MTM(SH:688029) EBSCN·2024-10-28 06:40Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company plans to acquire 51% of Creo Medical S.L.U. for up to €36.72 million, enhancing its overseas business presence [1] - The acquisition is expected to strengthen the company's sales capabilities in Europe, particularly in the endoscopic consumables market, which accounted for nearly 70% of the target company's 2023 revenue [2] - The company is progressing steadily in product development, with new products expected to drive a second growth curve [2] Financial Forecasts and Valuation - The company is a leader in endoscopic diagnostic consumables, with international expansion underway and strong R&D capabilities [3] - The net profit forecasts for 2024 and 2025 have been adjusted downwards to ¥586 million and ¥696 million, respectively, reflecting a decrease of 5.64% and 14.18% from previous estimates [3] - The projected net profit for 2026 is ¥826 million, with corresponding P/E ratios for 2024, 2025, and 2026 at 23, 19, and 16 times, respectively [3] - Revenue is expected to grow from ¥2,411 million in 2023 to ¥4,212 million by 2026, with a compound annual growth rate (CAGR) of approximately 19.55% [4] Key Financial Metrics - The company's revenue growth rate is projected at 21.78% for 2023 and 21.86% for 2024 [4] - The net profit margin is expected to improve from 16.7% in 2022 to 20.2% in 2023 [7] - The company's return on equity (ROE) is forecasted to increase from 13.45% in 2023 to 15.67% in 2026 [4][7]