By-health(SZ:300146) EBSCN·2024-04-26 07:02Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company's Q1 2024 performance was under pressure due to high base effects and weak demand, with revenue of 2.65 billion yuan, down 14.9% year-on-year, and net profit of 730 million yuan, down 29.4% year-on-year [1] - The decline in revenue was attributed to weak demand across various product lines and channels, with significant drops in online sales [1] - The company plans to launch new products and strengthen its offline channel advantages to meet its annual revenue targets despite the challenges [1] Summary by Sections Financial Performance - Q1 2024 revenue was 2.65 billion yuan, a decrease of 14.9% year-on-year, with net profit at 730 million yuan, down 29.4% year-on-year [1] - The main brand "汤臣倍健" generated 1.545 billion yuan, down 17.74% year-on-year, while the joint care brand "健力多" and Life-Space generated 373 million yuan and 120 million yuan, down 2.06% and 29.48% respectively [1] - The gross margin for Q1 2024 was 69.9%, a slight decrease of 0.42 percentage points year-on-year [1] Expense Analysis - The sales expense ratio increased to 31.2%, up 6.58 percentage points year-on-year, primarily due to increased brand promotion efforts [1] - Management expense ratio rose to 4.75%, up 1.45 percentage points year-on-year [1] - The net profit margin for Q1 2024 was 27.46%, down 5.67 percentage points year-on-year [1] Future Outlook - The company has adjusted its net profit forecasts for 2024-2026 to 1.957 billion yuan, 2.215 billion yuan, and 2.484 billion yuan, reflecting a decrease of 3%, 4%, and 5% respectively [2] - The expected EPS for 2024-2026 is 1.15 yuan, 1.30 yuan, and 1.46 yuan, with corresponding P/E ratios of 13x, 12x, and 11x [2] - The company aims to achieve its annual revenue targets through new product development and enhancing offline distribution channels [1]