Runben Biotechnology (603193) Changjiang Securities·2024-05-16 02:32Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company achieved a revenue of 1.033 billion yuan in 2023, representing a year-on-year growth of 21%. The net profit attributable to shareholders was 226 million yuan, up 41% year-on-year [2][13]. - In Q4 2023, the company reported a revenue of 209 million yuan, a 20% increase year-on-year, and a net profit of 45 million yuan, which is a 59% increase year-on-year [2][13]. - For Q1 2024, the company generated a revenue of 167 million yuan, reflecting a 10% year-on-year growth, with a net profit of 35 million yuan, up 68% year-on-year [2][13]. Financial Performance - The overall gross margin for 2023 improved by 2.15 percentage points, driven by an increase in gross margins across various product categories, particularly in the core baby care and mosquito repellent categories, which saw increases of 2.66 and 1.96 percentage points, respectively [8]. - The sales expense ratio decreased by approximately 1.07 percentage points, while R&D and management expense ratios saw slight increases. The financial expense ratio decreased by 0.93 percentage points due to increased interest income [8]. Product and Channel Development - The company is actively expanding its product categories and channels. The baby care category continues to grow significantly, with new product launches contributing to this growth [14][15]. - In 2023, the revenue growth for various product categories was as follows: baby care (34%), mosquito repellent (19%), essential oils (-0.1%), and other products (-14%) [15]. - The company is enhancing its channel structure, with online sales driving growth. Online direct sales, online distribution, and non-platform distribution saw revenue increases of 20%, 9%, and 32%, respectively [15]. Future Outlook - The company is expected to have significant growth potential from product category expansion and channel development. The estimated EPS for 2024, 2025, and 2026 are 0.71, 0.89, and 1.08 yuan per share, respectively [14].