Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 58.5, while the current stock price is HKD 49.85 as of November 18, 2024 [2]. Core Insights - The company achieved significant growth during the Double 11 shopping festival, with its brands 可复美 and 可丽金 recording GMV growth of over 80% and 150% respectively [5][7]. - The company has established itself as an industry leader by publishing the first group standard for fermented ginseng powder, enhancing its market position [10]. Financial Performance - The total market capitalization of the company is HKD 51.257 billion, with a total share capital of 1.028 billion shares [3]. - Revenue projections for 2024, 2025, and 2026 are HKD 5.064 billion, HKD 6.839 billion, and HKD 8.592 billion respectively, with corresponding growth rates of 43.7%, 35.0%, and 25.6% [11]. - The net profit attributable to the parent company for the same years is projected to be HKD 1.922 billion, HKD 2.440 billion, and HKD 2.872 billion, with growth rates of 32.4%, 26.9%, and 17.7% respectively [11]. Shareholder Structure - The shareholder structure indicates that the founding couple holds 57% of the shares, while other shareholders hold the remaining 43% [4]. Market Performance - The company's stock has shown a relative return of 34.89% over the past twelve months [13].

点击蓝字 关注我们 招商银行全资附属机构 2024年双十一收官，公司两大核心品牌可复美与可丽金线上增速靓丽。双十一期间（10月8日至11月11 日），可复美与可丽金的线上全渠道GMV分别同比增长超80%和超150%，较今年"618"均有提速。可复美和 可丽金在抖音平台爆发式增长，双十一期间分别同比增长超100%和超500%。根据《天下网商》联合天猫发 布的品牌成交排行榜（10月21日至11月11日），可复美在天猫快消品牌销售榜名列第14，护肤品牌销售榜名 列第12，在国货品牌排名第三。可复美在抖音电商双十一大促护肤品牌总榜中名列第四，国货品牌第三。 双十一大促于10月拉开序幕，可复美和可丽金增长强劲。2024年各大平台双十一大促较往年均有所提前，普 遍从10月中上旬开启，较2023年提前约10天。叠加双十一大促开启以及错期影响，据魔镜数据库统计， 10M24可复美线上GMV同比强劲增长90%，其中天猫淘宝和抖音平台GMV分别同比增长83%和120%。可复 美在抖音平台进行成功的营销投入，如搭建抖音自播间矩阵，因此驱动可复美在抖音平台快速增长。 可复美胶原棒延续高增长，新品表现亮眼。经典产品可复美重组胶原蛋白敷 ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 66.15, representing a potential upside of 29.2% from the current price of HKD 51.20 [4][21]. Core Insights - The company has shown strong online sales growth during the Double Eleven shopping festival, with its two main brands, Kefu Mei and Keli Jin, achieving GMV growth rates of over 80% and over 150% respectively compared to the previous year [2]. - The report highlights the successful marketing strategies on platforms like Douyin, which have significantly boosted sales, particularly for Kefu Mei, which saw a GMV increase of 120% on Douyin [2]. - The introduction of new products has also contributed to growth, with Kefu Mei's collagen stick and Keli Jin's new cream series driving substantial sales increases [2]. Financial Performance - Sales revenue is projected to grow from RMB 5,099 million in FY24E to RMB 9,187 million in FY26E, reflecting a compound annual growth rate (CAGR) of approximately 33.6% [3][22]. - Adjusted net profit is expected to rise from RMB 1,971 million in FY24E to RMB 3,130 million in FY26E, indicating a strong profitability trajectory [3][22]. - The company maintains a healthy net debt ratio, with a forecasted net debt ratio of -75.3% by FY26E, indicating a strong balance sheet [3]. Sales Growth and Market Position - Kefu Mei ranked 12th in the Tmall fast-moving consumer goods sales ranking and 4th in the skincare brand ranking during the Double Eleven event, showcasing its competitive position in the market [2][8]. - Keli Jin's new product launches have resulted in a GMV increase of 109% year-on-year, with significant contributions from its new cream and eye cream products [2]. - The report notes that the overall skincare category in e-commerce is experiencing robust growth, with Kefu Mei and Keli Jin leading the charge [12][13]. Earnings Forecast Adjustments - The earnings forecasts for FY24-26 have been slightly adjusted upwards, with revenue and profit estimates reflecting the strong sales momentum and successful product launches [16][20]. - The report anticipates that the company's gross margin will remain stable, with a projected gross margin of 82.20% in FY24E [16][20]. Valuation Metrics - The target price of HKD 66.15 corresponds to a 25x adjusted P/E ratio for FY25E and a 20x adjusted P/E ratio for FY26E, indicating a favorable valuation compared to industry peers [4][18]. - The DCF analysis suggests a strong intrinsic value for the company, with a calculated equity value of HKD 68.02 million [18].

