CHUNLI MEDICAL(SH:688236) Huachuang Securities·2024-09-09 04:06Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 18 yuan, compared to the current price of 10.83 yuan [1]. Core Insights - The company's performance in the first half of 2024 was impacted by centralized procurement policies, leading to a significant decline in revenue and net profit [2]. - Despite the challenges, the gross margin remained stable at 71.52%, and the company continues to invest heavily in research and development [2]. - The company has successfully expanded its product line, receiving multiple certifications for new products in various medical fields [2]. - International revenue showed strong growth, accounting for 40.7% of total revenue in the first half of 2024, a significant increase from the previous year [2]. - Future growth is anticipated as the impact of centralized procurement is expected to diminish, alongside increasing domestic orthopedic surgery volumes and rapid overseas expansion [2]. Financial Summary - Total revenue for H1 2024 was 380 million yuan, a decrease of 29.70% year-on-year, with a net profit of 79 million yuan, down 37.32% [1][2]. - The company forecasts net profits of 270 million yuan, 330 million yuan, and 390 million yuan for 2024, 2025, and 2026, respectively, with corresponding EPS of 0.71, 0.85, and 1.01 yuan [2][3]. - The projected P/E ratios for the next three years are 15, 13, and 11 times [3].