Investment Rating - The report maintains a "Buy-B" rating for the company [1][8]. Core Views - The company has a rich pipeline of products under development and is accelerating its international expansion through acquisitions [1][6]. - In 2024, the company achieved a revenue of 3.026 billion yuan, representing a year-on-year growth of 5.45%, and a net profit of 1.958 billion yuan, also up by 5.33% [2][4]. - The company plans to distribute a cash dividend of 38 yuan per 10 shares, which accounts for 58.51% of the net profit attributable to shareholders [2]. Financial Performance - The company reported a gross margin of 94.64%, a net margin of 64.66%, and an overall expense ratio of 22.21% for the period [4]. - The revenue from solution products was 1.744 billion yuan, with a gross margin of 93.76%, while gel products generated 1.216 billion yuan with a gross margin of 97.98% [3]. - The company has three products in the registration application stage and three in clinical trials, indicating a robust product pipeline [3][4]. Regional Performance - Revenue from different regions showed varied growth: North China +33.21%, Central China +19.84%, while East China saw a decline of -4.08% [3]. - Direct sales accounted for 66.37% of total sales, while distribution sales made up 33.63% [3]. Acquisition Strategy - The company plans to acquire 85% of the Korean medical beauty company Regen Biotech for 190 million USD, which will enhance its product line and accelerate internationalization [6]. - The target company reported a revenue of 72 million yuan and a net profit of 30 million yuan for the first nine months of 2024 [6]. Earnings Forecast - The projected EPS for 2025, 2026, and 2027 are 7.06 yuan, 7.93 yuan, and 8.66 yuan respectively, with corresponding P/E ratios of 26.9, 24.0, and 22.0 [6][10].

Group 1: Company Strategy and Focus - The company remains focused on its core business and aims to serve downstream customers effectively [2] - The company will not establish flagship hospitals like competitors to directly engage with users [2] - The company emphasizes maintaining sustainable growth and shareholder value [7] Group 2: Financial Performance and Projections - In 2024, the company achieved a revenue of CNY 3.03 billion, with a net profit of CNY 1.96 billion, reflecting a year-on-year growth of 5.5% and 5.3% respectively [18] - The company anticipates a significant increase in performance following the acquisition of REGEN Biotech, with production expected to start in Q2 2025 [16] - The company’s overseas revenue is currently CNY 1.58 million, accounting for only 0.05% of total revenue [2] Group 3: Product Development and Market Expansion - A new product, a medical-grade polyvinyl alcohol gel microsphere, has received regulatory approval and is set to launch in 2025 [12] - The company plans to expand its product line to cater to younger consumer demographics while maintaining quality [20] - The company is exploring mergers and acquisitions to enhance its product offerings and competitiveness [19] Group 4: Challenges and Market Conditions - The company faces intense competition in the medical aesthetics sector, which has led to a slowdown in growth [2] - Operating cash flow has seen a decline of 1.38%, with cash inflow increasing by 8.9% but outflow rising by 27% due to various operational costs [18] - The company acknowledges the challenges posed by market conditions and is considering strategies to regain investor confidence [19]

Core Viewpoint - The company reported a steady growth in revenue and net profit for 2024 despite industry pressures, with a revenue of 3.03 billion and a net profit of 1.96 billion, reflecting year-on-year increases of 5.4% and 5.3% respectively [2][3] Revenue and Profit Analysis - In Q4 2024, the company's revenue was 650 million, showing a year-on-year decline of 7.0%, while the net profit was 370 million, down 15.5% year-on-year [2] - The revenue from solution products and gel products for 2024 was 1.74 billion and 1.22 billion respectively, with year-on-year growth of 4.4% and 5.0% [3] Product Performance - The sales volume for solution products was 634.6 thousand units, up 23.4% year-on-year, while gel products saw a decline in sales volume to 89.4 thousand units, down 11.2% [3] - The average price of solution products decreased due to a shift in product mix, while the average price of gel products increased due to a higher proportion of high-margin products [3] Profitability Metrics - The company's gross margin for 2024 was 94.6%, a decrease of 0.5 percentage points year-on-year, while the net profit margin was 64.7%, down 0.1 percentage points [4] - In Q4 2024, the gross margin was 94.0%, down 0.4 percentage points year-on-year, and the net profit margin was 57.2%, down 5.7 