Runben Biotechnology (SH:603193) Guoyuan Securities·2024-02-03 16:00Investment Rating - The report gives an "Accumulate" rating for the company, Runben Co., Ltd. [27] Core Viewpoints - Runben Co., Ltd. focuses on "big brand, small categories," specializing in mosquito repellent and personal care products, with strong financial performance [17] - The mosquito repellent market is expected to exceed 10 billion yuan by 2027, driven by high-margin new products [18] - The company has achieved impressive revenue and net profit growth, with a projected net profit increase of 34.34% to 46.83% in 2023 [83] Summary by Sections Company Overview - Runben Co., Ltd. was established in 2006 and has evolved through three stages: initial establishment, strategic layout, and rapid development [69] - The company has a strong focus on online sales, having established its first Tmall store in 2010 and expanded to multiple e-commerce platforms [69][71] Financial Analysis - The company reported a revenue of 856 million yuan in 2022, a year-on-year increase of 47.06%, with a CAGR of 45.38% from 2019 to 2022 [83] - The net profit for 2022 was 160 million yuan, reflecting a year-on-year growth of 32.66% [83] Industry Analysis - The mosquito repellent market is characterized by strong demand and steady growth, with new high-margin products contributing significantly to market expansion [18] - The baby care market in China is projected to grow at a CAGR of 15%, reaching nearly 100 billion yuan by 2026 [7] Business Strategy - The company employs a C2M model, integrating research, production, and sales, with a focus on self-owned supply chains and online channels [18][71] - Runben's product strategy emphasizes new mosquito repellent products and the expansion into baby care, with a focus on high cost-performance [18] Profit Forecast and Investment Suggestions - The company is expected to achieve net profits of 224 million, 268 million, and 342 million yuan from 2023 to 2025, with corresponding EPS of 0.55, 0.66, and 0.85 yuan [27]