Financial Performance - Revenue for the first half of 2024 reached RMB 2.54 billion, a year-on-year increase of 58.2%[7] - Adjusted profit for the first half of 2024 was RMB 1.03 billion, a year-on-year increase of 51.8%[9] - Total revenue for the first half of 2024 reached RMB 2,540.4 million, a 58.2% increase compared to RMB 1,605.7 million in the same period of 2023[23] - Total revenue for the first half of 2024 reached RMB 2,540.4 million, a 58.2% increase compared to RMB 1,605.7 million in the same period of 2023[24] - Revenue from professional skincare products accounted for 99.7% of total revenue, with functional skincare contributing RMB 1,939.6 million (76.4%) and medical dressings contributing RMB 592.2 million (23.3%)[24] - Revenue for the first half of 2024 reached RMB 2,540.4 million, a 58.2% increase compared to RMB 1,605.7 million in the same period of 2023[70] - Gross profit for the first half of 2024 was RMB 2,093.2 million, up 54.9% from RMB 1,351.0 million in the first half of 2023[70] - Net profit attributable to owners of the company for the first half of 2024 was RMB 983.2 million, a 47.4% increase from RMB 666.9 million in the same period of 2023[70] - Revenue from customer contracts increased to RMB 2,540,432 thousand in the first half of 2024, up from RMB 1,605,698 thousand in the same period of 2023, representing a growth of 58.2%[85] - Basic earnings per share for 2024 were RMB 983,164 thousand, up from RMB 666,940 thousand in 2023, a 47.4% increase[97] R&D and Innovation - R&D expenditure for the first half of 2024 was RMB 49 million, a year-on-year increase of 43.2%, accounting for 1.9% of revenue[10] - The company has over 100 ongoing R&D projects as of the end of the reporting period[10] - The company has been granted and applied for 133 patents, with 40 new patents added during the reporting period[10] - The company participated in multiple academic conferences to promote the development of recombinant collagen technology[14] - R&D expenses increased by 43.2% YoY to RMB 48.7 million, representing 1.9% of revenue[34] - R&D costs surged to RMB 13,469 thousand in 2024 from RMB 1,290 thousand in 2023, a 944.1% increase[91] - 11% of the net proceeds from the global offering are allocated for R&D investment, including expanding the R&D team and facilities[64] Brand Performance - Reborn Beauty brand achieved revenue of RMB 2.071 billion, a year-on-year increase of 68.6%[12] - Reborn Beauty's Human-like Recombinant Collagen Essence became the company's top star product, ranking No.1 in multiple categories during the 618 promotion[12] - Reborn Beauty launched the new Focus Series, with the Focus Cream ranking No.1 in Tmall's new cream list and Douyin's collagen cream popularity list during 618[12] - Reborn Beauty's Order Spot Stick ranked No.1 in Tmall's new repair essence list during 618, completing the oil-control and acne-treatment product portfolio[12] - Kelisheng brand achieved revenue of RMB 396 million, a year-on-year increase of 23.6%[13] - Kelisheng's new Vitality Series products, including eye cream and face cream, received a 99% positive rating and a score of 4.64 in consumer trials[13] - The Kefumei brand contributed RMB 2,070.9 million (81.5%) to total revenue, a 68.6% increase compared to the same period in 2023[32] - The Kelijin brand generated RMB 396.1 million (15.6%) in revenue, a 23.6% increase year-over-year[32] - Other brands contributed RMB 64.9 million (2.6%) to total revenue, a 40.8% increase compared to the same period in 2023[32] - Revenue from the professional skincare product "Kefumei" increased by 68.6% YoY to RMB 2,070.9 million, accounting for 81.5% of total revenue[33] - Revenue from the skincare product "Keling" rose by 23.6% YoY to RMB 396.1 million, contributing 15.6% of total revenue[33] Marketing and Sales - The company launched new products and continued to optimize its product matrix to reach a broader customer base[11] - The company strengthened public domain marketing, with Reborn Beauty's Focus Cream campaign generating over 200 million topic