Investment Rating - The investment rating for the company is upgraded to "Accumulate" with a target price of 3.75 HKD [1]. Core Views - The medical beauty business is steadily growing, with strong performance in the Asia-Pacific and European markets [1]. - The company reported a revenue of 1.209 billion HKD for H1 2024, a decrease of 1.4% year-on-year, and a net profit of 78 million HKD, down 42.05% year-on-year [1]. - The medical beauty segment generated 1.056 billion HKD in revenue, accounting for 88.5% of total revenue, with a year-on-year growth of 1.3% [1]. - The company is focusing on new product launches, which have been well received in the market, and is expanding its commercialization efforts in the Asia-Pacific region [1]. Business Segment Summary - Medical Beauty Business: Revenue reached 1.056 billion HKD, with a year-on-year growth of 1.3%. The revenue mainly comes from classic devices like Soprano, Harmony, Opus, Accent, and Hybrid [1]. - Injectable Fillers: Revenue was 31.949 million HKD, a decrease of 7.5% year-on-year, due to a shift in focus towards new product launches [1]. - Dental Business: Revenue was 19.952 million HKD, down 47.0% year-on-year, as this segment is still in the incubation phase and facing demand-side pressures [1]. - Service and Other Businesses: Revenue was 85.271 million HKD, a decrease of 14.1% year-on-year [1]. Regional Performance Summary - North America: Revenue was 474 million HKD, accounting for 39.7% of total revenue, down 15.7% year-on-year due to rising credit costs affecting customer purchasing decisions [1]. - Asia-Pacific: Revenue was 396 million HKD, accounting for 33.3% of total revenue, with a year-on-year growth of 15.5% driven by strong performance from Alma China [1]. - Europe: Revenue was 170 million HKD, accounting for 14.2% of total revenue, with a year-on-year growth of 10.0% due to the transition to direct sales in the UK market [1]. - Middle East and Africa: Revenue was 109 million HKD, accounting for 9.1% of total revenue, with a year-on-year growth of 10.9% [1]. - Latin America: Revenue was 44.661 million HKD, accounting for 3.7% of total revenue, down 20.3% year-on-year [1]. Profitability and Cost Structure - The company's gross margin for H1 2024 was 62.41%, an increase of 1.06 percentage points year-on-year, primarily due to a higher proportion of direct sales [1]. - The selling expense ratio increased by 2.59 percentage points year-on-year due to increased sales and marketing activities [1]. - The management expense ratio increased by 1.49 percentage points year-on-year due to expenses related to new office operations [1]. - R&D expense ratio remained stable year-on-year [1]. Future Outlook - The company expects revenues for 2024-2026 to be 2.569 billion HKD, 3.002 billion HKD, and 3.505 billion HKD respectively, with net profits of 215 million HKD, 280 million HKD, and 339 million HKD respectively [1].
复锐医疗科技：医美业务稳中有升，亚太与欧洲市场持续发力