Jinwu Financial News | According to Debon Securities Research Report, Giant Biotech (02367) achieved operating income of 3,524 billion/ +49.0% in '23, and net profit of 1,452 million/ +44.9%. Revenue and profit exceeded expectations, mainly due to e-commerce channel volume growth. Revenue restructuring affected overall gross margin and net margin performance. According to the split data: (1) Gross profit margin: 83.6% /-0.76pcts in '23, a stable high level, due to a slight decline in product structure and channel structure; 23H1/23H2 was 84.1%/83.2%, respectively, and profitability increased further in the second half of the year. (2) Period expenses: The sales rate is 33.0% /+3.17pcts, mainly due to the rapid increase in revenue from e-commerce channels with high sales rates; the management rate is 2.75% /-1.95pcts, which is diluted due to scale effects; the R&D rate is 2.1%, which is basically flat, and R&D investment continues to increase. (3) Net profit margin: 41.1% /-1.27pcts in 23 years, 41.5%/40.8% for 23H1/23H2, respectively, and remained stable overall.
According to the bank, Giant Biotech continues to strengthen R&D investment to consolidate the basic market, form a diversified architecture model of two major brands+multiple sub-brands, and lay out an omni-channel sales network. In the future, it plans to continue to strengthen R&D, enrich the product matrix, and deepen the leading position of collagen. The estimated 24-26 revenue is 46.64/59.02/7.247 billion, and the corresponding PE is 22X/18X/14X, maintaining the “buy” rating.