Balance Medical(688198) 东方证券·2024-04-29 03:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of 139.09 CNY [2][11]. Core Insights - The company achieved a revenue of 371 million CNY in 2023, representing a year-on-year growth of 25.57%. However, the net profit decreased by 3.52% to 140 million CNY after excluding share-based payments. The demand for medical services fluctuated due to changes in the medical environment and policies, but the company continued to show strong growth, particularly in the sales of bovine pericardial valves, which exceeded 8,400 units, marking a growth of approximately 28% [1][11]. - The company has multiple key products that are in the approval process, indicating a broad long-term development space. The approval of the expandable surgical valve is a significant milestone, enhancing the company's product portfolio in the treatment of valvular diseases. Additionally, the company has submitted applications for various innovative products, including vascular biological patches and interventional pulmonary valves, which are expected to contribute to future growth [1][11]. - The company is positioned as a platform enterprise for animal-derived interventional medical devices, demonstrating strong original research and innovation capabilities. The research team has over 30 years of experience in bovine pericardial valve research, leading to unique core technologies and intellectual property. The company has established a series of products in heart valve replacement and repair, congenital heart disease treatment, and soft tissue repair, with a robust pipeline of over 10 products in various stages of registration [1][11]. Financial Summary - In 2023, the company reported a revenue of 371 million CNY, with a year-on-year growth of 25.6%. The projected revenues for 2024, 2025, and 2026 are 524 million CNY, 696 million CNY, and 920 million CNY, respectively, indicating a strong growth trajectory [23][29]. - The net profit attributable to the parent company for 2023 was 115 million CNY, with projections of 210 million CNY, 286 million CNY, and 394 million CNY for the following years [23][29]. - The gross margin for 2023 was 89.8%, with a net margin of 31.1%, reflecting the company's strong profitability [23][29].