SANXING(SH:601567) GOLDEN SUN SECURITIES·2024-08-27 08:26Investment Rating - The report maintains a "Buy" rating for the company, Samsung Medical [3]. Core Views - The company reported Q2 2024 earnings that exceeded expectations, with a revenue of 6.997 billion yuan, a year-on-year increase of 26.11%, and a net profit of 1.15 billion yuan, up 32.23% [1]. - The revenue for Q2 2024 was 3.973 billion yuan, reflecting a 20.37% year-on-year growth, while the net profit for the same period was 786 million yuan, increasing by 30.92% [1]. - The report highlights the growth potential in the overseas distribution and power supply business, with a focus on markets in the Middle East, Europe, and Latin America [1][2]. Financial Performance - The company's gross margin for H1 2024 increased by 3.49 percentage points to 34.61%, with Q2 2024 gross margin at 37.21%, up 5.6 percentage points year-on-year and 6.0 percentage points quarter-on-quarter [2]. - The net profit margin for H1 2024 rose by 0.76 percentage points to 16.49%, with Q2 2024 net profit margin at 19.88%, an increase of 1.69 percentage points year-on-year and 7.83 percentage points quarter-on-quarter [2]. - The report projects a slight upward adjustment in profit forecasts, estimating net profits of 2.45 billion yuan, 2.97 billion yuan, and 3.59 billion yuan for 2024, 2025, and 2026 respectively, representing year-on-year growth rates of 28.7%, 21.2%, and 20.8% [2][6]. Business Segments - In the smart power distribution segment, revenue for H1 2024 was 5.38 billion yuan, a 26% increase, with a net profit of 971 million yuan, growing by 29% [1]. - The medical services segment generated revenue of 1.613 billion yuan in H1 2024, up 27%, with a net profit of 183 million yuan, reflecting a 61% increase [1]. - The company has established production bases in Brazil, Indonesia, Poland, Germany, and Mexico, with overseas production capacity accounting for approximately 50% of total capacity [1].