利润逆势高增，略超市场预期。据公司公告（下同），1）公司发布 买入 23年年报，营收增速亮眼。23年营收35.2亿元，同增49%；归母净利润14.5亿元，同增45%； 经调整净利润14.7亿，同增45%。在相对高基数下，业绩增长持续耀眼，业绩高增得益于公司深 维持 耕20年建立的重组胶原蛋白强消费心智，以及对产品类型的持续扩充以及线上线下渠道的拓展。2） 公司重视股东回馈，预计合计派息8.8亿人民币，建议末期股息0.44元每股，特别股息0.45元每 市场数据：2024年3月25日 股。 收盘价（港币） 43.30 品类结构调整致毛利率略降，销售投放增加致净利润略滑，预计 24 年还将延续盈利能力略降的趋 恒生指数 16473.64 势。公司2023年毛利率略降0.76pct至83.6%，主要由产品类型扩充及拓展新渠道所 ...

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 52.51 HKD, indicating an expected upside of over 20% in the next six months [4][12]. Core Insights - The company reported a 45% year-on-year increase in profit for 2023, with revenue reaching 3.524 billion RMB, a 49% increase. The adjusted net profit is projected at 1.8 billion RMB for 2024, reflecting strong growth potential in the recombinant collagen market [1][2]. - The company is well-positioned in the high-growth recombinant collagen sector, with a robust product pipeline and successful commercialization strategies [2][4]. Financial Performance - In 2023, the company achieved a revenue of 3.524 billion RMB, up 49% year-on-year, and a net profit of 1.452 billion RMB, up 45% year-on-year. The gross margin was 83.6%, and the net margin was 41.2% [1][3]. - Revenue projections for 2024, 2025, and 2026 are 4.598 billion RMB, 5.942 billion RMB, and 7.251 billion RMB, respectively, with corresponding net profits of 1.733 billion RMB, 2.204 billion RMB, and 2.753 billion RMB [3][10]. Market Position and Product Development - The company has successfully developed a comprehensive product matrix, with significant sales growth in its flagship brand, Kefu Mei, which saw a 73% increase in revenue [1][2]. - The company is advancing its research and development efforts, with over 40 types of recombinant collagen products in the pipeline, expected to receive regulatory approval in the near future [2][4]. Shareholder Returns - The company announced a special dividend and final dividend totaling 880 million RMB, marking a 61% payout ratio, which is the first since its listing [1][4].

巨子生物（2367.HK）2023年年报点评 23 年收入业绩高增，明星单品势能强劲，专业护肤业务表现亮眼 2024年03月27日 ➢ 事件：巨子生物披露2023年业绩。23年，公司实现营收35.24亿元，yoy+49.05%； 推荐 维持评级 经调整净利润（剔除股份支付费用）为14.69亿元，yoy+39.04%。23H2，公司实现营 收19.18亿元，yoy+39.07%；经调整净利润7.92亿元，yoy+33.56%。 当前价格： 42.55港元 ➢ 23年专业皮肤护理产品收入同比+51.1%，可复美明星单品放量持续高增，可丽金 改善可期。23年公司实现总收入35.24亿元，同比+49.05%，其中：1）专业皮肤护理产 品实现收入 35.08 亿元，同比+51.10%，其中功效性护肤品收入 26.47 亿元，同比 [Table_Author] +69.52%，主要系公司持续加强全渠道营销活动、大单品收入稳健增长及明星单品的高速 增长；医用辅料收入8.61亿元，同比+13.25%；分品牌来看：①可复美：23年实现营收 27.88亿元，同比+72.86%，主要系持续拓展线上及线下销售渠道，优化运营策略，品牌 ...

