Core Insights - The South Korean medical beauty market, once a lucrative "golden standard," is facing increased competition and price wars due to the rise of neighboring markets and the trend towards "light medical beauty" [1][4] - Despite the market's growth, with a projected size of $572.14 million in 2023 and 1.2 million foreign patients expected in 2024, the intense competition is leading to a significant decline in prices and profit margins [4][5] - The shift from high-end, specialized services to standardized, low-cost offerings is causing a disruption in the pricing structure, resulting in a "revenue without profit" scenario for many institutions [4][10] Market Dynamics - The average prices for popular procedures have dropped by 10% to 20% since 2020, with specific treatments like photorejuvenation seeing prices fall from 300,000 KRW to below 200,000 KRW by 2025 [4][10] - The high penetration rate of medical beauty services in South Korea indicates a saturated domestic market, leading to a focus on retaining existing customers rather than acquiring new ones [5][12] - The increasing transparency of pricing and the prevalence of social media comparisons among international clients are pushing clinics to adopt more competitive pricing strategies [5][12] Competitive Landscape - Smaller clinics are struggling to compete against larger, capitalized players, with many experiencing revenue declines of 10% to 20% in early 2025 [9] - Collaborations between leading institutions, such as the partnership between Aimeike and REGEN Biotech, highlight a trend towards combining technology, capital, and market access to enhance competitive advantages [9][12] - The proliferation of advanced medical equipment is diminishing the technological barriers that once separated top-tier institutions from smaller clinics [10][12] Strategic Shifts - The industry is witnessing a transition from a "celebrity doctor" model to a more standardized service approach, necessitating a balance between personalized and standardized offerings [10][11] - Institutions are encouraged to focus on niche markets, such as specialized treatments for specific demographics, to differentiate themselves and avoid price wars [10][12] - The rise of home beauty devices indicates a growing consumer acceptance of technology in skincare, prompting medical beauty institutions to explore partnerships with tech companies for integrated service offerings [13] Global Expansion - South Korean medical beauty brands are increasingly looking to expand internationally, particularly in markets like China, leveraging their strong technology and training systems [13][14] - The shift from relying solely on medical tourism to actively pursuing overseas markets represents a strategic pivot for the industry [13][14] - Successful companies will be those that invest in technology, talent, and brand building, moving away from a price-centric model to one focused on comprehensive value [14][15]

Core Viewpoint - Aimeike (300896.SZ), one of the "three swordsmen" in the medical beauty industry, is facing its most severe performance downturn since its listing, with a significant decline in revenue and net profit in the first half of 2025 [2][3]. Financial Performance - In the first half of 2025, Aimeike reported revenue of 1.299 billion yuan, a year-on-year decrease of 21.59%, and a net profit of 789 million yuan, down 29.57% year-on-year, marking the first negative growth since its A-share debut in September 2020 [2][4]. - The company's revenue growth rates from 2021 to 2023 were 104.13%, 33.91%, and 47.99%, respectively, but have dropped to single digits in 2024, with projected growth rates of 5.45% for revenue and 5.33% for net profit [4]. Product Performance - Aimeike's two main product lines experienced significant declines in the first half of 2025: the solution injection products generated revenue of 744 million yuan, down 23.79%, while the gel injection products earned 493 million yuan, down 23.99% [5][4]. - The competitive landscape has intensified, particularly for the "Haitai" and "Ruhbai Tianzi" products, with new entrants in the market leading to increased pressure on sales [7]. Market Dynamics - The medical beauty industry is undergoing a transformation, shifting from rapid expansion to a focus on quality and effectiveness, with a slowdown in overall market growth [2][9]. - The Chinese medical beauty market grew from 99.3 billion yuan in 2017 to 189.2 billion yuan in 2021, but the high-growth phase is fading, leading to intensified competition and price pressures [9]. Strategic Moves - Aimeike has acquired an 85% stake in REGEN Biotech for $190 million to enhance its portfolio in regenerative injection products, although it faces challenges regarding distribution rights for key products [3][8]. - The company is also expanding into new areas, including biopharmaceuticals and chemical drugs, with ongoing projects such as the development of botulinum toxin and weight management injections [10][11]. Industry Outlook - The industry is expected to see a decline in prices for high-end products as competition increases, potentially leading to a more accessible "mass medical beauty" era [10]. - Aimeike's future growth will depend on its ability to navigate the competitive landscape and successfully implement its strategic adjustments [12].

