Bloomage Biotech(SH:688363) EBSCN·2024-11-01 00:07Investment Rating - The report maintains a "Buy" rating for the company [2][7] Core Views - The company has shown significant growth in its medical beauty business, and there are expectations for the results of its third strategic upgrade to materialize [2][4] - The company’s revenue for the first three quarters of 2024 was 3.87 billion yuan, a year-on-year decrease of 8.2%, with a net profit attributable to the parent company of 360 million yuan, down 29.6% year-on-year [3][4] - The medical beauty business has been highlighted as a key growth area, with new product launches expected to enhance market presence [5][7] Summary by Sections Revenue Performance - The company reported a revenue of 1.06 billion yuan in Q3 2024, a year-on-year decrease of 7.1%, and a net profit of 2.026 million yuan, down 77.4% year-on-year [3][4] Business Segments - The raw materials business remains stable, while the medical beauty segment has shown notable growth despite some slowdown due to macroeconomic factors [4][5] - The skincare business is undergoing a strategic transformation, with new products launched that leverage advanced technologies for skin health [4][5] Financial Metrics - The gross margin for the first three quarters of 2024 was 73.9%, an increase of 0.9 percentage points year-on-year, driven by a higher proportion of high-margin medical beauty revenue [5][6] - The company’s expense ratio for the first three quarters of 2024 was 60.9%, up 1.3 percentage points year-on-year, with a focus on controlling sales expenses [6][7] Future Outlook - Revenue forecasts for 2024-2026 have been adjusted to 5.63 billion, 6.56 billion, and 7.68 billion yuan respectively, reflecting downward revisions of 9%, 8%, and 11% [7] - The company is expected to enhance its competitive advantage in R&D and product offerings through its strategic focus on synthetic biology and regenerative medicine [7]