Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 15.44 HKD [3]. Core Insights - The company achieved a total revenue of 2.15 billion RMB in 2023, representing a year-on-year growth of 31.2%. The net profit reached 230 million RMB, up 108.2% year-on-year, while the net profit attributable to the parent company was 216 million RMB, also up 109.2% [2]. - The beauty and health services showed steady growth, with rapid revenue increases in medical beauty and sub-health services. The revenue from medical beauty services reached 850 million RMB, growing by 37.1% year-on-year, and sub-health medical services revenue was 101 million RMB, up 47.6% [2]. - Active membership numbers increased significantly, with the beauty and health services business seeing a 19.4% rise in active members to 90,468. The average annual spending per member increased by 905 RMB to 11,288 RMB [2]. - The company expanded its store network, surpassing 400 stores by the end of 2023, including 201 direct-operated stores and 199 franchise stores. A total of 50 new or acquired stores were added during the year [2]. - The gross profit margin improved to 45.6%, up 1.7 percentage points year-on-year, driven by revenue growth and optimized business structure [2]. - A strategic investment of 350 million RMB was made in the second-largest beauty brand in China, Nai Rui Er, which is expected to enhance revenue and market share significantly [2]. Summary by Sections Financial Performance - In 2023, the company reported revenues of 2,145 million RMB, with a growth rate of 31.2%. The net profit attributable to the parent company was 216 million RMB, reflecting a growth rate of 109.2% [3][7]. - Forecasts for 2024 to 2026 predict revenues of 2,691 million RMB, 3,346 million RMB, and 3,864 million RMB, respectively, with corresponding net profits of 275 million RMB, 348 million RMB, and 409 million RMB [3][7]. Membership and Customer Engagement - The active membership in beauty and health services reached 90,468, with a 19.4% increase year-on-year. The average annual spending per member rose to 11,288 RMB, an increase of 905 RMB [2]. - In medical beauty services, active members increased by 30.6% to 24,474, with average spending per member at 34,597 RMB, up 1,493 RMB [2]. Business Expansion - The company expanded its store network to over 400 locations, including 201 direct-operated and 199 franchise stores, with 50 new or acquired stores added in 2023 [2]. - The strategic investment in Nai Rui Er is expected to significantly boost the company's revenue and market presence [2].
2023年年报点评：23年净利润同比+108%，战略投资中国第二名美容品牌奈瑞儿