Investment Rating - The report downgrades the company's rating to "Overweight" with a DCF target valuation of 58.84 RMB [1][6] Core Views - The company reported 24Q3 revenue of 40.18 billion RMB, up 17.1% YoY, but net profit attributable to shareholders dropped 28.3% YoY to 4.15 billion RMB [1] - 24Q3 revenue grew 14% YoY, but net profit was -0.69 billion RMB, below market expectations [1] - Revenue growth was driven by the acquisition of Yuejiang Investment, contributing 3.8 billion RMB, while organic growth was only 5.98% [1] - Gross margin declined 2.69pct to 73.7% due to changes in business structure, with Yuejiang Investment's brands having a lower margin of 58.37% [1] - The main brand "Winona" and other major brands saw a gross margin increase of 5.98pct to 75.34% [1] - Rising expense ratios, particularly in sales and management, pressured profitability [1] - The company is transitioning "Winona" to a 2.0 era, focusing on comprehensive sensitive skin care solutions [1] Financial Performance - 24Q3 sales expense ratio surged 12.7pct YoY to 60.4%, driven by increased marketing and promotional activities [1] - Management expense ratio rose 4.9pct YoY to 13.5% in 24Q3 due to employee stock incentive plans [1] - Revenue is expected to grow from 6.407 billion RMB in 2024E to 8.252 billion RMB in 2026E, with a CAGR of 13.3% [2] - Net profit attributable to shareholders is projected to increase from 724 million RMB in 2024E to 1.157 billion RMB in 2026E [2] - Gross margin is forecasted to decline slightly from 71.2% in 2024E to 70.6% in 2026E [2] Valuation and Metrics - The company's PE ratio is expected to decrease from 31.1 in 2024E to 19.5 in 2026E [2] - PB ratio is projected to decline from 3.5 in 2024E to 2.8 in 2026E [2] - ROE is forecasted to improve from 11.8% in 2024E to 15.2% in 2026E [2] Market Performance - The stock's absolute performance over the past 12 months was -28.22%, underperforming the CSI 300 index by -41.12% [4] - Over the past month, the stock gained 24.59%, outperforming the CSI 300 index by 8.28% [4]

Investment Rating - The report maintains a "Buy" rating for the company [2][6]. Core Views - The company reported a revenue of 4.02 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 17.1%, while the net profit attributable to shareholders was 410 million yuan, a decrease of 28.4% year-on-year. In Q3 2024, revenue was 1.21 billion yuan, up 14.0% year-on-year, but the net profit was -70 million yuan, down from a profit in the same period last year [2][3]. - The revenue growth in Q3 was driven by the integration of Douyin and Yuejiang Investment, with Q1, Q2, and Q3 revenue growth rates of 27.1%, 13.5%, and 14.0% respectively. The main brand's online growth was supported by Douyin's promotional efforts, and the consolidation of Yuejiang Investment contributed an additional 380 million yuan in revenue [3]. - The gross margin decreased, and the expense ratio increased, leading to a decline in net profit margin. The gross margin for the first three quarters of 2024 was 73.7%, down 2.87 percentage points year-on-year, while the Q3 gross margin was 76.4%, up 2.4 percentage points year-on-year. The net profit margin for the first three quarters was 10.3%, down 6.6 percentage points year-on-year, and -5.7% in Q3, down 17.8 percentage points year-on-year [3][4]. - The company faces short-term pressure from rising traffic costs but is expected to expand its ceiling by launching new products while solidifying its position in the dermatology field. The profit forecast for 2024-2026 has been revised down, with expected net profits of 730 million yuan, 870 million yuan, and 1.01 billion yuan, corresponding to P/E ratios of 31x, 26x, and 22x respectively [3][4]. Financial Summary - For 2024E, the company is projected to achieve a revenue of 6.41 billion yuan, with a growth rate of 16.06%. The net profit attributable to shareholders is expected to be 730 million yuan, reflecting a decrease of 3.60% year-on-year [4][5]. - The earnings per share (EPS) for 2024E is estimated at 1.72 yuan, with a P/E ratio of 30.86 [4][5].

