Lushang Freda Pharmaceutical (SH:600223) Xin Lang Cai Jing·2025-10-28 12:27Core Insights - The company reported a revenue of 2.6 billion yuan for the first three quarters of 2025, a year-on-year decrease of 7.3% [1] - Net profit attributable to shareholders was 140 million yuan, down 17.2% year-on-year, with a basic EPS of 0.14 yuan [1] Revenue Breakdown - The cosmetics segment saw a revenue decline of 8%, while the Yilian brand showed strong growth, and the Ai'er Doctor brand is still undergoing adjustments [2] - For the first three quarters of 2025, the cosmetics segment accounted for 60% of total revenue, with a year-on-year decline of 8.2% [2] - The pharmaceutical and raw materials segments accounted for 12% and 11% of revenue, respectively, with year-on-year changes of -17.5% and +11.2% [2] - The Yilian brand generated 790 million yuan in revenue, representing 30% of total revenue and a year-on-year increase of 19.5% [2] - The Ai'er Doctor brand generated 650 million yuan, accounting for 25% of revenue, with a year-on-year decline of 28.9% [2] - The Kemi brand is in a growth phase, achieving revenue of 77.19 million yuan in the first three quarters [2] Profitability and Expenses - Gross margin for the first three quarters of 2025 decreased by 0.4 percentage points to 51.5% [3] - The gross margins for cosmetics, pharmaceuticals, and raw materials were 61.2%, 52.3%, and 40.3%, respectively, with year-on-year changes of -1.1, +1.8, and +0.9 percentage points [3] - The expense ratio increased by 0.8 percentage points to 44.7%, with sales, management, R&D, and financial expense ratios at 36.4%, 4.9%, 4.5%, and -1%, respectively [3] Other Financial Metrics - Inventory as of September 2025 decreased by 20.3% year-on-year to 480 million yuan, with a turnover period of 119 days [4] - Accounts receivable increased by 2.5% year-on-year to 460 million yuan, with a turnover period of 45 days [4] - The company reported an asset impairment gain of 60,000 yuan, compared to a loss of 4.75 million yuan in the previous year [4] - Operating net cash flow was 40 million yuan, a decrease of 37% year-on-year [4] Future Outlook - The company maintains an "overweight" rating despite weak short-term demand and ongoing adjustments in the Ai'er Doctor brand [4] - Profit forecasts for 2025-2027 have been revised down to 210 million, 250 million, and 310 million yuan, reflecting decreases of 28%, 26%, and 19% from previous estimates [4] - Corresponding PE ratios for 2025 and 2026 are projected to be 38 and 32 times, respectively [4]