SINOMED(SH:688108) Guotai Junan Securities·2024-08-21 09:11Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company's operating performance shows a positive trend, meeting expectations, with strong growth in coronary artery business and smooth development of new neuro-interventional products [3]. - Revenue forecasts for 2024-2026 are adjusted to 476 million, 686 million, and 934 million yuan, respectively, with net profit forecasts revised to 8 million, 38 million, and 125 million yuan [4]. - The target price is set at 10.37 yuan, based on a price-to-sales ratio of 9x for 2024 [4]. Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 214 million yuan, a year-on-year increase of 32.5%, and a net profit of 8 million yuan, recovering from a loss of 30 million yuan in H1 2023 [4]. - Q2 2024 revenue reached 123 million yuan, up 39.2% year-on-year, with a net profit of 5 million yuan, compared to a loss of 13 million yuan in Q2 2023 [4]. Business Segments - The coronary business experienced robust growth, with revenue from coronary interventions increasing by 70.77% year-on-year in H1 2024. The new product, the thorn balloon, is expected to see significant volume in H2 2024 [4]. - The neuro-interventional business remained stable, with a slight revenue increase of 2.74% year-on-year in H1 2024. Key products are progressing well in development, with potential new flagship products expected to drive future growth [4]. Valuation Metrics - The company has a market capitalization of 3.134 billion yuan, with a current price of 7.58 yuan and a price-to-book ratio of 3.6 [7][8]. - The earnings per share (EPS) forecast for 2024 is 0.02 yuan, with projections of 0.09 yuan and 0.30 yuan for 2025 and 2026, respectively [4][11].