Winner Medical(SZ:300888) GOLDEN SUN SECURITIES·2024-10-30 02:15Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company has launched an equity incentive plan, aiming for growth driven by both medical and consumer sectors [1]. - For the first three quarters of 2024, the company reported a revenue of 6.07 billion, a year-on-year increase of 1%, while the net profit attributable to shareholders decreased by 74% to 550 million [1]. - The consumer goods segment showed robust growth, with a revenue increase of 14% to 3.36 billion in the first three quarters of 2024 [1]. - The medical consumables business has recently returned to positive growth, with a revenue of 2.66 billion in the first three quarters of 2024, despite a 12% year-on-year decline [1]. Summary by Sections Financial Performance - For Q1 to Q3 2024, the company achieved a revenue of 6.07 billion, up 1% year-on-year, and a net profit of 550 million, down 74% [1]. - The gross margin for Q1 to Q3 2024 decreased by 2.0 percentage points to 48.1% [1]. - In Q3 2024, revenue reached 2.04 billion, a 17% increase year-on-year, while the net profit attributable to shareholders was 170 million, down 88% [1]. Consumer Goods Business - The consumer goods segment's revenue for Q1 to Q3 2024 was 3.36 billion, reflecting a 14% year-on-year increase [1]. - Online sales outperformed offline, with online revenue growing by 14% and offline stores approaching double-digit growth [1]. - Key products like dry and wet cotton soft towels saw revenue growth of 31% and 47% respectively in Q1 to Q3 and Q3 alone [1]. Medical Consumables Business - The medical consumables segment reported a revenue of 2.66 billion for Q1 to Q3 2024, down 12% year-on-year, but showed a recovery with a 13% increase in Q3 [1]. - High-end dressing products experienced rapid growth, with revenue increasing by 10% in Q1 to Q3 [1]. - The company has made strategic acquisitions to expand its business footprint, including GRI [1]. Operational Management - Inventory turnover days increased by 10.4 days to 146.8 days, with year-end inventory rising by 35.7% to 1.99 billion [1]. - Operating cash flow for Q1 to Q3 2024 was 490 million, approximately 0.9 times the net profit attributable to shareholders [1]. Future Outlook - The company expects strong growth in net profit for 2024, driven by a low base effect from 2023 [1]. - An equity incentive plan has been proposed, targeting performance goals for 2025 to 2027, which is anticipated to enhance employee motivation and business development [1]. - The projected net profits for 2024 to 2026 are estimated at 812 million, 935 million, and 1.07 billion respectively, with a PE ratio of 23 times for 2024 [1].