Shouxiangu(SH:603896) EBSCN·2025-04-25 09:38Investment Rating - The report maintains a rating of "Accumulate" for the company [5] Core Views - The company's short-term performance is under pressure, but core products provide stable support. The quarterly revenue from Q1 2024 to Q1 2025 shows fluctuations, with a peak of 2.21 billion yuan and a low of 1.19 billion yuan, reflecting a year-on-year change of +7.15% to -30.20%. The net profit also shows a decline, with a peak of 0.77 billion yuan and a low of 0.18 billion yuan, indicating a significant drop in profitability due to macroeconomic changes and weak consumer demand [2][3] - The company is advancing marketing reforms and expanding its international presence. It is implementing a "famous doctor, famous medicine, famous store" model and plans to enhance its presence in the Yangtze River Delta region. The internationalization efforts include collaboration with the Mayo Clinic and registration of products in the EU, which opens up overseas market opportunities [3][4] Financial Performance Summary - The company's revenue for 2024 is projected at 6.92 billion yuan, a decrease of 11.81% year-on-year, with a net profit of 1.75 billion yuan, down 31.34% [9] - The revenue for 2025 is estimated at 7.34 billion yuan, with a net profit of 1.92 billion yuan, reflecting a recovery trend with a growth rate of 9.88% in 2027 [4][10] - The earnings per share (EPS) for 2024 is expected to be 0.88 yuan, with a gradual increase to 1.27 yuan by 2027 [10][12] Profitability and Valuation Metrics - The company's gross margin is projected to be 80.7% in 2024, with a slight decline to 80.6% by 2027. The return on equity (ROE) is expected to improve from 7.6% in 2024 to 9.0% in 2027 [12][13] - The price-to-earnings (P/E) ratio is forecasted to be 22 in 2024, decreasing to 15 by 2027, indicating a more attractive valuation over time [12][13] Market Position and Strategy - The company is focusing on enhancing its sales channels, with a significant portion of revenue coming from e-commerce, which accounted for 25.16% of total sales in the latest quarter. The company plans to open 10 new specialty stores and strengthen partnerships with online influencers [2][3] - The geographical revenue distribution shows that 65.23% of income comes from Zhejiang province, with ongoing efforts to reform distributors in other provinces like Guangdong and Anhui [2][3]