Core Viewpoint - The company reported a slight decline in net profit for 2024, attributed to high sales expense ratios, but expects improvement in net profit growth in the future due to brand operations and product promotions [1][3]. Financial Performance - For 2024, the company achieved revenue of 8.094 billion yuan, net profit attributable to shareholders of 692 million yuan, and net profit excluding non-recurring items of 656 million yuan, with adjusted year-on-year changes of -2.0%, -2.9%, and +3.4% respectively [1]. - In Q1 2025, the company reported revenue of 1.841 billion yuan, net profit attributable to shareholders of 85 million yuan, and net profit excluding non-recurring items of 100 million yuan, with year-on-year changes of -0.4%, -54.4%, and -39.5% respectively [1]. Sales and Marketing - The company has seen stable revenue growth in core products, with significant contributions from brand operations, including a 9.2% year-on-year increase in revenue from brand operations to 5.559 billion yuan in 2024 [1]. - Key product performances include: - Diqu: Revenue of 2.101 billion yuan, up 10.7% year-on-year [1]. - Hailu: Revenue of 736 million yuan, up 14.9% year-on-year [1]. - Baiyang Pharmaceutical: Revenue of 953 million yuan, up 25.4% year-on-year [1]. - Nutshuma: Revenue of 121 million yuan, up 45.4% year-on-year [1]. Cost Structure - The sales expense ratio increased in Q1 2025, reflecting a strategic investment in sales efforts, with the sales expense ratio at 19.09%, up 6.44 percentage points year-on-year [2]. - The gross margin improved to 35.82% in Q1 2025, up 6.07 percentage points year-on-year, primarily due to a decrease in the proportion of low-margin wholesale business [2]. Future Outlook - The company maintains a "buy" rating, with adjusted profit forecasts for 2025-2027, predicting net profits of 750 million yuan, 910 million yuan, and 1.05 billion yuan respectively, with year-on-year growth rates of 8.8%, 21.5%, and 15.0% [3]. - The company is expected to benefit from high-value brand operations and a comprehensive product matrix, with a target price of 24.33 yuan based on a 17x PE valuation for 2025 [3].