Summary of Conference Call Notes Company and Industry - The discussion revolves around the company Aimeike and its positioning within the global medical aesthetics industry, particularly focusing on its recent acquisition of Region and the implications for its market strategy and growth potential [1][6][19]. Core Points and Arguments 1. **Market Dynamics and Expectations** - There is a significant change in the market's expectations regarding the company's beta and alpha, indicating a potential misalignment with current market perceptions [1]. - The medical aesthetics industry is experiencing a supply-driven demand boom, with a PEG ratio exceeding 2, suggesting strong valuation potential [2]. 2. **Product Development Challenges** - Aimeike has faced challenges in product innovation, with no new product approvals from 2022 to 2024, relying solely on existing products for growth [3]. - The company’s growth rate was only 5% last year, lagging behind the industry average, due to competitive pricing pressures and supply chain issues [4]. 3. **Financial Performance and Projections** - The company anticipates a modest growth of less than 10% for the year, with expectations of a flat performance in the first half [5]. - Aimeike aims to capture 20% of the global market by 2030, with current market share at approximately 10% [9]. 4. **Global Expansion Strategy** - Aimeike is preparing to expand internationally, with plans to list in Hong Kong and use the proceeds for acquisitions and market entry into Southeast Asia [6][7]. - The company lacks global production capacity and sales channels, which are critical for competing with industry giants like Allergan and Qmatch [7]. 5. **Acquisition of Region** - The acquisition of Region is seen as a strategic move to enhance Aimeike's product offerings and market presence, with a focus on leveraging Region's patented technologies [18][19]. - The deal is expected to provide Aimeike with a competitive edge, allowing for better pricing strategies and market positioning [19]. 6. **Sales Channel Optimization** - Aimeike plans to reassess its sales channels and agent relationships to improve performance, with a focus on setting higher sales targets and potentially restructuring agent agreements [13][14]. - The company believes that enhancing overseas sales channels can significantly boost growth, as current performance in international markets is underwhelming [26]. 7. **Future Product Cycles** - Aimeike is entering a new product cycle, with expectations for several new product launches in the coming years, which could drive growth [23][24]. - The company is optimistic about recovering from a slowdown in growth, projecting a return to a compound annual growth rate of 20-30% by 2026-2027 [21][22]. Other Important but Overlooked Content - The company is facing a critical juncture with its product pipeline and market strategy, and the upcoming financial reports are expected to provide more clarity on these issues [25]. - There is a potential for significant valuation adjustments based on the success of the Region acquisition and the effectiveness of the new sales strategies [26]. This summary encapsulates the key insights from the conference call, highlighting Aimeike's strategic direction, market challenges, and growth opportunities within the medical aesthetics industry.

Investment Rating - The report maintains a "Buy-B" rating for the company [1][8]. Core Views - The company has a rich pipeline of products under development and is accelerating its international expansion through acquisitions [1][7]. - The company reported a revenue of 3.026 billion yuan in 2024, representing a year-on-year growth of 5.45%, with a net profit of 1.958 billion yuan, also up by 5.33% [4][10]. - The company plans to distribute a cash dividend of 38 yuan per 10 shares, which accounts for 58.51% of the net profit attributable to shareholders [4]. Financial Performance - The company achieved a gross margin of 94.64%, a decrease of 0.46 percentage points, and a net margin of 64.66%, an increase of 0.01 percentage points [6]. - The operating cash flow for the period was 1.927 billion yuan, down by 1.38% [6]. - The company’s revenue from gel products was 1.216 billion yuan, up by 5.01%, with a gross margin of 97.98%, an increase of 0.49 percentage points [5]. Product Development and Market Expansion - The company has three products in the registration application stage and three in clinical trials, indicating a robust product pipeline [5][7]. - The acquisition of an 85% stake in the South Korean medical aesthetics company Regen Biotech for 190 million USD is expected to enhance the company's product offerings and accelerate its international presence [7]. Market Data - As of March 21, 2025, the company's closing price was 190.10 yuan, with a total market capitalization of 57.523 billion yuan [3]. - The company’s earnings per share (EPS) for 2024 was reported at 6.50 yuan [4]. Future Projections - The projected EPS for 2025, 2026, and 2027 are 7.06 yuan, 7.93 yuan, and 8.66 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 26.9, 24.0, and 22.0 [7][10].

Investment Rating - The report maintains a "Buy-B" rating for the company [1][8]. Core Views - The company has a rich pipeline of products under development and is accelerating its international expansion through acquisitions [1][6]. - In 2024, the company achieved a revenue of 3.026 billion yuan, representing a year-on-year growth of 5.45%, and a net profit of 1.958 billion yuan, also up by 5.33% [2][4]. - The company plans to distribute a cash dividend of 38 yuan per 10 shares, which accounts for 58.51% of the net profit attributable to shareholders [2]. Financial Performance - The company reported a gross margin of 94.64%, a net margin of 64.66%, and an overall expense ratio of 22.21% for the period [4]. - The revenue from solution products was 1.744 billion yuan, with a gross margin of 93.76%, while gel products generated 1.216 billion yuan with a gross margin of 97.98% [3]. - The company has three products in the registration application stage and three in clinical trials, indicating a robust product pipeline [3][4]. Regional Performance - Revenue from different regions showed varied growth: North China +33.21%, Central China +19.84%, while East China saw a decline of -4.08% [3]. - Direct sales accounted for 66.37% of total sales, while distribution sales made up 33.63% [3]. Acquisition Strategy - The company plans to acquire 85% of the Korean medical beauty company Regen Biotech for 190 million USD, which will enhance its product line and accelerate internationalization [6]. - The target company reported a revenue of 72 million yuan and a net profit of 30 million yuan for the first nine months of 2024 [6]. Earnings Forecast - The projected EPS for 2025, 2026, and 2027 are 7.06 yuan, 7.93 yuan, and 8.66 yuan respectively, with corresponding P/E ratios of 26.9, 24.0, and 22.0 [6][10].