Bloomage Biotech(SH:688363) Soochow Securities·2024-11-01 02:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 3.875 billion yuan for the first three quarters of 2024, a year-on-year decrease of 8.21%, and a net profit attributable to shareholders of 362 million yuan, down 29.62% year-on-year [2] - The cosmetic business is undergoing adjustments, with a significant decline in functional skincare revenue, which was 1.4 billion yuan in the first half of 2024, down 30% year-on-year. The company is focusing on developing major products and series around six categories of substances [2] - The medical beauty business is growing rapidly, with skin-related medical product revenue reaching 600 million yuan in the first half of 2024, a year-on-year increase of 70%. New products targeting neck and lip treatments were launched in October 2024 [2] - The increase in operating expenses significantly impacted net profit margins, with the net profit margin for the first three quarters of 2024 at 9.34%, down 2.84 percentage points year-on-year [2] - The company is a global leader in the hyaluronic acid industry, and despite short-term pressures on growth due to strategic adjustments in the skincare segment, the profit forecasts for 2024-2026 have been revised downwards [2] Summary by Sections Financial Performance - Total revenue for 2022 was 6.359 billion yuan, with a year-on-year growth of 28.53%. In 2023, revenue decreased to 6.076 billion yuan, down 4.45%. The forecast for 2024 is 5.941 billion yuan, a further decline of 2.21% [1] - Net profit attributable to shareholders was 970.92 million yuan in 2022, decreasing to 592.56 million yuan in 2023, a drop of 38.97%. The forecast for 2024 is 541.67 million yuan, down 8.59% [1] - The latest diluted EPS is projected to be 1.12 yuan for 2024, with a P/E ratio of 53.98 based on the current price [1] Business Segments - The functional skincare segment is currently in a state of adjustment, with a focus on innovation and the development of new biological materials [2] - The medical beauty segment is expanding, with significant revenue growth and new product launches aimed at addressing specific cosmetic concerns [2] Profitability Metrics - Gross margin for the first three quarters of 2024 was 73.93%, an increase of 0.86 percentage points year-on-year. However, the net profit margin was pressured due to rising operating expenses [2]