Well Lead(SH:603309) Huachuang Securities·2024-07-29 03:31Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 18.6 yuan based on a DCF model, implying an overall valuation of 5.4 billion yuan [1]. Core Insights - The company's domestic revenue faced pressure, declining by 14% to 325 million yuan, while overseas revenue grew by 28% to 337 million yuan, driven by new projects and innovative products in international markets [1]. - The company experienced growth in specific product categories, with urinary products increasing by 15% to 194 million yuan and nursing products rising by 40% to 71 million yuan, while anesthesia products saw a slight decline of 4% [1]. - The overall gross margin remained stable at 45.07%, with domestic margins slightly down and international margins up by 4 percentage points [1]. - The reduction in expense ratios led to improved profitability, with a net profit margin of 16.36%, an increase of 1.01 percentage points year-on-year [1]. - Forecasted net profits for 2024-2026 are 240 million, 300 million, and 380 million yuan, representing year-on-year growth rates of 23.1%, 26.1%, and 26.2% respectively [1]. Financial Summary - For the first half of 2024, the company reported total revenue of 676 million yuan, a 4% increase, and a net profit of 106 million yuan, up 15% [7]. - The second quarter alone saw revenue of 367 million yuan, a 26% increase, and a net profit of 56 million yuan, a 40% increase [7]. - The company’s earnings per share (EPS) are projected to be 0.81, 1.02, and 1.29 yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 14, 11, and 9 [1][14].