VISHEE(SH:688580) Xinda Securities·2024-08-29 09:31Investment Rating - The investment rating for Weisi Medical (688580) is not explicitly stated in the provided report, but the analysis suggests a cautious outlook due to current performance challenges and potential future growth from new product launches [1]. Core Views - The report indicates that Weisi Medical's revenue for the first half of 2024 was CNY 192 million, a year-over-year decrease of 12.84%, with a net profit attributable to shareholders of CNY 50 million, down 29.67% year-over-year [1]. - The company is experiencing short-term growth pressure due to macroeconomic conditions, changes in hospital bidding processes, and high base effects from the previous year. However, profitability has shown improvement on a quarter-over-quarter basis [1]. - New aesthetic medical products are expected to become a new growth engine for the company, with several products set to launch in 2024, including high-frequency electric cautery devices and shaping magnetic products, which have received positive feedback from users [1]. Financial Performance Summary - For the first half of 2024, Weisi Medical achieved revenue of CNY 192 million, with a breakdown showing magnetic stimulation products generating CNY 85 million (down 13.38% YoY) and electrophysiological products generating CNY 30 million (up 0.57% YoY) [1][2]. - The company’s gross profit margin for Q1 and Q2 of 2024 was 70.18% and 70.97%, respectively, indicating a quarter-over-quarter improvement in profitability [1]. - The forecast for revenue from 2024 to 2026 is CNY 443 million, CNY 533 million, and CNY 640 million, with corresponding year-over-year growth rates of -4.2%, 20.4%, and 20.0% [2][3]. Earnings Forecast - The expected net profit attributable to shareholders for 2024, 2025, and 2026 is CNY 140 million, CNY 176 million, and CNY 214 million, with growth rates of 3.0%, 25.5%, and 21.5% respectively [2][3]. - The projected price-to-earnings (P/E) ratios for the same years are 23, 18, and 15 times, indicating a potentially attractive valuation as earnings grow [2][3].