Investment Rating - The investment rating for the company is "Add" [4] Core Views - The company reported a strong revenue growth of 30.83% year-on-year, reaching 1.769 billion yuan in the first half of 2025, but the net profit growth was lower than expected, increasing by only 5.21% to 186 million yuan [1][12] - The online channel showed impressive growth with a revenue increase of 37.85%, accounting for 88.87% of total revenue, while the offline channel faced challenges with a revenue decline of 7.07% [1][2] - The company is transitioning from a traditional cosmetics enterprise to a biotechnology cosmetics company, focusing on technological research and development, which enhances its competitive edge in the beauty market [11][12] Revenue and Profitability - In Q2 2025, the company achieved a revenue of 923 million yuan, a year-on-year increase of 33.53%, but the net profit decreased by 23.08% to 51 million yuan [1] - The gross margin slightly decreased to 73.28% in Q2 2025, while the net margin fell significantly to 5.51% due to increased marketing expenses [3][10] - The company plans to maintain its previous profit forecasts, expecting net profits of 411 million yuan, 476 million yuan, and 537 million yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.03, 1.19, and 1.34 yuan per share [12][15] Channel and Product Strategy - The main brand, Marubi, generated 1.250 billion yuan in revenue, a 34.36% increase year-on-year, while the second brand, PL, achieved 516 million yuan, up 23.87% [2] - The company is focusing on a big product strategy, concentrating on core products to build a synergistic product matrix [2][11] Financial Forecast - The company is projected to have a revenue of 3.612 billion yuan in 2025, with a growth rate of 21.62%, and a net profit of 411 million yuan, reflecting a growth rate of 20.40% [12][15] - The price-to-earnings ratio is expected to decrease from 49.57 in 2024 to 41.17 in 2025, indicating a more attractive valuation over time [15]

Core Viewpoint - The 2024 Annual Shareholders' Meeting of Guangdong Marubi Biotechnology Co., Ltd. outlines the company's operational performance, strategic initiatives, and financial results, emphasizing growth in revenue and profit, alongside a focus on innovation and brand development in the beauty industry. Financial Performance - The company achieved a total revenue of 2.97 billion yuan in 2024, representing a year-on-year increase of 33.44% [29] - The main brand Marubi generated 2.06 billion yuan in revenue, up 31.69% year-on-year, while the PL brand reached 905 million yuan, a growth of 40.72% [31] - The gross profit margin improved to 73.7%, an increase of 3.01 percentage points, attributed to optimized product structure and cost control [31] - Net profit attributable to shareholders was 342 million yuan, up 31.69%, with a higher growth rate of 73.86% for net profit after excluding non-recurring gains and losses [31] R&D and Innovation - The company established a Life Sciences Center to explore new fields such as oral health and oral beauty, enhancing its R&D capabilities [8] - Marubi conducted 42 specialized research projects on raw materials, focusing on innovative plant extracts and bioengineering technologies [9] - The company received recognition as a "National Research Center for Recombinant Functional Proteins," highlighting its advancements in recombinant collagen technology [9] Brand Development - Marubi maintained its position as the top seller in the eye care category for three consecutive years, with the "Peptide Little Red Pen" eye cream achieving online sales of 533 million yuan, a 146% increase [12] - The PL brand successfully launched several products, with six foundation products each generating over 100 million yuan in annual GMV [14] - The company emphasized a dual-brand strategy, focusing on both Marubi and PL to drive growth and market presence [24] Marketing and Sales Strategy - The company implemented a multi-channel marketing strategy, achieving significant online sales growth, with online channels contributing 85.61% of total revenue [31] - Marubi's Tmall flagship store saw a 28% increase in sales, with a focus on enhancing user experience and member engagement [16] - The company utilized emotional and interactive marketing campaigns to strengthen brand recognition and consumer connection [13] Organizational Development - The company is committed to building a young, knowledgeable, and professional workforce, enhancing organizational agility and collaboration [20] - Marubi launched the "Marubi YOUNG Plan" to nurture new talent and improve overall employee capabilities [21] - The company emphasized a culture of innovation and teamwork through various creative activities and training programs [21]

Investment Rating - The investment rating for the company is "Add" [4] Core Views - The company reported strong revenue growth, achieving an operating income of 2.97 billion yuan in 2024, a year-on-year increase of 33.44%, and a net profit attributable to shareholders of 342 million yuan, up 31.69% year-on-year [1][11] - The online channel revenue continues to grow rapidly, with online sales reaching 2.54 billion yuan in 2024, a 35.77% increase year-on-year, accounting for 85.61% of total revenue [2] - The company is transitioning from a traditional cosmetics enterprise to a biotechnology cosmetics company, focusing on key technologies and core raw material research and development [10][11] Summary by Sections Financial Performance - In 2024, the company achieved an operating income of 2.97 billion yuan and a net profit of 342 million yuan, with a significant increase in net profit margin [1][3] - The gross profit margin improved to 73.70% in 2024, up 3.01 percentage points year-on-year, while the net profit margin was 11.53%, down 0.94 percentage points [3][9] Revenue Breakdown - The main brand, Marubi, generated 2.06 billion yuan in revenue, accounting for 69.24% of total revenue, with a year-on-year increase of 31.69% [2] - The second brand, PL Lianhuo, achieved 905 million yuan in revenue, a 40.72% increase year-on-year [2] Market Strategy - The company is deepening its focus on major product strategies, particularly in eye care and wrinkle reduction, maintaining its leading position in the eye care category for three consecutive years [2][10] - The company has launched several innovative products, including the upgraded peptide eye cream and collagen essence, which have seen significant sales growth [2][10] Future Outlook - The company expects to achieve net profits of 411 million yuan, 476 million yuan, and 537 million yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 20.40%, 15.75%, and 12.69% [11][12] - The projected earnings per share (EPS) for the next three years are 1.03 yuan, 1.19 yuan, and 1.34 yuan [11][14]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 53.01 CNY [3][8] Core Insights - The company is expected to achieve strong performance in 2025, with projected earnings per share (EPS) of 1.11 CNY, 1.44 CNY, and 1.85 CNY for the years 2025, 2026, and 2027 respectively [2][8] - The company reported a revenue of 2.97 billion CNY in 2024, reflecting a year-on-year growth of 33.4%, and a net profit attributable to the parent company of 342 million CNY, up 31.7% year-on-year [7] - The online channel transformation has shown positive results, with online revenue reaching 2.54 billion CNY in 2024, accounting for 86% of total revenue, and growing by 35.8% year-on-year [7] Financial Performance Summary - Revenue projections for 2025-2027 are as follows: 3.78 billion CNY in 2025, 4.67 billion CNY in 2026, and 5.66 billion CNY in 2027, with respective growth rates of 27.2%, 23.6%, and 21.3% [2][11] - The gross profit margin is expected to increase to 74.8% in 2025, with a net profit margin of 11.8% [2][11] - The company’s return on equity (ROE) is projected to rise to 12.4% in 2025 and 16.4% in 2027 [2][11] Brand and Product Performance - The main brand, Marubi, achieved a revenue of 2.06 billion CNY in 2024, growing by 31.69%, while the PL brand, Lianhuo, saw a revenue increase of 40.72% to 905 million CNY [7] - Revenue growth rates for product categories in 2024 were as follows: eye care at 61%, skincare at 22%, cleansing at 9%, and makeup at 40% [7] Market Position and Strategy - The company has successfully implemented a three-year online and offline channel strategy, which has stabilized market order and pricing systems [7] - The rebranding to "Marubi Biotechnology" signifies a strategic shift from traditional beauty products to biotechnology-based beauty solutions [7]