23年护肤品调整拖累业绩，24Q1业绩高增拐点出现

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% relative to the industry index within the next six months [12]. Core Views - The company experienced a decline in revenue and net profit in 2023 due to adjustments in its skincare product line, but a significant recovery in performance is anticipated in Q1 2024 [6][8]. - The company is recognized as a global leader in biotechnology and bioactive materials, with a comprehensive value chain in hyaluronic acid production [6][8]. - The report forecasts EPS for 2024, 2025, and 2026 to be 1.71, 2.11, and 2.61 CNY respectively, with corresponding P/E ratios of 37.0X, 29.9X, and 24.3X [6][8]. Financial Summary - In 2023, the company reported revenue of 6,076 million CNY, a year-on-year decrease of 4.45%, and a net profit of 593 million CNY, down 38.97% [2][3]. - The gross margin for 2023 was 73.32%, a decline of 3.67 percentage points from the previous year, while the net margin was 9.59%, down 5.53 percentage points [3][8]. - The first quarter of 2024 showed a revenue increase of 4.24% year-on-year, with a net profit growth of 21.39% [2][3]. Business Performance - The company operates multiple business segments, with significant revenue contributions from raw materials, medical terminal products, and functional skincare products [3][6]. - The revenue from raw materials was 1,129 million CNY, up 15.22%, while medical terminal products saw a remarkable increase of 58.95% to 1,090 million CNY [3][6]. - The company has established a robust distribution network across over 70 countries, with a strong customer base of more than 4,000 global clients [3][6]. Future Outlook - The report indicates that the company is expected to benefit from the release of new production capacity, which will enhance the gross margin of its raw materials business [6][8]. - The expansion of skincare brands is anticipated to yield positive results, with potential for further optimization of expenses [6][8].