Bloomage Biotech(SH:688363) Minsheng Securities·2024-11-02 02:38Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 60.00 CNY [4]. Core Views - The company has faced short-term performance pressure due to organizational changes and is advised to focus on quality improvement and efficiency enhancement post-adjustment [2]. - The company is a leader in hyaluronic acid, with a solid foundation in raw materials, and the medical beauty business is expected to grow rapidly driven by the "Runzhi" brand [2]. - The company is focusing its R&D on glyco-biology and cell biology, which are expected to provide rich application scenarios for aging intervention and regenerative medicine [2]. Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 3.875 billion CNY, a year-on-year decrease of 8.21%, and a net profit attributable to shareholders of 362 million CNY, down 29.62% [2]. - The gross profit margin for the first three quarters of 2024 was 73.93%, with a net profit margin of 9.34% [2]. - The company expects net profits for 2024-2026 to be 511 million CNY, 745 million CNY, and 997 million CNY, with year-on-year growth rates of -13.7%, +45.7%, and +33.8% respectively [3][5]. Sales and Cost Structure - The sales expense ratio for the first three quarters of 2024 was 42.09%, a decrease of 3.92 percentage points year-on-year, while the management expense ratio increased to 10.92%, up 3.34 percentage points [2]. - The R&D expense ratio was 8.08%, reflecting an increase of 1.52 percentage points year-on-year [2]. Product Development and Market Strategy - The skincare business is undergoing product upgrades and new launches based on the latest research, including the introduction of new products like collagen tightening cream and CT50 anti-gravity cream [2]. - The medical terminal business is expanding its product line, with new offerings such as neck wrinkle injections and lip fillers, enhancing the company's position in the anti-aging market [2]. Long-term Growth Potential - The company is expected to see a rebound in performance in the medium to long term, with a projected increase in net profit driven by strategic adjustments and product innovation [2][3].