Zhende Medical(603301) 华创证券·2024-09-09 04:06Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 30 yuan, compared to the current price of 20.61 yuan [1]. Core Insights - The company's performance in the first half of 2024 met expectations, with total revenue of 2.042 billion yuan, a decrease of 11.44% year-on-year, and a net profit attributable to shareholders of 161 million yuan, down 32.13% [1]. - Excluding the impact of pandemic-related products, the company's core business revenue grew steadily, with a 7.53% year-on-year increase in core business revenue to 1.953 billion yuan in H1 2024 [1]. - The company is actively expanding its domestic retail channels, achieving a 26.82% year-on-year growth in retail line revenue, and has established 15 online stores with a total of 9.15 million followers [1]. Summary by Sections Financial Performance - In H1 2024, the company reported total revenue of 2.042 billion yuan, a decrease of 11.44%, and a net profit of 161 million yuan, down 32.13% [1]. - In Q2 2024, revenue was 1.079 billion yuan, an increase of 7.25% quarter-on-quarter, while net profit was 88 million yuan, a decrease of 3.51% [1][2]. Domestic Business - Domestic revenue, excluding pandemic-related products, was 807 million yuan in H1 2024, reflecting a 19.20% year-on-year increase [1]. - The hospital line and retail line both showed steady growth, with hospital line revenue reaching 528 million yuan, a 17.69% increase year-on-year [1]. International Business - The company achieved overseas revenue of 1.14 billion yuan in H1 2024, a slight increase of 0.43% year-on-year, indicating a gradual recovery despite a complex external environment [1]. - In Q2 2024, overseas revenue was 602 million yuan, up 3.70% year-on-year and 11.68% quarter-on-quarter [1]. Investment Forecast - The report projects net profits for 2024-2026 to be 410 million, 520 million, and 640 million yuan, with year-on-year growth rates of 106.0%, 26.7%, and 23.4% respectively [1][2]. - The company is valued at 8 billion yuan based on DCF model calculations, corresponding to a target price of approximately 30 yuan [1].