业务拓展有序，盈利改善可期

Investment Rating - The report maintains a "Buy-B" rating for the company, indicating a positive outlook on its future performance [3][6] Core Views - The company's profitability has improved, with a gross margin of 30.62% in 24Q1, up by 2.95 percentage points year-over-year, driven by cost reduction measures [2] - The net profit margin reached 5.66% in 24Q1, an increase of 2.99 percentage points year-over-year, with further improvement expected as BF orders are delivered and economies of scale enhance profitability [2] - Short-term growth is supported by increased market share among high-value customers in China, strong performance in new brands and cross-border e-commerce, and a recovery in orders in the US following inventory depletion [3] - Long-term growth is underpinned by the vast potential of the health supplement market, the company's robust product pipeline, strong R&D capabilities, and a global production and marketing network [3] Financial Performance - In 2023, the company achieved revenue of 3.582 billion yuan, a year-over-year increase of 42.87%, and net profit attributable to shareholders of 281 million yuan, up 32.39% year-over-year [6] - 24Q1 revenue was 952 million yuan, a 35.51% year-over-year increase, with net profit attributable to shareholders of 63 million yuan, up 114.39% year-over-year [6] - The company's sales expense ratio in 24Q1 was 7.68%, slightly up by 0.23 percentage points year-over-year, while the management expense ratio decreased by 2.16 percentage points to 9.67% [2] Regional Performance - In 2023, China region revenue was 1.851 billion yuan, up 24.1% year-over-year, driven by deepening relationships with high-value customers and new project launches [6] - Americas region revenue reached 1.044 billion yuan, up 93.0% year-over-year, primarily due to the integration of Best Formulations (BF) and cross-selling efforts [6] - Europe region revenue was 529 million yuan, up 33.8% year-over-year, supported by market expansion and increased penetration in emerging markets [6] Future Outlook - The company plans to deepen its presence in high-value customer segments in China, expand cross-border e-commerce, and develop retail and innovative businesses [9] - In the Americas, the focus will be on maintaining relationships with key clients, expanding retail and e-commerce channels, and integrating supply chains between China and the US [9] - In Europe, the company aims to develop key clients, expand into emerging markets, and leverage new production lines for plant-based capsules, gummies, and beverages [9] - The company will continue to focus on six key functional areas: anti-aging, probiotics, beauty and health, cardiovascular and metabolic health, immune enhancement, and sports nutrition [9]