SONOSCAPE(300633) Guohai Securities·2024-10-31 13:45Investment Rating - The investment rating for the company is "Buy" (maintained) [2][8]. Core Views - The demand for medical devices in China is poised for growth, supported by government policies encouraging equipment upgrades [3]. - The company has experienced short-term revenue pressure, with a projected revenue decline of 4.74% year-on-year for the first three quarters of 2024 [2]. - Despite the short-term challenges, the company is expected to benefit from the implementation of equipment upgrade policies, which could drive future revenue growth [3]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported revenue of 1.398 billion yuan, a decrease of 4.74% year-on-year, and a net profit attributable to shareholders of 109 million yuan, down 66.01% year-on-year [2]. - In Q3 2024 alone, the company achieved revenue of 386 million yuan, representing a year-on-year decline of 9.18%, with a net loss of 62 million yuan [2]. Market Outlook - The State Council released a plan to promote large-scale equipment upgrades, which is expected to benefit the medical device market [3]. - The company has launched the "Start New" equipment upgrade program, covering a full range of innovative devices, which is anticipated to enhance its market position [3]. Research and Development - The company has increased its R&D expenditure to 338 million yuan in the first three quarters of 2024, a rise of 28.33% year-on-year, accounting for 24.20% of its revenue [3]. - The company has established seven R&D centers globally, maintaining its core technological advantages [3]. Earnings Forecast - The revenue projections for 2024-2026 are 2.126 billion yuan, 2.597 billion yuan, and 3.193 billion yuan, respectively, with net profits expected to be 253 million yuan, 466 million yuan, and 627 million yuan [6][8]. - The company’s P/E ratios are projected to be 61x, 33x, and 25x for the years 2024, 2025, and 2026, respectively [3][6].