TC Medical(SH:600763) Huachuang Securities·2024-08-26 15:10Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 48 CNY, compared to the current price of 40.85 CNY [2]. Core Insights - The company's H1 2024 performance met market expectations, with total revenue of 1.411 billion CNY (+3.52%) and net profit attributable to shareholders of 310 million CNY (+1.77%) [2]. - The dental implant business has entered a growth phase, achieving a revenue of 254 million CNY (+11.3%) in H1 2024, while orthodontics and pediatric services saw declines [2]. - The company is expanding its operations, with 63 dental clinics opened in Zhejiang province and more in development, which has slightly impacted gross margins [2]. - Cost control remains effective, with low sales and management expense ratios, although financial expenses have increased due to rising lease liabilities [2]. - The company is expected to continue its expansion strategy, with adjusted profit forecasts for 2024-2026 reflecting a net profit of 612 million CNY, 700 million CNY, and 808 million CNY respectively, indicating growth rates of 22.2%, 14.4%, and 15.4% [2]. Financial Summary - Total revenue projections for 2024E, 2025E, and 2026E are 3.155 billion CNY, 3.606 billion CNY, and 4.160 billion CNY, with respective growth rates of 10.8%, 14.3%, and 15.4% [3]. - Net profit projections for the same years are 612 million CNY, 700 million CNY, and 808 million CNY, with growth rates of 22.2%, 14.4%, and 15.4% [3]. - The company maintains a low debt-to-asset ratio of 30.70% and a net asset value per share of 12.33 CNY [6].