MTM(688029) 广发证券·2024-08-23 10:40Investment Rating - The report maintains a "Buy" rating for the company with a target price of 74.90 CNY per share, corresponding to a 24-year PE of 25X [1][2] Core Views - The company's performance met expectations, with both domestic and international markets contributing to growth [1] - Revenue for the first half of 2024 reached 1.334 billion CNY, a YoY increase of 16.28%, driven by increased product sales in overseas markets [1] - Domestic market revenue was approximately 706 million CNY (YoY +1.73%), while international market revenue reached 624 million CNY (YoY +39.72%) [1] - Net profit attributable to the parent company was 310 million CNY, a YoY increase of 17.47%, with a gross margin of 67.94% (YoY +4.2pp) [1] - The company's overall expense ratio has been optimized, with sales expenses at 22.73% (YoY +0.68pp), management expenses at 12.43% (YoY -0.85pp), and R&D expenses at 5.22% (YoY -0.77pp) [1] Overseas Expansion and Cost Efficiency - The company has made significant progress in overseas construction, including the establishment of a European regional headquarters and the acquisition of channel companies in Portugal and Switzerland [1] - The US subsidiary has strengthened its local sales team, leading to a significant improvement in profits [1] - The company has set up an Australian office and is progressing with the construction of a production base in Thailand, expected to be operational by 2026 [1] - Operational improvements focus on "lean management efficiency, resource integration optimization, and process innovation cost reduction" to achieve sustainable profit growth [1] Financial Projections - EPS for 2024-2026 is projected to be 3.04 CNY/share, 3.83 CNY/share, and 4.89 CNY/share, respectively [1] - Revenue growth is expected to be 19.2% in 2024, 22.9% in 2025, and 23.7% in 2026 [3] - Net profit attributable to the parent company is forecasted to grow by 17.6% in 2024, 25.8% in 2025, and 27.7% in 2026 [3] Industry and Market Position - The company is a leader in the digestive endoscopy consumables sector, with a solid foundation in existing products and significant potential in the development of visualization products [1] - The recent easing of medical device centralized procurement policies has alleviated previous valuation pressures [1]