Investment Rating - The report maintains an "Accumulate" rating for the company [2]. Core Views - The company experienced a slight decline in revenue and a significant drop in net profit for the first three quarters of 2024, with revenue at 2.137 billion RMB, down 1.36% year-on-year, and net profit at 16 million RMB, down 95.01% year-on-year [2][3]. - The company's profitability is under pressure due to accelerated investment expansion, which has led to increased costs and expenses, impacting overall profit margins [3]. - The company is actively engaging in academic activities to build long-term capabilities, which may support future growth [3]. Summary by Sections Financial Performance - In Q3 2024, the company reported revenue of 716 million RMB, a decrease of 9.11% year-on-year, and a net loss of 27 million RMB [2]. - The gross profit margin for Q3 2024 was 35.96%, down 9.88 percentage points year-on-year, while the net profit margin was -3.49%, down 14.32 percentage points year-on-year [3]. Operational Analysis - The company has increased its investment in new hospitals, which has resulted in higher fixed costs, including depreciation, labor, and operational expenses, affecting short-term profitability [3]. - The management expense ratio for Q3 2024 was 14.77%, up 2.20 percentage points year-on-year, while the sales expense ratio was 19.81%, up 3.42 percentage points year-on-year [3]. Profit Forecast and Valuation - The profit forecast for 2024-2025 has been revised downwards, with expected net profits of 122 million RMB in 2024 (down 54%) and 137 million RMB in 2025 (up 12%) [3]. - The estimated earnings per share (EPS) for 2024-2026 are projected to be 0.82, 0.91, and 1.05 RMB, respectively, with corresponding price-to-earnings (P/E) ratios of 52, 47, and 41 times [3].
普瑞眼科：投资扩张加速下，短期利润承压