Investment Rating - The investment rating for the company is "Outperform the Market" [2][4][9]. Core Views - The company's overall performance in Q1 2025 faced pressure, with revenue of 664 million yuan, down 17.9% year-on-year, and net profit attributable to shareholders of 444 million yuan, down 15.87% year-on-year. The decline is attributed to the overall pressure on the aesthetic medicine terminal market, but future overseas acquisitions are expected to open new growth opportunities [1][5]. - The company announced plans to acquire 59.5% of Korean REGEN Biotech to strengthen its regenerative aesthetic product layout and leverage the acquisition to expand international market sales [1][5]. - The gross profit margin slightly decreased to 93.85%, down 0.7 percentage points year-on-year, influenced by changes in product structure. R&D investment intensity has increased, with R&D expense ratio at 8.82%, up 1.7 percentage points year-on-year [1][7]. Financial Performance and Forecast - The company forecasts revenue growth from 2,869.35 million yuan in 2023 to 4,377.70 million yuan in 2027, with a compound annual growth rate (CAGR) of approximately 13.74% [3]. - Net profit is projected to grow from 1,858.48 million yuan in 2023 to 2,802.90 million yuan in 2027, reflecting a CAGR of about 15.34% [3]. - The earnings per share (EPS) is expected to increase from 8.59 yuan in 2023 to 9.28 yuan in 2027 [3]. - The company has adjusted its net profit forecasts for 2025-2027 to 2,123 million yuan, 2,430 million yuan, and 2,803 million yuan, respectively, with corresponding price-to-earnings (PE) ratios of 24.6, 21.5, and 18.6 [2][9].

Investment Rating - The investment rating for the company is "Outperform the Market" [2][4][9]. Core Views - The company's overall performance in Q1 2025 faced pressure, with revenue of 664 million yuan, down 17.9% year-on-year, and net profit attributable to shareholders of 444 million yuan, down 15.87% year-on-year. The decline is attributed to the overall pressure on the medical beauty terminal market, but future overseas acquisitions are expected to open new growth opportunities [1][5]. - The company announced plans to acquire 59.5% of Korean REGEN Biotech to strengthen its regenerative medical product layout and leverage the acquisition to expand international market sales [1][5]. - The gross profit margin slightly decreased to 93.85%, down 0.7 percentage points year-on-year, influenced by changes in product structure. R&D investment intensity has increased, with R&D expense ratio at 8.82%, up 1.7 percentage points year-on-year [1][7]. Financial Forecasts and Metrics - Revenue projections for 2025-2027 have been revised down to 21.23 billion yuan, 24.3 billion yuan, and 28.03 billion yuan, respectively, with corresponding P/E ratios of 24.6, 21.5, and 18.6 [2][9]. - The company is expected to see revenue growth of 12.33% in 2025, 13.24% in 2026, and 13.74% in 2027, with net profit growth rates of 8.44%, 14.48%, and 15.34% for the same years [3][11]. - The projected earnings per share (EPS) for 2025 is 7.03 yuan, with a net profit margin of 70.74% [3][11].

