A 31% drop in the first three quarters! The "Aesthetic Medicine Blue Chip" sees performance slowdown.

Earning limited profits is the foundation for the sustainable development of a company.

From a market perspective, standardized products find it difficult to maintain high gross margins for an extended period, as evidenced by the photovoltaic and lithium battery industries.

Five years ago, Imeik Technology, hailed as "the Moutai for women," went public, and its ultra-high gross margins made other industries envious. The combination of ultra-high gross margins and the rise of the female consumer market once drove Imeik's market value close to 180 billion yuan.

As a "rare commodity" in the investment market, institutions have continuously raised Imeik's target price. Its ultra-high performance growth has also proven to the market that medical aesthetics is a highly profitable business. Unfortunately, this golden period did not last. Despite the industry's barriers, it has been unable to stop the influx of cross-industry competitors.

According to financial reports, Imeik's performance growth began to slow in 2022, and its stock price peaked in July 2021. By 2024, its growth rate had dropped to single digits, and market attention on the "Moutai of medical aesthetics" had cooled significantly.

By 2025, Imeik's performance dilemma has become increasingly apparent.

According to Imeik's latest financial report for the first three quarters of 2025, its revenue was 1.865 billion yuan, down 21.49% year-on-year; net profit was 1.093 billion yuan, down 31.05% year-on-year; and adjusted net profit was 976 million yuan, down 36.20% year-on-year.

In the market, Imeik's stock price has fallen more than 70% since its 2021 peak, with a market cap now below 50 billion yuan. Despite this steep decline, its forward P/E ratio remains as high as 33x.

However, judging from overall consumer market trends, Imeik's "hard times" are likely to persist for a while longer.

In the third quarter, Imeik's revenue was 566 million yuan, down 21.27% year-on-year; net profit was 304 million yuan, down 34.61% year-on-year; and adjusted net profit was 255 million yuan, down 42.37% year-on-year. In fact, on a quarterly basis, the decline in Imeik's performance began to accelerate in Q2 2025, with no signs of a turnaround in the short term.

From a product perspective, Imeik's two core products are the injectable solution "Hyaluronic Acid Filler" and the gel filler "Ruyi Angel." While these products still maintain gross margins above 90%, revenue has declined noticeably, and gross margins have begun to weaken. If market competition intensifies further, price cuts to maintain market share cannot be ruled out.$IMEIK(300896.SZ) 

Additionally, Imeik must be wary of risks from product iteration. To address market competition, the company has ramped up R&D while also acquiring cutting-edge firms. Reports indicate that Imeik spent $190 million this year to acquire an 85% stake in South Korea's REGEN.

Founded in 2000, REGEN was the first in South Korea and the third globally to obtain approval for polylactic acid-based dermal fillers. Its approved products include AestheFill and PowerFill. Notably, this acquisition led to a sharp increase in Imeik's goodwill, which stood at 1.651 billion yuan by the end of Q3.

After the earnings release, Guosen Securities noted that the company's performance remains under pressure due to weak consumer spending and intensified competition in the medical aesthetics sector. Additionally, Imeik's product line is in a transitional phase, with weakening demand for traditional products. Future focus will be on developments in botulinum toxin and weight-loss treatments.

CICC, meanwhile, highlighted Imeik's progress in pipeline expansion and internationalization. According to company filings, minoxidil lotion was approved in September. Additionally, as of H1 2025, lidocaine-tetracaine cream has been accepted for review; botulinum toxin type A for injection is under evaluation; and deoxycholic acid injection, recombinant human hyaluronidase injection, and semaglutide injection are in clinical trials. CICC believes these pipelines could support mid-to-long-term growth. Integration of REGEN and global channel expansion are also progressing.

Thus, CICC remains optimistic about Imeik's potential in the global medical aesthetics market.

Kan Jian Finance believes that, in the short term, Imeik's performance pressure will persist, with overseas expansion being a bright spot—though its overall impact may be limited. As a standardized product, its ultra-high gross margins are unlikely to last. The company must find a balance between market share and pricing, especially as more competitors enter the industry, leaving room for price cuts in its core products.