exposures on Xiaohongshu[15] - Reborn Beauty appointed Olympic swimming champion Ye Shiwen as its brand ambassador to enhance consumer emotional connection[15] - Reborn Beauty launched a special 520 campaign with limited edition "Lucky Stick" products to strengthen brand-consumer interaction[15] - Direct sales channel revenue accounted for 72.4% of total revenue at RMB 1,838 million, while distribution channel revenue was RMB 702 million, representing 27.6% of total revenue[18] - The company expanded its offline presence with approximately 10 offline stores in key cities, including the flagship store in Chongqing opened on June 16, 2024[17] - The company's products are available in approximately 1,500 public hospitals, 2,700 private hospitals and clinics, 650 chain pharmacies, and 6,000 CS/KA stores[17] - Online GMV growth for the Keruimei and Kelijing brands exceeded 60% and 100% respectively during the 618 shopping festival in 2024[17] - Direct-to-consumer (DTC) online sales through the company's own stores reached RMB 1,603.2 million, a 64.1% year-over-year increase, accounting for 63.1% of total revenue[26][27] - Online sales through e-commerce platforms grew 143.3% year-over-year to RMB 167.4 million, representing 6.6% of total revenue[29] - Offline direct sales increased by 82.2% year-over-year to RMB 67.6 million, accounting for 2.7% of total revenue[30] - Sales to distributors grew 34.4% year-over-year to RMB 702.3 million, representing 27.6% of total revenue[31] - The company's offline advertising campaigns covered major transportation hubs and commercial centers in cities like Xi'an, Chongqing, and Wuhan[17] - Marketing and promotion expenses rose to RMB 811,642 thousand in 2024 from RMB 521,705 thousand in 2023, a 55.6% increase[90] Production and Operations - The company added 1 new cosmetics production line and 1 medical device production line, with a new medical device factory expected to be operational within the year[19] - The company's capital commitments primarily consist of plant, machinery, and buildings, amounting to RMB 239.8 million as of June 30, 2024[39] - The company recorded capital expenditures of RMB 164.7 million in the six months ended June 30, 2024, mainly for the construction of new factories and the purchase of production line equipment[39] - The company has 1,512 full-time employees as of June 30, 2024, with 39.9% in production, 11.6% in R&D, 30.0% in sales and marketing, and 18.5% in general and administrative functions[40][41] - Inventory grew by 66.5% to RMB 333.7 million as of June 30, 2024, from RMB 200.4 million as of December 31, 2023[71] - Inventory increased by RMB 133,274 thousand, reflecting higher stock levels compared to the previous year[76] - Inventory, consumables, and custom product costs increased to RMB 314,231 thousand in 2024 from RMB 199,527 thousand in 2023, a 57.4% increase[90] - The company's investment in property, plant, and equipment decreased to RMB 165,417 thousand in 2024, down from RMB 186,961 thousand in 2023[77] - The company's net cash used in investing activities decreased to RMB 343,498 thousand in 2024, compared to RMB 472,404 thousand in 2023[77] - The company acquired assets worth RMB 284,042 thousand in 2024, compared to RMB 111,910 thousand in 2023, a 153.8% increase[98] Financial Position and Capital - Total assets as of June 30, 2024, were RMB 7.78 billion, a 56.5% increase compared to the end of 2023[8] - Total liabilities as of June 30, 2024, were RMB 1.81 billion, a 200% increase compared to the end of 2023[8] - Net current assets as of June 30, 2024, were RMB 4.93 billion, a 36.8% increase compared to the end of 2023[8] - The company's cash and cash equivalents increased by 82.3% to RMB 4,564.4 million as of June 30, 2024, compared to RMB 2,504.0 million as of December 31, 2023[39] - Cash and cash equivalents as of June 30, 2024, stood at RMB 4,564.4 million, an 82.3% increase from RMB 2,504.0 million as of December 31, 2023[71] - The company's cash and cash equivalents increased significantly to RMB 4,564,386 thousand as of