Core Insights - The company reported a total revenue of 3.03 billion yuan in 2024, representing a year-on-year growth of 5.4%, while the net profit attributable to shareholders was 1.96 billion yuan, also up by 5.3% [1][2] - However, Q4 performance showed a decline, with revenue decreasing by 7.0% year-on-year and 9.5% quarter-on-quarter, and net profit down by 15.5% year-on-year and 19.9% quarter-on-quarter [1][2] Financial Performance - For the full year 2024, the company achieved a gross margin of 94.6%, a slight decrease of 0.5 percentage points compared to the same period in 2023, while the net profit margin remained stable at 64.7% [2] - The company distributed a total cash dividend of 1.15 billion yuan to all shareholders, with a dividend payout ratio of 58.5% of the net profit attributable to shareholders [2] R&D and Product Development - The company increased its R&D expenditure to 10.0% of revenue in 2024, up by 1.3 percentage points from 2023 [3] - Several products are in various stages of development, including A-type botulinum toxin and minoxidil topical solution, which are currently in the registration application phase [3] Strategic Acquisition - The company announced plans to acquire 85% of REGEN Biotech for 190 million USD, marking a significant step towards international expansion [4] - REGEN Biotech is a leading South Korean aesthetic product company, with its products AestheFill and PowerFill approved in 34 and 24 countries respectively [4]

Investment Rating - The report assigns a "Buy" rating for the company, expecting a future investment return of 5% to 15% over the next six months [4]. Core Insights - The company achieved a revenue of 3.03 billion RMB in 2024, representing a year-on-year growth of 5.4%, while the net profit attributable to shareholders was 1.96 billion RMB, also up by 5.3% year-on-year [2][5]. - In Q4, the company experienced a revenue decline of 7.0% year-on-year and a net profit decrease of 15.5% year-on-year, which was slightly below market expectations [2][4]. - The company is increasing its R&D efforts, with a research and development expense ratio of 10.0% in 2024, up by 1.3 percentage points from the previous year [3]. Financial Performance Summary - For 2024, the company reported a gross margin of 94.6%, a slight decrease of 0.5 percentage points compared to the same period in 2023, while the net profit margin remained stable at 64.7% [2][5]. - The company plans to distribute a total cash dividend of 1.15 billion RMB to shareholders, which accounts for 58.5% of the net profit attributable to shareholders [2]. - The projected net profits for 2025, 2026, and 2027 are estimated to be 2.09 billion RMB, 2.34 billion RMB, and 2.59 billion RMB, respectively, with corresponding growth rates of 6.8%, 12.0%, and 10.6% [4][5]. Strategic Developments - The company is making strides towards internationalization by acquiring 85% of the Korean company REGEN Biotech for 190 million USD, which is expected to enhance future performance [4]. - The company has several products in the registration and clinical trial stages, including A-type botulinum toxin and minoxidil topical solution, indicating a strong pipeline for future growth [3].

Investment Rating - The report maintains a "Recommended" rating for the company [4][6][10]. Core Insights - The company achieved a revenue of 3.026 billion yuan in 2024, representing a year-on-year growth of 5.45%, and a net profit attributable to shareholders of 1.958 billion yuan, up 5.33% year-on-year [1][4]. - The acquisition of REGEN Biotech for 190 million USD is a strategic move to enhance the company's competitive edge and international presence in the aesthetic medicine market [2][3]. - The company has a robust pipeline of products, with several expected to launch soon, indicating strong growth potential in the medium to long term [3][4]. Financial Performance Summary - **Revenue and Profit Forecasts**: - 2024 Revenue: 3.026 billion yuan, 2025 Revenue: 3.390 billion yuan (12.0% growth), 2026 Revenue: 3.911 billion yuan (15.4% growth), 2027 Revenue: 4.777 billion yuan (22.1% growth) [4][6]. - 2024 Net Profit: 1.958 billion yuan, 2025 Net Profit: 2.198 billion yuan (12.3% growth), 2026 Net Profit: 2.567 billion yuan (16.8% growth), 2027 Net Profit: 3.168 billion yuan (23.4% growth) [4][6]. - **Valuation Metrics**: - PE ratios for 2025, 2026, and 2027 are projected at 26X, 22X, and 18X respectively [4][6]. - The company’s net profit margin for 2024 is 64.66%, with a slight increase expected in subsequent years [1][6].