ITG(600755) 光大证券·2024-10-11 06:10Investment Rating - The report gives a "Buy" rating for the company with a target price of 9.59 yuan, corresponding to a 2024 PE of 10.2x and PB of 0.62x [2][11] Core Views - The company is a leading player in China's bulk supply chain management industry, focusing on supply chain management services and health technology business through business restructuring [2][11] - The company's gross margin improved significantly in H1 2024, with a year-on-year increase of 0.67 percentage points to 1.81% [1] - The company's cash dividend ratio in 2023 increased by 17.7 percentage points to 57.6%, ranking first among peer listed companies [1] - The company is expanding its business layout both vertically and horizontally in the bulk supply chain management market, which has grown from 43 trillion yuan in 2016 to 55 trillion yuan in 2022, with a CAGR of 4.2% [1] - The company is actively promoting its health technology sector, focusing on medical device distribution services and extending into elderly care services, medical health big data, and health services [1] Business Structure Optimization - The company has optimized its business structure by divesting its real estate business in 2021 and transferring control of some financial services subsidiaries to related parties in 2022-2023, focusing more on supply chain management and health technology [1] - The company's supply chain management business revenue declined in 2023 due to macroeconomic factors, but profitability improved in H1 2024 through business structure optimization [1] Financial Performance - The company's net profit attributable to the parent company in 2023 was 1.915 billion yuan, a year-on-year decrease of 46.72%, but excluding the impact of real estate projects, the decrease was about 20% [28] - The company's cumulative cash dividends from 2019 to 2023 amounted to 4.97 billion yuan, with a significant increase in the cash dividend ratio in 2023 [1][33] Market and Industry Analysis - The bulk supply chain management market in China is vast, with the top four companies increasing their market share from 1.21% in 2016 to 4.18% in 2022 [1][45] - The company is enhancing its supply chain management capabilities through digital upgrades and expanding into new industries such as new energy [48][50] Health Technology Sector - The company is building a health technology ecosystem, focusing on medical device distribution, elderly care services, medical health big data, and health services [21][22] - In 2023, the company acquired Beijing Paite Medical Technology Co Ltd, a leading provider of minimally invasive surgical solutions, to strengthen its position in the medical device sector [1] Future Outlook - The company is expected to achieve net profits attributable to the parent company of 2.039 billion yuan, 2.438 billion yuan, and 2.908 billion yuan in 2024, 2025, and 2026, respectively [2][11] - The company's supply chain management business is expected to recover significantly with the improvement of macroeconomic conditions and the further expansion of its channel network [11]