SINOMED(SH:688108) Soochow Securities·2024-08-21 18:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported a revenue of 21.37 billion yuan in H1 2024, representing a year-on-year increase of 32.5%, with a net profit attributable to shareholders of 0.77 million yuan, up 125.9% [2] - The company has demonstrated a continuous improvement in profitability, with cost control measures leading to a lower growth rate in operating costs and sales expenses compared to revenue growth [2] - The neuro-interventional segment showed stable growth, with revenue of 9.07 million yuan in H1 2024, driven by sales growth of intracranial stents and new products [2] - The coronary stent and balloon segment saw rapid growth post-selection in the national procurement, with revenue of 12.25 million yuan in H1 2024, up 70.8% [3] - The company is expected to achieve significant revenue growth in the coming years, with projected revenues of 49.3 billion yuan, 81.1 billion yuan, and 115.6 billion yuan for 2024, 2025, and 2026 respectively [3] Financial Performance Summary - Total revenue for 2022 was 1.9285 billion yuan, increasing to 3.4326 billion yuan in 2023, with projections of 4.9301 billion yuan in 2024 [1] - The net profit attributable to shareholders is expected to turn positive in 2024, reaching 16.31 million yuan, and further increasing to 91 million yuan and 218.58 million yuan in 2025 and 2026 respectively [1] - The latest diluted EPS is projected to be 0.04 yuan per share in 2024, increasing to 0.22 yuan and 0.53 yuan in 2025 and 2026 respectively [1] Market Data - The closing price of the stock is 7.39 yuan, with a market capitalization of 3,055.44 million yuan [5] - The company has a price-to-earnings ratio (P/E) of -112.46 for 2023, projected to improve to 273.28 in 2024 and further decrease to 20.39 by 2026 [10]