Runben Biotechnology (603193) ZHESHANG SECURITIES·2024-10-26 06:23Investment Rating - The investment rating for the company is "Buy" [5] Core Insights - The company's performance in Q1-Q3 2024 met expectations, with revenue increasing by 26% to 1.04 billion yuan and net profit attributable to shareholders rising by 44% to 261 million yuan [1] - The third quarter saw a seasonal boost in sales for baby care products, with revenue up by 20% and net profit up by 32% [1] - The company is expected to maintain steady growth through capacity expansion, product line diversification, and channel expansion, with projected revenues of 1.34 billion yuan in 2024, 1.70 billion yuan in 2025, and 2.06 billion yuan in 2026, reflecting growth rates of 30%, 26%, and 22% respectively [3] Financial Summary - For Q1-Q3 2024, the gross margin was 58.3% (up 2 percentage points), and the net margin was 25.2% (up 3.2 percentage points) [1] - In Q3 2024, the revenue breakdown by product line showed mosquito repellent at 31%, baby care at 53%, and essential oils at 16% [1] - The average selling price for mosquito repellent was 5.5 yuan (up 2%), baby care products at 7.9 yuan (up 2%), and essential oils at 9.1 yuan (up 14%) [1] Sales Performance - Sales through Douyin (TikTok) increased significantly, with a 56% year-on-year growth from January to September 2024, and a 60% increase in September alone [2] - The company launched new products, including the egg yolk oil special care cream, which performed well in sales [2] Earnings Forecast - The forecast for net profit attributable to shareholders is 322 million yuan in 2024, 406 million yuan in 2025, and 490 million yuan in 2026, with growth rates of 42%, 26%, and 21% respectively [3]