Balance Medical(SH:688198)2024-08-22 08:32Investment Rating - The report maintains a "Buy" rating for the company [2][3] Core Views - The company achieved stable revenue growth in H1 2024, with a revenue of RMB 191 million, representing a year-on-year increase of 13.74% [2] - Significant increase in R&D expenses, reaching RMB 75.22 million in H1 2024, a 110.75% increase year-on-year, accounting for 39.45% of revenue [2] - The company’s three main business segments exceeded sales targets, with notable growth in valve replacement and repair business (up 18.79%), congenital heart disease intervention (up 10.98%), and soft tissue repair (up 10.29%) [2] - Core product sales, particularly for surgical biological valves, increased by 20.57%, maintaining a leading market share among domestic brands [2] - Accelerated R&D progress is expected to drive future revenue growth, with several key products nearing registration and clinical trials showing promising results [2] Financial Summary - Revenue projections for 2024-2026 are RMB 492 million, RMB 644 million, and RMB 855 million, with growth rates of 32.7%, 30.9%, and 32.7% respectively [3][4] - Net profit forecasts for the same period are RMB 164 million, RMB 229 million, and RMB 322 million, with growth rates of 42.6%, 39.5%, and 40.7% respectively [3][4] - The latest diluted EPS estimates are RMB 1.20, RMB 1.67, and RMB 2.35 for 2024, 2025, and 2026 respectively [3][4] - The company’s P/E ratios are projected to be 78.6, 56.4, and 40.1 for the years 2024, 2025, and 2026 respectively [3][4] Market Position - The company is positioned to leverage its brand advantages and expand into untapped markets while solidifying its competitive edge in core markets [2] - The report highlights the company's focus on optimizing product layout and expediting the R&D and registration processes for its key products [2]