Core views:
Business revenue growth in major sectors is evident, and overall company performance is in line with expectations. According to the company's 23 annual report, the company achieved revenue of 7.972 billion yuan (YOY+ 12.25%); net profit of 2,396 billion yuan (YOY+ 50.21%); net profit after deducting non-return to mother of 1,836 billion yuan (YOY +46.79%); gross profit margin of 51.49% (YOY+3.36PP), thanks to the company's continuous cost reduction and efficiency, the company's gross margin is expected to increase significantly this year; revenue from the respiratory treatment sector (YOY +50.55%), revenue from the diabetes care sector (YOY +37.12%), Household electronic testing and in vitro diagnostic sector revenue (YOY +10.05%), emergency sector revenue (YOY +8.04%). According to Wind, in 24Q1, the company achieved revenue of 2,231 million yuan (YOY -17.44%), net profit to mother of 659 million yuan (YOY -7.58%), and gross profit margin of 49.94% (YOY-2.77PP).
The 24-year operating plan shows the company's confidence. According to the company's annual report for 23 years, the company will continue to expand on the three core tracks of respiratory treatment, diabetes care, and infection control, and actively incubate high-potential businesses such as first aid, ophthalmology, and intelligent rehabilitation; the company will continue to focus on the offline terminal market, focusing on regionalization and urbanization market strategies; the company will continue to promote market expansion in key overseas countries and actively seek cooperation with high-level third parties to jointly build an innovation center.
The company reduced costs and increased efficiency, and the cost side improved markedly. According to Wind, the company's 23-year sales rate was 13.78% (YoY-0.74PP), due to an increase in the company's development expenses and an increase in the company's overall revenue level; the management rate of 5.16% (YoY-0.76PP) was due to depreciation and a decrease in business hospitality expenses; and the R&D rate of 6.33% (Yoy-0.66PP) was due to a decrease in labor costs, mold costs, and R&D materials.
Profit forecasting and investment advice. As a leading domestic household medical device company, the company will continue to benefit from the aging trend. The overall growth of the company's business is steady. EPS is expected to be 2.56 yuan/share, 2.78 yuan/share, and 3.07 yuan/share in 24-26, respectively. Referring to comparable companies, the company was given 16 times PE in 24 years, with a reasonable value of 40.98 yuan/share, maintaining a “buy” rating.
Risk warning. Sales fell short of expectations, new product launches fell short of expectations, and management improvements fell short of expectations.