Runben Biotechnology (SH:603193) Hua Yuan Zheng Quan·2024-10-23 10:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported strong performance in Q3 2024, with revenue of 1.04 billion yuan for the first three quarters, a year-on-year increase of 26.0%, and a net profit attributable to shareholders of 260 million yuan, up 44.4% year-on-year [1] - The mosquito repellent series continues to grow well, while the baby care series shows remarkable performance, contributing significantly to revenue growth [1] - The company is expected to maintain high growth rates through its refined brand strategy and competitive advantages in niche markets [2] Financial Performance Summary - For Q3 2024, the company achieved revenue of 290 million yuan, a year-on-year increase of 20.1%, and a net profit of 80 million yuan, up 32.0% year-on-year [1] - The revenue breakdown for the first three quarters shows the mosquito repellent, baby care, and essential oil series generating 420 million, 440 million, and 150 million yuan respectively, with year-on-year growth rates of 37.4%, 27.6%, and 9.3% [1] - The average selling prices for the three product series in Q3 2024 were 5.48 yuan, 7.89 yuan, and 9.09 yuan respectively, with year-on-year changes of +2.2%, +2.2%, and +14.1% [1] Profitability Metrics - The gross margin for the first three quarters of 2024 increased by 2.2 percentage points to 58.3%, with Q3 gross margin slightly up by 0.1 percentage points to 57.6% [1] - The net profit margin for the first three quarters improved by 3.2 percentage points to 25.1%, with Q3 net profit margin rising by 2.5 percentage points to 27.6% [1] - The company’s operating expenses as a percentage of revenue for Q3 2024 were 23.5% for sales expenses, 2.5% for management expenses, and 3.4% for R&D expenses [1] Earnings Forecast - The company is projected to achieve net profits of 300 million, 380 million, and 470 million yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 33%, 26%, and 24% [2] - The expected price-to-earnings ratios for the years 2024, 2025, and 2026 are 36, 28, and 23 times respectively [2] Market Position - The company has successfully built a strong domestic brand image over more than a decade in the niche market, leveraging a "big brand, small category" strategy to maintain a competitive edge [2]