YUYUE MEDICAL(002223) 中国银河·2024-08-27 05:44Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Views - The company's performance in the first half of 2024 showed a significant decline in revenue and net profit due to fluctuations in demand, with total revenue of 4.308 billion yuan (-13.50%) and net profit of 1.120 billion yuan (-25.02%) [1][2]. - The company is a leader in home medical devices, focusing on three core areas: respiratory and oxygen therapy, diabetes care, and infection control, with a continuous improvement in product structure and brand advantages [3][4]. Summary by Sections Financial Performance - For the first half of 2024, the company reported a revenue of 4.308 billion yuan, a decrease of 13.50%, and a net profit of 1.120 billion yuan, down 25.02%. The operating cash flow also decreased by 32.42% to 1.013 billion yuan [1][2]. - In Q2 2024, revenue was 2.076 billion yuan (-8.82%), with a net profit of 461 million yuan (-40.96%) [1]. Business Segments - Respiratory treatment revenue was 1.642 billion yuan (-28.88%), accounting for 38.11% of total revenue, with a gross margin of 52.11% [2]. - Diabetes care revenue increased by 54.94% to 562 million yuan, representing 13.05% of total revenue, with a gross margin of 60.19% [2]. - Infection control revenue decreased by 26.79% to 311 million yuan, accounting for 7.21% of total revenue [2]. - Home electronic testing and in vitro diagnostics generated 935 million yuan (-12.49%) in revenue, while emergency revenue increased by 34.66% to 108 million yuan [2]. Profitability and Shareholder Returns - The overall gross margin for H1 2024 was 50.06%, a decrease of 1.43 percentage points, but Q2 saw a slight improvement to 50.19% [3]. - The company announced its first interim dividend, proposing a cash dividend of 4 yuan per 10 shares, reflecting a commitment to shareholder returns [3]. Future Outlook - The company expects to see continued growth in overseas markets as product registrations and local team developments progress [2]. - The forecast for net profit for 2024-2026 is adjusted to 2.210 billion yuan, 2.542 billion yuan, and 2.921 billion yuan, reflecting a year-on-year decrease of 7.75% in 2024, followed by growth in subsequent years [3][6].