Core Viewpoint - The report from Minsheng Securities highlights that Aimeike's net profit attributable to shareholders for the first half of 2025 is 789 million yuan, representing a year-on-year decrease of 29.57% [1]. Financial Performance - In Q2 2025, the net profit attributable to shareholders is 346 million yuan, showing a year-on-year decline of 41.75% [1]. - The company distributed a cash dividend of 12 yuan per 10 shares (including tax), totaling 362 million yuan, which accounts for 45.82% of the net profit for the first half of the year [1]. Product Development and Market Strategy - The company has a rich pipeline of research products, with a more comprehensive product matrix [1]. - As of the end of H1 2025, the company and its subsidiaries have obtained 12 Class III medical device registration certificates, covering a diverse range of products including sodium hyaluronate fillers and polylactic acid fillers [1]. - The research pipeline has extended into biopharmaceuticals and chemical drugs, including products like botulinum toxin type A, second-generation facial implant lines, semaglutide injection, and hyaluronidase, employing a differentiated competition strategy to expand market space and ensure sustainable business growth [1]. Acquisition Activity - In the first half of the year, the company acquired 85% of South Korean REGEN for 190 million USD, with its core products AestheFill and PowerFill approved in 35 and 23 countries, respectively [1]. Rating - The report maintains a "recommended" rating for the company [1].

Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 188.50 CNY [6][11]. Core Insights - The company experienced short-term performance pressure, with H1 2025 revenue of 1.299 billion CNY, down 21.59% year-on-year, and a net profit of 789 million CNY, down 29.57% year-on-year [1]. - The company has a rich pipeline of products under development, including 12 approved Class III medical devices and new products in the biopharmaceutical and chemical drug sectors, which are expected to drive sustainable growth [2]. - The company is undergoing an internationalization transformation through acquisitions, notably acquiring 85% of Korean REGEN for 190 million USD, which will enhance its global presence and production capacity [4]. Financial Performance Summary - In H1 2025, the company's gross margin was 93.44%, a decrease of 1.48 percentage points year-on-year, with a net profit margin of 60.77%, down 6.88 percentage points year-on-year [3]. - Revenue projections for 2025-2027 are 3.213 billion CNY, 3.574 billion CNY, and 4.263 billion CNY, with corresponding net profits of 2.048 billion CNY, 2.303 billion CNY, and 2.778 billion CNY, reflecting growth rates of 4.6%, 12.4%, and 20.6% respectively [5][8]. - The company’s PE ratios for 2025, 2026, and 2027 are projected to be 28X, 25X, and 21X respectively, indicating a favorable valuation trend [4][5].

Core Viewpoint - Aimeike (300896.SZ), one of the "three swordsmen" in the medical beauty industry, is facing its most severe performance downturn since its listing, with a significant decline in revenue and net profit in the first half of 2025 [4][5]. Financial Performance - In the first half of 2025, Aimeike reported revenue of 1.299 billion CNY, a year-on-year decrease of 21.59%, and a net profit of 789 million CNY, down 29.57% year-on-year, marking the first negative growth since its A-share debut in September 2020 [4][5]. - The company's revenue growth has slowed significantly, with growth rates dropping from over 100% in previous years to single digits in 2024, and further declines in 2025 [8]. Product Performance - Aimeike's two main product lines experienced substantial declines in revenue in the first half of 2025: the solution injection products generated 744 million CNY, down 23.79%, while gel injection products brought in 493 million CNY, down 23.99% [8][9]. - The competitive landscape has intensified, particularly for the "Haitai" and "Ruhua Tianzi" products, as new entrants have disrupted previously profitable markets [10]. Market Dynamics - The medical beauty industry is undergoing a transformation, shifting from rapid expansion to a focus on quality and effectiveness, with increased competition and a slowdown in overall market growth [4][12]. - The market size of China's medical beauty industry grew from 993 billion CNY in 2017 to 1.892 trillion CNY in 2021, but the high-growth phase is fading as the market matures [13]. Strategic Moves - Aimeike has made a strategic acquisition of REGEN Biotech to enhance its portfolio in regenerative injection products, but is currently embroiled in a dispute over distribution rights for key products [5][11]. - The company is also expanding into new product areas, including botulinum toxin and weight management injections, to adapt to changing market demands [14][15].

