YUYUE MEDICAL(002223) 国盛证券·2024-11-04 11:11Investment Rating - The report maintains a "Buy" rating for Yuyue Medical [4][6] Core Views - In Q3 2024, Yuyue Medical's revenue showed a recovery with a 2.21% year-on-year growth, while the net profit declined by 40.95% year-on-year due to fluctuations in gross margin and increased operating expenses [1][2] - The respiratory treatment segment's high base effect is diminishing, leading to a normalization of related business activities [2] - The company is increasing marketing investments to support new product market expansion, particularly in overseas markets [1][3] Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 60.28 billion yuan, a decrease of 9.53% year-on-year, and a net profit of 15.32 billion yuan, down 30.09% year-on-year [1] - In Q3 2024, the gross margin was 50.32%, a decrease of 0.92 percentage points year-on-year, while the sales expense ratio increased by 4.00 percentage points to 18.41% [2] - The company expects revenues of 80.47 billion, 93.13 billion, and 107.69 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 20.10 billion, 23.52 billion, and 27.83 billion yuan [4][5] Market Expansion and Product Development - Yuyue Medical's global marketing system is continuously improving, with overseas sales revenue reaching 4.79 billion yuan in H1 2024, a year-on-year increase of 30.19% [3] - The diabetes care segment is rapidly expanding, with revenue of 5.62 billion yuan in H1 2024, reflecting a growth of 54.94% year-on-year [3] - The company is making significant progress in the research and development of Continuous Glucose Monitoring (CGM) products, which are expected to enhance its diabetes care offerings [3]