IMEIK(300896) Changjiang Securities·2024-05-06 05:32Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported Q1 2024 revenue of 808 million yuan, a year-on-year increase of 28%, and a net profit attributable to shareholders of 527 million yuan, up 27% year-on-year. The non-recurring net profit attributable to shareholders was 528 million yuan, reflecting a 36.5% year-on-year growth [4]. - The company's strong growth in Q1 2024 is attributed to its product and channel advantages, with a slight decrease in gross margin by 0.7 percentage points due to changes in product structure. Sales expenses increased year-on-year, but the growth in revenue led to a decline in the sales expense ratio. Management expenses decreased by 3.9 percentage points year-on-year, primarily due to last year's listing expenses, while R&D expense ratio saw a slight increase [4]. - The company has established a strong sales team with over 400 personnel covering approximately 7,000 medical beauty institutions across China. It has also enhanced its academic brand through various training and conferences, which helps to strengthen its brand influence in the medical institutions [4]. - Future growth is supported by a rich pipeline of internal R&D and external collaborations, with several projects in different stages of development, including products for aesthetic treatments and partnerships with other companies to expand its product offerings [5]. - The company is expected to benefit from the rising trend of light medical beauty consumption and the increasing brand influence of its products, with projected EPS of 11.24, 14.64, and 18.15 yuan for 2024-2026 [5].