Investment Rating - The investment rating for the company is "Accumulate" [6] Core Views - The company is expected to face revenue and profit declines in 2024, with projected revenues of 6.84 billion yuan and net profit of 0.65 billion yuan, representing year-on-year decreases of 27.30% and 62.62% respectively [1] - The company anticipates stable budget targets for 2025, with a focus on optimizing fee investments and enhancing product innovation in both online and offline channels [3][2] - The company plans to increase support for S-level distributors and introduce more products at popular price points in the offline market [3] Financial Performance Summary - For 2024, the company's revenue is projected to be 6.84 billion yuan, with a year-on-year decline of 27.30%. The main brands' revenues are expected to decline significantly, with the main brand汤臣倍健 projected at 3.74 billion yuan, down 30.79% [1] - The gross profit margin for Q4 2024 is expected to be 60.26%, a decrease of 4.95 percentage points year-on-year, while the net profit margin is projected to be -19.53% [2] - The company forecasts a recovery in revenue growth from 2025 onwards, with expected revenues of 7.05 billion yuan in 2025, reflecting a growth of 3.14% [4] Market and Product Strategy - The company plans to enhance its online product innovation and focus on localized operations in international markets, particularly in the infant and child segment [2] - The revenue from online and offline channels for 2024 is expected to be 3.36 billion yuan and 3.42 billion yuan respectively, with year-on-year declines of 25.35% and 29.79% [2] - The company aims to increase its market share in the international market by launching new products tailored to local preferences [2] Earnings Forecast - The company expects a recovery in net profit starting in 2025, with projected net profits of 0.88 billion yuan, a year-on-year increase of 34% [3] - The earnings per share (EPS) is projected to be 0.51 yuan in 2025, with a price-to-earnings (P/E) ratio of 22.87 [4]