June 30, 2024, up from RMB 1,557,509 thousand in the same period of 2023[77] - Net asset value increased to RMB 5,974,848 thousand as of June 30, 2024, up from RMB 4,371,050 thousand at the end of 2023[73] - The company issued shares worth RMB 1,498,500 thousand, resulting in a total equity increase of RMB 1,498,502 thousand[74] - The company declared dividends of RMB 908,437 thousand for the 2023 final and special dividends[74] - The company declared a total dividend of RMB 908,437 thousand for 2023, including a final dividend of RMB 449,536 thousand and a special dividend of RMB 458,901 thousand[94] - The company completed a share placement and subscription, raising approximately HKD 1,627 million (net of commissions and estimated expenses), with 90% (HKD 1,464.3 million) allocated for core business development and ecosystem layout, and 10% (HKD 162.7 million) for working capital and general corporate purposes[67] - The company issued 33,220,000 ordinary shares at a subscription price of HKD 49.40 per share (equivalent to RMB 45.11 per share), raising a total of HKD 1,641,065,000 (RMB 1,498,500,000 before deducting share issuance costs)[104] Corporate Governance and Shareholding - The company has adopted a Restricted Stock Unit (RSU) plan, with a maximum of 19,000,000 shares, representing approximately 1.85% of the total issued share capital as of the reporting date[41] - The company has adopted the 2023 Share Option Plan and the 2023 Share Award Plan, with a maximum of 99,500,000 shares, representing 9.68% of the total issued share capital as of the reporting date[42] - The company has decided not to declare an interim dividend for the six months ended June 30, 2024[43] - The company has not separated the roles of Chairman and CEO, with Mr. Yan Jianya holding both positions, which the company believes is beneficial for consistent leadership and effective execution of business strategies[43] - Mr. Yan Jianya holds 589,350,972 shares, representing 57.32% of the company's total issued shares as of June 30, 2024[46] - Ms. Ye Juan holds 1,049,800 shares, representing 0.10% of the company's total issued shares as of June 30, 2024[46] - Ms. Fang Juan holds 1,157,601 shares, representing 0.11% of the company's total issued shares as of June 30, 2024[46] - Ms. Zhang Huijuan holds 1,240,000 shares, representing 0.12% of the company's total issued shares as of June 30, 2024[46] - Dr. Fan holds 581,104,935 shares through controlled corporations, representing 56.52% of the company's total issued shares as of June 30, 2024[50] - Healing Holding, wholly owned by Dr. Fan, holds 900,000 shares, representing 0.09% of the company's total issued shares as of June 30, 2024[50] - E Fund Management Co., Ltd. holds 50,067,000 shares, representing 4.87% of the company's total issued shares as of June 30, 2024[51] - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[52] - The restricted share unit plan has a remaining term of 7 years, with a total duration of 10 years from the date of adoption by the board[53] - The maximum number of shares under the restricted share unit plan is 19,000,000, representing approximately 1.85% of the company's total issued share capital as of the report date[54] - The restricted share units are granted at prices of RMB 4.74 per share (granted on December 8, 2021) and RMB 20 per share (granted on September 26, 2022)[53] - The restricted share units are expected to vest in five equal installments, with 20% of the total shares vesting every 12 months from the grant date[54] - As of June 30, 2024, the company's chairman, executive director, and CEO holds 10,459,502 restricted shares, representing 1.02% of the total issued shares[55] - A total of 13,361,601 restricted shares remain unvested and subject to lock-up conditions as of June 30, 2024[55] - The restricted share unit plan aims to align the interests of shareholders and employees, and to attract and retain senior management and core talent[53] - The company adopted a fourth amended and restated memorandum and articles of association on June 13, 