Winner Medical(300888) Orient Securities·2024-10-30 02:42Investment Rating - The report maintains an "Accumulate" rating for the company, with a target price of 40.88 CNY based on a 28x PE valuation for 2024 [3][6]. Core Insights - The company reported a revenue of 6.07 billion CNY for the first three quarters of 2024, a year-on-year increase of 0.99%, while the net profit attributable to the parent company was 550 million CNY, down 74.25% year-on-year. Excluding a one-time gain from a city renovation project, the net profit would have increased by 62.17% year-on-year [1]. - The medical consumables business showed double-digit growth in Q3 2024, with Q3 revenue reaching 940 million CNY, a 13.1% year-on-year increase. The high-end dressing and personal care segments grew by 33.5% and 36.2% respectively in the first three quarters [1]. - The consumer goods segment accelerated growth in Q3 2024, achieving a revenue of 1.08 billion CNY, a 20.6% year-on-year increase. Key products like cotton soft towels saw a 31.3% increase in revenue [1]. - The company announced a cash acquisition of 75.2% of GRI for approximately 120 million USD, which is expected to enhance its international competitiveness and operational capabilities [1]. - A new incentive plan was introduced alongside the Q3 report to set new growth targets for the medium to long term [1]. Financial Summary - The company’s revenue for 2023 is projected at 8.185 billion CNY, a decrease of 27.9% from 2022. The net profit attributable to the parent company is expected to be 580 million CNY, down 64.8% year-on-year [2][6]. - Earnings per share (EPS) for 2024, 2025, and 2026 are forecasted to be 1.46 CNY, 1.69 CNY, and 1.99 CNY respectively [2][6]. - The gross margin is expected to be 49.0% in 2023, with a slight decline projected in the following years [2][6].