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [1][12]. Core Views - The company reported a revenue of 3.524 billion HKD for 2023, a year-on-year increase of 49%, and a net profit of 1.452 billion HKD, up 44.9%, slightly exceeding expectations [1]. - The net profit margin for 2023 was 41.2%, a decrease of 1.2 percentage points year-on-year, but the decline has significantly narrowed compared to the previous year [1]. - The company is experiencing a shift from offline to online sales and from dressings to skincare products, which is contributing to its growth [1]. - The DTC (Direct-to-Consumer) channel accounted for 61% of total revenue, reflecting a 10 percentage point increase [1]. Financial Performance - For 2023, the revenue breakdown shows that the main brand, 可复美, generated 2.788 billion HKD, a 73% increase year-on-year, while 可丽金's revenue was 617 million HKD, a slight decrease of 0.3% [1]. - The company expects to achieve net profits of 1.86 billion HKD, 2.288 billion HKD, and 2.765 billion HKD for 2024, 2025, and 2026 respectively, with growth rates of 28%, 23%, and 21% [2][4]. Brand and Product Analysis - The skincare segment is seeing validation of its major product capabilities, with successful launches and upgrades in its product matrix [2]. - The company has introduced new products in its collagen repair series and is focusing on enhancing consumer awareness and product upgrades [2]. - The operational capabilities are improving, with a notable reduction in online sales expense ratios expected in 2024 [2]. Sales and Market Trends - The sales performance in the first two months of 2024 shows a year-on-year increase of 31% for the company's flagship store on Tmall [7]. - The report highlights a strong consumer base concentrated in the 24-40 age group, particularly among those aged 24-30, which is higher than the overall beauty and skincare market [9][10].

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company achieved a revenue of HKD 35.24 billion in 2023, representing a growth of 49.0%, and a net profit of HKD 14.52 billion, up by 44.9%, exceeding expectations primarily due to the growth in e-commerce channels [5] - The company is expected to continue its growth trajectory with projected revenues of HKD 46.64 billion, HKD 59.02 billion, and HKD 72.47 billion for 2024, 2025, and 2026 respectively, alongside net profits of HKD 17.64 billion, HKD 22.00 billion, and HKD 27.01 billion [5][8] Revenue and Profit Performance - In 2023, the company's gross margin was 83.6%, slightly down by 0.76 percentage points, while the net profit margin was 41.1%, down by 1.27 percentage points [5] - The sales expense ratio increased to 33.0%, up by 3.17 percentage points, due to high sales expenses from e-commerce channel investments [5] Brand and Product Development - The company's two main brands, 可复美 and 可丽金, have shown significant growth, with 可复美 achieving a revenue of HKD 27.88 billion, up by 72.9% [5] - The product matrix has been enhanced with new launches, including collagen milk and creams, expanding into repair and deep cleansing categories [5] E-commerce Channel Growth - The direct-to-consumer (DTC) online sales reached HKD 21.55 billion, a growth of 77.5%, accounting for 61.2% of total revenue [6] - The company has seen substantial growth in its online channels, with significant increases in GMV across platforms like Tmall and JD [6] Future Outlook - The company aims to strengthen its R&D investments and expand its product offerings to solidify its position as a leader in collagen skincare [5][6] - The projected P/E ratios for the upcoming years are 22X, 18X, and 14X for 2024, 2025, and 2026 respectively, indicating a favorable valuation trend [5][8]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 57.14, indicating a potential upside of 34.4% from the current price of HKD 42.50 [1][3][17]. Core Insights - The company achieved a revenue of RMB 3.52 billion in 2023, a year-on-year increase of 49.0%, surpassing Bloomberg consensus estimates by 3% [1]. - The net profit attributable to shareholders reached RMB 1.45 billion, reflecting a 44.9% year-on-year growth, exceeding Bloomberg consensus estimates by 6% [1]. - The strong performance is attributed to the robust growth of the "可复美" brand, particularly in functional skincare products, which saw a revenue increase of 69.5% to RMB 2.65 billion, accounting for 75.1% of total revenue [1]. - The company has initiated its first dividend payout, planning to distribute a final dividend of RMB 0.44 per share and a special dividend of RMB 0.45 per share, resulting in a total payout ratio of 61% [1]. Financial Performance Summary - **Revenue**: The company reported a revenue of RMB 3,524 million for FY23, with projections of RMB 4,602 million for FY24, RMB 5,865 million for FY25, and RMB 7,377 million for FY26, indicating a growth trajectory [2][12]. - **Net Profit**: The net profit for FY23 was RMB 1,452 million, with estimates of RMB 1,711 million for FY24, RMB 2,150 million for FY25, and RMB 2,637 million for FY26 [2][12]. - **Gross Margin**: The gross margin for FY23 was 83.6%, with a slight decline expected to 83.0% in FY24 [2][12]. - **Earnings Per Share (EPS)**: The EPS for FY23 was RMB 1.49, projected to increase to RMB 1.72 for FY24, RMB 2.16 for FY25, and RMB 2.65 for FY26 [2][12]. Market Position and Strategy - The company is focusing on expanding its online sales channels, with direct sales revenue growing by 72.7% to RMB 2.42 billion, representing 68.7% of total revenue [1]. - The "可复美" brand continues to show strong growth, with its core product, collagen sticks, contributing significantly to sales [1]. - The company is expected to maintain a strong online presence, which is anticipated to drive further growth in the coming years [1].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][4]. Core Views - The company achieved a 44.9% year-on-year increase in net profit for 2023, with revenue reaching 3.524 billion yuan, reflecting a 49.0% growth despite industry pressures [4]. - The company is recognized as a leader in the collagen protein sector, with strong growth in skincare and upcoming III class medical products, justifying a reasonable valuation [4]. - The forecast for net profit from 2024 to 2026 is set at 1.748 billion yuan, 2.198 billion yuan, and 2.675 billion yuan respectively, with corresponding EPS of 1.76 yuan, 2.21 yuan, and 2.69 yuan [4]. Financial Performance - In 2023, the skincare segment generated revenue of 2.647 billion yuan, a 69.5% increase, while the overall revenue from the company was 3.524 billion yuan [5]. - The gross margin for 2023 was 83.6%, slightly down from the previous year, influenced by rising sales costs and product diversification [5]. - The company’s sales, management, and R&D expense ratios were 33.0%, 2.7%, and 2.1% respectively, with sales expenses slightly increasing due to online channel expansion [5]. Product and Market Strategy - The company is focusing on expanding its product offerings, with successful products like collagen sticks and plans to enhance its public channel construction [6]. - The company has secured 13 new patents in 2023 and has over 40 types of collagen molecules in its molecular library, maintaining a competitive edge [6]. - The company is actively expanding its multi-channel approach, utilizing both online and offline platforms to reach consumers [6].

