By-health(300146) 华创证券·2024-10-28 01:12Investment Rating - The report assigns a "Neutral" rating to the company, with a target price of 13.5 yuan, down from previous estimates [1]. Core Views - The company faces increasing operational pressure, with significant declines in revenue and profit margins. The report anticipates a need for adjustments and optimization in strategy moving forward [1][2]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported total revenue of 5.734 billion yuan, a year-on-year decrease of 26.3%. The net profit attributable to shareholders was 869 million yuan, down 54.3% year-on-year. In Q3 alone, revenue was 1.12 billion yuan, reflecting a 48.8% decline year-on-year, with a net loss of 22 million yuan [1][2]. - The gross margin for Q3 was 65.3%, a decrease of 2.6 percentage points compared to the previous year. The report highlights that the company's operating expenses have increased relative to revenue, leading to a significant drop in the net profit margin [1][2]. Business Dynamics - The report identifies two main product iterations and adjustments in online strategy as key factors contributing to the revenue decline. The offline demand remains weak, with a reported 20% drop in the pharmacy channel since the beginning of the year. Additionally, competition in online channels has intensified, impacting sales performance [1][2]. - The company is focusing on enhancing its core competitiveness and optimizing its product offerings. Plans include a promotional campaign to boost sales of major products and a strategic shift to decouple pricing strategies between online and offline channels [1][2]. Future Outlook - The report suggests that while the immediate operational pressures are expected to continue, there is potential for stabilization in revenue starting from Q2 2025 as the company completes its product iterations and adjusts its strategies [1][2]. - EPS forecasts for 2024-2026 have been revised down to 0.44, 0.67, and 0.76 yuan respectively, with corresponding PE ratios of 30, 20, and 18 times [1][2].