Investment Rating - The investment rating for the company is "Buy" with a target price of 40 HKD, maintaining the rating [1]. Core Views - The company reported strong performance in H1 2024, achieving revenue of 2.54 billion HKD, a year-on-year increase of 58.2%, and a net profit of 980 million HKD, up 47.4% year-on-year [1]. - The main revenue contributor is functional skincare products, which generated 1.94 billion HKD, representing a 62% year-on-year growth and accounting for 76.4% of total revenue [1]. - The company is expanding its product matrix and has launched several new products, including the "Focus Series" and "Order Series" under its brand [1]. - The company has a robust pipeline with 133 patents authorized or pending, including three international invention patents, supporting its research and internationalization efforts [1]. Summary by Sections Financial Performance - In H1 2024, the company's gross margin was 82.4%, a decrease of 1.74 percentage points year-on-year, primarily due to product type expansion and increased sales costs [1]. - The company’s operating expenses ratio remained stable at 39.67%, with sales expenses accounting for 35.11% [1]. Product and Brand Development - The company’s brand "Kefumei" saw revenue of 2.07 billion HKD, a year-on-year increase of 68.6%, contributing 81.5% to total revenue [1]. - The company is actively expanding its product offerings and has successfully launched new products in both skincare and medical device categories [1]. Market Strategy - The company is focusing on a dual-channel strategy, combining online and offline sales, and strengthening its presence in public and private hospitals, pharmacies, and cosmetic retail chains [1]. - Direct sales accounted for 1.84 billion HKD, representing 72.4% of total revenue, while sales to distributors contributed 702 million HKD, or 27.6% [1]. Future Outlook - Revenue projections for 2024-2026 are estimated at 5.007 billion HKD, 6.560 billion HKD, and 8.527 billion HKD, with net profits of 2.013 billion HKD, 2.616 billion HKD, and 3.397 billion HKD respectively [1].
巨子生物：上半年业绩表现亮眼，产品矩阵进一步拓展