Investment Rating - The report assigns a "Strong Buy" rating for the stock, expecting a price increase of over 20% within the next six months compared to the market benchmark index [23]. Core Insights - The company has demonstrated significant growth momentum in the first three quarters of 2024, with revenue reaching 988 million yuan, a year-on-year increase of 91.16%, and a net profit of 520 million yuan, up 170.42% [3][4]. - The core product, Wei Yi Mei, has filled a gap in the aesthetic medicine market for recombinant collagen, contributing 479 million yuan in revenue in the first half of 2024, a 105% increase, and accounting for 82% of the medical device business revenue [5][4]. - The company has made substantial progress in international expansion, becoming the first to obtain a D-class medical device registration in Vietnam for its recombinant collagen product, marking a significant breakthrough in its international strategy [12][11]. Business Expansion - The company’s revenue and profit have shown a dual high-growth trend, with the third quarter alone generating 386 million yuan, reflecting a 92.07% year-on-year growth [4][3]. - The business structure is heavily focused on high-margin recombinant collagen medical devices, maintaining a gross margin of around 95%, despite a slight decrease in the third quarter [13][12]. - The company has established a strong distribution network, covering over 3,000 aesthetic medical institutions in China, and has partnered with L'Oréal to enhance its brand presence in the high-end market [5][12]. Internationalization Strategy - The company views the Vietnamese market as a key breakthrough point, with the medical device market expected to grow at a compound annual growth rate of 9% from 2024 to 2033, primarily relying on imports [12][11]. - Future plans include expanding into Southeast Asia and other international markets, with potential for more registration applications and localized marketing networks [12][11]. Profitability and Product Mix - The revenue from high-margin recombinant collagen medical devices is significantly high, with a gross margin of 95%, indicating a strategic focus on high-value medical products [13][12]. - Although the growth rate for functional skincare products is lower, partnerships with international brands like L'Oréal are expected to enhance market penetration and long-term growth prospects [13][12]. Industry Trends - The recombinant collagen sector is experiencing rapid penetration, with the company being the only provider of a Class III medical device product in the domestic market, highlighting its scarcity [15][12]. - Competitors are expected to introduce similar products post-2025, but the company is actively developing new products and expanding its international presence to maintain its competitive edge [15][12].
锦波生物——注射重组胶原蛋白龙头