By-health(300146) 光大证券·2024-03-18 16:00Investment Rating - The report maintains a "Buy" rating for By-Health (300146 SZ) with a target price of 17 22 RMB [1] Core Views - By-Health achieved 9 407 billion RMB in revenue for 2023, a 19 7% YoY increase, with net profit attributable to shareholders reaching 1 746 billion RMB, up 26 01% YoY [1] - The company's main brand "By-Health" generated 5 4 billion RMB in revenue, a 21 48% YoY increase, while the joint care brand "Jianliduo" saw a slight decline of 1 83% YoY to 1 179 billion RMB [1] - Life-Space brand revenue grew 46 84% YoY to 445 million RMB, with overseas LSG revenue reaching 989 million RMB, a 23 03% YoY increase [1] - Online channel revenue increased by 27 53% YoY, with Douyin surpassing JD com to become the second-largest platform, contributing over 100% growth in 2023 [1] - The company's gross margin improved slightly to 68 89% in 2023, with sales expense ratio at 41 02% and management expense ratio at 5 25% [1] Financial Performance - By-Health's 2023 revenue was 9 407 billion RMB, with net profit of 1 746 billion RMB, and EPS of 1 03 RMB [2] - The company's ROE (diluted) increased to 14 35% in 2023 from 12 96% in 2022 [2] - Gross margin improved to 68 9% in 2023 from 68 3% in 2022, with EBITDA margin at 22 5% [3] - The company's net operating cash flow reached 2 051 billion RMB in 2023, a significant increase from 1 379 billion RMB in 2022 [3] Future Projections - Revenue is expected to grow to 10 534 billion RMB in 2024E, 11 574 billion RMB in 2025E, and 12 684 billion RMB in 2026E [2] - Net profit is projected to reach 2 02 billion RMB in 2024E, 2 305 billion RMB in 2025E, and 2 61 billion RMB in 2026E [2] - EPS is forecasted to increase to 1 19 RMB in 2024E, 1 36 RMB in 2025E, and 1 53 RMB in 2026E [2] Valuation Metrics - The company's P/E ratio is expected to decrease from 17x in 2023 to 15x in 2024E, 13x in 2025E, and 11x in 2026E [2] - P/B ratio is projected to decline from 2 4x in 2023 to 2 3x in 2024E, 2 1x in 2025E, and 1 9x in 2026E [2] - EV/EBITDA is forecasted to decrease from 12 7x in 2023 to 11 6x in 2024E, 9 7x in 2025E, and 8 3x in 2026E [3]