Core Viewpoint - The Gansu Provincial Science and Technology Department and other six departments have issued a plan to support the Lanzhou High-tech Zone in promoting the biopharmaceutical industry, aiming to enhance its high-quality development and establish it as a significant biopharmaceutical hub in China [1] Group 1: Industry Development - The Lanzhou High-tech Zone has developed a complete biopharmaceutical industry system, including modern traditional Chinese medicine, biological products, medical devices, and biotechnology services, with over 200 enterprises and a stable industry chain output value of approximately 24 billion [2] - The zone has ranked among the top 50 in the national comprehensive competitiveness evaluation of biopharmaceutical industrial parks for two consecutive years, and its biopharmaceutical manufacturing innovation cluster has been recognized as one of 46 national innovation industry clusters [2] Group 2: Policy Support - The newly issued plan focuses on key areas such as technology research and development, resource supply, and market access, creating a comprehensive support system from laboratory to industrialization [3] - By the end of 2027, the Lanzhou High-tech Zone aims to achieve a total output value of over 30 billion in the biopharmaceutical industry, develop 2-3 innovative drugs, 3-5 new medical device products, and cultivate 2-3 major products with annual sales exceeding 500 million [3] Group 3: Company Initiatives - Companies in the Lanzhou High-tech Zone are seizing opportunities to accelerate their development, with firms like Zhongnong Weite focusing on new vaccine research and aiming for multiple new veterinary drug registrations [4] - Lanzhou Mingde Pharmaceutical is advancing its research on animal-derived collagen protein, leveraging policy support to enhance its confidence in the high-end medical device sector [4] - Various enterprises are making significant progress in their respective fields, with Haotian Technology becoming a supplier for 12 of the world's top 50 pharmaceutical companies and Zhongnong Weite passing GMP acceptance for its new production line [4]

Core Viewpoint - The medical aesthetics industry is undergoing a critical transformation from scale expansion to quality deepening, with the company Aimeike facing significant performance challenges since its IPO, reporting a 21.6% year-on-year decline in revenue and a 29.6% drop in net profit attributable to shareholders in the first half of 2025 [1] Financial Performance - Revenue for the first half of 2025 was 1.29918 billion yuan, a decrease of 21.59% year-on-year [5] - Net profit attributable to shareholders was 789.46 million yuan, down 29.57% year-on-year [5] - Gross margin remained high at 93.43%, with solution products at 93.15% and gel products at 97.75% [5] - Operating cash flow net amount was 654.88 million yuan, a decline of 43.06% year-on-year [5] Product Line Performance - Major product lines experienced significant shrinkage: revenue from solution injection products was 744 million yuan, down 23.79% year-on-year; revenue from gel injection products was 493.27 million yuan, down 23.99% year-on-year [3][5] - Despite revenue declines, the company maintained high gross margins, indicating strong pricing power and cost control [3] Industry Environment - The overall growth rate of the medical aesthetics market in China is slowing, with a need for new growth drivers [3] - Increased competition due to a rise in approved medical aesthetic injection products by the National Medical Products Administration [3] Research and Development - R&D investment increased by 24.47% to 156.55 million yuan, accounting for 12.05% of revenue [4][5] - The company completed 22 patent applications and has several important products in registration or clinical trial stages [4] - The company has submitted a registration application for botulinum toxin, which could provide new growth opportunities upon approval [4] Strategic Moves - The company acquired 85% of South Korea's REGEN for 190 million USD, gaining production rights for the "童颜针" (youthful face needle) [4] - New product "医用含聚乙烯醇凝胶微球的交联透明质酸钠凝胶" (brand name: 嗗科拉) launched in May, expanding the product line [4] Digital Transformation - The company is accelerating its digital transformation with initiatives like "全轩课堂," which has served 29,000 certified doctors and built a resource library of 2,219 academic content items [6] - The "爱美客伙伴" customer management platform has registered 18,000 institutional users, converting offline processes to online self-service [6] Financial Health - Total assets at the end of the period were 8.76521 billion yuan, an increase of 5.09% from the beginning of the period [8] - Cash and cash equivalents amounted to 1.17472 billion yuan, providing sufficient funding for future development [8] Shareholder Returns - The company plans to distribute a cash dividend of 12 yuan for every 10 shares, with a payout ratio of 45.82%, reflecting a commitment to shareholder returns [9]

