Sinocare(300298) 湘财证券·2024-05-11 08:02Investment Rating - The report assigns an "Accumulate" rating for the company, indicating an expected investment return that exceeds the market benchmark index by 5% to 15% over the next 6-12 months [23][22]. Core Insights - The company's revenue for 2023 reached 4.058 billion yuan, reflecting a year-on-year growth of 2.69%, while the net profit attributable to shareholders decreased by 36.31% to 284.4 million yuan [20][3]. - The traditional domestic business has shown resilience in revenue growth despite challenges, but net profit has declined due to increased R&D and market investments in the Continuous Glucose Monitoring (CGM) system, as well as operational losses and goodwill impairment from its U.S. subsidiary [4][10]. - The CGM market is projected to grow significantly, with the company expected to benefit from this trend, potentially opening a second growth curve [11][21]. Financial Performance Summary - In 2023, the company reported a gross margin of 54.06%, down 4.65 percentage points from the previous year, and a net margin of 4.83%, a decrease of 10.39 percentage points year-on-year [4]. - The company’s R&D expenditure was 356 million yuan, a 16.36% increase from the previous year, accounting for 8.78% of total revenue [4]. - Revenue projections for 2024, 2025, and 2026 are estimated at 45.80 billion yuan, 51.67 billion yuan, and 59.19 billion yuan, respectively, with corresponding net profits of 466 million yuan, 543 million yuan, and 641 million yuan [22]. Market Position and Growth Potential - The CGM system's market share is expected to grow from less than 30% in 2020 to 49.4% by 2030, with the market size expanding from 1.7 billion USD in 2015 to an anticipated 36.5 billion USD by 2030 [11][20]. - The company has successfully registered its CGM products in seven global regions and launched them domestically, positioning itself well for future growth [11][20].