Sinocare(300298) 华创证券·2024-09-04 13:09Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 32 yuan, compared to the current price of 23.05 yuan [1]. Core Insights - The company reported a revenue of 2.133 billion yuan for the first half of 2024, representing a year-on-year increase of 6.26%, and a net profit attributable to shareholders of 197 million yuan, up 12.61% [1]. - The Continuous Glucose Monitoring (CGM) products are experiencing significant growth, with sales surpassing 300,000 units during the "618" shopping festival, ranking first in sales [1]. - The company's gross margin improved to 55.15%, with the CGM system's gross margin reaching 61.32%, indicating a positive shift in product mix and operational efficiency [1]. Summary by Sections Financial Performance - For H1 2024, the company's revenue from blood glucose monitoring systems was 1.552 billion yuan, up 12.74%, while the iPOCT monitoring system generated 88 million yuan, up 5.89% [1]. - The company expects net profits for 2024-2026 to be 440 million, 540 million, and 650 million yuan, respectively, with corresponding EPS of 0.78, 0.95, and 1.16 yuan [1][2]. Regional Performance - Domestic revenue for H1 2024 was 1.201 billion yuan, up 5.73%, while revenue from the U.S. was 695 million yuan, up 2.35%. Other regions saw a revenue increase of 23.19%, totaling 237 million yuan [1]. Subsidiary Performance - The U.S. subsidiary Trividia reported revenues of 31.22 million yuan, with its parent company, Xinnuo Health, achieving a net profit of 22.14 million yuan [1]. Cost and Expenses - The company's selling expense ratio was 26.08%, an increase of 2.30 percentage points, while the management expense ratio decreased to 9.58% [1]. Future Outlook - The report anticipates continued growth in the CGM market, with new product registrations underway in China, indicating a strong pipeline for future sales [1].