YUYUE MEDICAL(002223) 群益证券·2024-08-28 06:40Investment Rating - The investment rating for the company is "Buy" with a target price of 38 RMB [1]. Core Views - The report highlights that the company is experiencing a high growth rate in the diabetes care segment despite a high base effect impacting overall growth [1]. - The company achieved a revenue of 4.31 billion RMB in H1 2024, a year-over-year decrease of 13.5%, with a net profit of 1.12 billion RMB, down 25.0% year-over-year [1]. - The report anticipates a recovery in performance starting from Q4 2024 as the high base effect from the previous year diminishes [1]. Financial Summary - For H1 2024, the company recorded a revenue of 4.31 billion RMB, with a net profit of 1.12 billion RMB, and a net profit attributable to the parent company of 960 million RMB, down 23.2% year-over-year [1]. - The Q2 2024 revenue was 2.08 billion RMB, a decrease of 8.8% year-over-year, with a net profit of 460 million RMB, down 41% year-over-year [1]. - The report projects net profits of 2.21 billion RMB, 2.48 billion RMB, and 2.81 billion RMB for 2024, 2025, and 2026 respectively, with year-over-year growth rates of -7.7%, +12.5%, and +13.0% [2][4]. Segment Performance - The diabetes care segment achieved a revenue of 560 million RMB, growing 55.0% year-over-year, driven by product innovation and market expansion [1]. - The respiratory treatment solutions segment saw a revenue of 1.1 billion RMB, up 34.7% year-over-year, while the rehabilitation and clinical equipment segment generated 730 million RMB, a 3.1% increase year-over-year [1]. - The report notes that the company’s overseas sales are growing rapidly, with a year-over-year increase of 30.2% in H1 2024 [1]. Valuation Metrics - The current price-to-earnings (P/E) ratios for the projected years are 14 times for 2024, 12.85 times for 2025, and 11 times for 2026, indicating a reasonable valuation [2][4]. - The report suggests that the company maintains a strong brand value and is expected to benefit from new product launches and market expansion in the long term [1].