JAFRON(SZ:300529) Guotou Securities·2024-08-16 09:08Investment Rating - The investment rating for the company is "Buy-A" with a 6-month target price of 40.1 CNY, while the current stock price is 26.38 CNY [1][5]. Core Views - The company has shown significant growth in its financial performance, with a revenue increase of 47.77% year-on-year in the first half of 2024, reaching 1.496 billion CNY, and a net profit growth of 99.1%, amounting to 553 million CNY [2][5]. - The company is experiencing a recovery in its fundamentals, with projected revenue growth rates of 108.5%, 33.6%, and 31.9% for 2024 to 2026, respectively, and net profit growth rates of 147.2%, 32.4%, and 30.0% during the same period [5][6]. Financial Performance - In Q2 2024, the company achieved a revenue of 751 million CNY, reflecting a year-on-year growth of 70.91% and a slight quarter-on-quarter increase of approximately 1% [2]. - The gross margin for Q2 2024 was 82.37%, an increase of 1.65 percentage points year-on-year, while the net margin was 35.52%, up 17.33 percentage points year-on-year [2]. - The company’s kidney-related products saw a revenue increase of 84% in H1 2024, with specific products like the HA130 blood perfusion device experiencing a 67% revenue growth due to a 26% price reduction [3]. Market Expansion - The company has expanded its kidney product coverage to over 6,000 hospitals nationwide, and its liver disease products have reached over 2,000 hospitals, with liver-related product sales increasing by 112% in H1 2024 [4]. - The company is actively promoting its blood absorption technology in critical care settings, with significant growth in sales of its critical care products, which increased by 72% in H1 2024 [4][5]. Valuation Metrics - The projected earnings per share (EPS) for 2024 is 1.34 CNY, with a price-to-earnings (P/E) ratio of 21.8 times [6]. - The company’s net profit margin is expected to stabilize around 26.9% for the next few years, with a return on equity (ROE) projected at 21.6% for 2024 [6][7].