occurrences

Recently, the company released its results report for the third quarter of 2024. The 24Q1-Q3 company achieved revenue of 10.434 billion yuan, +25.14%; realized net profit attributable to mother of 1.816 billion yuan, +21.91% year-on-year; and realized net profit without deduction of 1.748 billion yuan, or +31.32% year-on-year.

Comment:

Rapid growth in performance and increased profitability

24Q3 achieved revenue of 3.436 billion, +23.21% year over year; net profit to mother 0.666 billion, +7.43% year over year; net profit after deducting non-return to mother 0.67 billion, +30.03% year over year.

The performance was in line with expectations.

From a profitability perspective, the 24Q1-Q3 company achieved a gross sales margin of 36.21%, +2.59pct year on year; a net sales margin of 17.47%, -0.51 pct year on year. The slight fluctuation in net margin was mainly due to changes in the company's fair value.

The rehabilitation medical business is growing steadily, electricity meter orders continue to grow at a high rate, and the overseas market continues to expand

From 24Q1 to Q3, the company's revenue from intelligent electricity distribution increased by 26.54% year-on-year. By the end of the reporting period, the company had accumulated orders of 15.62 billion yuan, +35.18% over the same period last year. Among them, the total number of domestic orders in hand was 9.374 billion yuan, +35.10%; the total number of overseas orders in hand was 6.246 billion yuan, up 35.30% year on year; of these, the total number of orders in hand for overseas power distribution was 0.962 billion yuan, an increase of 272.51% year on year, and overseas business continued to break through.

From 24Q1 to Q3, medical service revenue increased 21.73% year-on-year, and the number and profitability of hospitals increased steadily.

Investment advice

The company's rehabilitation medical+intelligent power distribution two-wheel business drives development, and the performance growth is impressive. The company is expected to achieve operating income of 14.475/18.192/22.517 billion yuan, +26.3%/25.7%/23.8% year-on-year; achieve net profit of 2.295/2.752/3.293 billion yuan, +20.6%/19.9%/19.7% year-on-year; maintain the “buy” rating.

Risk warning

The single-bed climb in internal rehabilitation hospitals fell short of expectations, electricity meter orders fell short of expectations, industry competition increased risks, etc.