YUYUE MEDICAL(002223) EBSCN·2024-10-28 02:42Investment Rating - The report maintains a "Buy" rating for Yuyue Medical (002223.SZ) [4] Core Views - The company's Q3 revenue growth has returned to positive territory, with a year-on-year increase of 2.21% in Q3, despite a decline in net profit [1] - The core business segments are showing continuous improvement in market share, particularly in the diabetes care and sleep respiratory machine sectors [1] - The company is increasing its R&D investment and significantly raising sales expenses to enhance brand promotion and new product launches [1] Summary by Sections Financial Performance - For the first three quarters of 2024, total revenue was 6.028 billion yuan, a year-on-year decrease of 9.53%, while net profit attributable to shareholders was 1.532 billion yuan, down 30.09% [1] - Q3 revenue reached 1.720 billion yuan, with a net profit of 411 million yuan, reflecting a 40.95% decline year-on-year [1] - The gross profit margin for the first three quarters of 2024 decreased by 1.43 percentage points to 50.13% [1] Business Segments - The respiratory therapy segment is gradually recovering, with the impact of high base effects from the previous year diminishing [1] - The diabetes care segment continues to grow rapidly, with an increasing market share for BGM-related products and ongoing development of new CGM products [1] R&D and Expenses - R&D expenses accounted for 6.72% of total revenue, an increase of 0.76 percentage points year-on-year, while sales expenses rose to 15.44%, up 2.61 percentage points [1] - Overall, the period expense ratio increased by 4.16 percentage points compared to the previous year [1] Profit Forecast and Valuation - The profit forecasts for 2024-2026 have been revised down to 2.040 billion, 2.323 billion, and 2.723 billion yuan respectively, reflecting decreases of 15.74%, 13.77%, and 12.05% from previous estimates [1] - The report highlights the potential for overseas business growth as product registrations and local team setups progress [1]