Key points of investment

The performance is growing rapidly, and the profit side is growing at an impressive rate. With 2024H1, the company achieved revenue of 0.264 billion yuan (YoY +28.43%), net profit of 0.124 billion yuan (YoY +57.93%), net profit after deducting 0.12 billion yuan (YoY +56.33%); of these, Q2 achieved revenue of 0.152 billion yuan (YoY +32.43%) and net profit to mother of 0.072 billion yuan (YoY +60.78%), net profit not attributable to mother 0.072 billion yuan (YoY +60.78%). billion yuan (YoY +68.25%). The company's performance has maintained a rapid growth trend.

Profitability increased significantly, and R&D investment continued to increase. 2024H1, the company's gross margin and net margin were 71.55% and 47.14%, respectively, up 2.78 and 8.80 percentage points from the same period last year. During the reporting period, the company's sales, management, and financial expense ratios were 10.58%, 9.11%, and -11.52%, respectively, down 0.76, 0.51, and 7.36 percentage points from the same period last year, and large-scale effects continued to show. During the reporting period, the company invested 25.85 million yuan, and the R&D cost rate was 9.79%, an increase of 1.03 percentage points over the same period last year. 19 new products were under development, and 38 registration certificates were obtained for the first time, and new products such as replaceable tourniquets were launched.

Both at home and abroad have achieved rapid growth and actively laid out marketing networks. 1) Domestic market: Accelerate coverage through multiple channels. During the reporting period, the company achieved domestic revenue of 0.125 billion yuan (YoY +21.98%); the products have covered 31 provinces and cities, and are widely used in tertiary and second-level terminal hospitals; the number of newly developed hospitals is 198, the number of effective channels is 400, and the number of dealers, terminal hospitals and sales area coverage has gradually increased. 2) Overseas markets: Accelerate the expansion of the global layout. During the reporting period, the company achieved overseas revenue of 0.137 billion yuan (YoY +35.28%); of these, the Asia-Pacific region increased 82.86% year on year, North America increased 68.49% year on year, South America increased 53.74% year on year, and its own brand sales accounted for nearly 30%. Fourteen new cooperative customers were added, the Dutch subsidiary put into physical operation in the second half of the year, and the international marketing network continued to improve. As the coverage of the company's domestic and foreign marketing networks continues to increase, performance is expected to continue to grow rapidly.

Investment advice: The company continues to be deeply involved in the field of endoscopic diagnosis and treatment equipment, diagnostic and treatment instruments and supporting consumables and equipment, actively expanding its global layout, and its performance can be expected to maintain rapid growth. We expect the company's revenue for 2024-2026 to be 0.674/0.887/1.151 billion yuan, net profit to mother of 0.279/0.365/0.473 billion yuan, corresponding EPS of 3.45/4.52/5.85 yuan, respectively, and corresponding PE 15.59/11.92/9.20 times, respectively. Maintain a “buy” rating.

Risk warning: market competition risk, exchange rate fluctuation risk, policy change risk, volume procurement risk, etc.