IMEIK(300896) EBSCN·2024-03-19 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a current price of 352.91 RMB [1] Core Views - The company's flagship products, "Hi Body" and the high-end regenerative product "Roumei Angel," continue to drive growth despite industry pressures [4] - The company's product portfolio has expanded, covering 31 provinces, municipalities, and autonomous regions in China, with approximately 7,000 medical beauty institutions [4] - The company's direct sales and distribution model revenues were 1.787 billion RMB and 1.083 billion RMB, respectively, with year-on-year growth of 43.1% and 56.9% [4] - The company's gross margin improved to 95.1% in 2023, driven by the growth of high-end products like "Roumei Angel" [5] - The company has a robust pipeline of products, including "Botulinum Toxin Type A for Injection" and "Bonita 2.0," which are in the registration application stage [6] Financial Performance - In 2023, the company achieved revenue of 2.869 billion RMB, a year-on-year increase of 48.0%, and net profit attributable to the parent company of 1.858 billion RMB, a year-on-year increase of 47.1% [4] - In Q4 2023, the company achieved revenue of 699 million RMB, a year-on-year increase of 55.5%, and net profit attributable to the parent company of 440 million RMB, a year-on-year increase of 62.2% [4] - The company's operating cash flow in 2023 was 1.954 billion RMB, a year-on-year increase of 63.7% [4] - The company's R&D expenses in 2023 were 250 million RMB, a year-on-year increase of 44.5%, with R&D personnel accounting for 26.7% of the total workforce [5] Product Performance - In 2023, the company's solution-based and gel-based products achieved revenues of 1.671 billion RMB and 1.158 billion RMB, respectively, with year-on-year growth of 29.2% and 81.4% [4] - The sales volume of solution-based and gel-based products in 2023 was 5.1413 million units and 1.0068 million units, respectively, with year-on-year growth of 48.9% and 36.1% [4] - The average unit price of solution-based products decreased by 13.2% to 325 RMB, while the average unit price of gel-based products increased by 33.3% to 1,150 RMB [4] Future Outlook - The company is expected to achieve revenues of 4.049 billion RMB, 5.487 billion RMB, and 6.892 billion RMB in 2024, 2025, and 2026, respectively [6] - The company's net profit attributable to the parent company is expected to be 2.522 billion RMB, 3.321 billion RMB, and 4.153 billion RMB in 2024, 2025, and 2026, respectively [6] - The company's EPS is expected to be 11.66 RMB, 15.35 RMB, and 19.19 RMB in 2024, 2025, and 2026, respectively [6] - The company's PE ratio is expected to be 30x, 23x, and 18x in 2024, 2025, and 2026, respectively [6]