Investment Rating - The investment rating for the company is "Outperform the Market" [2][4][6] Core Views - The company's main brand, Winona, has maintained stable performance, and the overall revenue, including the consolidated results from Yuejiang Investment, has shown steady double-digit growth. However, increased spending on low-margin channels like Douyin has led to temporary pressure on profits [2][4][6] - The company is expected to see improved profitability in Q4 due to the positive impact of pre-event marketing for the Double 11 shopping festival and the anticipated reduction in high spending [2][4][6] - Revenue for the first three quarters reached 4.018 billion, a year-on-year increase of 17.09%, while net profit attributable to the parent company was 415 million, down 28.39% year-on-year [4][6] Revenue and Profitability - In Q3, the company achieved revenue of 1.213 billion, a year-on-year increase of 14.04%, but reported a net profit of -69 million, marking the first quarterly loss since its listing [4][6] - The gross margin for Q3 was 76.35%, down 2.4 percentage points year-on-year, primarily due to the consolidation of low-margin Yuejiang Investment. Excluding Yuejiang Investment, the gross margin was 78.24% [4][6] - The company has increased its sales, management, and R&D expense ratios, with sales expenses rising significantly due to heightened marketing efforts for brand visibility ahead of the Double 11 event [4][6] Financial Forecasts - The company has adjusted its net profit forecasts for 2024-2026 to 649 million, 826 million, and 942 million, respectively, down from previous estimates [2][6] - The projected revenue growth rates for 2024 and 2025 are 15.2% and 7.5%, respectively, reflecting pressures from traditional channels and regulatory factors [6][7] Operational Efficiency - Inventory turnover days decreased to 232 days, down 42 days year-on-year, while accounts receivable turnover days increased to 45 days, up 11 days year-on-year, due to proactive credit sales in preparation for the Double 11 event [6][7] - The operating cash flow for Q3 was -135 million, showing improvement compared to -161 million in the same period last year [6][7]

Investment Rating - The report maintains a "Hold" rating for Betaini (300957.CH) with a target price of CNY 55.5, reflecting a potential upside of 4.3% from the current price of CNY 53.2 [4]. Core Insights - Betaini's revenue for Q3 2024 grew by 14.0% year-on-year, primarily driven by the revenue from the acquired brands Za and Pomei under Yuejiang, contributing CNY 120 million. However, excluding Yuejiang's impact, the organic revenue growth was only 3.1% [1][2]. - The increase in marketing activities, new employee stock ownership plan expenses, and negative operating leverage led to a significant rise in selling and administrative expense ratios, resulting in the company recording a loss for the first time in a single quarter [1][2]. - The report highlights that the adjustment effects of the main brand, Winona, have yet to materialize, and the revenue structure changes have led to a decrease in gross margin [2]. Financial Summary - For 2024E, the projected revenue is CNY 6,327 million, reflecting a year-on-year growth of 14.6%. The net profit is expected to decline to CNY 658 million, a decrease of 13.0% compared to the previous year [3][9]. - The gross margin is projected to decrease to 71.2% in 2024E, down from 72.7% in 2023A, while the operating profit margin is expected to drop to 9.3% [3][7]. - The report indicates a significant increase in selling expense ratio to 60.4% in Q3 2024, up 12.7 percentage points year-on-year, primarily due to increased marketing efforts and operational leverage [2][8].

