Winner Medical(300888) 广发证券·2024-10-11 02:10Investment Rating - The report assigns a "Buy" rating to the company with a target price of 35.25 CNY per share [4] Core Views - The company's revenue in Q2 2024 showed positive growth, with a 10.96% YoY increase to 2.124 billion CNY, despite a 5.47% YoY decline in H1 2024 revenue to 4.034 billion CNY [2] - Net profit attributable to shareholders in H1 2024 was 384 million CNY, a 43.64% YoY decrease, with Q2 net profit at 202 million CNY, down 33.79% YoY [2] - The company's gross margin in H1 2024 was 48.72%, a 2.74 percentage point decrease YoY, primarily due to lower margins in infection protection products and rising raw material costs [2] - The acquisition of GRI, a US-based medical consumables and industrial protection company, for 120 million USD aims to enhance the company's global competitiveness and expand its overseas production and sales channels [2] Business Segments and Growth Projections - Non-woven consumer products are expected to grow steadily, with projected revenues of 2.312 billion CNY in 2024, 2.468 billion CNY in 2025, and 2.638 billion CNY in 2026, driven by brand strength and marketing efforts [7] - Woven consumer products are projected to grow to 2.269 billion CNY in 2024, 2.428 billion CNY in 2025, and 2.600 billion CNY in 2026, supported by offline store expansion and online channel optimization [7] - Medical consumables revenue is expected to reach 3.965 billion CNY in 2024, 4.502 billion CNY in 2025, and 5.100 billion CNY in 2026, driven by product matrix optimization and market expansion [7] Financial Projections - The company's revenue is projected to grow to 8.606 billion CNY in 2024, 9.458 billion CNY in 2025, and 10.398 billion CNY in 2026, with YoY growth rates of 5.1%, 9.9%, and 9.9% respectively [7] - Net profit attributable to shareholders is expected to increase to 830 million CNY in 2024, 953 million CNY in 2025, and 1.105 billion CNY in 2026, with YoY growth rates of 42.9%, 14.8%, and 16.0% respectively [7] - EPS is projected to be 1.41 CNY in 2024, 1.62 CNY in 2025, and 1.88 CNY in 2026 [7] Valuation and Peer Comparison - The company is valued at 25x PE for 2024, based on its strong growth potential in both consumer and medical consumables segments [12] - Comparable companies in the medical consumables sector include ZhenDe Medical and Baiya Co, while non-woven and woven segments are compared with Zhongshun JieRong and Semir Garment [13]