Winner Medical(300888) 长江证券·2024-09-18 23:38Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company achieved revenue, net profit attributable to the parent, and net profit excluding non-recurring items of 4.03 billion, 380 million, and 330 million yuan respectively in H1 2024, with year-on-year changes of -5.5%, +43.6%, and +40.6% [4]. - In Q2 alone, the company reported revenue, net profit attributable to the parent, and net profit excluding non-recurring items of 2.12 billion, 200 million, and 180 million yuan, with year-on-year changes of +11%, -33.8%, and -23.9% [4]. - The company plans a mid-term cash dividend of 230 million yuan, with a payout ratio of 60.6% [4]. Summary by Sections Revenue - In H1, the consumer segment saw a revenue increase of 10.6% to 2.28 billion yuan, with Q2 alone growing by 13.8% [5]. - The medical segment experienced a revenue decline of 21% to 1.72 billion yuan in H1, primarily due to a high base from last year's infection protection products [5]. - The company expects the medical segment to enter a sustained positive growth cycle following Q2's revenue increase of 6.6% to 860 million yuan [5]. Profitability - The gross margin decreased by 2.7 percentage points to 48.7% in H1, mainly due to a significant drop in the gross margin of infection protection products [5]. - The net profit margin fell by 6.5 percentage points to 9.5%, attributed to the decline in gross margin and an increase in sales expense ratio [5]. - The operating profit margin for the consumer segment improved to 12.8% due to better product mix and ongoing cost reduction efforts [5]. Operational Quality - Inventory turnover days decreased by 8 days to 148 days, indicating a recovery in turnover efficiency to 2019 levels [5]. - Operating cash flow increased by 22% year-on-year, reflecting improved management of operating funds [5]. Outlook - The company aims to establish itself as a one-stop provider of dressings in the medical sector and is in a development phase for cross-border channels and products [5]. - In the consumer segment, the focus will be on optimizing pricing and reducing discounts to enhance profitability, with expected net profits for 2024-2026 projected at 840 million, 980 million, and 1.09 billion yuan respectively [5].