YUYUE MEDICAL(002223) 太平洋·2024-11-06 06:10Investment Rating - The report maintains a "Buy" rating for Yuyue Medical (002223) with a target price based on a 17x PE ratio as of November 4, 2024 [1][7]. Core Views - The company reported a revenue of 6.028 billion yuan for the first three quarters of 2024, a year-on-year decrease of 9.53%, while the net profit attributable to shareholders was 1.532 billion yuan, down 30.09% [1]. - In Q3 2024, the revenue was 1.720 billion yuan, showing a year-on-year growth of 2.21%, indicating a recovery trend [2][3]. - The company has increased its marketing expenses by 8.84% compared to the same period in 2023, focusing on promoting new products and enhancing brand influence [2]. Summary by Sections Financial Performance - For Q3 2024, the gross margin was 50.13%, a decrease of 1.44 percentage points year-on-year, while the net profit margin dropped to 25.44%, down 7.23 percentage points [4]. - The company expects revenues of 8.129 billion yuan in 2024, with a growth rate of 1.97%, and net profits of 2.018 billion yuan, reflecting a decline of 15.76% [8]. Product Development - The new generation Continuous Glucose Monitoring (CGM) products have seen rapid sales growth, with significant market share gains in the domestic market and potential for international expansion [3]. - The CGM product line is currently undergoing CE MDR certification, which is expected to facilitate overseas sales [3]. Market Outlook - The report forecasts revenue growth of 2% in 2024, followed by 14% in 2025 and 15% in 2026, with net profit growth projected at -16% in 2024, 13% in 2025, and 20% in 2026 [7][8].