Lushang Freda Pharmaceutical (SH:600223) Xinda Securities·2024-09-02 13:30Investment Rating - The investment rating for the company is not explicitly stated in the provided documents, but the performance metrics suggest a cautious outlook with potential for growth in specific segments [1]. Core Insights - The company reported a revenue of 1.925 billion yuan for H1 2024, a year-on-year decrease of 22.15%, and a net profit attributable to shareholders of 127 million yuan, down 33.18%. However, the net profit excluding non-recurring items increased by 77.19% to 112 million yuan [1]. - The cosmetics segment achieved a revenue of 1.186 billion yuan in H1 2024, reflecting a year-on-year growth of 7.24%, with a gross margin of 61.37%, down 1.66 percentage points [1]. - The company is actively expanding into new markets, including the medical beauty sector with the launch of the "KeyC" brand and the scalp care segment with the introduction of a new brand "Jimu" [1]. Summary by Sections Financial Performance - For H1 2024, the company achieved a total revenue of 1.925 billion yuan, with a net profit of 127 million yuan, and a non-recurring net profit of 112 million yuan [1]. - The revenue for Q1 and Q2 of 2024 was 891 million yuan and 1.035 billion yuan, respectively, showing a year-on-year decline of 29.99% and 13.85% [1]. - The company plans to distribute a cash dividend of 0.5 yuan per share, totaling 51 million yuan, which represents 40% of the net profit for H1 2024 [1]. Segment Analysis - Cosmetics Segment: Revenue reached 1.186 billion yuan, with notable contributions from brands such as Yilian and Aier Doctor, which generated 447 million yuan and 645 million yuan, respectively [1]. - Pharmaceutical Segment: Revenue was 240 million yuan, down 17.28%, affected by policy changes in the pharmaceutical industry [1]. - Raw Materials and Additives Segment: Revenue increased by 0.72% to 172 million yuan, with a gross margin of 39.27% [1]. - Property Management and Others: Revenue decreased by 59.31% to 308 million yuan, primarily due to the previous year's real estate business divestiture [1]. Profitability and Forecast - The company’s gross margin for H1 2024 was 51.87%, with a net profit margin of 6.61% [2]. - Revenue forecasts for 2024-2026 are projected at 4.132 billion yuan, 4.964 billion yuan, and 5.775 billion yuan, respectively, with corresponding net profits of 325 million yuan, 408 million yuan, and 496 million yuan [2]. - The expected price-to-earnings ratios for 2024-2026 are 20, 15, and 13 times, respectively [2].