Zhende Medical(603301) 国信证券·2024-10-31 12:49Investment Rating - The investment rating for the company is "Outperform the Market" [3][10] Core Views - The company reported a revenue growth of 20% in Q3 2024, with a significant increase in net profit due to asset disposal gains and improved domestic hospital line business [1][3] - The company has adjusted its revenue forecasts for 2024-2026, expecting revenues of 44.0 billion, 51.8 billion, and 60.7 billion respectively, with corresponding net profits of 4.0 billion, 5.1 billion, and 6.4 billion [1][3] - The gross margin has shown a slight increase to 33.77%, attributed to a better revenue mix, while financial expenses have risen due to exchange losses [1][3] Summary by Sections Financial Performance - In Q3 2024, the company achieved a revenue of 10.83 billion (up 19.92% YoY) and a net profit of 1.46 billion (up 131.73% YoY) [1] - For the first three quarters of 2024, total revenue was 31.25 billion (down 2.61% YoY) and net profit was 3.07 billion (up 2.31% YoY) [1][2] Revenue Breakdown - The company's conventional business (excluding isolation protective products) generated 10.54 billion in Q3 2024, a 21.05% increase YoY [1] - Overseas business revenue reached 6.45 billion (up 24.36% YoY), while domestic business revenue was 4.32 billion (up 13.52% YoY) [1] Cost and Margin Analysis - The gross margin improved to 33.77% (up 0.45 percentage points), driven by a higher proportion of modern wound dressings and surgical infection control products [1] - Financial expense ratio increased to 2.23% (up 2.69 percentage points), primarily due to increased exchange losses [1] Future Outlook - The company anticipates gradual improvement in performance as the impact of overseas inventory clearance diminishes and domestic industry adjustments ease [1][3] - The adjusted profit forecasts reflect a strong recovery trajectory, with expected net profit growth rates of 101%, 28%, and 24% for the years 2024, 2025, and 2026 respectively [1][3]