Core Insights - The company reported a total revenue of 3.03 billion yuan in 2024, representing a year-on-year growth of 5.4%, while the net profit attributable to shareholders was 1.96 billion yuan, also up by 5.3% [1][2] - However, Q4 performance showed a decline, with revenue decreasing by 7.0% year-on-year and 9.5% quarter-on-quarter, and net profit down by 15.5% year-on-year and 19.9% quarter-on-quarter [1][2] Financial Performance - For the full year 2024, the company achieved a gross margin of 94.6%, a slight decrease of 0.5 percentage points compared to the same period in 2023, while the net profit margin remained stable at 64.7% [2] - The company distributed a total cash dividend of 1.15 billion yuan to all shareholders, with a dividend payout ratio of 58.5% of the net profit attributable to shareholders [2] R&D and Product Development - The company increased its R&D expenditure to 10.0% of revenue in 2024, up by 1.3 percentage points from 2023 [3] - Several products are in various stages of development, including A-type botulinum toxin and minoxidil topical solution, which are currently in the registration application phase [3] Strategic Acquisition - The company announced plans to acquire 85% of REGEN Biotech for 190 million USD, marking a significant step towards international expansion [4] - REGEN Biotech is a leading South Korean aesthetic product company, with its products AestheFill and PowerFill approved in 34 and 24 countries respectively [4]

Investment Rating - The report assigns a "Buy" rating for the company, expecting a future investment return of 5% to 15% over the next six months [4]. Core Insights - The company achieved a revenue of 3.03 billion RMB in 2024, representing a year-on-year growth of 5.4%, while the net profit attributable to shareholders was 1.96 billion RMB, also up by 5.3% year-on-year [2][5]. - In Q4, the company experienced a revenue decline of 7.0% year-on-year and a net profit decrease of 15.5% year-on-year, which was slightly below market expectations [2][4]. - The company is increasing its R&D efforts, with a research and development expense ratio of 10.0% in 2024, up by 1.3 percentage points from the previous year [3]. Financial Performance Summary - For 2024, the company reported a gross margin of 94.6%, a slight decrease of 0.5 percentage points compared to the same period in 2023, while the net profit margin remained stable at 64.7% [2][5]. - The company plans to distribute a total cash dividend of 1.15 billion RMB to shareholders, which accounts for 58.5% of the net profit attributable to shareholders [2]. - The projected net profits for 2025, 2026, and 2027 are estimated to be 2.09 billion RMB, 2.34 billion RMB, and 2.59 billion RMB, respectively, with corresponding growth rates of 6.8%, 12.0%, and 10.6% [4][5]. Strategic Developments - The company is making strides towards internationalization by acquiring 85% of the Korean company REGEN Biotech for 190 million USD, which is expected to enhance future performance [4]. - The company has several products in the registration and clinical trial stages, including A-type botulinum toxin and minoxidil topical solution, indicating a strong pipeline for future growth [3].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 202.76 CNY [3][6]. Core Views - The company faces short-term challenges but aims for long-term growth through both internal and external strategies [1][6]. - The profit forecast has been adjusted, with expected net profits for 2025-2027 at 2.166 billion, 2.452 billion, and 2.817 billion CNY respectively [2][6]. - The company is expanding its product pipeline and has made a strategic acquisition to enhance its international presence [5][6]. Financial Summary - **Revenue Forecast**: Expected revenues for 2025-2027 are 3.411 billion, 3.952 billion, and 4.639 billion CNY, with growth rates of 12.8%, 15.8%, and 17.4% respectively [2][11]. - **Profitability Metrics**: The gross margin is projected to decline from 95.1% in 2023 to 88.7% in 2027, while the net profit margin is expected to decrease from 64.8% to 60.7% over the same period [2][11]. - **Earnings Per Share (EPS)**: EPS is forecasted to increase from 6.14 CNY in 2023 to 9.31 CNY in 2027 [2][11]. - **Valuation Ratios**: The price-to-earnings (P/E) ratio is expected to decrease from 31.6 in 2023 to 20.8 in 2027, indicating a potential increase in value [2][11].