化妆品业务稳健发展，盈利水平持续优化

Investment Rating - The report maintains a "Buy" rating for Fuerda (600223 SH) [1][6] Core Views - Fuerda's Q1 2024 performance was significantly impacted by the divestiture of its real estate business, leading to a 29 99% YoY decline in revenue to 891 million yuan and a 54 35% YoY drop in net profit attributable to shareholders to 59 million yuan However, the non-GAAP net profit attributable to shareholders surged by 242 48% YoY to 52 million yuan, driven by increased profitability in the cosmetics segment and the absence of losses from the divested real estate business [1][9] - The cosmetics segment continues to perform strongly, with Q1 2024 revenue increasing by 15 12% YoY to 544 million yuan, contributing significantly to the company's overall profitability [1][10] - The company's strategic focus on high-margin products and effective cost control has improved net profit margins in the cosmetics segment [1][10] - The pharmaceutical segment saw a 23 25% YoY decline in revenue to 109 million yuan due to a high base effect from last year's pandemic-related sales [1][10] - The raw materials and additives segment grew by 10 26% YoY to 84 million yuan, supported by increased sales of high-margin cosmetic-grade hyaluronic acid and expansion into overseas markets [1][11] Financial Performance - Fuerda's gross margin in Q1 2024 increased by 11 45 percentage points YoY to 50 84%, primarily due to the divestiture of the low-margin real estate business [12] - The net margin decreased by 3 91 percentage points YoY to 8 20% [12] - Sales expenses increased by 11 12 percentage points YoY to 36 26%, driven by the expansion of the cosmetics business [12] - Inventory turnover days decreased by 2,820 days YoY, and operating cash flow declined by 59 91% YoY to 38 million yuan, both impacted by the real estate divestiture [17] Segment Performance - Cosmetics Segment: Revenue grew by 15 12% YoY to 544 million yuan, with a gross margin of 62 19% (-0 67 percentage points YoY) The segment's growth was driven by strong performance from brands like Ai'er Doctor and Yilian, which saw revenue increases of 20 63% and 17 45% YoY, respectively [10] - Pharmaceutical Segment: Revenue declined by 23 25% YoY to 109 million yuan, with a gross margin of 54 90% (-1 50 percentage points YoY) due to a high base effect from pandemic-related sales [10] - Raw Materials and Additives Segment: Revenue increased by 10 26% YoY to 84 million yuan, with a gross margin of 29 74% (-0 72 percentage points YoY) The segment benefited from strategic adjustments, including increased sales of high-margin products and expansion into overseas markets [11] Future Outlook - The company is expected to focus on its core cosmetics business and expand its presence in the health and wellness sector, supported by product upgrades and channel expansion [20] - Management adjustments and sufficient cash reserves are expected to facilitate future incentive optimization and capital expansion [20] - The report revised down the 2024-2026 net profit forecasts to 343 million yuan, 414 million yuan, and 477 million yuan, respectively, reflecting challenges in the pharmaceutical and raw materials segments [20]