Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 60.83, representing a potential upside of 22.0% from the current price of HKD 49.85 [1][3][20]. Core Views - The company is expected to benefit from a strong product cycle, with significant sales performance anticipated during the upcoming promotional period [1]. - The company has announced a placement of 33.22 million shares at HKD 49.40 per share, raising approximately HKD 1.627 billion, primarily for core business development and ecosystem layout [1]. - The company has a robust cash position, with net cash of HKD 2.5 billion and financial assets of HKD 1.27 billion as of the end of 2023, which will support brand building and product line expansion [1]. Financial Summary - Sales revenue is projected to grow from RMB 3.524 billion in FY23 to RMB 4.636 billion in FY24, reflecting a year-on-year growth of 31.6% [2]. - Adjusted net profit is expected to increase from RMB 1.452 billion in FY23 to RMB 1.828 billion in FY24, with an adjusted EPS of RMB 1.03 for FY24 [2]. - The gross margin is forecasted to remain stable around 83% for FY24 and FY25 [2]. Product Performance - The company has launched several new products under its brands, including the "Focus Series" and "Order Series," which have shown strong sales performance on platforms like Tmall and Douyin [1]. - The "Collagen Stick" is expected to contribute over 30% of the brand's revenue, with significant sales recorded during promotional events [1]. Market Position - The company is well-positioned to leverage its product offerings during major sales events, with expectations of strong sales growth for its new product lines [1]. - The report highlights the company's ability to maintain a competitive edge in the functional skincare market, anticipating regulatory approval for injectable collagen products within the year [1].
巨子生物：产品周期向上，期待大促靓丽表现