percentage points [4] R&D and Cost Management - The company increased its R&D investment, with a R&D expense ratio significantly rising, completing 57 patent applications and engaging in 21 collaborative research projects with medical institutions [4] - The overall expense ratio increased by 1.3 percentage points to 22.2%, driven by higher R&D costs, while sales expenses remained stable [4] Product Line Expansion - The company received a Class III medical device registration for a new gel product, expected to launch this year, which will enhance its gel product line [5] - Clinical trial approvals were obtained for several new products, indicating ongoing innovation and product development [5] Strategic Acquisition - The company plans to acquire REGEN Biotech, Inc. in March 2025, which is expected to strengthen its competitive advantage in the global regenerative market and enhance its overseas market expansion capabilities [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a total revenue of 3.026 billion yuan in 2024, representing a year-on-year growth of 5.45%, and a net profit attributable to shareholders of 1.958 billion yuan, also up by 5.33% [8] - The company maintains a high level of profitability, with a gross margin of 94.64% and a net margin of 64.66% in 2024, despite a slight decrease in gross margin [8] - The company has a rich pipeline of products under research, which ensures long-term growth, and is accelerating its international business layout through acquisitions [8] Summary by Sections Financial Performance - In 2024, the company reported total revenue of 3.026 billion yuan, with a year-on-year increase of 5.45% [8] - The net profit attributable to shareholders was 1.958 billion yuan, reflecting a growth of 5.33% year-on-year [8] - The company’s earnings per share (EPS) for 2024 is projected at 6.47 yuan [9] Product and Market Strategy - The company’s solution and gel products continue to grow, with sales of the "Hi Body" series reaching 1.744 billion yuan, up 4.40% year-on-year, and the "Mo White Angel" series generating 1.216 billion yuan, up 5.01% [8] - The company has engaged in extensive academic activities and digital marketing to enhance brand influence and provide comprehensive solutions to medical institutions and consumers [8] Research and Development - The company has 11 Class III medical device products approved by the National Medical Products Administration and a rich pipeline of products under research, including botulinum toxin and other innovative treatments [8] - The planned acquisition of 85% of REGEN Biotech aims to expand the product pipeline and accelerate international business development [8] Profitability and Cost Management - The company’s sales, management, research and development, and financial expense ratios for 2024 were 10.93%, 4.82%, 17.88%, and -0.66% respectively, indicating an increase in sales expenses due to heightened marketing efforts [8] - The overall profitability remains high, with a slight decrease in gross margin for solution products but an increase for gel products [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a total revenue of 3.026 billion yuan in 2024, representing a year-on-year growth of 5.45%, and a net profit attributable to shareholders of 1.958 billion yuan, also up by 5.33% year-on-year [8] - The company maintains a high level of profitability, with a gross margin of 94.64% and a net margin of 64.66% in 2024, indicating stable profitability despite slight declines in gross margin [8] - The company has a rich pipeline of products under research and development, which is expected to support long-term growth, alongside an accelerated international business layout [8] Summary by Sections Financial Performance - In 2024, the company reported total revenue of 3.026 billion yuan, with a year-on-year increase of 5.45% [8] - The net profit attributable to shareholders was 1.958 billion yuan, reflecting a year-on-year growth of 5.33% [8] - The company’s earnings per share (EPS) for 2024 is projected at 6.47 yuan, with a price-to-earnings (P/E) ratio of 30.41 [1][9] Product and Market Strategy - The company’s solution and gel products continue to grow, with sales of the "Hi Body" series generating 1.744 billion yuan, up 4.40% year-on-year, and the "Mo White Angel" series achieving 1.216 billion yuan, up 5.01% year-on-year [8] - The company leverages academic activities and digital marketing to enhance brand influence and provide comprehensive solutions to medical institutions and consumers [8] Research and Development - The company has 11 Class III medical device products approved by the National Medical Products Administration, with a diverse pipeline including botulinum toxin and other innovative products [8] - A planned acquisition of 85% of South Korean REGEN Biotech is expected to enhance the product pipeline and accelerate international expansion [8] Profitability and Cost Management - The company’s sales, management, R&D, and financial expense ratios for 2024 are 10.93%, 4.82%, 17.88%, and -0.66% respectively, indicating an increase in sales expenses due to heightened marketing efforts [8] - The gross margin for solution products slightly decreased to 93.76%, while gel products saw an increase to 97.98% due to the growth of high-end products [8]

