CHISON MEDICAL(SH:688358) Southwest Securities·2024-09-03 06:17Investment Rating - The report maintains a "Buy" rating for Xiangsheng Medical (688358) with a target price of 28.46 CNY over the next six months [1][5]. Core Insights - The company reported a revenue of 250 million CNY for the first half of 2024, a decrease of 16.5% year-on-year, and a net profit attributable to shareholders of 81 million CNY, down 27.3% [1]. - The portable ultrasound segment continues to show growth despite temporary pressure on overall performance, with overseas markets contributing 81% to total revenue [1]. - The company launched the "Sono Family" series, which includes various high-end ultrasound products, aiming to enhance its competitive edge in the global market [1][4]. - Key technological advancements include microvascular imaging technology and AI applications, which are expected to drive product upgrades and improve operational efficiency [1][4]. Financial Performance Summary - For 2024, the company expects revenues to reach 607.44 million CNY, with a growth rate of 25.55% [2]. - The net profit forecast for 2024 is 199.44 million CNY, reflecting a growth rate of 36.16% [2]. - The gross margin for the first half of 2024 was reported at 60.1%, remaining stable compared to previous periods [1]. Business Segment Analysis - The ultrasound medical imaging segment is projected to grow at a rate of 25% from 2024 to 2026, with stable pricing and gross margins [4]. - The technology service segment is expected to see a 20% increase in sales over the same period, maintaining stable pricing and margins [4]. - Accessory and other services are anticipated to grow by 35% in 2024, with a slight decrease in growth rates in subsequent years [4]. Competitive Positioning - Xiangsheng Medical is positioned as a leading player in the domestic ultrasound medical imaging equipment market, with a focus on portable ultrasound as a differentiating feature [5]. - The report highlights the company's competitive advantages in technology, product offerings, distribution channels, branding, and service, which are expected to drive future growth [5][6].