Investment Rating - The report maintains a "Buy" rating for Giant Biogene (2367) with a target price of HKD 50.22, up from HKD 47.53, based on a 2024 PE of 26x [3][4] Core Views - Giant Biogene's 2023 revenue and net profit reached RMB 3.52 billion and RMB 1.45 billion, up 49% and 44.9% YoY respectively, exceeding expectations [3] - The company's gross margin remained high at 83.6% in 2023, with a net profit margin of 41.1% [3] - The star product Collagen Stick drove rapid online growth for the KFM brand, contributing over 30% of its revenue [3] - The company has a strong pipeline of cosmetic and medical aesthetic products, positioning it well in the recombinant collagen sector [3] Financial Performance - 2023 revenue: RMB 3.52 billion (+49% YoY) [3] - 2023 net profit: RMB 1.45 billion (+44.9% YoY) [3] - 2023 adjusted net profit: RMB 1.47 billion (+39% YoY) [3] - 2023 gross margin: 83.6% (-0.76pct YoY) [3] - 2023 net profit margin: 41.1% (-1.3pct YoY) [3] Brand Performance - KFM brand revenue: RMB 2.79 billion (+73% YoY) [3] - KFM Collagen Stick estimated to contribute over 30% of brand revenue [3] - KFM dressings revenue: RMB 861 million (+13% YoY) [3] - Klenzit brand revenue: RMB 617 million (-0.3% YoY) [3] Channel Performance - Direct sales revenue: RMB 2.42 billion (69% of total) [3] - DTC online direct sales: RMB 2.16 billion (+77% YoY, 61% of total) [3] - Distribution revenue: RMB 1.10 billion (+15% YoY, 31% of total) [3] Product Pipeline - Klenzit: Launched star products like Da Mo Wang and Peng Peng Ci Pao, with new eye cream and face cream recently introduced [3] - KFM: Recently launched Focus series face cream targeting skin brightening and firming [3] - Medical aesthetics: 4 recombinant collagen products in pipeline, expected to drive future growth [3] Valuation and Forecast - 2024-2026 EPS forecast: RMB 1.76, RMB 2.22, RMB 2.75 [3] - Current price: HKD 43.30 [4] - 52-week price range: HKD 29.30-52.30 [5] - Current market cap: HKD 43.08 billion [5]