IMIC(SZ:000516) Guotou Securities·2024-08-28 17:00Investment Rating - The investment rating for the company is "Buy-A" with a target price of 4.83 CNY, which represents a 2x PS valuation for 2024 [5][8]. Core Views - The company is expected to achieve a turnaround from losses to profitability, driven by significant improvements in operational metrics and revenue growth [4][8]. - The company's revenue for the first half of 2024 reached 2.42 billion CNY, a year-on-year increase of 9.53%, while the net profit attributable to shareholders was a loss of 174 million CNY, a reduction in loss by 21.89% [2][4]. Financial Performance - In H1 2024, the total outpatient and emergency service volume was 1.25 million visits, up 17.15% year-on-year, and inpatient service volume was 100,300 visits, up 16.76% [3]. - The company's two core hospitals showed significant revenue and operational improvements, with Xi'an Gaoxin Hospital achieving a revenue of 772 million CNY, a growth of 8.69%, and a net profit of 49.46 million CNY, up 43.63% [3]. - Xi'an International Medical Center Hospital reported a revenue of 1.63 billion CNY, a growth of 14.68%, with a net loss of 78.27 million CNY, reducing losses by 49.29% [3]. Profitability Metrics - The overall gross margin improved to 9.49%, an increase of 1.73 percentage points year-on-year, while the non-recurring net profit margin improved to -5.74%, an increase of 5.79 percentage points [4]. - Management expenses decreased to 11.52% of revenue, down 1.56 percentage points year-on-year, and financial expenses decreased to 3.66%, down 1.37 percentage points [4]. Future Projections - Revenue projections for 2024 to 2026 are 5.46 billion CNY, 6.28 billion CNY, and 7.07 billion CNY respectively, with net profits expected to improve significantly by 2026 [8][9]. - The company is anticipated to achieve a net profit of 1.95 billion CNY in 2025 and 3.70 billion CNY in 2026, indicating a strong recovery trajectory [8][9].