Core Viewpoint - The company reported a 6% year-on-year growth in net profit attributable to shareholders, excluding the impact of real estate business, despite a decline in overall revenue and net profit [1][2]. Financial Performance - In 2024, the company achieved operating revenue of 3.983 billion yuan, a decrease of 13.02% year-on-year, and a net profit attributable to shareholders of 244 million yuan, down 19.73% year-on-year. However, the net profit excluding non-recurring items increased by 54.54% to 215 million yuan [2]. - The company's gross margin for 2024 was 52.68%, an increase of 6.19 percentage points year-on-year, while the net profit margin was 7.44%, a decrease of 0.56 percentage points [2]. - The sales expense ratio increased to 36.73%, up 5.14 percentage points year-on-year, while the management expense ratio decreased to 4.59%, down 0.28 percentage points. The R&D expense ratio rose to 4.19%, an increase of 0.84 percentage points [2]. Business Segment Performance - The cosmetics segment showed stable performance, with operating revenue of 2.475 billion yuan in 2024, an increase of 2.46% year-on-year, and a gross margin of 62.57%, up 0.44 percentage points [3]. - The Yilian brand generated revenue of 963 million yuan, a year-on-year increase of 12.36%. Sales of Spray 1.0 and Spray 2.0 grew by 13% and 35%, respectively. The "billion cream" plan for the Pengrun product line saw an 18% increase in sales [3]. - The Aier Doctor brand reported revenue of 1.301 billion yuan, a decrease of 3.48% year-on-year. The probiotic product line saw over 500 million yuan in sales for masks and over 170 million yuan for lotions, with a 9% increase in sales for the Flash Charge product line [3]. - The pharmaceutical segment experienced a slight decline, with revenue of 512 million yuan, down 1.41% year-on-year. The raw materials and derivatives segment generated 343 million yuan, a decrease of 2.43% [3]. Investment Outlook - The company is focusing on the health sector after divesting its real estate business, leveraging strong R&D capabilities and deepening its raw material business for sustainable high-quality growth. EPS forecasts for 2025-2027 are 0.29, 0.34, and 0.39 yuan per share, corresponding to PE ratios of 26, 22, and 19 times, respectively, maintaining a "buy" rating [4].

Investment Rating - The investment rating for the company is "Buy" with a target price expected to yield over 20% relative return within six months [6][18]. Core Insights - The company reported a revenue of 3.98 billion yuan in 2024, a year-over-year decrease of 13.02%, but a non-recurring net profit of 2.15 billion yuan, showing a significant increase of 54.54% [1][5]. - The cosmetics business remains stable, with a revenue of 2.48 billion yuan, representing a year-over-year growth of 2.46% [3]. - The company is diversifying its brand matrix and leveraging cross-industry collaborations for marketing, which has led to notable sales increases in specific product lines [4]. Financial Performance - In 2024, the gross margin was 52.68%, an increase of 6.19 percentage points year-over-year, while the net profit margin was 7.44%, a decrease of 0.56 percentage points [2]. - The company plans to distribute a cash dividend of 0.6 yuan per 10 shares, totaling 609.9 million yuan [1]. - The projected revenues for 2025-2027 are 4.28 billion, 4.67 billion, and 5.06 billion yuan, respectively, with corresponding net profits of 291 million, 322 million, and 365 million yuan [5][12]. Revenue Structure - The cosmetics segment accounted for 62.76% of total revenue in 2024, with a gross margin of 62.57% [3]. - The property management and other income decreased significantly by 46.18%, now representing 15.56% of total revenue [3]. - The pharmaceutical revenue slightly decreased by 1.41%, but its proportion increased to 12.99% [3]. Brand Strategy - The company employs a "5+N" brand development strategy, focusing on multi-brand growth and successful collaborations with cultural IPs [4]. - Specific product lines, such as the probiotic series from the Aier Doctor brand, have achieved sales exceeding 500 million yuan [4]. Future Outlook - The company is expected to continue its growth trajectory, with the main brand, Yilian, showing steady growth and new sub-brands like Kemi accelerating their growth [5]. - The company is also expanding into new business areas, including health products and medical supplies, enhancing its overall market position [5].

