Sinocare(SZ:300298) EBSCN·2024-08-29 09:12Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company's H1 2024 performance met market expectations, with revenue of 2.133 billion yuan, a year-on-year increase of 6.26%, and a net profit of 197 million yuan, up 12.61% [1][2]. - The traditional blood glucose monitoring (BGM) business showed steady growth, with revenue of 1.552 billion yuan in H1 2024, reflecting a year-on-year increase of 12.74% [2]. - The Continuous Glucose Monitoring (CGM) products are expected to see significant sales growth, with a sales target of 300 to 500 million yuan for 2024 and potential profitability by 2025 [2]. - The company is positioned as a leading domestic player in the CGM market, having begun R&D in 2008 and recently launching new products [2]. - International expansion is anticipated, with the company aiming to enter major EU markets and submit an FDA application for its CGM products in 2024 [2]. Summary by Sections Financial Performance - H1 2024 revenue was 2.133 billion yuan, with a 6.26% increase year-on-year; Q2 revenue was 1.119 billion yuan, down 0.53% year-on-year [1]. - The net profit for H1 2024 was 197 million yuan, a 12.61% increase year-on-year, while Q2 net profit was 117 million yuan, up 0.78% year-on-year [1][2]. Business Segments - The BGM segment achieved revenue of 1.552 billion yuan in H1 2024, with a year-on-year growth of 12.74% [2]. - The CGM segment, which launched in 2023, is projected to generate sales of 300 to 500 million yuan in 2024, with expectations for profitability by 2025 [2]. International Expansion - The company has received CE certification for its CGM products and plans to enter major EU markets in 2024, with an FDA application submission also planned for 2024 [2]. - The overseas subsidiaries Trividia and PTS reported net profits of 31.22 million yuan and 9.27 million yuan, respectively, in H1 2024, indicating a positive trend in operations [2]. Earnings Forecast and Valuation - The forecast for net profit from 2024 to 2026 is 450 million yuan, 530 million yuan, and 630 million yuan, respectively [2]. - The company is recognized as the leading domestic brand in blood glucose monitoring, with promising international business prospects, justifying the "Buy" rating [2].