The company is the largest supplier of disposable gloves in China and the world's leading supplier of disposable gloves. Yingke Medical focuses on the three core areas of medical consumables, health equipment, and physiotherapy and nursing, of which the personal protection business accounts for 89% of revenue. Disposable gloves are the company's current core business. It has an excellent market share in China and the world. The company has become the largest supplier of disposable gloves in China and the world. In the future, Inke Healthcare is expected to become the most competitive company in the global personal protective equipment industry.
We expect the revenue side of the company to be 8.545 billion yuan, 9.776 billion yuan, and 11.753 billion yuan, respectively, with revenue growth rates of 24%, 14%, and 20%, respectively. Net profit to mother is expected to be 1.293 billion yuan, 1.692 billion yuan, and 2,182 billion yuan respectively from 2024 to 2026, and net profit growth rates of 238%, 31% and 29%, respectively. As of the closing price on August 6, 2024, the comparable company's expected PE average for 2024 was about 55.6 times, and Ingtech Healthcare's expected PE valuation in 2024 was 12.6 times. Considering that the current backlog of downstream inventory in the industry has reached the end of digestion, and the supply and demand relationship is gradually returning to a steady state, we believe that Inke Medical Glove orders will usher in significant growth. There are opportunities for price increases for the company's products. The company is expected to see a sharp rise in volume and price and a reversal in performance. Revenue and net profit will grow rapidly, and the company's profitability will be further improved, giving it a “buy” rating.
The nitrile gloves industry has reached an inflection point. The average export price and export volume of nitrile gloves have been growing steadily month-on-month since the price of nitrile gloves reached their peak in 2021. We believe that the average domestic export price of nitrile gloves bottomed out in the fourth quarter of 2023. Currently, the average export price of nitrile gloves is in a stable recovery stage. In June 2024, China's export volume of nitrile gloves increased 26% from May. The average export price per box of nitrile gloves rose 0.23 US dollars from May, and the average export price of nitrile gloves per kilogram rose 4% from May. We believe that the average domestic export price of nitrile gloves bottomed out in the fourth quarter of 2023, and the average export price is currently in a stable recovery stage.
The company continues to invest in the supply chain, and the gross margins of nitrile gloves and PVC gloves, which have taken the lead in cost control, are at a high level in the industry. Among them, the company has taken the initiative in nitrile latex by controlling upstream nitrile latex manufacturers; the company's main energy sources are clean coal, which has a clear advantage over natural gas and biomass fuels; the company holds Yingyi Thermal Power and continues to promote energy saving and efficiency strategies, effectively reducing the company's costs and expenses in terms of heat and electricity.
The impact of the tariff incident on the industry is limited. The company is gradually expanding its global customer base and expanding sales channels in non-US countries. The US will increase tariffs on medical gloves in 2026, which will have limited impact on the domestic glove industry. At the same time, the company has strengthened and improved brand promotion channels in all aspects, established a brand image, enhanced global brand influence, expanded the company's global customer base, and actively responded to changes in tariff policies.
Risk warning:
Changes in market supply and demand relationships and price fluctuation risks, raw material price fluctuations and supply stability risks, exchange rate fluctuation risks, and the impact of international trade frictions.