Bloomage Biotech(SH:688363) Guotai Junan Securities·2024-04-30 09:32Investment Rating - The investment rating for the company is "Buy" with a target price of 70.93 CNY, down from the previous target of 92.70 CNY [1]. Core Insights - The company has shown better-than-expected performance in Q1, driven by significant growth in the medical beauty sector and notable cost reductions. The skincare segment is under pressure but is expected to show signs of recovery [1]. - The report highlights that the company's revenue and profit margins have improved due to the high growth in the medical beauty business and effective cost control measures [1]. - The company is expected to face challenges in the skincare segment, which is currently undergoing adjustments, but long-term profitability potential remains high [1]. Summary by Relevant Sections Financial Performance - In Q1 2023, the company reported revenues of 6.076 billion CNY, a decrease of 4% year-on-year, with net profit attributable to shareholders at 593 million CNY, down 39% [1]. - The gross profit margin improved to 75.73%, an increase of 1.95 percentage points year-on-year, primarily due to increased sales in the medical beauty segment [1]. - The company anticipates a revenue increase of 9% in 2024, reaching 6.598 billion CNY, and a further 13% increase in 2025 [1]. Cost Management - The report indicates a significant reduction in the expense ratio, with sales and management expenses optimized, leading to a net profit margin increase to 17.89% [1]. - The company has effectively controlled costs in the skincare segment, which is expected to enhance profitability in the long run [1]. Market Position and Future Outlook - The medical beauty segment is projected to continue its strong performance, while the skincare segment is expected to recover as new products are launched [1]. - The company is focusing on new product performance in the skincare segment, with particular attention to the launch of new items such as the "元气弹" and "蓝绷带精华" [1].