Balance Medical(688198) 中银国际·2025-04-29 07:15Investment Rating - The report maintains a "Buy" rating for the company, with a market price of RMB 112.65 and a sector rating of "Outperform" [2][4]. Core Insights - The company has demonstrated rapid growth, with a projected revenue of RMB 502 million for 2024, representing a year-on-year increase of 35.41%. The net profit attributable to the parent company is expected to reach RMB 146 million, up 27.02% year-on-year. The fourth quarter of 2024 saw a significant revenue increase of 85.04% year-on-year, with a net profit growth of 95.35% [4][6]. - The company is expected to maintain strong growth in the coming years, driven by the gradual launch of new products. The forecasted net profits for 2025, 2026, and 2027 are RMB 235 million, RMB 326 million, and RMB 451 million, respectively, with corresponding EPS of RMB 1.71, RMB 2.38, and RMB 3.28 [4][6]. - The company has a robust product pipeline, with several new products expected to receive approval soon, which will further accelerate growth. The R&D expenses for 2024 are projected to be RMB 151 million, accounting for 30.17% of revenue, indicating a strong commitment to innovation [4][9]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of RMB 5.02 billion, a 35.41% increase year-on-year, and a net profit of RMB 1.46 billion, up 27.02%. The Q1 2025 revenue is projected at RMB 1.00 billion, reflecting a 31.30% increase year-on-year, with net profit soaring by 290.69% [4][8]. Valuation - The adjusted profit forecasts for 2025-2027 are RMB 2.35 billion, RMB 3.26 billion, and RMB 4.51 billion, respectively. The corresponding PE ratios are projected to be 65.8, 47.4, and 34.3 times [6][8]. Market Position - The company has established a strong position in the valve market, with significant growth in its heart valve replacement and repair segment, which saw a 64.28% increase in revenue. The approval of the TAVR product is expected to further enhance the company's market presence [9].