NovelBeam Technology(SH:688677) EBSCN·2024-08-21 04:03Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company's revenue for the first half of 2024 was CNY 220 million, a decrease of 17.7% year-over-year (YOY), with a net profit of CNY 71 million, down 21.0% YOY [1]. - The decline in revenue is attributed to major clients slowing down their purchasing pace to reduce inventory levels, particularly in the U.S. market [1]. - The company anticipates a return to normal shipping levels as client inventories are gradually consumed [1]. - The second-generation 4K endoscope system has received positive market feedback, with over 100 units shipped since production began after the Spring Festival [1]. - The company is expanding its original design manufacturing (ODM) business and increasing efforts to promote and sell its own brand products [1]. Summary by Sections Financial Performance - For 2Q24, the company reported revenue of CNY 103 million, a decrease of 13.9% YOY, and a net profit of CNY 32 million, down 21.4% YOY [1]. - The company has adjusted its net profit forecasts for 2024-2026 to CNY 193 million, CNY 255 million, and CNY 333 million, respectively, reflecting downward adjustments of 8.4%, 7.8%, and 7.2% from previous estimates [1][2]. Market Position and Product Development - The company is actively developing a comprehensive product matrix, including cameras, light sources, and various endoscope bodies, to enhance market competitiveness [1]. - The company is expanding its collaboration with U.S. clients into new areas such as urology and gynecology, with plans for mass production of new endoscope models in the second half of the year [1]. Valuation Metrics - The current price corresponds to a price-to-earnings (P/E) ratio of 18 for 2024, 13 for 2025, and 10 for 2026 [2]. - The report indicates that the company's ongoing sales growth of new products and the potential contribution from its complete endoscope business could drive future revenue increases [1].