YUYUE MEDICAL(SZ:002223) ZHONGTAI SECURITIES·2024-08-27 03:43Investment Rating - The report maintains a "Buy" rating for Yuyue Medical (002223.SZ) [2][3][4] Core Views - Yuyue Medical's performance in the first half of 2024 showed steady revenue growth driven by new products and channel expansion, despite a year-on-year decline in net profit [2][3] - The company is expected to recover its traditional business and continue to grow in emerging sectors, with a projected revenue increase of 16% from 2024 to 2026 [2][4] Financial Summary - Revenue: - 2022: 7,102 million CNY - 2023: 7,972 million CNY (12% growth) - 2024E: 8,759 million CNY (10% growth) - 2025E: 10,111 million CNY (15% growth) - 2026E: 11,662 million CNY (15% growth) [2][3] - Net Profit: - 2022: 1,595 million CNY - 2023: 2,396 million CNY (50% growth) - 2024E: 2,069 million CNY (-14% decline) - 2025E: 2,405 million CNY (16% growth) - 2026E: 2,799 million CNY (16% growth) [2][3] - Earnings Per Share (EPS): - 2023: 2.39 CNY - 2024E: 2.06 CNY - 2025E: 2.40 CNY - 2026E: 2.79 CNY [2][3] - Return on Equity (ROE): - 2022: 16% - 2023: 20% - 2024E: 15% - 2025E: 15% - 2026E: 15% [2][3] Business Performance - The respiratory treatment segment remains stable despite a high base effect, with a notable performance in nebulizer products and home ventilators [2][3] - The diabetes care segment, particularly Continuous Glucose Monitoring (CGM) products, is experiencing rapid growth, with market share increasing significantly [2][3] - The company is focusing on optimizing product performance to meet core user needs, which is expected to drive future growth in the respiratory treatment business [2][3] Market Position - Yuyue Medical's market capitalization is approximately 32.69 billion CNY, with a circulating market value of 30.61 billion CNY [2][3] - The company is leveraging its brand strength as a domestic leader to expand its market presence both domestically and internationally [2][3]