Sinocare(300298) SINOLINK SECURITIES·2024-08-29 03:02Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company achieved a revenue of 2.133 billion RMB in the first half of 2024, representing a year-on-year increase of 6%. The net profit attributable to shareholders was 197 million RMB, up 13% year-on-year, while the non-recurring net profit decreased by 10% to 178 million RMB [2] - The blood glucose monitoring products showed stable growth with a significant increase in gross margin, reaching 61.32%, up 5.16 percentage points year-on-year. The company is focusing on both its core chronic disease rapid testing business and the growth of its Continuous Glucose Monitoring (CGM) products [2] - The company invested 171 million RMB in R&D, accounting for 8.02% of total revenue, indicating a commitment to innovation and product development [2] - The subsidiary Trividia showed improved profitability, contributing 543 million RMB in revenue and a net profit of 22.14 million RMB, benefiting from its FDA and CE certified products [2] Summary by Sections Performance Overview - In Q2 2024, the company reported revenue of 1.119 billion RMB, a slight decrease of 0.5% year-on-year, with a net profit of 117 million RMB, up 1% year-on-year. The non-recurring net profit fell by 25% to 101 million RMB [2] Revenue Breakdown - The blood glucose monitoring system generated 1.552 billion RMB in revenue, a year-on-year increase of 12.74%. Revenue by region includes 1.201 billion RMB from China (up 5.73%), 695 million RMB from the US (up 2.35%), and 237 million RMB from other regions (up 23.19%) [2] Future Projections - The company forecasts net profits of 470 million RMB, 635 million RMB, and 756 million RMB for 2024, 2025, and 2026 respectively, with growth rates of 65%, 35%, and 19% [2]