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Insights - The company reported a 6% year-on-year growth in net profit attributable to the parent company after excluding the impact of the real estate business, despite a 13.02% decline in total revenue to 3.983 billion yuan [2] - The cosmetics segment showed resilience with a revenue increase of 2.46% to 2.475 billion yuan, while the pharmaceutical and raw materials segments experienced slight declines [3] - The company is focusing on the health sector after divesting its real estate business, leveraging strong R&D capabilities to drive quality growth in its cosmetics business [4] Financial Performance Summary - In 2024, the company achieved total revenue of 3.983 billion yuan, a decrease of 13.02% year-on-year, and a net profit of 244 million yuan, down 19.73% year-on-year [2] - The adjusted net profit, excluding the real estate business, showed a growth of 6.15% [2] - The gross margin for 2024 was 52.68%, an increase of 6.19 percentage points year-on-year, while the net margin was 7.44%, a decrease of 0.56 percentage points [2] - The cosmetics segment's revenue was 2.475 billion yuan, with a gross margin of 62.57% [3] - The company forecasts EPS of 0.29, 0.34, and 0.39 yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 26, 22, and 19 [4]

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company reported a 6% year-on-year growth in net profit attributable to the parent company after excluding the impact of the real estate business, despite a 13.02% decline in total revenue to 3.983 billion yuan [2][3]. - The cosmetics segment showed resilience with a revenue increase of 2.46% to 2.475 billion yuan, while the pharmaceutical and raw materials segments experienced slight declines [3]. - The company is focusing on the health sector after divesting its real estate business, leveraging strong R&D capabilities to drive quality growth in its cosmetics business [4]. Financial Summary - In 2024, the company achieved a gross margin of 52.68%, up 6.19 percentage points year-on-year, while the net profit margin was 7.44%, down 0.56 percentage points [2]. - The company’s revenue for 2025 is projected to be 4.304 billion yuan, with a year-on-year growth of 8.07%, and net profit is expected to reach 297.33 million yuan, reflecting a 22.09% increase [4][10]. - The earnings per share (EPS) forecast for 2025 is 0.29 yuan, with corresponding price-to-earnings (P/E) ratios of 26, 22, and 19 for the years 2025, 2026, and 2027 respectively [4][10].

Core Viewpoint - The company reported a decline in overall revenue and net profit for 2024, but showed significant growth in its core cosmetic brand, Yilian, particularly in Q4, indicating a positive trend in product performance and market recovery [1][2]. Financial Performance - For the full year 2024, the company achieved revenue of 3.983 billion yuan, down 13.0%, and a net profit of 244 million yuan, down 19.7%. However, the net profit excluding non-recurring items increased by 54.5% to 215 million yuan [1]. - In Q4 2024, revenue was 1.180 billion yuan, a slight decrease of 0.3%, while net profit rose by 10.7% to 72 million yuan, and net profit excluding non-recurring items surged by 104.4% to 64 million yuan [2]. Cosmetic Business Performance - The cosmetic segment showed signs of recovery in Q4, with revenue increasing by 0.7% year-on-year. For the full year, cosmetic business revenue reached 2.475 billion yuan, up 2.5% [2]. - Yilian's revenue for 2024 was 963 million yuan, a 12.4% increase, with Q4 revenue of 305 million yuan, up 24% year-on-year. The brand's product iterations, such as the spray products, performed well, with sales growth of 13% and 35% respectively [2]. - The company expanded its offline presence, with over 500 stores for Yilian and Aier Bo Shi, contributing nearly 300 million yuan in sales for the year [2]. Drug and Raw Material Revenue - The pharmaceutical segment generated 512 million yuan in revenue, a decline of 1.4%. The company established an integrated production and sales system focused on academic and brand marketing [3]. - Revenue from raw materials and additives was 343 million yuan, down 2.4%. The company successfully passed GMP compliance checks for sodium hyaluronate and obtained EU certification for its raw materials [3]. Profitability and Cost Management - Q4 gross margin improved significantly to 54.65%, up 9.9 percentage points, driven by business structure optimization. The gross margin for cosmetics was 63.1%, while pharmaceuticals stood at 57% [4]. - The company's net profit margin for Q4 was 6.13%, reflecting a stable performance [5]. Future Outlook - The company is expected to continue benefiting from the ongoing upgrades and adjustments in its business model, with Yilian showing strong growth potential. Projections for net profit in 2025 and 2026 are 310 million yuan and 340 million yuan, respectively, with corresponding PE ratios of 24x and 22x [5].

