SHINVA(600587) 华创证券·2024-09-02 13:42Investment Rating - The report maintains a "Recommended" investment rating for the company with a target price of 25 yuan, compared to the current price of 16.62 yuan [1]. Core Views - The medical device sector is experiencing temporary pressure, but the company has optimized its expense ratio, leading to an improvement in net profit margin [1]. - The company reported a revenue of 5.187 billion yuan (+2.24%) and a net profit of 484 million yuan (+5.57%) for the first half of 2024 [1]. - The decline in medical device revenue is attributed to compliance actions and delayed procurement needs from hospitals [1]. - The international contract amount for pharmaceutical equipment has seen rapid growth, with domestic revenue at 5.082 billion yuan (+2.20%) and overseas revenue at 105 million yuan (+4.15%) [1]. - The company's gross margin slightly decreased to 26.65%, with the medical device segment's gross margin increasing to 43.29% despite a revenue decline [1]. - The overall expense ratio has improved, with a sales expense ratio of 7.88% (-0.78 percentage points) and a management expense ratio of 3.81% (-0.90 percentage points) [1]. - The company expects a gradual recovery in bidding activities in the second half of the year, maintaining profit forecasts for 2024-2026 [1]. Financial Summary - For the first half of 2024, the company reported a gross margin of 26.65%, with the medical device segment's gross margin at 43.29% and the pharmaceutical equipment segment's gross margin at 27.12% [1]. - The projected net profit for 2024-2026 is 830 million yuan, 1.04 billion yuan, and 1.28 billion yuan, respectively, with year-on-year growth rates of 27.3%, 24.7%, and 23.5% [2]. - The earnings per share (EPS) are expected to be 1.37 yuan, 1.71 yuan, and 2.11 yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 12, 10, and 8 [2].