Weigao Orthopaedic(688161) 东方证券·2024-09-11 02:03Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 23.56 CNY based on a 38 times price-to-earnings ratio for 2024 [2][5]. Core Insights - The company's performance shows a significant recovery in the second quarter of 2024, with a revenue of 4.03 billion CNY, reflecting a quarter-on-quarter increase of 15.7% and a year-on-year decrease of 3.1%. The net profit for the same quarter reached 580 million CNY, marking a year-on-year increase of 230.5% and a quarter-on-quarter increase of 66.8% [1]. - The impact of centralized procurement is gradually diminishing, leading to improved margins. The gross margin for the first half of 2024 was 64.1%, while the second quarter saw an increase to 68.1% [1]. - The company has successfully enhanced its sales volume, surgical volume, and market share across its main product lines, particularly in the spine and trauma segments, with notable revenue growth in the joint and sports medicine lines [1]. Financial Summary - For the first half of 2024, the company reported a revenue of 7.51 billion CNY, a year-on-year increase of 6.8%, and a net profit of 930 million CNY, a year-on-year decrease of 16.7% [1]. - The operating cash flow for the first half of 2024 was 1.45 billion CNY, reflecting a year-on-year increase of 148.5% [1]. - The company’s revenue projections for 2024-2026 have been adjusted, with expected earnings per share of 0.62 CNY, 0.82 CNY, and 1.01 CNY respectively [2].