IMIC(SZ:000516) Donghai Securities·2024-10-28 09:30Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company's overall operations are stable, with losses continuing to narrow. In the first three quarters of 2024, the company's revenue reached 3.606 billion, a year-on-year increase of 7.85%. The net profit attributable to the parent company was -212 million, a year-on-year increase of 4.59%. Excluding the impact of selling Shanzhou Hospital last year, the net profit after deducting non-recurring gains and losses was -220 million, a year-on-year increase of 37.20%, indicating a rapid narrowing of losses [8] - The third quarter showed slight fluctuations, but the fourth quarter is expected to achieve a single-quarter turnaround. In Q3, the company's revenue was 1.186 billion, a year-on-year increase of 4.58%, with a slight quarter-on-quarter decline of 4.95% due to seasonal factors. The net profit attributable to the parent company was -39 million, and the net profit after deducting non-recurring gains and losses was -81 million, a year-on-year narrowing of 14.85%. Historically, Q4 is the highest revenue quarter, and with the continued increase in the number of diagnoses and treatments at the central hospital, a turnaround is anticipated in Q4 [8] - Profitability is steadily improving, and scale effects are becoming evident. In the first three quarters of 2024, the company's gross margin and net margin were 9.19% and -8.16%, respectively, both showing year-on-year increases of 0.77 and 0.31 percentage points. The expense ratios for sales, management, finance, and R&D have decreased year-on-year, indicating a continuous scale effect [9] - The company is a comprehensive hospital operation group in Northwest China, with stable operations in its "senior" high-tech hospitals. The central hospital, with a revenue scale of over 10 billion, is entering a fast track of development, and the number of diagnoses and treatments continues to rise, indicating a promising outlook. Revenue forecasts for 2024-2026 are 5.141 billion, 6.152 billion, and 7.524 billion, with net profits of -230 million, -40 million, and 960 million, respectively [9] Summary by Sections - Financial Performance: In Q3 2024, the company reported revenue of 1.186 billion, a year-on-year increase of 4.58%, while the net profit attributable to the parent company was -39 million. The first three quarters of 2024 saw total revenue of 3.606 billion, a year-on-year increase of 7.85% [8] - Profitability Metrics: The gross margin for the first three quarters was 9.19%, and the net margin was -8.16%, both showing improvements compared to the previous year. The company has successfully reduced its expense ratios across various categories [9] - Future Outlook: The company is expected to achieve a turnaround in Q4, with revenue forecasts indicating significant growth in the coming years. The central hospital's development is on a fast track, with increasing treatment volumes anticipated [9]