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The company reported a 19.7% year-on-year decline in net profit attributable to shareholders for 2024, but the performance excluding real estate was stable. The total revenue for 2024 was 3.983 billion yuan, down 13.0% year-on-year, while the net profit attributable to shareholders was 244 million yuan [6][9] - The company focuses on the health sector, with a steady performance in the cosmetics business. The forecast for net profit attributable to shareholders for 2025-2027 is 290 million, 336 million, and 381 million yuan respectively, with corresponding EPS of 0.29, 0.33, and 0.38 yuan [6][9] - The company has a reasonable valuation, with a current PE ratio of 26.7 for 2025, and the overall business is expected to stabilize and recover in the future [6][9] Financial Summary - In 2024, the cosmetics segment generated revenue of 2.475 billion yuan, up 2.5% year-on-year, with a gross margin of 62.6% [7] - The pharmaceutical segment reported revenue of 512 million yuan, down 1.4%, while the raw materials segment generated 343 million yuan, down 2.4% [7] - The overall gross margin for the company in 2024 was 52.7%, an increase of 6.2 percentage points year-on-year, driven by product structure upgrades [7][9] - The company plans to accelerate the high-end transformation of its raw materials business and has launched several functional foods [8] Financial Projections - Revenue projections for 2025-2027 are 4.367 billion, 4.711 billion, and 5.049 billion yuan respectively, with year-on-year growth rates of 9.6%, 7.9%, and 7.2% [9][11] - The net profit attributable to shareholders is projected to grow by 19.0%, 16.0%, and 13.4% for the years 2025-2027 [9][12] - The company’s return on equity (ROE) is expected to improve from 6.2% in 2024 to 7.8% in 2027 [9][12]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][6][15] Core Views - The company reported a decline in net profit attributable to shareholders by 19.7% year-on-year for 2024, but the performance excluding real estate was stable [6] - The company achieved a revenue of 3.983 billion yuan in 2024, a decrease of 13.0% year-on-year, while the net profit attributable to shareholders was 244 million yuan [6] - The company focuses on the health sector, with a positive outlook for its cosmetics business, which is expected to stabilize and recover in the future [6][8] Financial Summary - Revenue for 2024 was 3.983 billion yuan, with a year-on-year decline of 13.0% [6][9] - The net profit attributable to shareholders for 2024 was 244 million yuan, down 19.7% year-on-year, while the non-recurring net profit increased by 54.5% [6][9] - The company’s gross margin improved to 52.7% in 2024, up 6.2 percentage points year-on-year [7][12] - The projected net profit for 2025-2027 is estimated at 290 million, 336 million, and 381 million yuan respectively, with corresponding EPS of 0.29, 0.33, and 0.38 yuan [6][9] Business Performance - The cosmetics segment generated revenue of 2.475 billion yuan in 2024, reflecting a growth of 2.5% [7] - The pharmaceutical segment reported revenue of 512 million yuan, a decrease of 1.4% due to policy changes in the industry, but is expected to stabilize in the second half of the year [7][8] - The company is accelerating the high-end transformation of its raw materials business, with a focus on customized services for food-grade and cosmetic-grade products [8]

