Perfect(SH:603059) Guoyuan Securities·2024-04-25 05:30Investment Rating - The report maintains a rating of "Accumulate" for the company [4][29]. Core Insights - In Q1 2024, the company achieved a revenue of 286 million yuan, representing a year-on-year growth of 28.29%, and a net profit attributable to the parent company of 19 million yuan, which is a significant increase of 164.53% year-on-year [2]. - The company aims for over 20% revenue growth in 2024, with a target profit margin of around 7% for its main business [2]. - The company has successfully acquired a 52% stake in Shan'enkang, which focuses on the entire probiotic industry chain, and expects to achieve net profits of no less than 12 million, 18 million, and 30 million yuan in 2024, 2025, and 2026 respectively [3][29]. Financial Performance - In 2023, the company reported a total revenue of 1.067 billion yuan, a year-on-year increase of 1.58%, while the net profit attributable to the parent company was 93 million yuan, a decrease of 4.93% year-on-year [2][20]. - The gross profit margin for 2023 was 23.19%, down 0.78 percentage points year-on-year, and the net profit margin was 8.67%, down 0.59 percentage points year-on-year [2]. - The company’s revenue from oral care products in 2023 was 722 million yuan, a year-on-year increase of 7.90%, while the revenue from wet wipes was 336 million yuan, a decline of 9.88% year-on-year [28]. Business Development - The company has established strong partnerships with major clients such as Chongqing Dengkang and Medline, and has successfully developed new international brand clients, which are expected to contribute to revenue in the second half of 2024 [28]. - The acquisition of a 16.50% stake in Weimeizi has positioned the company as the largest single shareholder, enhancing synergies in the oral care business [3][29]. Future Projections - The company forecasts net profits of 143 million, 185 million, and 228 million yuan for the years 2024, 2025, and 2026 respectively, with corresponding earnings per share (EPS) of 1.42, 1.84, and 2.27 yuan [29]. - The projected price-to-earnings (P/E) ratios for the next three years are 16, 12, and 10 times [29].