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a total revenue of 3.026 billion yuan in 2024, representing a year-on-year growth of 5.45%, and a net profit attributable to shareholders of 1.958 billion yuan, also up by 5.33% [8] - The company maintains a high level of profitability, with a gross margin of 94.64% and a net margin of 64.66% in 2024, despite a slight decrease in gross margin [8] - The company has a rich pipeline of products under research, which ensures long-term growth, and is accelerating its international business layout through acquisitions [8] Summary by Sections Financial Performance - In 2024, the company reported total revenue of 3.026 billion yuan, with a year-on-year increase of 5.45% [8] - The net profit attributable to shareholders was 1.958 billion yuan, reflecting a growth of 5.33% year-on-year [8] - The company’s earnings per share (EPS) for 2024 is projected at 6.47 yuan [9] Product and Market Strategy - The company’s solution and gel products continue to grow, with sales of the "Hi Body" series reaching 1.744 billion yuan, up 4.40% year-on-year, and the "Mo White Angel" series generating 1.216 billion yuan, up 5.01% [8] - The company has engaged in extensive academic activities and digital marketing to enhance brand influence and provide comprehensive solutions to medical institutions and consumers [8] Research and Development - The company has 11 Class III medical device products approved by the National Medical Products Administration and a rich pipeline of products under research, including botulinum toxin and other innovative treatments [8] - The planned acquisition of 85% of REGEN Biotech aims to expand the product pipeline and accelerate international business development [8] Profitability and Cost Management - The company’s sales, management, research and development, and financial expense ratios for 2024 were 10.93%, 4.82%, 17.88%, and -0.66% respectively, indicating an increase in sales expenses due to heightened marketing efforts [8] - The overall profitability remains high, with a slight decrease in gross margin for solution products but an increase for gel products [8]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is acquiring 85% of REGEN Biotech for $190 million, enhancing its position in the regenerative medical aesthetics sector and facilitating international expansion [6] - REGEN Biotech is a leading South Korean company in medical aesthetics, known for its innovative products like AestheFill, which has a strong market presence in 34 countries [6] - The acquisition is expected to strengthen the company's market leadership in high-end regenerative medical aesthetics and optimize costs through synergies in R&D and supply chain management [6] - The company has a robust pipeline of products, including a recently approved medical-grade hyaluronic acid gel and various injectables, which supports its sustainable growth [6] Financial Summary - The company's total revenue is projected to grow from 2,869 million RMB in 2023 to 3,987 million RMB in 2026, reflecting a compound annual growth rate (CAGR) of approximately 12.35% [1][7] - Net profit attributable to the parent company is expected to increase from 2,084 million RMB in 2024 to 2,656 million RMB in 2026, with a CAGR of about 12.97% [1][7] - The earnings per share (EPS) is forecasted to rise from 6.14 RMB in 2024 to 8.78 RMB in 2026, indicating a positive trend in profitability [1][7] - The price-to-earnings (P/E) ratio is projected to decrease from 29 times in 2024 to 22.81 times in 2026, suggesting an attractive valuation as earnings grow [1][7]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company is acquiring 85% of REGEN Biotech for $190 million, enhancing its capabilities in regenerative aesthetics and international expansion [6] - REGEN Biotech is a leading South Korean company in medical aesthetics, known for its innovative products like AestheFill, which stimulates collagen regeneration [6] - The acquisition is expected to strengthen the company's market position in high-end regenerative aesthetics and facilitate international market entry [6] - The company forecasts a steady growth in revenue and net profit from 2024 to 2026, with net profit estimates of 20.84 billion, 23.51 billion, and 26.56 billion RMB respectively [1][6] Financial Projections - Total revenue is projected to grow from 2,869 million RMB in 2023 to 3,987 million RMB in 2026, reflecting a compound annual growth rate (CAGR) of approximately 12.35% [1][7] - Net profit is expected to increase from 1,858 million RMB in 2024 to 2,656 million RMB in 2026, with a CAGR of about 12.97% [1][7] - The earnings per share (EPS) is projected to rise from 6.14 RMB in 2024 to 8.78 RMB in 2026 [1][7] - The price-to-earnings (P/E) ratio is expected to decrease from 32.60 in 2024 to 22.81 in 2026, indicating potential valuation improvement [1][7]