Winner Medical(300888) EBSCN·2024-10-30 04:10Investment Rating - The report maintains an "Accumulate" rating for the company with a current price of 31.90 CNY [1]. Core Views - The company reported a revenue of 6.07 billion CNY for the first three quarters of 2024, reflecting a year-on-year increase of 1.0%, while the net profit attributable to shareholders decreased by 74.3% to 550 million CNY [1]. - Excluding the impact of the previous year's urban renewal project, the net profit attributable to shareholders for the first three quarters declined by 29.6% [1]. - In Q3 2024, the company achieved a revenue of 2.04 billion CNY, a year-on-year increase of 16.8%, but the net profit attributable to shareholders fell by 88.5% to 170 million CNY [1]. - The company has implemented a restricted stock incentive plan, granting up to 7.48 million shares to approximately 308 individuals, which is about 1.28% of the total share capital [3]. Summary by Sections Financial Performance - The medical consumables business reported a revenue of 2.66 billion CNY for the first three quarters, a year-on-year decline of 11.5%, but Q3 alone saw a revenue increase of 13.1% [1]. - The health consumer goods segment achieved a revenue of 3.36 billion CNY for the first three quarters, growing by 13.7%, with Q3 revenue increasing by 20.6% [1][2]. - The company’s gross margin for the first three quarters decreased by 2.0 percentage points to 48.1% [1]. Inventory and Receivables - As of September 2024, inventory increased by 38.6% year-to-date to 1.99 billion CNY, with inventory turnover days rising by 10 days to 147 days [2]. - Accounts receivable increased by 46.8% year-to-date to 1.13 billion CNY, with turnover days increasing by 3 days to 42 days [2]. Future Outlook - The company completed the acquisition of 75.2% of GRI, a global medical consumables and industrial protection company, which is expected to enhance its overseas capacity and sales channels [2]. - The incentive plan aims to motivate employees and improve corporate governance, with performance targets set for revenue growth of 13% for the years 2025, 2026, and 2027 [3]. - The profit forecast for 2024-2026 has been adjusted downward by 20%, 17%, and 13% respectively, with expected EPS of 1.29, 1.50, and 1.76 CNY [3].