CHUNLI MEDICAL(SH:688236) Orient Securities·2024-09-10 10:38Investment Rating - The report maintains a "Buy" rating for the company with a target price of 14.91 CNY, based on a 21x PE valuation for 2024 [1][4]. Core Views - The company's performance is under short-term pressure due to the implementation of national high-value consumables procurement, leading to a revenue of 380 million CNY in H1 2024, a year-on-year decrease of 29.7%, and a net profit of 79 million CNY, down 37.3% [1]. - The company is actively responding to procurement policies by enhancing its marketing system and has successfully won bids for its hip and knee joint products in the recent procurement results [1]. - New product approvals are enhancing the company's product strength, with significant R&D investments leading to the launch of several innovative products in various medical fields [1]. Financial Summary - Revenue for 2024 is projected at 1,280 million CNY, with a growth rate of 5.9% [3]. - The net profit attributable to the parent company is expected to be 273 million CNY in 2024, reflecting a slight decline of 1.6% [3]. - The earnings per share (EPS) forecast for 2024 is 0.71 CNY, with subsequent years projected at 0.89 CNY for 2025 and 1.00 CNY for 2026 [1][3].