IMEIK(SZ:300896) East Money Securities·2024-04-26 10:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market index [3]. Core Insights - The company reported a 28.2% year-on-year increase in revenue for Q1 2024, reaching 808 million yuan, and a 27.4% increase in net profit attributable to shareholders, amounting to 527 million yuan [2][6]. - The company is expanding its production capacity with new projects, including a medical device production line and a health industry park, which will enhance product supply and capacity [1][2]. - The company has secured exclusive distribution rights for two aesthetic devices from Jeisys Medical Inc., and is advancing several research projects in the fields of botulinum toxin and peptide development [2][6]. Summary by Sections Financial Performance - Q1 2024 financials show a revenue of 808 million yuan (+28.2% YoY) and a net profit of 527 million yuan (+27.4% YoY), with a net profit margin of 65.35% [2][6]. - The gross margin is reported at 94.55%, slightly down by 0.75 percentage points compared to the previous year [2]. - The company’s operating expenses have been optimized, with a sales expense ratio of 8.34% and a management expense ratio of 4.07%, reflecting effective cost control [2]. Growth Drivers - The core product, "Hi Body," continues to show stable growth, focusing on niche markets such as neck wrinkle repair, while the "Ru Bai" product is gaining traction in various medical institutions [2][6]. - The company has expanded its market presence, covering approximately 7,000 medical beauty institutions in China with over 400 sales personnel [2][6]. Future Projections - The company forecasts net profits of 2.56 billion yuan, 3.36 billion yuan, and 4.32 billion yuan for the years 2024, 2025, and 2026, respectively, with growth rates of 37.5%, 31.5%, and 28.5% [6][7]. - Earnings per share (EPS) are projected to be 11.81 yuan, 15.53 yuan, and 19.95 yuan for the same years, with corresponding price-to-earnings (P/E) ratios of 25, 19, and 15 [6][7].