Investment Rating - The report maintains a "Buy" rating for the company [5][15]. Core Insights - The company reported a revenue of 3.026 billion yuan in 2024, representing a growth of 5.45% year-on-year, with a net profit of 1.958 billion yuan, up 5.33% [10][11]. - The company's product lines are expanding, with significant progress in multiple research and development projects, including new medical products and a planned acquisition of a South Korean company to enhance its pipeline [3][14]. - The company is experiencing a temporary pressure on Q4 performance, with a revenue decline of 7% and a net profit drop of 15.47% compared to the previous quarter [10][11]. Financial Summary - In 2024, the company achieved a gross margin of 94.64%, with a net profit margin of 64.70% [13]. - The projected revenues for 2025-2027 are estimated at 3.610 billion yuan, 4.320 billion yuan, and 5.182 billion yuan, respectively, with corresponding net profits of 2.388 billion yuan, 2.864 billion yuan, and 3.451 billion yuan [15][18]. - The company plans to distribute a cash dividend of 38 yuan per 10 shares [10]. Product Performance - The solution product line generated 1.744 billion yuan in revenue, accounting for 57.64% of total revenue, with a sales volume increase of 23.44% [11]. - The gel product line contributed 1.216 billion yuan, representing 40.18% of total revenue, despite a decrease in sales volume [11]. - The company has seen significant growth in its skincare segment, with other products achieving a revenue increase of 68.47% [11]. R&D and Market Position - The company is enhancing its competitive edge through a diversified product portfolio and has made advancements in several in-development products, including new injectable solutions [3][14]. - The marketing network has expanded to cover all 31 provinces, cities, and autonomous regions in China, with an increase in sales personnel [11]. Future Outlook - The company is expected to gradually realize its performance potential as new products are launched and the market conditions improve [15]. - The projected price-to-earnings ratios for 2025-2027 are 25x, 21x, and 17x, indicating a favorable valuation outlook [15].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 237.90 RMB [8][9]. Core Views - The company reported a revenue of 3.026 billion RMB for 2024, a year-on-year increase of 5.45%, and a net profit attributable to the parent company of 1.958 billion RMB, also up by 5.33% year-on-year. However, the Q4 2024 revenue was 650 million RMB, down 7% year-on-year, and net profit was 372 million RMB, down 15% year-on-year, which was below previous expectations due to pressure on the medical aesthetics sector [1]. - The acquisition of 85% of Korean Regen Company for 190 million USD (approximately 1.386 billion RMB) is expected to inject performance momentum and boost market confidence. This marks the company's first overseas acquisition since its listing [1][4]. - Short-term recovery in the medical aesthetics sector may provide room for performance and valuation recovery, while long-term global resource integration and pipeline expansion are anticipated to create new growth trajectories [1]. Revenue and Profit Forecast - The company’s revenue is projected to grow to 3.643 billion RMB in 2025, representing a 20.41% increase, and net profit is expected to reach 2.398 billion RMB, a 22.52% increase. The EPS for 2025 is estimated at 7.93 RMB [5][7]. - The company’s estimated PE for 2025 is 30 times, with a target price of 237.90 RMB based on this valuation [5]. Product Performance - The revenue from gel products reached 1.216 billion RMB, growing by 5.01% year-on-year, driven mainly by the launch of new products. The solution category generated 1.744 billion RMB, with a stable growth of 4.4% year-on-year [2]. Regional Expansion - The company has significant expansion potential in regions such as North China, Central China, and South China, with North China showing a revenue increase of 33.21% year-on-year [3].