Xiangyu Medical(SH:688626) Guoxin Securities·2024-09-13 08:01Investment Rating - The investment rating for the company is "Outperform the Market" [4][10]. Core Views - The company experienced pressure on profits while maintaining stable revenue, with a revenue of 338 million yuan (+0.93%) and a net profit of 57 million yuan (-47.37%) in the first half of 2024. The decline in profit is attributed to increased R&D and marketing expenses, as well as reduced government subsidies [1][5]. - The gross margin remained stable at 68.22% (+0.61pp), but the expense ratios increased significantly, with the sales expense ratio at 27.99% (+4.64pp) and the R&D expense ratio at 19.44% (+5.26pp) [1][7]. - The company has significantly increased its R&D efforts, with R&D investment reaching 66 million yuan (+38.37%), accounting for 19.44% of revenue. The company has also added 199 patents and launched new products based on clinical needs [1][8]. Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of 338 million yuan (+0.93%) and a net profit of 57 million yuan (-47.37%). The Q2 2024 revenue was 169 million yuan (-11.92%) with a net profit of 18 million yuan (-74.84%) [1][5]. - The company’s revenue growth is impacted by industry restructuring, while profit decline is due to increased R&D and marketing investments [1][5]. R&D and Product Development - The company has increased its R&D investment to 66 million yuan (+38.37%), representing 19.44% of its revenue. It has filed for 199 new patents, including 52 invention patents, and launched several new medical devices [1][8][10]. Financial Projections - The revenue projections for 2024-2026 are adjusted to 820 million yuan, 1 billion yuan, and 1.17 billion yuan respectively, with expected growth rates of 11%, 21%, and 18%. The net profit projections are revised to 210 million yuan, 270 million yuan, and 330 million yuan, with growth rates of -9%, 29%, and 26% [2][10].