Shouxiangu(SH:603896)2024-05-15 05:30Investment Rating - The report maintains a "Outperform" rating for the company, with a projected PE of 20 times for 2024 based on the current stock price [1]. Core Insights - The company is expected to achieve revenues of RMB 860 million, RMB 951 million, and RMB 1.06 billion for the years 2024, 2025, and 2026 respectively, with net profits of RMB 281 million, RMB 316 million, and RMB 350 million for the same years [1]. - The company reported a revenue of RMB 780 million in 2023, a decrease of 5.4% year-on-year, and a net profit of RMB 250 million, down 8.4% year-on-year, primarily due to economic downturns affecting consumer spending [10]. - Online sales are increasingly significant, with a 7.4% year-on-year growth in 2023, and the proportion of internet sales in total revenue rising from 24.40% in 2021 to 27.50% in 2023 [44]. Financial Summary - The company’s projected financials for FY Dec are as follows: - Revenue: RMB 784 million (2023A), RMB 860 million (2024F), RMB 951 million (2025F), RMB 1.06 billion (2026F) [37]. - Net Profit: RMB 254 million (2023A), RMB 281 million (2024F), RMB 316 million (2025F), RMB 350 million (2026F) [43]. - EBITDA: RMB 322 million (2024F), RMB 332 million (2025F), RMB 368 million (2026F) [43]. - The company’s gross profit margin is projected to be around 84.8% in 2024, with a net profit margin of approximately 32.7% [37]. Research and Development - The company invested 6.3% of its revenue in R&D in 2023, with ongoing clinical trials aimed at expanding its product applicability to a broader consumer base [34]. - Currently, 16 exploratory clinical trials are underway, with three completed, focusing on various health conditions [34]. Market Position - The company is enhancing its brand visibility through various online marketing channels, which is expected to further increase its market share and consumer recognition [44]. - The company’s products are characterized by fewer specifications, transparent pricing, ease of transportation, and durability, contributing to its competitive advantage in the market [44].