Winner Medical(SZ:300888) Guoxin Securities·2024-09-25 10:00Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1][7][9] Core Views - The company has announced the acquisition of 75.2% of Global Resources International, Inc. (GRI) for approximately $120 million, which is expected to enhance its market position and operational capabilities [3][4] - The acquisition is aligned with the company's strategy to create a "one-stop solution for global medical consumables," strengthening overseas production and sales channels [5][6] - The company anticipates significant synergies from the acquisition, particularly in expanding its North American business and improving profit margins [7][8] Summary by Sections Acquisition Overview - GRI is a global medical consumables and industrial protection company, with 2023 revenues exceeding $150 million, primarily from the U.S. (70%), Europe (20%), and Asia (10%) [4] - The acquisition price corresponds to a transaction P/E ratio of approximately 16 times, with GRI's net profit margin around 6% [4][6] Financial Projections - The company has revised its profit forecasts for 2024-2026, expecting net profits of 810 million, 1.02 billion, and 1.14 billion yuan, representing year-on-year growth of 40.1%, 25.5%, and 11.9% respectively [7][8] - The target price is maintained at 34-36 yuan, corresponding to a P/E ratio of 20-21 times for 2025 [7][9] Strategic Benefits - The acquisition is expected to fill gaps in overseas production capacity and enhance the company's ability to meet customer demands while reducing supply chain risks [5][6] - GRI's existing operations in various countries will provide labor cost advantages and local market access, which are crucial for expanding the company's North American business [5][6] - The integration of GRI's innovative materials and production capabilities is anticipated to enhance the company's product offerings and market competitiveness [6][7]