Lushang Freda Pharmaceutical (SH:600223) Xin Lang Cai Jing·2025-03-26 10:28Core 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].