By-health(SZ:300146)2024-04-28 06:02Investment Rating - The report maintains an "Outperform" rating for the company, indicating a positive outlook for its stock performance relative to the market [6]. Core Views - The company reported a revenue of 2.646 billion yuan for Q1 2024, a year-on-year decline of 14.87%, and a net profit attributable to shareholders of 727 million yuan, down 29.43% year-on-year. These results were in line with market expectations [6]. - The company has completed adjustments to its sales and organizational structure and continues to focus on a multi-brand, single-product strategy, aiming to capture high-potential niche markets in the health sector [6]. Summary by Sections Financial Performance - For Q1 2024, the company achieved a revenue of 2.646 billion yuan, a decrease of 14.87% year-on-year. The net profit attributable to shareholders was 727 million yuan, down 29.43% year-on-year, and the net profit excluding non-recurring items was 709 million yuan, a decline of 28.67% [6][7]. - The company’s gross margin for Q1 2024 was 69.9%, a slight decrease of 0.42 percentage points year-on-year. The increase in expense ratios led to a decline in net profit margin to 27.17%, down 6.61 percentage points year-on-year [7]. Revenue Breakdown - Domestic business revenue for Q1 2024 was 1.722 billion yuan, a decline of 7.55% year-on-year, while online channel revenue fell significantly by 26.53% to 909 million yuan, primarily due to high base effects from the previous year [7]. - The main brand "汤臣倍健" generated 1.545 billion yuan in revenue, down 17.74% year-on-year, while the major product "健力多" saw a smaller decline of 2.06% to 373 million yuan [7]. Future Projections - The report forecasts net profits for the years 2024 to 2026 to be 1.99 billion, 2.25 billion, and 2.50 billion yuan respectively, with year-on-year growth rates of 13.7%, 13.2%, and 11.4% [6][8]. - The earnings per share (EPS) are projected to be 1.17, 1.32, and 1.47 yuan for the years 2024 to 2026, with corresponding price-to-earnings (PE) ratios of 13x, 12x, and 11x based on the latest closing price [6][8].