SANXING(SH:601567) Soochow Securities·2024-10-25 10:30Investment Rating - The report maintains a "Buy" rating for Samsung Medical [1] Core Views - The company's revenue for Q3 2024 increased by 23% year-on-year, with net profit attributable to shareholders rising by 7%, and the non-recurring net profit exceeding market expectations by 30% [2] - The company has achieved rapid breakthroughs in its business, with overseas orders increasing by 35.3% year-on-year, indicating strong growth potential in international markets [2] - The domestic market remains robust, with a 27% year-on-year increase in smart distribution and utilization business revenue, and a 35% increase in cumulative orders [2] - The medical services segment has shown a 22% year-on-year revenue growth, driven by an increase in the number of rehabilitation hospitals and improved single-store operations [3] - The company has seen significant improvement in cash flow, with operating cash flow increasing by 250% year-on-year [3] - The profit forecast for 2024-2026 has been slightly adjusted, with expected net profits of 24.04 billion, 30.23 billion, and 37.71 billion yuan respectively, corresponding to a price-to-earnings ratio of 19x, 15x, and 12x [3] Financial Performance Summary - For Q1-Q3 2024, total revenue reached 10.43 billion yuan, a 25% increase year-on-year, with net profit attributable to shareholders at 1.82 billion yuan, a 22% increase [2] - The gross margin for Q1-Q3 was 36.2%, with a net profit margin of 17.4%, reflecting a slight year-on-year increase [2] - The company’s total revenue is projected to grow from 11.46 billion yuan in 2023 to 22.41 billion yuan in 2026, with a compound annual growth rate of approximately 22.34% [1][9] - The net profit attributable to shareholders is expected to grow from 1.90 billion yuan in 2023 to 3.77 billion yuan in 2026, with a similar growth trajectory [1][9] Market Position and Strategy - The company has solidified its leading position in the domestic distribution and utilization market, with a market share increase in both internal and external orders [2] - The overseas market expansion strategy has been successful, with significant orders secured in Brazil, Nigeria, and Mexico, indicating a strong foothold in international markets [2] - The company is focusing on enhancing its medical service management, which is expected to contribute to sustained growth in the healthcare segment [3]