爱美客：Q3医美需求仍较弱，景气待改善

Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 227.00 [7][8]. Core Views - The report indicates that the demand for medical aesthetics remains weak in Q3 2024, with revenue of RMB 719 million, a year-on-year increase of 1% but a quarter-on-quarter decrease of 15%. The net profit attributable to the parent company was RMB 465 million, reflecting a year-on-year increase of 2% and a quarter-on-quarter decrease of 22% [1]. - The report highlights that the medical aesthetics sector's performance is closely tied to residents' income expectations. If wealth effects continue to manifest, the sector's valuation may recover, leading to improved terminal demand and sequential performance for the company [1]. - The company has received approval for its new product, Baonida, and the registration for botulinum toxin has been accepted, which is expected to contribute to incremental performance in 2025. The company has a rich pipeline in weight loss and photonic fields [1][4]. Summary by Sections Company Financials - For Q3 2024, the company reported a gross margin of 94.55%, a year-on-year decrease of 0.52 percentage points, and a net margin of 64.54%, a year-on-year increase of 0.59 percentage points. The sales expense ratio increased slightly to 8.99% [3]. - The revenue forecast for 2024-2026 has been adjusted to RMB 21 billion, RMB 26 billion, and RMB 32 billion, with year-on-year growth rates of 12%, 27%, and 20% respectively. The expected EPS for 2024-2026 is RMB 6.88, RMB 8.73, and RMB 10.44 [5][11]. Product Pipeline - The company has a robust pipeline with several projects in progress, including the approval of Baonida for chin enhancement, and the botulinum toxin product entering the review stage. Other products in various stages include minoxidil lotion and weight loss injections [4]. Market Conditions - The report notes that the Q3 performance of the company's Hyaluronic Acid series has slowed, with expectations for the more mass-market Hyaluronic Acid 2.5 series to continue rapid growth. The high-end regenerative injectables are experiencing volume constraints due to the consumer environment [2].