SONOSCAPE(300633) Huachuang Securities·2024-10-31 12:50Investment Rating - The report maintains a "Recommended" investment rating for the company with a target price of 41 CNY [1]. Core Views - The company's revenue is under pressure, with a significant decline in profits due to increased expenses. The net profit attributable to the parent company for Q3 2024 was -0.62 billion CNY, a decrease of 242.34% [1]. - The company is expected to benefit from the gradual recovery of procurement demand in hospitals as equipment update policies are implemented [1]. - Despite the revenue decline, the company continues to invest heavily in sales and R&D, leading to a significant increase in expense ratios [1]. Financial Performance Summary - For Q3 2024, the company reported a revenue of 1.39 billion CNY, down 66.01% year-on-year, and a net profit of -0.62 billion CNY, reflecting a substantial decline [1]. - The gross profit margin for Q3 2024 was 64.37%, slightly down due to a decrease in domestic revenue contribution [1]. - The sales expense ratio was 44.49%, and the R&D expense ratio was 32.72%, indicating a focus on maintaining high levels of investment in these areas despite declining revenues [1]. Future Outlook - The company is positioned to benefit from the acceleration of equipment updates, which is expected to release delayed procurement demand from hospitals [1]. - The company ranks among the top ten in the global ultrasound industry and holds a significant market share in the domestic endoscope market, indicating a strong competitive position [1]. - The introduction of innovative equipment under the "New Start" program is anticipated to enhance performance by the end of this year and into next year [1].