2024, to comply with the Listing Rules regarding electronic dissemination of corporate communications[53] - No further restricted share units will be granted under the plan after the company's listing[54] - The restricted share unit plan was fully granted before the company's listing, with no additional units to be issued post-listing[54] - The maximum number of shares that can be issued under the 2023 Plan is 99,500,000 shares, representing 9.68% of the total issued shares (excluding treasury shares) as of the report date[57] - The maximum number of shares that can be issued to service provider participants under the 2023 Plan is 19,900,000 shares, representing 1.94% of the total issued shares (excluding treasury shares) as of the report date[57] - The 2023 Plan aims to provide participants with personal equity interests in the company to recognize, incentivize, and reward them, attract and retain the most qualified personnel, and drive the group's business success[57] - The minimum vesting period for options or award shares is generally 12 months, but the board may grant shorter vesting periods under certain circumstances[58] - The 2023 Plan has a remaining validity period of 9 years from the adoption date[60] - The company granted a total of 20,000,000 options to 128 eligible participants on December 28, 2023, to subscribe for ordinary shares with a par value of $0.00001 per share[60] - No share awards have been granted under the 2023 Share Award Plan as of the report date[60] - The exercise price of options must be at least the higher of the closing price on the offer date, the average closing price over the 5 business days prior to the offer date, or the par value per share on the grant date[60] - The company granted a total of 20,000,000 share options on December 28, 2023, with 40% vesting after one year, 30% after two years, and the remaining 30% after three years[62] - The exercise price of the granted share options is HK$35.05 per share, with a fair value of HK$6.25 per share at the grant date, totaling HK$125 million[62] - The company approved a Restricted Share Unit Plan on December 8, 2021[122] - The company's shares have a par value of $0.00001 per share[123] - The company operates under the Securities and Futures Ordinance (Chapter 571 of Hong Kong Law)[122] - The company's shares are held by shareholders[123] - The company has subsidiaries as defined under Section 15 of the Companies Ordinance[123] - The company's operations are subject to the jurisdiction of the United States, its territories, and all areas under its jurisdiction[123] - The company's financial reporting is in US dollars, the legal currency of the United States[124] Social Responsibility and Donations - The company donated over RMB 5 million worth of products to frontline educators and medical workers during the "March 8th Warm Spring Love Action"[20] - The company launched the "Giant 315 Transparency Commitment" on March 15, 2024, to promote transparency in the recombinant collagen industry[21] Industry Recognition and Achievements - The company was recognized as the global leader in recombinant collagen by Euromonitor International[9] Strategic Investments and Future Plans - The company plans to continue R&D investment, enrich raw material reserves, and expand product lines in the second half of 2024[20

港股公司报告 | 公司点评 | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [7]. Core Views - The company reported a revenue of 2.54 billion yuan for the first half of 2024, representing a year-on-year growth of 58.2%. The net profit attributable to the parent company was 983 million yuan, up 47.4%, with adjusted net profit reaching 1.03 billion yuan, a 51.8% increase. The diluted EPS was 0.97 yuan [7][8]. Summary by Sections Financial Performance - In 1H24, the company achieved a revenue of 2.54 billion yuan, a 58.2% increase year-on-year. The net profit attributable to the parent company was 983 million yuan, up 47.4%, and the adjusted net profit was 1.03 billion yuan, reflecting a 51.8% growth. The gross margin decreased by 1.7 