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company reported slightly lower-than-expected performance for 2024, with revenue of 3.03 billion yuan, a year-on-year growth of 5.5%, and a net profit attributable to shareholders of 1.96 billion yuan, also up 5.3% year-on-year [8] - The company is acquiring a controlling stake in REGEN Biotech, Inc., which opens further growth opportunities through external mergers and acquisitions [6] - The company has a robust pipeline of products under development, including various medical aesthetic products, indicating strong future potential [8] Financial Data and Profit Forecast - Total revenue projections for the company are as follows: - 2023: 2.87 billion yuan - 2024: 3.03 billion yuan - 2025E: 3.33 billion yuan - 2026E: 3.80 billion yuan - 2027E: 4.55 billion yuan - Net profit attributable to shareholders is forecasted as: - 2023: 1.86 billion yuan - 2024: 1.96 billion yuan - 2025E: 2.15 billion yuan - 2026E: 2.44 billion yuan - 2027E: 2.87 billion yuan [7][15] - The company maintains a high gross margin of 94.6% for 2024, with a net profit margin of 64.7% [8][13] Product and Market Insights - The company has a strong presence in the domestic medical aesthetics market, with significant barriers to entry and a focus on high-margin products [8] - The revenue from direct sales channels grew by 12.4% year-on-year, while revenue from distribution channels declined by 6.0% [8] - The product structure remains stable, with solution products generating 1.74 billion yuan and gel products generating 1.22 billion yuan in revenue [8]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][16] Core Views - The company achieved a revenue of 3.026 billion yuan in 2024, representing a year-on-year growth of 5.45%, and a net profit of 1.958 billion yuan, with a year-on-year increase of 5.33% [1][7] - The company is focusing on expanding its product lines through external acquisitions, such as the planned acquisition of South Korean regenerative materials company REGEN Biotech, which will enhance its product layout and open up international sales channels [1][12] - The medical beauty industry has significant long-term penetration potential, and under compliance regulations, leading companies will further highlight their advantages [3][15] Financial Performance - In 2024, the gross profit margin was 94.64%, slightly down by 0.46 percentage points year-on-year, while the sales expense ratio remained stable at 9.15% [2][13] - The company maintained a stable operating cash flow of 1.927 billion yuan in 2024, reflecting good cash flow conditions [2][13] - The revenue growth forecast for 2025-2026 has been adjusted to 2.237 billion yuan and 2.618 billion yuan respectively, with a new forecast for 2027 set at 3.017 billion yuan [3][16] Product Performance - The revenue growth rates for solution and gel injection products were both around 5% in 2024, with revenue shares of 57.64% and 40.18% respectively [9][10] - The company has made progress in several pipeline products, including the review stage for botulinum products and clinical trial approval for semaglutide injection [1][9] Market Position - The company’s market capitalization is approximately 59.532 billion yuan, with a closing price of 196.74 yuan [5][17] - The company is positioned to leverage its existing product matrix to expand market share in the short term while combining self-research and external acquisitions for long-term growth [3][15]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][3]. Core Views - The company is expected to achieve revenue growth of 5.45% year-on-year in 2024, reaching 3.0267 billion yuan, with a net profit of 1.9576 billion yuan, reflecting a growth of 5.33% [1][7]. - The company is actively expanding its product lines and international business through acquisitions, including a recent planned acquisition of South Korean REGEN Biotech to enhance its regenerative materials and open international sales channels [1][12]. - The medical beauty industry has significant long-term growth potential, and the company's strategy of combining self-research with external acquisitions is expected to provide new growth drivers for performance [3][15]. Financial Performance - In 2024, the gross profit margin is projected to be 94.64%, slightly down by 0.46 percentage points year-on-year, indicating stability despite increased industry price competition [2][13]. - The company maintains a stable operating cash flow of 1.927 billion yuan, reflecting good cash flow conditions [2][13]. - The revenue from solution and gel injection products is expected to grow at around 5%, maintaining their respective revenue shares of 57.64% and 40.18% [9][10]. Earnings Forecast - The forecast for net profit in 2025 and 2026 has been revised down to 2.237 billion yuan and 2.618 billion yuan, respectively, with a new estimate for 2027 at 3.017 billion yuan [3][16]. - The company’s earnings per share (EPS) is projected to be 6.47 yuan in 2024, increasing to 7.41 yuan in 2025 [4][19].