Sinocare(SZ:300298) Hua Yuan Zheng Quan·2024-09-04 02:30Investment Rating - The investment rating for the company is "Buy" (maintained) [3] Core Views - The company reported a stable performance in its mid-2024 results, achieving a revenue of 2.13 billion yuan (up 6.26% year-on-year) and a net profit of 200 million yuan (up 12.61% year-on-year) [3] - The core blood glucose monitoring business showed steady growth, with revenue of 1.55 billion yuan (up 12.7% year-on-year), while other segments experienced significant declines [4] - The company is poised for growth in the Continuous Glucose Monitoring (CGM) market, with ongoing overseas registrations and clinical trials expected to complete in the second half of 2024 [4] - Gross margin improved significantly to 55.2% (up 4 percentage points), indicating better operational efficiency [4] - Profit forecasts for the company suggest net profits of 450 million yuan, 570 million yuan, and 740 million yuan for 2024, 2025, and 2026 respectively, with growth rates of 59.2%, 25.8%, and 30.2% [4][5] Summary by Relevant Sections Financial Performance - For the first half of 2024, the company achieved a revenue of 2.13 billion yuan, with a net profit of 200 million yuan [3] - The blood glucose monitoring segment generated 1.55 billion yuan in revenue, while the iPOCT monitoring segment brought in 90 million yuan [4] Business Segments - Blood glucose monitoring revenue increased by 12.7% year-on-year, while blood lipid revenue decreased by 20.9% [4] - The company’s subsidiary, Xinnuo Health, reported a revenue of 540 million yuan, turning a profit, while another subsidiary, Sannuo Health, saw a revenue decline of 27.1% [4] Market Outlook - The CGM segment is expected to tap into a global market worth billions, with new product registrations progressing in multiple countries [4] - The company is focusing on third-generation technology with proprietary patents, enhancing its competitive edge [4]