COSMOS(SZ:300856) Haitong Securities·2024-05-10 01:32Investment Rating - The report maintains an "Outperform" rating for the company [24]. Core Insights - The company achieved a revenue of 712 million yuan in Q1 2024, representing a year-on-year growth of 21.1%, driven by sustained demand in the cosmetics active ingredients and raw materials market, along with the gradual ramp-up of new product lines [4]. - The company is progressing with new projects, including the accelerated construction of a factory in Malaysia and the completion of several production lines for various products, which will enhance its production capacity [5]. - The company forecasts a significant increase in revenue and net profit over the next few years, with projected revenues of 3.18 billion yuan in 2024, 4.02 billion yuan in 2025, and 4.90 billion yuan in 2026, alongside net profits of 924 million yuan, 1.17 billion yuan, and 1.42 billion yuan respectively [6][27]. Financial Performance Summary - In Q1 2024, the company reported a non-GAAP net profit of 204 million yuan, a year-on-year increase of 29.78%, with a gross margin of 47.82% and a net margin of 30.85% [4]. - The company’s revenue for 2023 was 2.4 billion yuan, a year-on-year increase of 35.99%, with a net profit of 715 million yuan, reflecting a growth of 89.11% [26]. - The gross margin for 2023 was 48.83%, an increase of 12.17 percentage points compared to the previous year, indicating improved operational efficiency [26]. Business Segment Analysis - The cosmetics active ingredients and raw materials segment generated revenue of 2.07 billion yuan in 2023, with a gross margin of 53% [20]. - The synthetic fragrance segment had a revenue of 308 million yuan in 2023, with a stable gross margin of 24% [20]. - The company is expanding its product offerings in personal care ingredients, with successful development of high-end moisturizing agents and efficient moisturizing agents [17]. Market Comparison - The company’s stock price as of May 9 was 86.67 yuan, with a market capitalization of approximately 13.69 billion yuan [16]. - The company is compared with peers in the industry, showing a favorable valuation with a projected PE ratio of 18-20 times for 2024, indicating a reasonable value range of 98.3 to 109.2 yuan [27].