Investment Rating - The investment rating for the company is "Buy" (maintained) [3]. Core Views - The company's Q1 2025 performance was in line with market expectations, with revenue of 663 million yuan, a year-on-year decline of 17.9%, and a net profit of 444 million yuan, down 15.9% year-on-year. The weak performance is attributed to a high base from the previous year and a sluggish consumption environment [6][9]. - The company has a strong gross margin of 93.9% in Q1 2025, although it decreased by 0.7 percentage points year-on-year. The net profit margin improved to 66.9%, up 1.6 percentage points year-on-year [6][10]. - The acquisition of a controlling stake in REGEN Biotech, Inc. is expected to enhance growth potential, as the company specializes in medical materials and devices, which will aid in expanding overseas operations [6][9]. - The company has a robust pipeline with several products in various stages of development, including botulinum toxin and other medical aesthetic products, which are expected to contribute to revenue growth in the coming years [6][9]. - Despite a slight downward adjustment in profit forecasts for 2025-2027, the long-term outlook remains positive due to anticipated recovery in consumer demand and new product launches [6][9]. Financial Summary - Projected total revenue for 2025 is 3,196 million yuan, with a year-on-year growth rate of 5.6%. The net profit is expected to be 2,091 million yuan, reflecting a growth rate of 6.8% [2][13]. - The company's earnings per share (EPS) for 2025 is estimated at 6.91 yuan, with a price-to-earnings (PE) ratio of 25 [2][13]. - The gross margin is projected to be 95.0% in 2025, with a return on equity (ROE) of 23.9% [2][13].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company reported slightly lower-than-expected performance for 2024, with revenue of 3.03 billion yuan, a year-on-year growth of 5.5%, and a net profit attributable to shareholders of 1.96 billion yuan, also up 5.3% year-on-year [8] - The company is acquiring a controlling stake in REGEN Biotech, Inc., which opens further growth opportunities through external mergers and acquisitions [6] - The company has a robust pipeline of products under development, including various medical aesthetic products, indicating strong future potential [8] Financial Data and Profit Forecast - Total revenue projections for the company are as follows: - 2023: 2.87 billion yuan - 2024: 3.03 billion yuan - 2025E: 3.33 billion yuan - 2026E: 3.80 billion yuan - 2027E: 4.55 billion yuan - Net profit attributable to shareholders is forecasted as: - 2023: 1.86 billion yuan - 2024: 1.96 billion yuan - 2025E: 2.15 billion yuan - 2026E: 2.44 billion yuan - 2027E: 2.87 billion yuan [7][15] - The company maintains a high gross margin of 94.6% for 2024, with a net profit margin of 64.7% [8][13] Product and Market Insights - The company has a strong presence in the domestic medical aesthetics market, with significant barriers to entry and a focus on high-margin products [8] - The revenue from direct sales channels grew by 12.4% year-on-year, while revenue from distribution channels declined by 6.0% [8] - The product structure remains stable, with solution products generating 1.74 billion yuan and gel products generating 1.22 billion yuan in revenue [8]