Investment Rating - The report maintains a "Buy" rating for the company [3] - The target price is adjusted to 62.00 CNY, up from the previous 57.27 CNY [3] Core Insights - The company increased marketing investments in Q3 to enhance brand visibility, leading to short-term pressure on profitability but potential long-term sales growth [2] - The EPS forecasts for 2024-2026 have been revised down to 1.79 CNY (-0.7), 2.48 CNY (-0.51), and 2.97 CNY (-0.53) respectively [2] - The company reported Q1-3 2024 revenues of 40.18 billion CNY, with a year-on-year growth of 17%, but a decline in net profit attributable to shareholders by 28% [2] Financial Performance Summary - For Q3 2024, the company achieved revenues of 12.13 billion CNY, a 14% year-on-year increase, but reported a net loss of 0.69 billion CNY [2] - The gross margin for Q1-3 2024 was 73.73%, down 2.69 percentage points year-on-year, while the net profit margin was 10.07%, an increase of 6.4 percentage points year-on-year [2] - The company’s marketing expenses increased significantly, impacting profitability, with sales expense ratio rising due to heightened brand marketing efforts [2] Brand and Market Strategy - The main brand, Winona, showed resilience with a revenue increase of 6% year-on-year, while the newly consolidated brands contributed to a decline in overall gross margin [2] - The company is focusing on enhancing its presence on Douyin (TikTok) with increased marketing efforts, including sponsorships and collaborations with influencers [2] - The brand matrix is gradually forming, with sub-brands like AOXMED gaining traction through live-stream promotions [2] Financial Forecasts - The company’s revenue is projected to grow from 6.56 billion CNY in 2024 to 8.32 billion CNY in 2026, reflecting a compound annual growth rate (CAGR) of 18.8% [9] - The net profit attributable to shareholders is expected to stabilize at around 760 million CNY in 2024, with a recovery to 1.26 billion CNY by 2026 [9] - The projected EPS for 2024 is 1.79 CNY, with an increase to 2.97 CNY by 2026 [9]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong performance relative to the market [3][4]. Core Views - The company reported Q3 revenue of 1.213 billion yuan, a year-on-year increase of 14.04%, but the net profit attributable to shareholders was a loss of 69 million yuan, down 153.41% year-on-year [3][4]. - The revenue for the first three quarters of 2024 reached 4.018 billion yuan, a year-on-year increase of 17.09%, primarily driven by the acquisition of Yuejiang Investment [3][4]. - The gross profit margin for Q1-Q3 2024 was 73.73%, a decrease of 2.69 percentage points year-on-year, while the net profit margin was 10.32%, down 6.56 percentage points year-on-year [3][4]. Financial Summary - For Q1-Q3 2024, the company achieved a gross revenue of 4.018 billion yuan, with a year-on-year growth rate of 17.1% [5]. - The net profit attributable to shareholders for the same period was 415 million yuan, reflecting a decline of 28.4% year-on-year [5]. - The company’s operating expenses included a sales expense ratio of 50.03%, a management expense ratio of 8.45%, and a research and development expense ratio of 4.97% [3][4]. Brand Performance - The main brand, Winona, along with other key brands, generated a total revenue of 3.637 billion yuan, a year-on-year increase of approximately 5.98% [3][4]. - The brands under Yuejiang Investment, including Jirui and Bomei, achieved a revenue of 381 million yuan, with a sales gross margin of approximately 58.37% [3][4]. Future Projections - The profit forecast for 2024-2026 has been revised downwards, with expected net profits of 757 million yuan, 1.023 billion yuan, and 1.3 billion yuan respectively [4][5]. - The projected price-to-earnings (PE) ratios for 2024-2026 are 30, 22, and 17 times, respectively, indicating a relatively low valuation compared to historical levels [4].

Investment Rating - The investment rating for the company is "Buy" and is maintained [2][3] Core Views - The company reported a revenue growth of 14% year-on-year in Q3 2024, but profits were under pressure due to high sales investment and brand structure adjustments [2] - For the first three quarters of 2024, the company achieved a total revenue of 4.018 billion yuan, representing a year-on-year increase of 17.09%, while the net profit attributable to the parent company was 415 million yuan, a decrease of 28.39% [2] - The gross margin for the first three quarters of 2024 was 73.73%, down 2.69 percentage points year-on-year, primarily due to brand structure adjustments after the consolidation of Yuejiang [2] - The company is focusing on continuous iteration and upgrading of core products, with multi-brand collaborative development [2] Summary by Sections Financial Performance - In Q3 2024, the company recorded a revenue of 1.213 billion yuan, a year-on-year increase of 14.04%, but a net profit of -69 million yuan [2] - The total revenue for the first three quarters of 2024 was 4.018 billion yuan, with a net profit of 415 million yuan, reflecting a decline in profitability [2] - The gross margin for Q3 was 76.35%, showing a narrowing decline compared to H1 [2] Business Segments - The main brand "Winona" and others generated a revenue of 3.637 billion yuan in the first three quarters, a growth of 5.98% [2] - The company launched the second generation of Winona's special essence, which has shown initial success in the market [2] Profit Forecast - The company is projected to have an EPS of 1.79, 2.49, and 3.01 yuan for the years 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 30, 21, and 18 times [3]

