Runben Biotechnology (SH:603193) KAIYUAN SECURITIES·2024-10-23 03:01Investment Rating - The investment rating for the company is "Buy" (maintained) as of October 22, 2024 [1]. Core Views - The company reported a 32% year-on-year growth in net profit attributable to shareholders for Q3 2024, with strong performance in the infant care segment [1][2]. - The company is positioned as a leader in the "mosquito repellent and infant care" niche, benefiting from consumer trends towards affordable products [1]. - The company plans to invest 700 million yuan in building a "smart manufacturing future factory," expected to be operational within four years, which will enhance product innovation and capacity [3]. Financial Performance - For Q3 2024, the company achieved revenue of 293 million yuan, a year-on-year increase of 20.1%, and net profit of 78 million yuan, up 32% [1]. - The gross margin and net margin for Q3 2024 were reported at 57.6% (up 0.1 percentage points) and 27.6% (up 2.5 percentage points), respectively [2]. - The company’s revenue for the first three quarters of 2024 reached 1.038 billion yuan, reflecting a 44.3% increase year-on-year [1]. Product and Market Development - The company’s mosquito repellent, infant care, and essential oil segments generated revenues of 89 million, 150 million, and 46 million yuan in Q3 2024, with year-on-year growth rates of 16.2%, 26.7%, and 15.3% respectively [2]. - The average selling prices for mosquito repellent and infant care products increased by 2.2% year-on-year, indicating a stable pricing strategy amid product upgrades [2]. - The new product, egg yolk oil cream, has become a top seller on Douyin, showcasing the company's ability to create popular products [3]. Financial Projections - The company forecasts net profits attributable to shareholders of 315 million, 390 million, and 479 million yuan for 2024, 2025, and 2026, respectively, with corresponding EPS of 0.78, 0.96, and 1.18 yuan [4]. - Revenue projections for the next few years are 1.344 billion yuan in 2024, 1.725 billion yuan in 2025, and 2.188 billion yuan in 2026, with year-on-year growth rates of 30.1%, 28.4%, and 26.8% [4].