Sinocare(300298) Huachuang Securities·2024-10-29 04:37Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 32 CNY, while the current price is 27.84 CNY [1]. Core Insights - The company's revenue for the first three quarters of 2024 reached 3.182 billion CNY, reflecting a growth of 4.83%, while the net profit attributable to the parent company was 255 million CNY, down 19.71% [1]. - In Q3 2024, the revenue was 1.049 billion CNY, an increase of 2.05%, but the net profit dropped significantly by 59.44% to 58 million CNY [1]. - The decline in profit is attributed to increased expense ratios, particularly in sales and R&D related to Continuous Glucose Monitoring (CGM) products [2]. - The CGM products are experiencing strong sales growth, with over 300,000 units sold during the "618" shopping festival, ranking first in sales [2]. - The company has made progress in international markets, with CGM products approved in multiple countries and launched on platforms like eBay and Amazon [2]. Financial Summary - The projected net profits for 2024, 2025, and 2026 are 390 million CNY, 470 million CNY, and 570 million CNY respectively, with year-on-year growth rates of 35.5%, 21.9%, and 21.9% [2][3]. - The earnings per share (EPS) are expected to be 0.68 CNY, 0.83 CNY, and 1.01 CNY for the years 2024, 2025, and 2026 [3]. - The total revenue forecast for 2024, 2025, and 2026 is 4.351 billion CNY, 5.009 billion CNY, and 5.780 billion CNY, with growth rates of 7.2%, 15.1%, and 15.4% respectively [3].