IMEIK(SZ:300896) EBSCN·2025-10-30 06:25Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's revenue continues to be under pressure due to macroeconomic factors, with a need for a demand turning point to emerge [5] - The company reported a revenue of 1.86 billion yuan for the first three quarters of 2025, a year-on-year decline of 21.5%, and a net profit of 1.09 billion yuan, down 31.0% year-on-year [4][5] - The gross margin slightly decreased to 93.4% for the first three quarters of 2025, while the net profit margin fell to 58.6% [5] - Increased competition in the market, particularly for high-priced products, has contributed to the decline in revenue and profit margins [5][6] - The company is expanding its product lineup in the medical beauty sector, which may provide new growth opportunities in the future [7][8] Summary by Sections Financial Performance - For Q3 2025, the company reported revenues of 570 million yuan, a decline of 21.3% year-on-year, and a net profit of 300 million yuan, down 34.6% year-on-year [4][5] - The gross margin for Q3 2025 was 93.2%, down 1.4 percentage points year-on-year, while the net profit margin was 53.7%, down 11.0 percentage points year-on-year [5] - The company's expense ratio increased by 12.5 percentage points to 31.8% for the first three quarters of 2025, with significant increases in sales, management, and R&D expenses [6] Market Position and Strategy - The company is enhancing its product offerings in the medical beauty sector, including the launch of new products and acquisitions to strengthen its market position [7] - The introduction of new products and the expansion into overseas markets are expected to drive future growth [8] Earnings Forecast - The net profit forecasts for 2025-2027 have been revised down to 1.39 billion, 1.53 billion, and 1.70 billion yuan, respectively, reflecting a decrease of 15% to 16% [8] - The report projects earnings per share (EPS) of 4.58 yuan for 2025, with corresponding price-to-earnings (P/E) ratios of 36, 32, and 29 for the years 2025, 2026, and 2027 [8][9]