New Journey(002219) 国海证券·2024-10-24 05:01Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][6]. Core Insights - The acquisition of Chongqing New Mile Medical Management Co., Ltd. for 320 million yuan at a price-to-sales ratio of 1.0x initiates the process of injecting high-quality hospital assets from the controlling shareholder into the listed company [3][4]. - Chongqing New Mile is experiencing steady growth, with a revenue of 315 million yuan in 2023 and a compound annual growth rate (CAGR) of 12% from 2021 to 2023. The net profit for 2023 was 4.05 million yuan, with a net profit margin of 1.29% [4][6]. - The company has a strategic focus on integrating medical and elderly care services, addressing the aging population issue in Chongqing, and has received recognition as a "National Elderly-Friendly Hospital" [4][6]. Financial Projections - Revenue forecasts for 2024, 2025, and 2026 are 4.099 billion yuan, 4.891 billion yuan, and 5.840 billion yuan, respectively, with year-on-year growth rates of 14%, 19%, and 19% [6][7]. - The projected net profit for the same years is 122 million yuan, 226 million yuan, and 316 million yuan, reflecting significant growth rates of 298%, 85%, and 40% [6][7]. - The report anticipates a gradual improvement in profitability, with the price-to-earnings (P/E) ratio decreasing from 70x in 2024 to 27x in 2026 [6][7]. Market Data - As of October 23, 2024, the company's stock price is 2.51 yuan, with a market capitalization of approximately 8.555 billion yuan [4][6]. - The stock has a 52-week price range of 1.66 to 3.37 yuan, indicating potential for price appreciation [4][6].