Investment Rating - The report maintains a "Recommended" rating for the company [4]. Core Views - The company achieved a revenue of 4.018 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 17.09%. However, the net profit attributable to shareholders decreased by 28.39% to 415 million yuan [2]. - The company is focusing on developing sensitive skin products and has established a multi-brand strategy to drive growth, with brands including Winona, AOXMED, Beforteen, and others [2]. - The report forecasts revenue growth for 2024-2026, estimating revenues of 6.407 billion, 7.175 billion, and 7.899 billion yuan, with corresponding year-on-year growth rates of 16.0%, 12.0%, and 10.1% respectively [2][3]. Revenue Breakdown - In Q3 2024, the company reported revenue of 1.213 billion yuan, a year-on-year increase of 14.04%. The revenue from the brands "Jirui" and "Bomei" was 117 million yuan, while Winona and other major brands generated 1.096 billion yuan, reflecting a 3.1% increase year-on-year [2]. - The gross profit margin for the first three quarters of 2024 was 73.73%, down 2.69 percentage points year-on-year. The gross profit margin for Q3 2024 was 76.35%, down 2.37 percentage points year-on-year [2]. Financial Performance - The company’s net profit margin for the first three quarters of 2024 was 10.07%, a decrease of 6.40 percentage points year-on-year. In Q3 2024, the net profit margin was -5.86%, down 17.56 percentage points year-on-year [2]. - The report projects the net profit attributable to shareholders for 2024, 2025, and 2026 to be 645 million, 932 million, and 1.053 billion yuan, with year-on-year growth rates of -14.8%, 44.5%, and 13.0% respectively [3][5]. Investment Recommendations - The company is expected to optimize its product matrix centered around the Winona brand, driving long-term growth. The closing price on October 25 corresponds to a PE ratio of 35, 24, and 21 times for the years 2024, 2025, and 2026 respectively [2][3].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported steady revenue growth in Q3 2024, with a total revenue of 4.018 billion yuan for Q1-Q3 2024, representing a year-on-year increase of 17.1%. However, the net profit attributable to shareholders decreased by 28.4% to 410 million yuan due to increased marketing efforts in preparation for major promotions [1][2] - The report anticipates a recovery in growth for the company's leading skincare brand, Winona, as brand awareness strengthens and the overall brand matrix improves. The valuation is considered reasonable, supporting the "Buy" rating [1] Revenue and Profitability - For Q1-Q3 2024, the company's main brands, including Winona, achieved a total revenue of 3.637 billion yuan, with a steady growth of 6.0% and a gross margin of approximately 75.34%. The overall gross margin for the company was 73.73%, down by 2.69 percentage points, influenced by the inclusion of lower-margin brands and promotional policies [2] - The sales expense ratio for Q1-Q3 2024 was 50.0%, an increase of 3.3 percentage points, primarily due to heightened marketing and brand promotion efforts [2] Future Projections - The company expects net profits attributable to shareholders to be 836 million yuan, 1.034 billion yuan, and 1.266 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 1.97 yuan, 2.44 yuan, and 2.99 yuan. The current stock price corresponds to P/E ratios of 26.9, 21.8, and 17.8 for the respective years [1][3] Market Position and Strategy - Winona ranked 10th in the Tmall beauty category during the Double Eleven shopping festival, indicating strong market performance. The company is also expanding its presence in the Southeast Asian market by establishing a regional headquarters in Bangkok [2] - The company is diversifying its brand portfolio with new brands such as Winona Baby, Aikeman, Beifuting, Jirui, and Pomei, while focusing on strengthening the Winona brand [2]

Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company has faced significant pressure on performance due to changes in brand structure and increased marketing investments, leading to a decline in profitability [3] - The company reported a revenue of 4.018 billion yuan for Q1-Q3 2024, a year-on-year increase of 17.09%, but a net profit attributable to shareholders of 415 million yuan, a year-on-year decrease of 28.39% [2][3] - The gross margin for Q1-Q3 2024 was 73.73%, down 2.7 percentage points year-on-year, while the net margin was 10.07%, down 6.4 percentage points year-on-year [3] Financial Performance Summary - For Q3 2024, the company achieved a revenue of 1.213 billion yuan, a year-on-year increase of 14.04%, but reported a net loss of 69 million yuan, a year-on-year decrease of 153.41% [2] - The company’s sales, management, and R&D expense ratios for Q1-Q3 2024 were 50.03%, 8.45%, and 4.97%, respectively, with sales expenses increasing due to heightened marketing efforts [3] - The company expects revenues of 6.474 billion yuan, 7.656 billion yuan, and 8.955 billion yuan for 2024, 2025, and 2026, respectively, with net profits of 771 million yuan, 1.060 billion yuan, and 1.275 billion yuan for the same years [4][5] Strategic Initiatives - The company is implementing a multi-brand strategy, focusing on its main brand, Winona, which targets sensitive skin, while also launching new products and expanding into high-potential markets [3] - The company is increasing its marketing investments to enhance brand visibility and prepare for major promotional activities in Q4 2024 [3] Valuation Metrics - The projected PE ratios for 2024, 2025, and 2026 are 23, 17, and 14 times, respectively [3][4] - The expected EPS for 2024, 2025, and 2026 are 1.82 yuan, 2.50 yuan, and 3.01 yuan, respectively [4][5]