Investment Rating - The report maintains a "Recommended" rating for the company, with projected PE ratios for 2025-2027 at 28X, 23X, and 19X respectively [5][6]. Core Insights - The company reported a revenue of 3.983 billion yuan in 2024, a year-on-year decrease of 13.02%, and a net profit attributable to shareholders of 244 million yuan, down 19.73% year-on-year. However, the non-recurring net profit increased by 54.54% to 215 million yuan [1][5]. - The cosmetics business showed steady growth, with the Yilian brand achieving a revenue increase of 12.36% year-on-year, while the Ai Er Bo Shi brand faced some pressure, with a revenue decline of 3.48% year-on-year [2][3]. - The pharmaceutical segment completed the integration of production and sales, with a revenue of 512 million yuan in 2024, a slight decrease of 1.41% year-on-year, but an increase of 18.78% in the second half of the year [3][4]. Summary by Sections Revenue and Profitability - The company achieved a total revenue of 3.983 billion yuan in 2024, with a projected revenue growth of 14.7% in 2025, reaching 4.568 billion yuan [6][9]. - The gross margin for 2024 was reported at 52.68%, an increase of 6.19 percentage points year-on-year, with the cosmetics segment achieving a gross margin of 62.57% [4][9]. Business Segments - The cosmetics segment is expanding its multi-channel strategy, actively increasing its presence on platforms like JD and Pinduoduo, with notable sales growth in specific product lines [2][3]. - The pharmaceutical business is focusing on new product development and supply chain services, with a successful launch of several functional foods [3][4]. Financial Projections - The forecast for net profit attributable to shareholders is 280 million yuan in 2025, 331 million yuan in 2026, and 398 million yuan in 2027, reflecting year-on-year growth rates of 15.1%, 18.2%, and 20.2% respectively [5][6]. - The report indicates a steady improvement in profitability metrics, with a non-recurring net profit margin projected to increase to 5.39% in 2024 [4][9].

Core Insights - The company experienced a 19.73% year-on-year decline in net profit for 2024 due to the impact of divesting its real estate business, but net profit increased by 6.15% when excluding this effect [3] - The asset-liability ratio decreased to 20.20% as the proceeds from the real estate divestiture were used to repay financial institution loans [3] - The company increased its R&D investment by 20.05% in 2024, marking the fifth consecutive year of rising R&D expenditures [3] Group 1: Business Performance - The cosmetics segment saw a revenue increase of 2.46% year-on-year, while the pharmaceutical segment experienced a decline of 1.41%, and the raw materials and additives segment fell by 2.43% [4] - Key brands in the cosmetics sector, such as Yilian and Aier Doctor, contributed significantly to revenue growth, with Yilian solidifying its high-moisture brand positioning and Aier Doctor maintaining its leading position in domestic micro-ecological skincare [4] - The pharmaceutical business stabilized in the second half of the year after adjustments to sales organization, channels, and models, focusing on innovative marketing strategies and product positioning [4] Group 2: Strategic Focus - The raw materials and additives segment is accelerating its shift towards high-end products, expanding customized services for food-grade and cosmetic-grade products [5] - The company is building technical barriers with hyaluronic acid and strengthening its leading position with natamycin to create a product moat [5]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's cosmetics business shows steady growth, with the brand "Aier Doctor" expected to see significant volume increase due to adjustments and upgrades [10] - The company is focusing on the health industry and is gradually improving efficiency through organizational restructuring and strategic focus [10] - Short-term performance may be under pressure due to the ongoing upgrade phase of the cosmetics brands [10] Financial Performance Summary - For 2024, the company is projected to achieve total revenue of 39.83 billion yuan, a year-on-year decrease of 13.02%, and a net profit attributable to shareholders of 2.44 billion yuan, down 19.73% [10] - The cosmetics segment generated revenue of 24.75 billion yuan in 2024, reflecting a year-on-year increase of 2.46% [10] - The gross profit margin for the cosmetics business is 62.57%, an increase of 0.44 percentage points year-on-year [10] - The company plans to distribute a cash dividend of 0.6 yuan per 10 shares for 2024, with a total dividend payout ratio of 45.92% [10] Earnings Forecast and Valuation - The forecast for net profit attributable to shareholders has been adjusted downwards for 2025 and 2026 to 2.82 billion yuan and 3.51 billion yuan, respectively [10] - The projected P/E ratios for 2025, 2026, and 2027 are 28, 22, and 19, respectively [10]