percentage points to 82.4% due to product type expansion and increased sales costs [4][6]. Revenue Breakdown - By product category, professional skin care products generated 2.53 billion yuan in revenue, with functional skin care products contributing 1.94 billion yuan (62.0% growth), accounting for 76.4% of main business revenue. Medical dressings brought in 592 million yuan (48.9% growth), making up 23.3% of main business revenue. Health food and others saw a decline of 21.1% to 9 million yuan [8]. - By sales channel, direct sales accounted for 1.84 billion yuan (69.7% growth), representing 72.4% of main business revenue. Online direct sales through DTC stores reached 1.60 billion yuan (64.1% growth), while e-commerce platforms saw a 143.3% increase to 167 million yuan. Offline direct sales grew by 82.2% to 68 million yuan. Distribution channels generated 702 million yuan (34.4% growth) [4][6]. Marketing and Product Development - The company launched new products in various categories, with the collagen stick becoming a top seller in multiple online platforms. The new "Focus Series" was introduced to address skin issues caused by lifestyle factors, achieving significant sales during promotional events [6][7]. - Marketing efforts included collaborations with influencers and participation in major consumer expos, enhancing brand visibility and consumer engagement [6][7]. Future Outlook - The company is expected to continue its growth trajectory, with projected revenues of 5.04 billion yuan, 6.61 billion yuan, and 8.36 billion yuan for 2024, 2025, and 2026, respectively, reflecting year-on-year growth rates of 42.9%, 31.3%, and 26.5% [7][8]. - The adjusted net profit forecasts for the same period are 1.98 billion yuan, 2.41 billion yuan, and 2.94 billion yuan, with growth rates of 34.6%, 21.9%, and 22.1% [7][8].

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company is experiencing high growth and profitability, with expectations for strong performance in the second half of 2024 [2][5] - In H1 2024, the adjusted net profit reached 1.027 billion HKD, representing a year-on-year increase of 51.8%, with an adjusted net profit margin exceeding 40% [2][5] Summary by Sections Financial Performance - In H1 2024, the company reported revenue of 2.54 billion HKD, a year-on-year increase of 58.2%, and a net profit attributable to shareholders of 983 million HKD, up 47.4% [5] - The adjusted net profit for H1 2024 was 1.027 billion HKD, reflecting a growth of 51.8% year-on-year [5] Brand Performance - The "可复美" brand continued its high growth momentum, generating revenue of 2.07 billion HKD in H1 2024, a year-on-year increase of 68.6% [5] - The "可丽金" brand showed initial signs of improvement with revenue of 396 million HKD, up 23.6% year-on-year, following product adjustments made in 2023 [5] Operational Efficiency - The company achieved a direct sales revenue ratio of 72.4% in H1 2024, an increase of 4.9 percentage points year-on-year, with a comprehensive gross margin of 82.4% [6] - The company expanded its offline channels, covering approximately 1,500 public hospitals and 2,700 private hospitals and clinics by H1 2024 [6] Future Projections - Revenue projections for 2024-2026 are 5.06 billion HKD, 6.39 billion HKD, and 7.79 billion HKD, with corresponding growth rates of 43.6%, 26.4%, and 21.8% [6][7] - The net profit attributable to shareholders is expected to be 1.946 billion HKD, 2.399 billion HKD, and 2.883 billion HKD for the same period, with growth rates of 34.1%, 23.3%, and 20.1% respectively [6][7]

[Table_Stock] 巨子生物（02367） 证 券 研 究 报 告 港 股 研 究（ 公 司 点 评 ） [行业Table_Industry] : 美容护理 日期: shzqdatemark 2024年08月20日 | --- | --- | |-----------------------|-------------------| | [Table_Author]分析师: | 梁瑞 | | Tel: | 021-53686409 | | E-mail: | liangrui@shzq.com | | SAC 编号: | S0870523110001 | [Table_BaseInfo] 基本数据 | --- | --- | |----------------------------|-------------| | 最新收盘价（港元） | 49.35 | | 12mth 港股价格区间（港元） | 29.30-53.15 | | 总股本（百万股） | 1,028.22 | | 流通股/总股本 | 0.00% | | 流通市值（亿港元） | 507.43 | [Table_QuotePic] 最近一年股 ...

