CHUNLI MEDICAL(SH:688236) Xin Lang Cai Jing·2025-04-07 07:39Core Viewpoint - The company reported a significant decline in revenue and net profit for 2024, primarily due to the deepening of centralized procurement policies, which led to price reductions for related products [1] Financial Performance - In 2024, the company achieved operating revenue of 810 million yuan, a decrease of 33.3%, and a net profit attributable to shareholders of 130 million yuan, down 55%. The net profit after deducting non-recurring items was 90 million yuan, a decline of 62.8% [1] - Quarterly performance showed a downward trend: Q1 revenue was 220 million yuan (-10%), Q2 was 160 million yuan (-46.2%), Q3 was 130 million yuan (-49%), and Q4 was 300 million yuan (-28.5%). Net profit for Q1 was 60 million yuan (-1.2%), Q2 was 20 million yuan (-66.1%), Q3 was -20 million yuan (-132.8%), and Q4 was 60 million yuan (-34.3%) [1] Profitability Metrics - The company's gross margin for 2024 was 66.6%, down 5.9 percentage points. The selling expense ratio was 29.8% (-1.9pp), financial expense ratio was -2.1% (-0.8pp), R&D expense ratio was 16.5% (-3.5pp), and net profit margin was 15.5% (-7.5pp) [1] Market Position and Growth Potential - The company actively participated in centralized procurement bidding, successfully renewing contracts in May 2024 for artificial joints in Tianjin, which is expected to enhance market share and restore rapid growth in joint product sales [1] - The company has a comprehensive orthopedic product line covering major joints and is the first in mainland China to obtain registration for advanced ceramic joint prosthetics. It is also expanding into new materials and robotic systems for joint replacement [2] Earnings Forecast - The company's EPS is projected to be 0.39 yuan in 2025, 0.49 yuan in 2026, and 0.59 yuan in 2027 [3]