Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 57.14, indicating a potential upside of 34.4% from the current price of HKD 42.50 [1][3][17]. Core Insights - The company achieved a revenue of RMB 3.52 billion in 2023, a year-on-year increase of 49.0%, surpassing Bloomberg consensus estimates by 3% [1]. - The net profit attributable to shareholders reached RMB 1.45 billion, reflecting a 44.9% year-on-year growth, exceeding Bloomberg consensus estimates by 6% [1]. - The strong performance is attributed to the robust growth of the "可复美" brand, particularly in functional skincare products, which saw a revenue increase of 69.5% to RMB 2.65 billion, accounting for 75.1% of total revenue [1]. - The company has initiated its first dividend payout, planning to distribute a final dividend of RMB 0.44 per share and a special dividend of RMB 0.45 per share, resulting in a total payout ratio of 61% [1]. Financial Performance Summary - Revenue: The company reported a revenue of RMB 3,524 million for FY23, with projections of RMB 4,602 million for FY24, RMB 5,865 million for FY25, and RMB 7,377 million for FY26, indicating a growth trajectory [2][12]. - Net Profit: The net profit for FY23 was RMB 1,452 million, with estimates of RMB 1,711 million for FY24, RMB 2,150 million for FY25, and RMB 2,637 million for FY26 [2][12]. - Gross Margin: The gross margin for FY23 was 83.6%, with a slight decline expected to 83.0% in FY24 [2][12]. - Earnings Per Share (EPS): The EPS for FY23 was RMB 1.49, projected to increase to RMB 1.72 for FY24, RMB 2.16 for FY25, and RMB 2.65 for FY26 [2][12]. Market Position and Strategy - The company is focusing on expanding its online sales channels, with direct sales revenue growing by 72.7% to RMB 2.42 billion, representing 68.7% of total revenue [1]. - The "可复美" brand continues to show strong growth, with its core product, collagen sticks, contributing significantly to sales [1]. - The company is expected to maintain a strong online presence, which is anticipated to drive further growth in the coming years [1].
业绩超预期，持续发力线上渠道