Investment Rating - The report maintains a "Recommend" rating for Giant Biogene (02367 HK) with a target price of HKD 54 40, compared to the current price of HKD 39 45 [1] Core Views - Giant Biogene achieved strong revenue and profit growth in H1 2024, with revenue reaching RMB 2 54 billion, up 58 2% YoY, and net profit attributable to shareholders of RMB 980 million, up 47 4% YoY [2] - The company's gross margin slightly decreased to 82 4% (-1 7pct YoY), while net margin stood at 38 6% (-2 9pct YoY), mainly due to the faster growth of lower-margin cosmetic products [2] - The flagship brand Kefumei (可复美) saw revenue growth of 68 6% YoY to RMB 2 07 billion, accounting for 81 5% of total revenue, driven by strong online sales and new product launches [2] - The company's online revenue reached RMB 1 77 billion, up 69 3% YoY, accounting for 69 7% of total revenue, with improved operational efficiency [2] - The report expects the company to benefit from potential approval of Class III medical device licenses for recombinant collagen products in 2025, opening a new growth curve [2] Financial Performance - Revenue for 2024E is projected at RMB 5 126 billion, up 45 4% YoY, with net profit attributable to shareholders of RMB 1 956 billion, up 34 7% YoY [2] - The company's gross margin is expected to remain stable at around 82 4% in 2024E, with net margin at 38 2% [2] - The report forecasts a 3-year revenue CAGR of 28% from 2024E to 2026E, with net profit CAGR of 26 9% [2] Product and Brand Strategy - Kefumei's collagen stick became the top-selling facial essence product on Tmall during the 618 shopping festival, with GMV growth exceeding 60% [2] - The company is building a diversified product matrix, with new launches such as the Focus Cream and Order Spot Stick gaining traction [2] - The Kelinge (可丽金) brand achieved 23 6% YoY revenue growth in H1 2024, with online GMV growth exceeding 100% during the 618 period [2] Valuation - The report values the company at 25x 2024E PE, based on its strong brand momentum and expected medical aesthetics growth [2] - The target price of HKD 54 40 implies a 38% upside from the current price [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 46.38 HKD, based on a 22x PE valuation for 2024 [2][4][6]. Core Insights - The company reported a revenue of 2.54 billion, a year-on-year increase of 58.2%, and a net profit attributable to shareholders of 980 million, up 47.4%, exceeding market expectations [1]. - The brand "可复美" showed significant growth, with a revenue increase of 68.6% in H1 2024, driven by strong sales of its collagen products and successful new product launches [1]. - Direct sales revenue grew by 69.7%, with online direct-to-consumer (DTC) sales increasing by 64.1% and offline sales by 82.2% [1]. - The company's gross margin decreased by 1.7 percentage points to 82.4%, attributed to an increase in product types and sales costs [1]. - The report indicates that the company's strong performance in H1 reflects its brand momentum and product strength, with a focus on clinical approvals for medical devices in the future [1]. Financial Summary - Revenue (in million) for the years 2022A to 2026E is projected as follows: 2,364, 3,524, 5,115, 6,526, and 8,134, with year-on-year growth rates of 52.3%, 49.0%, 45.1%, 27.6%, and 24.6% respectively [3]. - Net profit attributable to shareholders (in million) is forecasted to be 1,002, 1,452, 1,980, 2,461, and 2,997 for the same period, with growth rates of 21.0%, 44.9%, 36.4%, 24.3%, and 21.8% [3]. - The company's earnings per share (EPS) are expected to be 0.97, 1.41, 1.93, 2.39, and 2.92 for the years 2022A to 2026E [3].