Core Insights - The company reported a revenue of 1.86 billion yuan for the first three quarters of 2025, a year-on-year decrease of 21.5%, and a net profit attributable to shareholders of 1.09 billion yuan, down 31.1% year-on-year [1] - The decline in performance is attributed to industry growth slowdown and intensified competition [1] Financial Performance - Q3 revenue was 570 million yuan, a year-on-year decline of 21.3%, with a net profit of 300 million yuan, down 34.6% year-on-year [1] - The gross margin in Q3 decreased by 1.4 percentage points to 93.2%, while the sales expense ratio increased by 6.4 percentage points to 15.4% [2] - The net profit margin and non-GAAP net profit margin in Q3 fell by 11.0 and 16.5 percentage points to 53.7% and 45.0%, respectively [2] Industry Trends - Industry growth is under pressure due to intensified competition, although the revenue decline in Q3 showed a narrowing compared to Q2 [2] - The company is actively adjusting its sales team and strategies to enhance education for doctors and institutions, aiming for improvement in future performance [2] Product Pipeline and International Expansion - The company has received approval for Minoxidil lotion and has several products at various stages of development, including Lidocaine and Dexamethasone cream, which are under review [3] - The ongoing integration of Regen and global channel expansion is expected to support the company's long-term growth in the global aesthetic medicine market [3] Profit Forecast and Valuation - The profit forecast for 2025-2026 has been revised down by 11% and 5% to 1.65 billion and 1.92 billion yuan, respectively [4] - The current stock price corresponds to a P/E ratio of 29x for 2025 and 25x for 2026, with a target price of 221 yuan, indicating a potential upside of 38% [4]

Core Viewpoint - Aimeike (300896.SZ), a leading player in the medical aesthetics industry, reported a significant decline in revenue and net profit for the first half of 2025, leading to a drop in stock price following the announcement [1][2]. Financial Performance - The company achieved operating revenue of 1.299 billion yuan, a year-on-year decrease of 21.59% [1]. - Net profit attributable to shareholders was 789 million yuan, down 29.57% year-on-year [1]. - The net profit after deducting non-recurring gains and losses was 722 million yuan, a decline of 33.70% [1]. - The net cash flow from operating activities was 655 million yuan, down 43.06% year-on-year [1]. - Basic and diluted earnings per share were both 2.62 yuan, a decrease of 29.57% [1]. - The weighted average return on net assets was 10.10%, down 6.52 percentage points from the same period last year [1]. Product Performance - Revenue from solution-type injection products was 744 million yuan, a decrease of 23.79% year-on-year [1]. - Revenue from gel-type injection products was 493 million yuan, down 23.99% year-on-year [1]. - Gross margins for solution-type and gel-type products were 93.15% and 97.75%, respectively [1]. Research and Development - The company invested 157 million yuan in R&D, an increase of 24.47% year-on-year [1]. - Several products, including botulinum toxin injections and lidocaine cream, are in the registration phase, while others are undergoing clinical trials [1]. Asset and Equity Position - As of the end of the reporting period, total assets were 8.765 billion yuan, an increase of 5.09% from the previous year [2]. - Net assets attributable to shareholders were 7.456 billion yuan, a decrease of 4.37% from the previous year [2]. Dividend Distribution - The board approved a profit distribution plan to pay a cash dividend of 12 yuan (including tax) for every 10 shares, with no bonus shares or capital reserve transfers [4]. Legal Matters - The company is involved in arbitration with *ST Suwu regarding the "Tian Yan Needle" and has taken steps to protect its interests in the ongoing legal dispute [5].

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].